0% tax on foreign income for DE Rantau holders in Malaysia lasts until Dec. 31

Malaysia's DE Rantau Nomad Pass keeps foreign income tax-free until 2036

How the tax rule works

Malaysia says holders of the DE Rantau Nomad Pass can get a 0% tax rate on foreign-sourced income through Dec. 31, 2036. The clarification comes from the Finance Act 2024 amendment and corrects earlier claims that the benefit ended in 2026.

The tax break applies only when nomads meet Malaysia's foreign-sourced income rules. That means becoming a tax resident by spending at least 182 days in Malaysia in a tax year, earning the money from non-Malaysian entities, paying tax on it in the source country and declaring it to the tax office, LHDN.

Who can use it

The pass is open to foreign digital workers 18 and older who work for non-Malaysian companies. Eligible applicants include tech talent such as software engineers, cybersecurity specialists and AI workers, plus non-tech roles including executives, consultants and marketing managers.

It fits remote workers and freelancers who can stay long enough to meet tax residency rules. Short-term visitors and tourists don't qualify. Income from Malaysian clients or employers is still taxed under local rates, while foreign income may be exempt if the residency test is met.

What applicants need to prepare

The pass is applied for online through MDEC and costs MYR 1,000 for the main applicant, plus MYR 500 per dependent and MYR 30 a month after approval. MDEC says approval takes 4 to 8 weeks, though real-world processing can stretch to several months.

Applicants need a passport scan, CV, bank statements, income proof, remote-work contract, police clearance, education certificate, LHDN tax registration, insurance and photos. Read our full Malaysia guide for the complete picture and check visa updates for more briefs.