Does Malaysia or Taiwan tax foreign income?

Malaysia: Malaysian-source income. Foreign-source income remitted by a resident individual is exempt through 31 December 2036, and unremitted foreign income sits outside the tax base. Taiwan: Individual income tax is levied on income derived from sources in the Republic of China; foreign-source income is reached only through the separate income basic tax.

When do Malaysia and Taiwan treat you as tax resident?

Malaysia: Day count, 182 days of physical presence in a calendar year. Taiwan: Day count, A person with no domicile in the Republic of China who stays for more than 183 days in a taxable year is a resident for income tax purposes. Foreign income enters separately, Foreign-source income is brought into the basic income calculation only where a filing unit's relevant income reaches TWD 1,000,000, and basic tax applies at 20% on what remains after a TWD 7,500,000 deduction. A tax residency test runs separately from the permit that lets you live there, so holding one does not settle the other.

Malaysia vs Taiwan: tax, residency and citizenship compared

Malaysia taxes only income that arises there (remitted foreign income exempt to 2036), while Taiwan taxes only income that arises there (foreign income reached above TWD 7.5m). Malaysia's lowest cited income floor is $2,000 a month, against $5,000 in Taiwan. Malaysia naturalises after 10 years of residence, and Taiwan naturalises after 5 years of residence (original nationality surrendered).

Malaysia sources verified 2026-07-16. Taiwan sources verified 2026-08-06.

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Malaysia and Taiwan compared on tax, entry routes and citizenship
MalaysiaSources verified 2026-07-16	TaiwanSources verified 2026-08-06
Personal income tax
Territorialremitted foreign income exempt to 2036Foreign-source income exemption, Ministry of Finance (MOF)	Territorialforeign income reached above TWD 7.5mIncome Tax Act, art. 2
Lowest cited income floor, a month
$2,000 Remote workDE Rantau Nomad Pass, MDEC	$5,000 EmploymentEmployment Gold Card, field of economy (National Development Council)
Lowest cited investment route
$65,000 InvestorMM2H programme guidelines, Ministry of Tourism, Arts and Culture	Not in this dossier yet
Citizenship
Residence first10 yrs Federal Constitution of Malaysia, Article 19 (Attorney General's Chambers)	Residence first5 yrs original nationality surrendered Nationality Act, art. 3
Your current passport
Given up on naturalisationFederal Constitution of Malaysia, Articles 19 and 24 (Attorney General's Chambers)	Given up on naturalisationNationality Act, art. 9
EU access and English
No EU accessEnglish widely spoken	No EU accessEnglish not widespread

* OmniFlag's own assessment, not a figure from a statute.

The full comparison, in words

Malaysia and Taiwan differ on the three things a mover weighs first: what each taxes, the cheapest cited way in, and how long citizenship takes. On tax, Malaysia taxes only income that arises there (remitted foreign income exempt to 2036), while Taiwan taxes only income that arises there (foreign income reached above TWD 7.5m). On entry, Malaysia's lowest cited income floor is $2,000 a month on its remote work route. Taiwan's lowest cited income floor is $5,000 a month on its employment route. On citizenship, Malaysia naturalises after 10 years of residence, and Taiwan naturalises after 5 years of residence (original nationality surrendered). The table below sets every cited figure side by side, and each dossier carries the full detail.

Common questions

Does Malaysia or Taiwan tax foreign income?
Malaysia: Malaysian-source income. Foreign-source income remitted by a resident individual is exempt through 31 December 2036, and unremitted foreign income sits outside the tax base. Taiwan: Individual income tax is levied on income derived from sources in the Republic of China; foreign-source income is reached only through the separate income basic tax.
When do Malaysia and Taiwan treat you as tax resident?
Malaysia: Day count, 182 days of physical presence in a calendar year. Taiwan: Day count, A person with no domicile in the Republic of China who stays for more than 183 days in a taxable year is a resident for income tax purposes. Foreign income enters separately, Foreign-source income is brought into the basic income calculation only where a filing unit's relevant income reaches TWD 1,000,000, and basic tax applies at 20% on what remains after a TWD 7,500,000 deduction. A tax residency test runs separately from the permit that lets you live there, so holding one does not settle the other.
What is the cheapest cited way to live in Malaysia or Taiwan?
Malaysia's lowest cited income floor is $2,000 a month on its remote work route. Taiwan's lowest cited income floor is $5,000 a month on its employment route.
Which grants citizenship sooner, Malaysia or Taiwan?
Malaysia naturalises after 10 years of residence. Taiwan naturalises after 5 years of residence (original nationality surrendered). Malaysia asks you to give your current passport up. Taiwan asks you to give your current passport up.

Read each dossier in full

Southeast Asia

Malaysia

Foreign income untaxed through 2036, a nomad pass, and a low-cost English-friendly base in Southeast Asia.

Foreign income: Exempt to 2036

Nomad floor: $24k/yr

Citizenship10 yrs

East Asia

Taiwan

A self-sponsored work permit that tests salary history, not capital, with permanent residence in three years.

Gold Card: TWD 160k/mo

Permanent residence: 3 yrs

Citizenship5 yrs

original nationality surrendered

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