Data from the Inland Revenue Board (LHDN) showed that Malaysia has seen a 75% surge in the number of young millionaires aged 30 and below, recorded back in 2022. Specifically, a total of 35 individuals had declared their income as being above RM1 million in that year, as compared to the 20 people documented in 2021.

“However, we have yet to tabulate the figures for 2023 since the E-Filing process for the year is still ongoing,” the tax body explained. It also highlighted that Malaysia has actually been recording a consistent number of young millionaires throughout the years; at least 20 individuals aged 30 and below have been declaring an income of at least RM1 million each year since 2018.

More importantly, LHDN noted that between 2018 to 2021, over 94% of these young millionaires have not recorded any outstanding tax balances.

“However, assessing the taxpayers’ level of compliance needs to take into consideration [multiple factors], including the submission of income tax declaration forms every year, compliance with payment instructions for tax instalments and balances, as well as ensuring that tax declarations are made correctly and accurately, among other things,” LHDN clarified.

To note, all individuals who earn an annual income of more than RM34,000 and have monthly tax deductions (MTD/PCB) are obligated to file their taxes each year. These include social media influencers and online traders as well.

“Income tax shall be charged for each year of assessment on the income of any person accruing in or derived from Malaysia, or received in Malaysia from outside of the country. The scope of taxation for an individual also depends on their residency status. Therefore, all eligible individuals, including social media influencers and online traders are subject to taxation if they meet the criteria,” LHDN further reminded.

(Source: New Straits Times)

• TAGS:
• Inland Revenue Board
• Lembaga Hasil Dalam Negeri
• LHDN
• Millionaires