New Proposed Tax Rate 2023
Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim has proposed some changes to the income tax rates under the new Budget 2023. Designed to increase the disposable income for the M40 group, this proposed amendment will see reduced tax rates of 2% while increasing the upper income levels by 0.5%. Chargeable income (RM) Current income tax rate New income tax rate 35,001 – 50,000 8% 6% 50,001 – 70,000 13% 11% 70,001 – 100,000 21% 19% This proposal will effectively increase the disposable income of the M40 group in Malaysia, which has often been disregarded as the focus tends to be on the B40 and hardcore poor communities. In addition, To make the individual income tax structure more progressive,it is proposed the income tax rate for resident individuals at the chargeable income band of RM100,001 to RM250,000 be increased by 1 percentage point, while the chargeable income band of be...