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Appendices
Tax Measures Budget 2021
APPENDIX 1
Review of Income Tax Rate for Resident Individual Current Position.
The income tax structure for resident individuals is based on progressive rates
ranging from 0% to 30% on chargeable income as follows:
|
Chargeable Income (RM)
|
Current Tax Rates (%)
|
|
0 - 5,000
|
0
|
|
5,001 - 20,000
|
1
|
|
20,001 - 35,000
|
3
|
|
35,001 - 50,000
|
8
|
|
50,001 - 70,000
|
14
|
|
70,001 - 100,000
|
21
|
|
100,001 - 250,000
|
24
|
|
250,001 - 400,000
|
24.5
|
|
400,001 - 600,000
|
25
|
|
600,001 - 1,000,000
|
26
|
|
1,000,001 - 2,000,000
|
28
|
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2,000,001 and above
|
30
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Non-resident individuals are subject to income tax at a flat rate
of 30%.
Proposal
To increase the disposable income of individual tax payer and
especially to assist the tax payers in the middle income group affected by the
current economic situation, it is proposed that the income tax rate for
resident individuals be reduced by 1 percentage point for the chargeable
income band of RM50,001 to RM70,000.
Income tax savings for individuals resulting from the reduction
of tax rate are as follows:
|
Chargeable Income (RM)
|
Current
|
Proposal
|
Tax Savings
|
|
Tax Rate (%)
|
Tax Payable (RM)
|
Tax Rate (%)
|
Tax Payable (RM)
|
(RM)
|
(%)
|
|
0 - 5,000
|
0
|
-
|
-
|
-
|
0
|
0
|
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5,001 - 20,000
|
1
|
0*
|
1
|
0*
|
0
|
0
|
|
20,001 - 35,000
|
3
|
200*
|
3
|
200*
|
0
|
0
|
|
35,001 - 50,000
|
8
|
1,800
|
8
|
1,800
|
0
|
0
|
|
50,001 - 70,000
|
14
|
4,600
|
13
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4,400
|
200
|
4.55
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70,001 - 100,000
|
21
|
10,900
|
21
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10,700
|
200
|
1.87
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100,001 - 250,000
|
24
|
46,900
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24
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46,700
|
200
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0.43
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250,001 - 400,000
|
24.5
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83,650
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24.5
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83,450
|
200
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0.24
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400,001 - 600,000
|
25
|
133,650
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25
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133,450
|
200
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0.15
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600,001 - 1,000,000
|
26
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237,450
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26
|
237,250
|
200
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0.08
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1,000,001 - 2,000,000
|
28
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517,450
|
28
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517,250
|
200
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0.04
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2,000,001 and above
|
30
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30
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After rebate of RM400 for chargeable income up to RM35,000
Effective Date From the year of assessment 2021.
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