Malaysia Issues Updated Public Ruling on Tax Treatment of Foreign Nationals Exercising Employment in Malaysia

The Inland Revenue Board of Malaysia has issued Public Ruling No. 2/2026, which explains the tax treatment of employment income derived by foreign nationals exercising employment or sent on secondment to Malaysia. Public Ruling No. 2/2026 updates and replaces Public Ruling No. 8/2011.

In particular, the Public Ruling:

• Defines the criteria for taxing employment income derived by foreign nationals physically working or seconded in Malaysia;
• Explains that income from leave or duties performe…