[Updated] Your Complete Personal Income Tax Guide For 2023
Preparing and filing your income tax in Malaysia can be a challenging and anxiety-inducing experience every year for most people, but it doesn’t have to be if you understand how income tax works in this country.
Do you know how your tax is calculated? Are you aware that Malaysia adopts a progressive income tax rate system, which means that you only pay the higher rate on the amount above the rate? Do you know what the differences between tax exemptions, tax reliefs, tax rebates and tax deductibles are? How can you get higher income tax return?
Any individual earning a minimum of RM34,000 after EPF deductions must register a tax file. This translates to roughly RM2,833 per month after EPF deductions, or about RM3,000 net. It should be noted that this takes into account all your income, and not only your salary from work.
If you have no clue what the answers for these questions are, plus many other income tax-related questions, you will have no idea how to plan your taxes well. Without planning, you won’t be able to maximise on the tax reliefs available, and get the tax savings you are eligible for.
Well, it is never too late to find out. With this simple and easy-to-understand Malaysia income tax guide 2023 (for Year of Assessment 2022), you will be filing your tax like a whiz in no time.
Now, let’s get started and find out what’s chargeable income!