The announcements of reduction in tax rates in today’s budget are not new. It was already announced in last year’s Budget 2014 and it is merely repeat of last year budget measures again in Budget 2015.
As mentioned in the budget speech today, with the implementation of GST, the government will be able to reduce the tax burden on the Rakyat through the following:-
- Effective from year of assessment 2015, individual income tax rates will be reduced by 1% to 3% . Maximum tax bracket will be increased from exceeding RM100,000 to exceeding RM400,000. The current maximum tax rate at 26% will be reduced to 24%, 24.5% and 25%.
- Effective from year of assessment 2016, company tax rate will be reduced by 1% from current 25% to 24%.
- Effective from year of assessment 2016, company tax rate for SMEs will be reduced by 1% from current 20% to 19% for first RM500,000 taxable income, and reduced by 1% from current 25% to 24% for taxable income exceeding RM500,000 .
Please click here: Personal Tax Rates & Table for 2014 & 2015
