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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 5

Tax Rates For Year Of Assessment 2016 (Tax Filed In 2017)

Now that you understand how to derive your chargeable income to file for your 2016 income tax, we can calculate how much tax you will be paying for last year’s assessment.

 

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Here are the progressive income tax rates for Year of Assessment 2015:

Chargeable Income
Calculations
Rate
Tax
RM0 - RM5,000
On the First RM2,500
0%
RM0
RM5,001 - RM20,000
On the First RM5,000
RM0
Next RM15,000
1%
RM150
RM20,001 - RM35,000
On the First RM20,000
RM150
Next RM15,000
5%
RM750
RM35,001 - RM50,000
On the First RM35,000
RM900
Next RM15,000
10%
RM1,500
RM50,001 - RM70,000
On the First RM50,000
RM2,400
Next RM20,000
16%
RM3,200
RM70,001 - RM100,000
On the First RM70,000
RM5,600
Next RM30,000
21%
RM6,300
RM100,001 - RM250,000
On the First RM100,000
RM11,900
Next RM150,000
24%
RM36,000
250,001 - 400,000
On the First RM250,000
RM47,900
Next RM150,000
24.5%
RM36,750
RM400,001 - RM600,000
On the First RM400,000
RM84,650
Next RM200,000
25%
RM50,000
RM600,001 - RM1,000,000
On the First RM600,000
RM134,650
Next RM400,000
26%
RM104,000
Exceeding 1,000,000
On the First RM1,000,000
RM238,650
Next ringgit
28%
RM....

Here’s how you calculate your tax based on the personal income tax rate above:

Example:

Chargeable income: RM63,850

Income
Rate
Tax
First RM5,000
0%
RM0
Next RM15,000
1%
RM150
Next RM15,000
5%
RM750
Next RM15,000
10%
RM1500
Next RM15,850
10%
RM3,200
Total chargeable income: RM65,850
Total tax: RM5,600

You can calculate your taxes based on the formula above, and just make sure your total income in the first column comes up to your total chargeable income.

Too much math for you?
Go on to the Malaysia income tax calculator to calculate how much tax you will have to pay!

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