2000 BUDGET ISSUE


 
INCOME TAX


1. Reduction in Personal Income Tax Rates

The current income tax rates for resident individuals range from 0% to 30%. It is proposed that effective year of assessment 2000 (current year basis), these rates be reduced across the board as shown below :-

Chargeble
Income
RM

Tax Rate

Tax Payable

Tax

Existing
%

Proposed
%

Existing
RM

Proposed
RM

Reduction
RM

2,500

0

0

0

0

0

2,500

2

1

50

25

25

------------

-----------

-----------

-----------

5,000

50

25

25

5,000

4

3

200

150

50

------------

-----------

-----------

-----------

10,000

250

175

75

10,000

6

5

600

500

100

-------------

-----------

-----------

-----------

20,000

850

675

175

15,000

10

9

1,500

1,350

150

-------------

-----------

-----------

-----------

35,000

2,350

2,025

325

15,000

16

15

2,400

2,250

150

-------------

-----------

-----------

-----------

50,000

4,750

4,275

475

20,000

21

20

4,200

4,000

200

-------------

-----------

-----------

-----------

70,000

8,950

8,275

675

30,000

26

25

7,800

7,500

300

-------------

-----------

-----------

-----------

100,000

16,750

15,775

975

50,000

29

28

14,500

14,000

500

-------------

-----------

-----------

-----------

150,000

31,250

29,775

1,475

 

 

 

Thereafter

30

29

 

 

 

The reduction in tax payable by those with a chargeable income between RM50,000 and RM1 million is shown below : 

Chargeable

 

 

 

 

Income

Existing

Proposed

Tax Reduction

RM

RM

RM

RM

%

50,000

4,750

4,275

475

10.0

100,000

16,750

15,775

975

5.8

150,000

31,250

29,775

1,475

4.7

200,000

46,250

44,275

1,975

4.3

250,000

61,250

58,775

2,475

4.0

500,000

136,250

131,275

4,975

3.7

1,000,000

286,250

276,275

9,975

3.5




A comparison of Malaysia's personal tax rates to those of neighboring countries is shown in the table below:-

PERSONAL TAX RATES IN SOME ASEAN COUNTRIES

CHARGEABLE
INCOME
RM

CORRESPONDING TAX BRACKET FOR EACH INCOME LEVEL

MALAYSIA

SINGAPORE

INDONESIA

THAILAND

PHILIPPINES

VIETNAM

5,000

1

2

10

5

15

0

10,000

3

2

10

10

20

10

20,000

5

5

15

10

25

30

30,000

9

5

30

10

30

60

40,000

15

5

30

10

30

60

50,000

15

8

30

20

33

60

60,000

20

8

30

20

33

60

70,000

20

8

30

20

33

60

80,000

25

8

30

20

33

60

90,000

25

12

30

20

33

60

100,000

25

12

30

30

33

60

150,000

28

16

30

30

33

60

200,000

29

20

30

30

33

60

300,000

29

22

30

30

33

60

400,000

29

23

30

37

33

60

500,000

29

26

30

37

33

60

1,000,000

29

28

30

37

33

60





|Home|Contents|

This report is reproduced with permission from Kassim Chan Tax Services Sdn Bhd (36421-T) and Deloitte Touche Tohmatsu Tax Services Sdn Bhd (151497-P).
Address: Level 16, Uptown 1, 1 Jalan SS21/58, Damansara Uptown, 47400 Petaling Jaya, Malaysia.
Tel: (603) 715 1888, Fax: (603) 715 7768, (603) 715 7769
Email:
tax@kassimchan.com.my / tax@deloitte.com.my

No part of this report may be reproduced in any form without the prior consent of Kassim Chan Tax Services Sdn Bhd and Deloitte Touche Tohmatsu Tax Services Sdn Bhd.

Another Malaysian resource site designed and hosted by MIR Communications Sdn Bhd.