The reduction in income tax from 27% (maximum rate) to 26% for residents chargeable income exceeding RM 100,000 and applicable for income earned in calendar year 2010 onwards.
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 | 15,000 | 3% | 450 |
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 | - | 7,275 |
On the next | 30,000 | 24% | 7,200 |
On the first | 100,000 | - | 14,475 |
On the next | 50,000 | 26% | 13,000 |
On the first | 150,000 | - | 27,475 |
On the next | 100,000 | 26% | 26,000 |
On the first | 250,000 | - | 53,475 |
Exceeding | 250,000 | 26% | - |
Malaysia income tax range for year 2010 is 0% - 26%.
Those not able to enjoy the 1% reduction due to not being tax on the maximum income tax rate, they still able to benefit from the personal relief increased from RM 8,000 to RM 9,000.
Also, individual is allowed relief on premiums for Life Insurance and contributions to EPF increased from RM 6,000 to RM 7,000.
A tax relief of RM 500 per year on broadband subscription fees from year assessment 2010 to 2012 to enhance usage of broadband in line with government’s effort to establish a knowledge based economy and narrow the digital divide.
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