Income tax rates are at the core of every taxpayer’s financial landscape. As we step into 2023, it’s essential to know the latest income tax rate updates. In this post, we will provide you with a clear and concise breakdown of the 2023 income tax rates, ensuring you’re up-to-date and well-informed about the rates that directly affect your earnings.
| Chargeable income (RM) | Calculations (RM) | Rate (%) | Tax (RM) |
|---|---|---|---|
|
0 - 5,000 |
On the First 5,000 |
0 |
0 |
|
5,001 - 20,000 |
On the First 5,000
|
|
0 |
|
|
Next 15,000 |
1
|
150 |
|
20,001 - 35,000 |
On the First 20,000
|
|
150
|
|
|
Next 15,000 |
3 |
450 |
|
35,001 - 50,000 |
On the First 35,000
|
|
600
|
|
|
Next 15,000 |
6 |
900 |
|
50,001 - 70,000 |
On the First 50,000
|
|
1,500 |
|
|
Next 20,000 |
11 |
2,200 |
|
70,001 - 100,000 |
On the First 70,000
|
|
3,700
|
|
|
Next 30,000 |
19 |
5,700 |
|
100,001 - 400,000 |
On the First 100,000
|
|
9,400
|
|
|
Next 300,000 |
25 |
75,500 |
|
400,001 - 600,000 |
On the First 400,000
|
|
84,400
|
|
|
Next 200,000 |
26 |
52,000 |
|
600,001 - 2,000,000 |
On the First 600,000 |
|
136,400 |
|
|
Next 1,400,000 |
28 |
392,000 |
|
Exceeding 2,000,000 |
On the First 2,000,000 |
|
528,400
|
|
|
Next ringgit |
30 |
... |
It is important to note that Malaysian residents are entitled to certain tax deductions and exemptions, such as those for personal relief, medical expenses, education fees, and charitable contributions. Non-residents are taxed at a flat rate of 30% on their Malaysian-sourced income.
It is advisable to consult with a tax professional or seek guidance from the Inland Revenue Board of Malaysia for more information on the tax regulations and requirements in Malaysia.
Source Link: https://www.hasil.gov.my/en/individual/individual-life-cycle/how-to-declare-income/tax-rate/