Govt To Reduce Individual Tax Rates For Two Income Brackets By 2%
Author Avatar
lhdn
(Image: The Star)

Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz has announced that under Budget 2023, the government will reduce the tax rates for taxable income ranging between RM50,001 to RM70,000, and RM70,001 to RM100,000 by 2%.

At present, those with a chargeable income of between RM50,001 to RM70,000 are required to pay 13% tax, while those in the RM70,001 to RM100,000 taxable income bracket must pay 21%. With this update, the new tax rates for these two groups are as follows:

Chargeable income (RM)Current income tax rateNew income tax rate
50,001 – 70,00013%11%
70,001 – 100,00021%19%

Aside from this, Tengku Zafrul also said that the tax rates for those in the RM250,001 to RM400,000, and the RM400,001 to RM600,000 taxable income brackets will both be standardised to 25% next year. At present, only individuals in the RM400,001 to RM600,000 income bracket are required to pay 25% tax; those earning between RM250,001 to RM400,000 per year, meanwhile, are currently paying a tax rate of 24.5%.

Tengku Zafrul also noted that these changes will allow the middle income group to enjoy tax savings of up to RM1,000, while high income group will save up to RM250. This also means that an estimated surplus of RM800 million will be freed for the people to spend.

The tax rates for other chargeable income brackets remain unchanged.

3 2 votes
Article Rating

SHARE

Comments (0)

Subscribe
Notify of

0 Comments
Inline Feedbacks
View all comments
Top Budget 2023 Articles
Post Image
Budget 2023: Key Highlights To Know
Alex Cheong Pui Yin
- 7th October 2022
At 4pm today, Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz has tabled the national Budget for year […]
Post Image
Govt To Incentivise EPF Self Contribution & i-Saraan Voluntary Contributions
Pang Tun Yau
- 7th October 2022
In an effort to encourage Malaysians to save for their retirement, the Government has announced some incentives under […]
Post Image
Govt To Reduce Individual Tax Rates For Two Income Brackets By 2%
Alex Cheong Pui Yin
- 7th October 2022
Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz has announced that under Budget 2023, the government will reduce […]
Post Image
Budget 2023: Stamp Duty For Transfer Of Properties Between Direct Family Members Set At RM10
Pang Tun Yau
- 7th October 2022
From 2023, the transfer of properties between family members will be set at a fixed rate of just […]

Related articles

Related Posts Image

PM: Budget 2023 Not Bound To Previous Version

Jacie Tan -
2nd February 2021
Related Posts Image
Related Posts Image

PM: Govt To Table Budget 2023 In February

Jacie Tan -
2nd February 2021
Related Posts Image