PR 2/2026 Tax Treatment of Foreign Nationals Exercising Employment in Malaysia

By Admin | 11 April 2026

Attention Foreign Employees in Malaysia!

The Inland Revenue Board of Malaysia has issued PR No. 2/2026, updating PR No. 8/2011:

Where tax is determined:
     ✅ Based on where duties are physically performed
     ❌ Not where the contract is signed or salary is paid

 For foreign nationals working in Malaysia:

1. Income is derived from Malaysia if work is done here
2. Taxed in the year it is received or receivable 

Key takeaway:

1. Clearer wording, stronger emphasis, better examples  
2. No new rules — just clearer interpretation

📩 Need help with your tax filing?
Email: info@taxguardsadvisory.com