Exclusive Guide!

The Definitive Guide To Personal Income Tax In Malaysia For 2016

Find out everything you need to know about filing your personal income tax in Malaysia by April 2016!

Chapter 1

What Is Chargeable Income?

First of all, you need to know what is considered income by Lembaga Hasil Dalam Negeri (LHDN). Is it just the monthly salary you get from your employer, or does it also include other types of income?

With effect from year 2015, an individual who earns an annual employment income of RM34,000 (after EPF deduction) has to register a tax file.

Get Infographics, Articles and More Direct to your Inbox!



These are the types of income that are taxable:

  • Business or profession
  • Employment
  • Dividends
  • Interests (except bank deposit interests)
  • Discounts
  • Rent collected
  • Royalties
  • Premiums
  • Pensions
  • Annuities
  • Perquisites, which includes bill claims, company credit cards, loans from company, sponsored club memberships, sponsored child tuition fee, personal driver and any benefits offered by your employer that could be converted into cash.

Here’s an example of how to derive your total income:

what is chargeable income

Now that you have your total annual income, you need to find out what your chargeable income is. Chargeable income, also known as taxable income, is your total annual income minus all the tax exemptions and tax reliefs you are entitled for.

Here’s an example of how to calculate your chargeable income:

what is chargeable income

Special relief
* Special relief of RM2,000 is given to tax payers earning up to RM8,000 per month (up to RM96,000 annually). This relief is applicable for Year Assessment 2015 (tax filed in 2016) only.
‹ Previous Next: What Is A Tax Exemption?

Leave your comment