KUALA LUMPUR, Oct 7 — The government plans to increase by 0.5 percentage points the income tax rate for individuals with taxable income ranging from RM250,001 to RM400,000 from the year of assessment 2023 to make the individual tax structure more progressive.
In the Budget 2023 appendix, the Finance Ministry (MoF) said the proposed tax rate will effectively be raised to 25 per cent from the current tax rate of 24.5 per cent.
Presenting Budget 2023 themed “Keluarga Malaysia, Prospering Together” in Parliament today, Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said resident individuals with a taxable income range of between RM50,000 and RM100,000 will have their tax reduced by two percentage points.
Those in the taxable income range of RM50,000 to RM70,000 will have their tax rate reduced to 11 per cent from the previous 13 per cent while those in the taxable range of RM70,000 to RM100,000 will pay a lower tax of 19 per cent versus 21 per cent previously, he said.
Meanwhile, MoF has proposed a tax structure for micro, small and medium enterprises at 15 per cent for the first RM100,000 of taxable income, 17 per cent for RM100,001-RM600,000 and 24 per cent for RM600,001 and above.
