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Labuan: Personal Taxation

Social Security Taxes

No social security tax is levied in Malaysia, but employees are required to contribute to the Employees' Provident Fund (EPF).

The statutory rate of contribution is 23% of monthly wages at the time of writing, 12% paid by the employer and 11% by the employee. Employees' contributions are deducted at source. There is no maximum salary level.

Expatriates who earn above a certain amount per month are not required to contribute to the EPF, but may choose to do so in order to gain tax relief: contributions may be withdrawn if the employee leaves Malaysia permanently with no intention of returning, and there is no tax charge on withdrawal.



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