An individual is regarded as tax resident if he meets any of the following conditions, i.e. if he is:
- business trips
- treatment for ill-health
- social visits not exceeding 14 days
Chargeable income (RM) |
YA 2023 and YA 2024 |
|
Tax (RM) |
% on excess |
|
5,000 |
0 |
1 |
20,000 |
150 |
3 |
35,000 |
600 |
6 |
50,000 |
1,500 |
11 |
70,000 |
3,700 |
19 |
100,000 |
9,400 |
25 |
400,000 |
84,400 |
26 |
600,000 |
136,400 |
28 |
2,000,000 |
528,400 |
30 |
The following categories of individuals are taxed at 15% on the employment income:
A qualified person (defined) who is a knowledge worker residing in Iskandar Malaysia and employed with a designated company engaged in a qualified activity in that specified region.
An approved individual under the Returning Expert Programme who is a resident. The incentive is for 5 consecutive YAs. (Applications received by Talent Corporation Malaysia Berhad from 1 January 2021 to 31 December 2023, extended to 31 December 2027).
A non-citizen receiving a monthly salary of not less than RM25,000 and holding key / C-Suite positions in a company that has been granted relocation tax incentive under the PENJANA initiative (limited to 5 non-resident individuals per company). The incentive is for a period of 5 consecutive years. (Announced to be extended until 2024).
2. Non-resident individuals
Income other than the above Types of income |
Rate (%) |
Public entertainer’s professional income |
15 |
Interest |
15 |
Royalties |
10 |
Special classes of income:
|
10 |
Dividends (single-tier) |
Exempt |
Business income, employment income, discounts, rents, premiums, pensions, annuities, other periodical payments and other gains or profits (include payments received for part-time / occasional broadcasting, lecturing, writing, etc.) |
30 |
Income other than the above |
10 |
Foreign film actors and movie crews who carry out filming in Malaysia |
0-10 |
Types of relief |
YA 2023 / YA 2024 (RM) |
Self |
9,000 |
Disabled individual - additional relief for self |
6,000 |
Spouse |
4,000 |
Disabled spouse - additional spouse relief |
5,000 |
Child: |
|
a) per unmarried child |
|
i) below 18 years old |
2,000 |
ii) over 18 years old: - receiving full-time instruction at school, college, university or similar establishment; OR |
2,000 |
- receiving full-time instruction at an establishment of higher education (approved by the government) in respect of: - diploma level and above in Malaysia, or
|
8,000 |
b) per physically / mentally disabled child: |
|
- unmarried, |
6,000 |
- AND IF over 18 years of age receiving full-time instruction at an establishment of higher education (approved by the government) in respect of: |
additional 8,000 |
Life insurance premiums or voluntary contributions to Employee Provident Fund (EPF) or for both |
3,000* |
Voluntary or obligatory EPF contributions and contributions to pension schemes by individuals or public servants |
4,000* |
Private retirement scheme contributions and deferred annuity scheme premiums (until YA 2025) |
3,000* |
Insurance premiums for education or medical benefits |
3,000* |
Expenses on medical treatment, dental treatment, special needs or carer expenses for parents (evidenced by medical certification). W.e.f YA 2024, expanded to include full medical examination, limited to RM1,000 |
8,000* |
Employee’s contribution to Social Security Organisation (SOCSO) and Employment Insurance System |
350* |
Medical expenses for:
|
10,000* |
Fee expended for:
|
7,000* |
Purchase of supporting equipment for self (if a disabled person) or for disabled spouse, child or parent |
6,000* |
Lifestyle relief consolidated with the following:
|
2,500*
|
Purchase of breastfeeding equipment (once in every 2 YAs) |
1,000* |
Fees paid to childcare centre and kindergarten (until YA 2024) |
3,000* |
Deposit for child into the Skim Simpanan Pendidikan Nasional account (until YA 2024) |
8,000* |
Sports Equipment and Activities relief for own use, spouse or child:
|
500*
(Increased to 1,000 w.e.f YA 2024)* |
Costs related to electric vehicle charging facilities, including installation, rental, hire-purchase of equipment, or subscription fees (YA 2022 and YA 2023, extended to YA 2027) |
2,500* |
* Maximum relief
Types of rebate |
YA 2023 / YA 2024 (RM) |
Individual’s chargeable income does not exceed RM35,000 |
400 |
If husband and wife are separately assessed and each chargeable income does not exceed RM35,000 |
400 (each) |
If husband and wife are jointly assessed and the joint chargeable income does not exceed RM35,000 |
800 |
Rebate for Zakat, Fitrah or other Islamic religious dues paid |
Actual amount expended |
Rebate for departure levy paid for performing umrah and pilgrimage to holy places. |
Actual amount expended (twice in a lifetime) |
The above rebate granted is deducted from tax charged and any excess is not refundable.