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|
Note that the tax rate for chargeable income:
What 2023 income tax rebates are available for individuals in Malaysia?
Income tax rebates available in YA2023 for individuals in Malaysia are the same as those offered in YA2022 (i.e., there has been no change). For your reference, the rebates are as follows:
|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)|
Are there any tax exemptions, tax relief or deductions for personal income tax in 2023 in Malaysia?
|Type of relief||Before||Now|
|Medical Treatment Expenses||Up to RM 8,000 for:|
serious illness for taxpayer, spouse or child;
fertility treatment for taxpayer or spouse;
vaccination for taxpayer, spouse or child limited to RM1,000; and
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. The relief amount increased from RM8,000 to RM10,000;|
2. The 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 for:
1. Diagnostic assessment, certified by a medical practitioner registered with the Malaysian Medical Council (MMC); and
2. Early intervention and rehabilitation programmes, conducted by health profession practitioners registered under the Allied Health Profession Act 2016.
|Voluntary Contribution on EPF||Up to RM4,000 for making contribution to approved schemes or voluntary contribution to EPF (not including private retirement scheme) or contribution under any written law. |
Up to RM3,000 for making life insurance premium or takaful contribution or voluntary contribution to EPF.
Civil servants under the pension scheme, and not voluntarily contributing to EPF, may claim income tax relief of up to RM7,000 for making takaful contribution or life insurance premium payment.
|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||Up to RM3,000, from YA2020 until YA2023, enrolling children, aged 6 years, in child care centres, specifically the following: |
any Taska registered with JKM (Jabatan Kebajikan Masyarakat); or
any Tadika registered with KPM (Kementerian Pendidikan Malaysia).
|Extended for 1 more year until YA2024|