Review of Individual Resident Income Tax Rates

Update: The Ismail Sabri Government Budget is no longer applicable. Malaysia's national budget for 2023 was re-tabled again in February 2023.

To Download Revised Budget 2023 Speech and some other related publications - https://www.ccs-co.com/post/budget-2023-malaysia-madani

Current Position | 目前情况

The resident individual income tax rate is progressive between 0% and 30% on chargeable income.

The income tax rate for non-resident individuals is 30%.

居民个人所得税的税率在课税收入 [chargeable income] 的0%和30%之间累进。

非居民个人的所得税税率为30%。

The Resident Individual income tax rate effective from the year of assessment 2021 is as follows:

从2021年评估年度开始生效的居民个人所得税税率如下:-

Proposal | 建议

Here are the current and proposed individual income tax rates for comparison:

以下是现行和提议的个人所得税税率，以供比较:-

Below are the savings and increase in income tax for individuals resulting from the changes in tax rates:

以下是税率变化带来的个人所得税的节省和增加:

Assuming that after deducting personal reliefs, your chargeable income is exactly RM50,000, under the current tax rate, you would be required to pay a tax of RM1,800. Under this proposal, you would be required to pay a tax of RM1,500, which is a reduction of 16.7%.

Assuming that after deducting personal reliefs, your chargeable income is exactly RM70,000, under the current tax rate, you would be required to pay a tax of RM4,400. Under this proposal, you would be required to pay a tax of RM3,700, which is a reduction of 15.9%.

假设在扣除个人税务减免[Personal relief] 后，如果你的课税收入 [chargeable income] 刚好是 RM50,000，按照现有的税率，你所需要缴付的税款为 RM 1,800 。然而，在这项建议下，你所需要缴付的税款为 RM 1,500 ，减少了16.7%。

假设在扣除个人税务减免[Personal relief] 后，如果你的课税收入 [chargeable income] 刚好是 RM70,000，按照现有的税率，你所需要缴付的税款为 RM 4,400 。然而，在这项建议下，你所需要缴付的税款为 RM 3,700 ，减少了15.9%。

Assuming that after deducting personal reliefs, your chargeable income is exactly RM100,000, under the current tax rate, you would be required to pay a tax of RM10,700. Under this proposal, you would be required to pay a tax of RM9,400, which is a reduction of 12.1%.

假设在扣除个人税务减免[Personal relief] 后，如果你的课税收入 [chargeable income] 刚好是 RM100,000，按照现有的税率，你所需要缴付的税款为 RM 10,700 。然而，在这项建议下，你所需要缴付的税款为 RM 9,400 ，减少了12.1%。

However, if you are a high-income earner, assuming that after deducting personal reliefs, your chargeable income is exactly RM250,000, under the current tax rate, you would be required to pay a tax of RM46,700. However, under this proposal, you would be required to pay a tax of RM46,900, which is an increase of 0.4%. 但是，如果你是高收入群体。假设在扣除个人税务减免[Personal relief] 后，如果你的课税收入 [chargeable income] 刚好是 RM 250,000，按照现有的税率，你所需要缴付的税款为 RM 46,700 。然而，在这项建议下，你所需要缴付的税款为 RM 46,900 ，增加了0.4%。

Assuming that after deducting personal reliefs, your chargeable income is exactly RM2,000,000, under the current tax rate, you would be required to pay a tax of RM517,450. However, under this proposal, you would be required to pay a tax of RM528,400, which is an increase of 2.1%. 假设在扣除个人税务减免[Personal relief] 后，如果你的课税收入 [chargeable income] 刚好是 RM 2,00,000，按照现有的税率，你所需要缴付的税款为 RM 517,450 。然而，在这项建议下，你所需要缴付的税款为 RM 528,400 ，增加了2.1%。

Effective Date

From the year of assessment 2023.

Comments | 评论

The proposed changes in the individual income tax rate aim to address the high cost of living in Malaysia and increase disposable income among middle-income earners.

By reducing the tax rate for chargeable incomes between RM35,001 to RM100,000, and increasing the tax rate for those with higher chargeable incomes, the tax system becomes more progressive.

This means that individuals with higher incomes pay a proportionally larger share of their income in taxes.

The proposed changes are also intended to stimulate economic growth by increasing consumer spending, which could ultimately lead to job creation and a more robust economy.

这项建议的个人所得税率变动旨在应对马来西亚的高物价和提高中等收入者的可支配收入。

通过降低 RM35,001 至 RM100,000 之间的课税收入的税率，并增加更高课税收入的纳税比例，个人所得税制度变得更具累进性 [more progressive]。

这意味着高收入者需要按比例支付更大份额的所得税。

这项建议的变化也旨在通过增加消费支出刺激经济增长，这最终可能会导致就业增加和更强劲的经济。