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Personal Income Tax 2023/2024

Personal Income Tax

Tax residence status of individuals

An individual is regarded as tax resident if he meets any of the following conditions, i.e. if he is:


  • in Malaysia for at least 182 days in a calendar year;

  • in Malaysia for a period of less than 182 days during the year but that period is linked to a period of physical presence of 182 or more consecutive days in the following or preceding year. Temporary absences from Malaysia due to the following reasons are counted as part of the consecutive days, provided that the individual is in Malaysia before and after each temporary absence:


- business trips

- treatment for ill-health

- social visits not exceeding 14 days


  • in Malaysia for 90 days or more during the year and, in any 3 of the 4 immediately preceding years, he was in Malaysia for at least 90 days or was resident in Malaysia; or

  • resident for the year immediately following that year and for each of the 3 immediately preceding years.


Rates of tax

1.   Resident individuals

Chargeable income (RM)

YA 2023 and YA 2024



Tax (RM)

% on excess

5,000

0

1

20,000

150

3

35,000

600

6

50,000

1,500

11

70,000

3,700

19

100,000

9,400

25

400,000

84,400

26

600,000

136,400

28

2,000,000

528,400

30

The following categories of individuals are taxed at 15% on the employment income:


  • A qualified person (defined) who is a knowledge worker residing in Iskandar Malaysia and employed with a designated company engaged in a qualified activity in that specified region.

  • An approved individual under the Returning Expert Programme who is a resident. The incentive is for 5 consecutive YAs. (Applications received by Talent Corporation Malaysia Berhad from 1 January 2021 to 31 December 2023, extended to 31 December 2027).

  • A non-citizen receiving a monthly salary of not less than RM25,000 and holding key / C-Suite positions in a company that has been granted relocation tax incentive under the PENJANA initiative (limited to 5 non-resident individuals per company). The incentive is for a period of 5 consecutive years. (Announced to be extended until 2024).

  • A non-citizen individual receiving a monthly salary of at least RM35,000 and holding key / C-Suite positions in a new company approved as a Global Services Hub (limited to 3 non-citizen individuals). The incentive is for a period of 3 consecutive YAs. (Application received by MIDA from 14 October 2023 until 31 December 2027). 


2.   Non-resident individuals

Income other than the above Types of income

Rate (%)

Public entertainer’s professional income

15

Interest

15

Royalties

10

Special classes of income:

  • Rental of moveable properties

  • Advice, assistance or services rendered in Malaysia 

10

Dividends (single-tier)

Exempt

Business income, employment income, discounts, rents, premiums, pensions, annuities, other periodical payments and other gains or profits (include payments received for part-time / occasional broadcasting, lecturing, writing, etc.)

30

Income other than the above 

10

Foreign film actors and movie crews who carry out filming in Malaysia

0-10

 

Personal reliefs for resident individuals

Types of relief

YA 2023 / YA 2024 (RM)

Self

9,000

Disabled individual - additional relief for self

6,000

Spouse

4,000

Disabled spouse - additional spouse relief

5,000

Child:

 

a) per unmarried child

 

i) below 18 years old

2,000

ii) over 18 years old:

- receiving full-time instruction at school, college, university or similar establishment; OR

 

2,000

 

- receiving full-time instruction at an establishment of higher education (approved by the government) in respect of:

- diploma level and above in Malaysia, or- degree level and above outside Malaysia,OR serving under articles or indentures in a trade or profession in Malaysia

 

8,000

b) per physically / mentally disabled child:

 

- unmarried,

6,000

- AND IF over 18 years of age receiving full-time instruction at an establishment of higher education (approved by the government) in respect of:- diploma level and above in Malaysia; or- degree level and above outside Malaysia,OR serving under articles or indentures in a trade or profession in Malaysia

additional 8,000

Life insurance premiums or voluntary contributions to Employee Provident Fund (EPF) or for both

3,000*

Voluntary or obligatory EPF contributions and contributions to pension schemes by individuals or public servants

4,000*

Private retirement scheme contributions and deferred annuity scheme premiums (until YA 2025)

3,000*

Insurance premiums for education or medical benefits

3,000*

Expenses on medical treatment, dental treatment, special needs or carer expenses for parents (evidenced by medical certification).

W.e.f YA 2024, expanded to include full medical examination, limited to RM1,000

8,000*

Employee’s contribution to Social Security Organisation (SOCSO) and Employment Insurance System

350* 

Medical expenses for:

  • self, spouse or child suffering from a serious disease; 

  • expenses incurred on fertility treatment;

  • vaccination up to RM1,000 (including fees of up to RM1,000 incurred by self, spouse or child for complete medical examination, COVID-19 detection test and mental health examinations or consultations);

  • diagnostic assessment of learning disability or early intervention program or rehabilitation treatment for learning disability for a child below 18 years old, up to RM4,000 

  • dental examination or treatment by dental practitioners registered with the Malaysian Dental Council for self, spouse or child, limited to RM1,000 (W.e.f YA 2024).

10,000*

Fee expended for:

  • any course of study up to tertiary level, other than a degree at Masters or Doctorate level, undertaken for the purpose of acquiring legal, accounting, Islamic financing, technical, vocational, industrial, scientific or technological qualification or skill

  • any course of study for a degree at Masters or Doctorate level undertaken for the purpose of acquiring any qualification or skill 

  • any course of study undertaken for the purpose of upskilling and self-enhancement, limited to RM2,000 (until YA 2023, extended to YA 2026).

7,000*

Purchase of supporting equipment for self (if a disabled person) or for disabled spouse, child or parent

6,000*

Lifestyle relief consolidated with the following:

  • purchase or subscription of books, journals, magazines, newspaper and other similar publications (in the form of hardcopy or electronic) for the purpose of enhancing knowledge

  • purchase of personal computer, smartphone or tablet

  • purchase of sports equipment and gym memberships (reclassified to be included in the special tax relief for "Sports Equipment and Activities" w.e.f YA 2024)

  • internet subscription

  • fees for self skill enhancement courses (w.e.f. YA 2024)

2,500*

 

Purchase of breastfeeding equipment (once in every 2 YAs)

1,000*

Fees paid to childcare centre and kindergarten (until YA 2024)

3,000*

Deposit for child into the Skim Simpanan Pendidikan Nasional account (until YA 2024)

8,000*

Sports Equipment and Activities relief for own use, spouse or child:

 

  • Cost of purchasing sports equipment, entry / rental fees for sports facilities and registration fees for sports competition

  • Gym membership fees (reclassified from lifestyle relief w.e.f 2024)

  • Sports training fees charged by registered sports clubs / societies / companies (w.e.f YA 2024).

500*

 

(Increased to 1,000 w.e.f YA 2024)*

Costs related to electric vehicle charging facilities, including installation, rental, hire-purchase of equipment, or subscription fees (YA 2022 and YA 2023, extended to YA 2027)

2,500*

* Maximum relief

 

Tax rebates for resident individuals

Types of rebate

YA 2023 / YA 2024 (RM)

Individual’s chargeable income does not exceed RM35,000

400

If husband and wife are separately assessed and each chargeable income does not exceed RM35,000

400 (each)

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

Actual amount expended

Rebate for departure levy paid for performing umrah and pilgrimage to holy places.

Actual amount expended (twice in a lifetime)

The above rebate granted is deducted from tax charged and any excess is not refundable.

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