Budget 2014 was announced in October 25, 2013. As expected, GST was introduced in the budget and it is scheduled to be implemented in 2015. In line with the implementation of GST, the government has also reviewed the personal income tax rates. Here are some of the key highlights:
In the 2013 budget, the Malaysian government announced a reduction in tax rates by one percentage point for the taxable annual income group from RM 2,500 to RM 50,000. It is estimated that a total of 170,000 individuals working in Malaysia are expected to enjoy from this benefit because they no longer have to pay their income tax.
With this announcement, we will show you how the net salary is being calculated from the minimum wage salary of RM 800 to a gross monthly salary of RM 30,000. You may select from one of the following tables below to view the net salary calculation in detail.
For the tax assessment in year 2012, the personal income tax rates remained the same for most individuals working in Malaysia although the government announced new tax reliefs (e.g. broadband) in the 2012 budget. The only revision was made for the chargeable annual income group exceeding RM 100,000 where the income tax rate was reduced by 1% from 27% to 26%. For the rest of the income groups, there were no revisions being made as the income tax rates remained the same with the year 2009 assessment.
In the tables below, we will show you how the net salary is being calculated from the minimum wage salary of RM 800 to a gross monthly salary of RM 30,000. You may select from one of the tables below to view the net salary calculation in detail.