Chargeable Income

(RM)

Calculation

(RM)

Tax rate

Tax payable

0

|

5,000

On the First 5,000

0%

RM NIL

5,001

|

20,000

On the First 5,000

Next 15,000

Tax on earlier bracket

1%

RM NIL

RM150

20,001

|

35,000

On the First 20,000

Next 15,000

Tax on earlier bracket

3%

RM150

RM450

35,000

|

50,000

On the First 35,000

Next 15,000

Tax on earlier bracket

6%

RM600

RM900

50,001

|

70,000

On the First 50,000

Next 20,000

Tax on earlier bracket

11%

RM1,500

RM2,200

70,001

|

100,000

On the First 70,000

Next 30,000

Tax on earlier bracket

19%

RM3,700

RM5,700

100,001

|

400,000

On the First 100,000

Next 300,000

Tax on earlier bracket

25%

RM9,400

RM75,000

400,001

|

600,000

On the First 400,000

Next 200,000

Tax on earlier bracket

26%

RM84,400

RM52,000

600,001

|

2,000,000

On the First 600,000

Next 1,400,000

Tax on earlier bracket

28%

RM136,400

RM392,000

2,000,000 onwards

On the First 2,000,000

Subsequent amount

Tax on earlier bracket

30%

RM528,400

Flat rate of 30%

Incentive / Programme

Preferential Tax rate

Classification of income

Effective YA

Legislation / Reference

Knowledge Workers in Iskandar Malaysia

15%

Employment income

Effective from YA2010

P.U.(A) 344/2010;

Part XIV, Schedule 1 of the Income Tax Act, 1967 (“the Act”)

Knowledge Workers in the East Coast Economic Region (ECER)

15%

Employment income

Effective from YA2022

P.U.(A) 330/2023;

Part XIV, Schedule 1 of the Act

Returning Expert Programme

15% for 5 YAs

Employment income

Effective from YA2012 until YA2026

P.U.(A) 151/2012;

P.U.(A) 147/2021;

P.U.(A) 45/2024;

Part XV, Schedule 1 of the Act

Non-citizen resident individuals holding C-suite position in companies investing in new strategic investments, repositioning of the electrical and electronic sector

15%

Employment income

5 YAs determined by the Minister of Finance (“MOF”)

P.U.(A) 242/2023;

Part XVIII, Schedule 1 of the Act

Non-citizen Resident Individuals in Companies Carrying on Business in Respect of a Qualifying Activity

Not exceeding 20%, specifically prescribed by MOF via special order (P.U.(A))

Employment income

Specifically prescribed by MOF via special order (P.U.(A))

Part XVIII, Schedule 1 of the Act

Knowledge Workers and Malaysian Working in Forest City Special Financial Zone

15%

Employment income

Specifically prescribed by MOF via special order (P.U.(A))

Part XVIII, Schedule 1 of the Act

Dividends Received by Individual Shareholders

2% in excess of RM100,000

Dividend income

Effective from YA 2025

Part XXII of Schedule 1 of the Act