24/09/2025
Breaking Down Malaysia’s Tax Rates: Are You in the Right Tax Bracket? 📊
Whether you're an individual or running a company, understanding Malaysia’s tax rates is key to managing your finances smartly.
Let’s break it down:
👤 For Individuals (Residents)
Malaysia uses a progressive tax system, which means different portions of your income are taxed at different rates. Here’s a simplified look:
RM0 – RM5,000: 0%
RM5,001 – RM20,000: 2% to 6%
RM20,001 – RM50,000: 11% to 19%
RM50,001 – RM100,000: 24% to 26%
Above RM100,000: Up to 30%
🔹 Your chargeable income is your income after all tax reliefs and deductions (like EPF, insurance, donations, etc.)
🏢 For Companies (Resident Companies)
Flat rate applies:
Tax rate: 24%
But good news for small businesses (SMEs):
If your paid-up capital is RM2.5 million or less and gross income is below RM50 million:
First RM150,000: 15%
Next RM150,000: 17%
Remaining: 24%
This tiered benefit helps smaller companies ease their tax burden.
📌 Whether you're a salaried individual or a business owner, knowing your tax position helps you plan better, avoid surprises, and save money legally.
Need clarity on where you stand or how to optimise your tax profile? Let’s talk.
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