The current tax structures for expatriates and non-residents are as follows:
If your stay in Malaysia is less than 60 days, then any income, fee, commissions or bonus received will not be taxed
If during your period of employment, your stay is not more than 182 days in a year, then you are a non-resident. As a non-resident, you will be taxed at a flat rate of 25% and you will not enjoy any tax incentives. UPDATE: The Malaysian Inland Revenue Board, (or known locally as Lembaga Hasil Dalam Negeri or LHDN for short) had increased the tax to 28% with effect from Year Assessment 2016
If your stay is more than 182 days in a year, then you are a RESIDENT. A resident will be taxed at a graduated rate of 0% to 25% depending on your income. You will also enjoy the tax incentives that includes personal and family rebates, allowances, etc. that will reduce your net taxable income considerably
If you work on board a Malaysian ship, your income is not taxable