Tax under MM2H
The ministry’s own category overview states: no tax on foreign funds or foreign income, and none on the profit earned by the fixed deposit in Malaysia. That is the whole of the published programme position. Everything else about your tax residency or Malaysian-source income sits with the Inland Revenue Board, not with MOTAC and not with this page.
What MOTAC publishes
Across the category overview and the Silver, Gold, Platinum and SEZ pages, the programme speciality is written as a tax exemption on incoming funds such as the fixed deposit. In the overview table it appears as: no tax on foreign funds or income, and no tax on profit on fixed deposits in Malaysia.
No tax on foreign funds or foreign income brought in, and none on the profit earned by the fixed deposit in Malaysia. This is the programme stating its own tax position; how any particular income is treated still depends on your tax residency and is a matter for the Inland Revenue Board.
Foreign funds and foreign income
The published wording covers foreign funds and foreign income brought into Malaysia under the programme, and the interest or profit earned on the required Malaysian fixed deposit. It is a category benefit of the pass, not a private ruling and not a substitute for filing where filing is required.
What this does not cover
- Malaysian employment or business income (relevant if you are on Platinum).
- Malaysian rental or other local-source income.
- Whether you are a Malaysian tax resident under Inland Revenue Board tests.
- Tax in your home country on remittances, worldwide income or exit rules.
Those questions need a qualified adviser and the Inland Revenue Board, not a tourism-ministry programme page.
Not tax advice
This page restates the ministry’s published programme speciality with a verified-on date. It is not advice, not a residency determination, and not a promise that any particular remittance is exempt in your case. Where this page and the ministry disagree, the ministry is correct.
Read from the MOTAC category overview and category pages on 2026-08-25. Tax residency and filing obligations are determined under Inland Revenue Board rules.
Common questions
- Is foreign income taxed under MM2H?
- The ministry’s category overview states there is no tax on foreign funds or foreign income brought in, and none on the profit earned by the fixed deposit in Malaysia. How any particular income is treated still depends on your tax residency and is a matter for the Inland Revenue Board, not for this page.
- Does MM2H exempt Malaysian-source income?
- The programme statement covers foreign funds, foreign income brought in, and profit on the Malaysian fixed deposit. It does not say Malaysian employment, business or rental income is exempt. Platinum permits work and business; those earnings are a separate tax question for the Inland Revenue Board.
- Does an MM2H pass make me a Malaysian tax resident?
- MOTAC does not decide tax residency. Residency for Malaysian tax purposes is determined under Inland Revenue Board rules. This site does not apply those tests or give tax advice.
Related: requirements, tax row, the four categories, and work under the pass (Platinum and the separate permission-to-work procedure).