The government has announced via Budget 2018 that those earning between RM20,000 to RM70,000 annually will enjoy a two per cent tax deduction for their individual income tax.
The move was aimed to help middle-income families or those in the M40 group with monthly household incomes of between RM3,000 and RM8,300.
Due to the deduction, 260,000 Malaysians will automatically be exempted from paying their income tax, according to The Star.
It is also expected that through the percentage deduction, Malaysians from the lowest bracket of chargeable income will be able to enjoy savings between RM300 to RM1,000.
For those who are still wondering how much will they end up paying after the deduction, here’s a quick guide based on your annual income:
The move was aimed to help middle-income families or those in the M40 group with monthly household incomes of between RM3,000 and RM8,300.
Due to the deduction, 260,000 Malaysians will automatically be exempted from paying their income tax, according to The Star.
It is also expected that through the percentage deduction, Malaysians from the lowest bracket of chargeable income will be able to enjoy savings between RM300 to RM1,000.
For those who are still wondering how much will they end up paying after the deduction, here’s a quick guide based on your annual income:
- For those earning between RM20,001 - RM35,000 annually will only have to pay 3% instead of 5%
- For those earning between RM35,001 - RM50,000 annually will only pay 8% instead of 10%
- For those earning between RM50,001 - RM70,000 annually will pay 14% instead of 16%
