Personal Income Tax 2023/2024

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.