|
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
|
|
