All You Need to Know about Budget 2023
Your takeaways on Malaysia Budget 2023, tabled on 24 Feb 2023. Stay tuned for more updates (last updated 24 Feb 2023).
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Budget 2023 Summary
Malaysia Business & Budget 2023 Pocket Guide
What’s in store for you:
- Investing in Malaysia
- Setting up in Malaysia: Rules & Regulations
- Industrial Relations and Social Security
- Financial Reporting and Audit
- Taxes on Your Business Income
- Taxes on Your Personal Income
- Other Taxes
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Budget 2023 Malaysia FAQ
What is the theme of Budget 2023 Malaysia?
What is the theme of Budget 2023 Malaysia?
The theme of Malaysia’s Budget 2023 is known as “Developing Malaysia Madani”.
What is the main focus of the Budget 2023 in Malaysia?
What is the main focus of the Budget 2023 in Malaysia?
Malaysia Budget 2023 focuses on the following:
- fiscal sustainability;
- meeting citizens’ economic needs;
- proactive readiness for natural disaster;
- attracting high-impact investment;
- renewal of the public sector;
- solidifying public-private partnership;
- prioritisation of the digital agenda;
- increasing the role of government agencies and companies;
- helping those in extreme poverty;
- minimising the burden of living cost;
- ensuring harmony and progress; and
- making quality, basic necessities available.
What is the 2023 national debt in Malaysia?
What is the 2023 national debt in Malaysia?
Malaysia’s national debt in 2023 will reach RM1.2 trillion or over 60% of real GDP for 2023.
2023 Individual Income Tax Malaysia FAQ
What is the 2023 individual income tax rate in Malaysia?
What is the 2023 individual income tax rate in Malaysia?
| Chargeable Income (RM) | Current Tax Rate (%) | Proposed Tax Rate (%) |
|---|---|---|
| 0 – 5,000 | 0 | 0 |
| 5,001 – 20,000 | 1 | 1 |
| 20,001 – 35,000 | 3 | 3 |
| 35,001 – 50,000 | 8 | 6 |
| 50,001 – 70,000 | 13 | 11 |
| 70,001 – 100,000 | 21 | 19 |
| 100,001 – 250,000 | 24 | 25 |
| 250,001 – 400,000 | 24.5 | 25 |
| 400,001 – 600,000 | 25 | 26 |
| 600,001 – 1,000,000 | 26 | 28 |
| 1,000,001 – 2,000,000 | 28 | 28 |
| Over 2,000,000 | 30 | 30 |
Note :
Chargeable income between RM 35,001 to RM 100,000 will reduce by 2%.
Chargeable income between RM 100,001 to RM 250,000 will increase by 1%.
Chargeable income between RM 250,001 to RM 400,000 will increase by 0.5%.
Chargeable income between RM 400,001 to RM 600,000 will increase by 1%.
Chargeable income between RM 600,001 to RM 1,000,000 will increase by 2%.
What 2023 income tax rebates are available for individuals in Malaysia?
What 2023 income tax rebates are available for individuals in Malaysia?
| Types of rebate | Amount (RM) |
|---|---|
| Separate assessment: Individual’s chargeable income does not exceed RM35,000 | 400 |
| Separate assessment: If husband and wife are separately assessed and each chargeable income does not exceed RM35,000 | 400 (each) |
| Joint assessment: 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 | Subject to the maximum of tax charged |
| Rebate for departure levy paid for performing umrah and pilgrimage to holy places. | Subject to the maximum of tax charged (twice in a lifetime) |
Note: No changes, same as per YA2022.
Are there any tax exemptions, tax relief or deductions for personal income tax in 2023 in Malaysia?
Are there any tax exemptions, tax relief or deductions for personal income tax in 2023 in Malaysia?
| Type of relief | Current | Proposed |
|---|---|---|
| Medical Treatment Expenses | Relief up to RM 8,000 as follow: i) serious illness for taxpayer, spouse or child; ii) fertility treatment for taxpayer or spouse; iii) vaccination for taxpayer, spouse or child limited to RM1,000; and iv) full medical check-up including mental health check-up or consultation,COVID-19 detection test inclusive of the purchase of self-test kit for taxpayer, spouse or child limited to RM1,000. | 1. Relief amount increase from RM8,000 to RM10,000 2. Scope of relief expanded to include intervention expenditure for Autism, Attention Deficit Hyperactivity Disorder (ADHD), Global Developmental Delay (GDD), Intellectual Disability, Down Syndrome and Specific Learning Disabilities limited to claim RM4,000 as below: i) diagnostic assessment certified by a medical practitioner registered with the Malaysian Medical Council (MMC); ii) early intervention and rehabilitation programmes conducted by health profession practitioners registered under the Allied Health Profession Act 2016. |
| Voluntary Contribution on EPF | 1) Contribution to approved schemes or voluntary contribution to EPF (not including private retirement scheme) or contribution under any written law. Tax relief: Up to RM 4,000 2) Life insurance premium or takaful contribution or voluntary contribution to EPF Tax relief: Up to RM 3,000 ** For civil servants under the pension scheme not voluntarily contributing to EPF, income tax relief on takaful contribution or life insurance premium payment can be claimed up to RM7,000. | Civil servants can claim tax relief of – up to RM4000 for contribution to approved schemes, voluntary contribution to EPF (not private retirement schemes) and any contribution required by written law; and – up to RM3000 for life insurance premium, takaful contribution, or voluntary contribution to EPF. |
| Child Care Centre or Kindergarden Fees | Children aged 6 years old enroll the hild Care Centres (TASKA) registered with Social Welfare Department or Child Care Centres (TADIKA) registered with the Ministry of Education Malaysia. Tax relief : RM3,000 Year of Assessment: YA2020 till YA2023 | Extended for 1 year until YA2024 |
What items and expenses are eligible for the lifestyle tax relief in 2023 in Malaysia?
What items and expenses are eligible for the lifestyle tax relief in 2023 in Malaysia?
| Tax relief | Amount (RM) |
|---|---|
| Lifestyle – Expenses for the use / benefit of self, spouse or child in respect of: i. Purchase or subscription of books / journals / magazines / newspapers / other similar publications (Not banned reading materials) ii. Purchase of personal computer, smartphone or tablet (Not for business use) iii. Purchase of sports equipment for sports activity defined under the Sports Development Act 1997 and payment of gym membership iv. Payment of monthly bill for internet subscription (Under own name) | 2,500 (Restricted) |
| Lifestyle – Additional relief for the use / benefit of self, spouse or child in respect of: i. Purchase of sports equipment for any sports activity as defined under the Sports Development Act 1997 ii. Payment of rental or entrance fee to any sports facility iii. Payment of registration fee for any sports competition where the organizer is approved and licensed by the Commissioner of Sports under the Sports Development Act 1997 | 500 (Restricted) |
| Lifestyle – Purchase of personal computer, smartphone or tablet for own use / benefit or for spouse or child and not for business use | 2,500 (Restricted) |
Note: No changes, same as per YA2022.
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