Personal Income Tax

2016 GuidePART 5

Tax Rates For Year Of Assessment 2015 (Tax Filed In 2016)

After you understand how to derive your chargeable income to file for your 2016 income tax, we can calculate how much tax you will be paying for last year’s assessment.

For taxes to be filed this year, the personal tax rates for 2016 have been reduced – which means more tax savings for us.

During Budget 2015 announcement in October 2014, a decrease in income tax rates across the board was announced for Year of Assessment 2015.

Personal income tax rates Malaysia 2016 will be reduced by

1% to 3% and the announcement also includes the addition

of two more tax bands – RM100,001 to RM250,000 and

RM250,001 to RM400,000.

The maximum rate for income tax is increased from

exceeding RM100,000 to exceeding RM400,000 with the tax

rate for those earning more than RM100,000 annually

reduced from 26% to 24%, 24.5% and 25%.

This was a big change since those earning RM100,000 and

above are no longer in the highest bracket which can

significantly impact the payable tax amounts for those in the

upper-middle class whom can be earning just above

RM100,000.

With the changes to the tax brackets, here are the progressive income

tax rates for Year of Assessment 2015:

Chargeable Income Calculations Rate Tax

RM0 - RM2,500 On the First RM2,500 0% RM0

RM2,501 - RM5,000 Next RM2,500 0% RM0

RM5,001 - RM10,000

On the First RM5,000 RM0

Next RM5,000 1% RM50

RM10,001 - RM20,000

On the First RM10,000 RM50

Next RM10,000 1% RM100

RM20,001 - RM35,000

On the First RM20,000 RM150

Next RM15,000 5% RM750

RM35,001 - RM50,000On the First RM35,000 RM900

Next RM15,000 10% RM1,500

RM50,001 - RM70,000On the First RM50,000 RM2,400

Next RM20,000 16% RM3,200

RM70,001 - RM100,000On the First RM70,000 RM5,600

Next RM30,000 21% Contribution

RM100,001 -RM150,000

On the First RM100,000 RM11,900

Next RM50,000 24% RM12,000

RM150,001 -RM250,000

On the First 150,000 RM23,900

Next RM100,000 24% RM24,000

RM250,001 -RM400,000

On the First RM250,000 RM47,900

Next RM150,000 24.5% RM36,750

Exceeding RM400,000On the First RM400,000 RM84,650

Next RM 25% RM....

Income Rate Tax

First RM5,000 0% RM0

Next RM5,000 1% RM50

Next RM10,000 1% RM100

Next RM15,000 5% RM750

Next RM15,000 10% RM1,500

Next RM13,850 16% RM2,216

Total chargeable income: RM63,850

Total tax: RM4,616

Here’s how you calculate your tax based on the personal income tax rate above:

Example:

Chargeable income: RM63,850

Thank You…SOURCE : WWW.IMONEY.MY/ARTICLES/INCOME-TAX-2016/TAX-RATES-FOR-YEAR-OF-ASSESSMENT-2015

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