This document provides information about personal income tax rates for Year of Assessment 2015 (taxes filed in 2016) in Malaysia. It states that tax rates were reduced across the board by 1-3% during Budget 2015. Two new tax bands were added between RM100,001-RM250,000 and RM250,001-RM400,000. The maximum tax rate was increased from over RM100,000 to over RM400,000, with those earning over RM100,000 now taxed at 24%, 24.5%, or 25% instead of 26%. The document concludes by listing the progressive tax rates for 2015 and providing an example tax calculation.

1. Personal Income Tax
2016 Guide
PART 5

2. 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.

3.  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.

4. 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

5. RM35,001 - RM50,000
On the First RM35,000 RM900
Next RM15,000 10% RM1,500
RM50,001 - RM70,000
On the First RM50,000 RM2,400
Next RM20,000 16% RM3,200
RM70,001 - RM100,000
On 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 RM400,000
On the First RM400,000 RM84,650
Next RM 25% RM....

6. 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

7. Thank You…
SOURCE : WWW.IMONEY.MY/ARTICLES/INCOME-TAX-2016/TAX-
RATES-FOR-YEAR-OF-ASSESSMENT-2015
PART 6 COMING SOON