Exclusive Guide!

The Complete Guide To Personal Income Tax In Malaysia For 2022

All you need to know for filing your personal income tax in Malaysia by April 30 this year.

Chapter 1

How To Calculate Your Chargeable (Or Taxable) Income

chargeable taxable income

Image source: pexels.com

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 the year 2015, an individual who earns an annual employment income of RM34,000 (after EPF deduction) has to register a tax file. In other words, those who earn a minimum salary of about RM3,000 a month should file their income tax.

iMoney Tax Relief webinar

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
  • Prequisites, 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 to.

Here’s an example of how to calculate your 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!

‹ Previous Next: What Type Of Income Is Exempted From Income Tax In Malaysia?

Leave your comment