DTX5018 Tri 1 2018/2019

NOTES FOR TOPIC 6

Format tax computation

Tax rates

Chargeable Income (RM) Calculation (RM) Rate (%) Tax (RM)

0 - 2,500 On the first 2,500 0 0

2,501 - 5,000 On the next 2,500 0 0

5,001 - 20,000 On the first 5,000 - 0

- On the next 15,000 1 150

20,001 - 35,000 On the first 20,000 - 150

- On the next 15,000 5 750

35,001 - 50,000 On the first 35,000 - 900

SZA
DTX5018 Tri 1 2018/2019

Chargeable Income (RM) Calculation (RM) Rate (%) Tax (RM)

- On the next 15,000 10 1,500

50,001 - 70,000 On the first 50,000 - 2,400

- On the next 20,000 16 3,200

70,001 - 100,000 On the first 70,000 - 5,600

- On the next 30,000 21 6,300

100,001 - 250,000 On the first 100,000 - 11,900

- On the next 150,000 24 36,000

250,001 - 400,000 On the first 250,000 - 47,900

- On the next 150,000 24.5 36,750

400,001 - 600,000 On the first 400,000 - 84,650

- On the next 200,000 25 50,000

600,001 - 1,000,000 On the first 600,000 - 134,650

- On the next 400,000 26 104,000

SZA
DTX5018 Tri 1 2018/2019

SZA
DTX5018 Tri 1 2018/2019

Personal reliefs for resident individuals in Malaysia

YA 2017
Types of relief
(RM)

Self 9,000

Disabled individual – additional relief for self 6,000

Husband/Wife/Alimony Payments 4,000

(Limited)

Disabled spouse – additional spouse relief 3,500

Ordinary child,(below 18 years old) 2,000

Unmarried child of 18 years and above who is receiving full-time 2,000

education ("A-Level", certificate, matriculation or preparatory courses)

Unmarried child of 18 years and above receiving full-time instruction of 8,000

higher education in respect of diploma level and above in Malaysia; or
degree level and above in Malaysia, OR serving under article of
indentures in a trade or profession in Malaysia

Per physically/mentally disabled child 6,000

Per physically/mentally disabled child receiving full-time instruction at 8,000

institution of higher education in respect of diploma level and above in
Malaysia; or degree level and above outside Malaysia OR serving under
articles or indentures in a trade or profession in Malaysia

Life insurance premiums and EPF contributions 6000^

SZA
DTX5018 Tri 1 2018/2019

YA 2017
Types of relief
(RM)

Private Retirement Scheme contributions and Deferred annuity scheme 3000^

premium (YA 2012 to YA 2021)

Insurance premiums for education or medical benefits 3000^

Expenses on medical treatment, special needs or carer expenses for 5000^ or

parents (evidenced by medical certification) OR parental care relief 1500 per
(until YA2020) for father and mother parent

Employee’s contribution to Social Security Organisation (SOCSO) 250^

Medical expenses for self, spouse or child suffering from a serious 6000^
disease (including fees of up to RM500 incurred by self, spouse or child
for complete medical examination)

Complete medical examination for self, spouse, child 500

Fee expended for any course of study up to tertiary level other than a 7000^
degree at Masters or Doctorate level, which includes Law,
Accounting,Islamic Financing,Technical,Vocational,Industrial,Scientific
or Technological Skills

Purchase of supporting equipment for self (if a disabled person) or for 6000^
disabled spouse, child or parent

Lifestyle relief consolidated with the following: purchase of books, 2500

journals, magazines, printed newspaper and other similar publications
for the purpose of enhancing knowledge, purchase of personal computer,
smartphone or tablet, purchase of sports equipment and gym
memberships, and, internet subscription

SZA
DTX5018 Tri 1 2018/2019

YA 2017
Types of relief
(RM)

Purchase of breastfeeding equipment 1000^

Fees paid to child care and kindergarten 1000^

Deposit for child into Skim Simpanan Pendidikan 1Malaysia account 6000^
established under Perbadanan Tabung Pendidikan Tinggi Nasional Act
1997 (until YA 2020)**

^ Maximum relief

** Previously known as Skim Simpanan Pendidikan Nasional where the tax relief is up to
YA 2017

What Are the 2018 Income Tax Rebates

Moving on to tax rebates, here are the ones that you stand to gain as resident individuals.

Types of Rebate RM

Individual’s chargeable income does not exceed RM35,000 400

If husband and wife are separately assessed and each chargeable 400 (each)
income does not exceed RM35,000

If husband and wife are jointly assessed and the joint chargeable 800
income does not exceed RM35,000

Rebate for Zakat, Fitrah, or other Islamic religious dues paid Actual amount
expended

SZA
DTX5018 Tri 1 2018/2019

The above rebate granted is deducted from the tax charged and any excess is not
refundable.

On the other hand, these are the tax rates that will apply to you if you a non-resident
individual working in Malaysia.

Rate
Types Of Income
(%)

Business, trade or profession, employment, dividends and rents 28

Public Entertainer and interest 15

Royalty 10

Payments for services in connection with the use of property or installation, 10

operation of any plant or machinery purchased from a non-resident

Payments for technical advice, assistance or services rendered in connection 10

with technical management or administration of any scientific, industrial or
commercial undertaking, venture, project or scheme

Rent or other payments for the use of any movable property 10

SZA