MALAYSIAN PERSONAL INCOME TAX 2011
Malaysian Personal Income Tax Rate 2011 are all same as previous year, the maximum tax rate is still 26%. Those earning RM3,000 per month may not be taxed at all! (After deducting rebate of RM400)
Every individual is subject to tax on income earned in Malaysia or received in Malaysia from outside Malaysia. Income earned in oversea remitted to Malaysia by a resident individual is exempted from tax. A non-resident individual will be taxed only on the income earned in Malaysia.
The tax rate depends on the individual's resident status, which is determined by the duration of his stay in the country as stipulated under Section 7 of the Income Tax Act 1967. Generally, an individual who is in Malaysia for at least 182 days whether continuously or cumulatively in a calendar year is regarded as a tax resident.
PERSONAL INCOME TAX RATE FOR YEAR 2011
|
Chargeable Income |
RM |
Rate |
Tax (RM) |
|
On the first |
2,500 |
0% |
0 |
|
On the next |
2,500 |
1% |
25 |
|
On the first |
5,000 |
- |
25 |
|
On the next |
5,000 |
3% |
150 |
|
On the first |
10,000 |
- |
175 |
|
On the next |
10,000 |
3% |
300 |
|
On the first |
20,000 |
- |
475 |
|
On the next |
15,000 |
7% |
1,050 |
|
On the first |
35,000 |
- |
1,525 |
|
On the next |
15,000 |
12% |
1,800 |
|
On the first |
50,000 |
- |
3,325 |
|
On the next |
20,000 |
19% |
3,800 |
|
On the first |
70,000 |
- |
7,175 |
|
On the next |
30,000 |
24% |
7,200 |
|
On the first |
100,000 |
- |
14,325 |
|
On the next |
50,000 |
26% |
13,000 |
|
On the first |
150,000 |
- |
27,325 |
|
On the next |
100,000 |
26% |
26,000 |
|
On the first |
250,000 |
- |
|
|
Exceeding |
250,000 |
26% |
- |
Click here for full details of Personal Income Tax Relief 2011
Knowledge Workers in Iskandar Malaysia
With effect from Y/A 2010, the employment income of an individual who is a knowledge worker residing in Iskandar Malaysia and is employed with a person who is carrying on a qualified activity would be taxed at 15% of his or her chargeable income by indicating an option in the return form. Otherwise, the individuals will be taxed at scale rates.
Returning Expert Programme
In order to encourage skilled Malaysian Professionals to return and boost the country's economic growth, the employment income of an approved individual under the Returning Expert Programme (REP) will be taxed at the flat rate of 15% for a period of 5 years. This is with effect from Y/A 2012.
Further terms and conditions on REP can be found in the Talent Corporation Malaysia Berhad's website at www.talentcorp.com.my
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