Day: February 26, 2023

Inland Revenue Board of Malaysia, has released a statement informing the public that e-Filing services for the Year of Assessment 2022 will commence on 1 March 2023.

This service is available for both individual and other than individual taxpayers and includes Forms BE, B, M, BT, MT, P, TF, TP, and E.

To take advantage of this service, taxpayers are advised to visit IRBM’s official portal, https://www.hasil.gov.my/ > MyTax > ezHasil Services > e-Filing.

Alternatively, taxpayers can use the MyTax portal or mobile application.

Tax agents are encouraged to use the TAeF service, available at https://taef.hasil.gov.my/.

If you are a registered taxpayer logging in for the first time, please obtain a PIN No. through MyTax > Select Identification Type > Identification No. > submit and select e-KYC (Mobile) or e-CP55D (portal).

This is an important update, and all taxpayers are encouraged to take advantage of this convenient and efficient service.

Further information on the Tax Return Filing Program for the Year 2023 can be referred to on the official portal of the Inland Revenue Board of Malaysia, or by clicking on the following links for quick access:

Malay version:

https://www.hasil.gov.my/media/mpofkuqz/programmemfailbn_2023.pdf

English version:

https://www.hasil.gov.my/media/esmb4pd1/rffilingprogramme_2023.pdf

Any inquiries or feedback related to the program can be directed to IRBM via:

1. HASiL Care Line at 03-8911 1000 / 603-8911 1100 (Outside Malaysia);
2. HASiL Live Chat; and
3. Feedback Form on the official HASiL portal at the following link: https://maklumbalaspelanggan.hasil.gov.my/Public/

Reference:

64.1-HASiL-Media-Release-e-Filing-Services-for-Individual-Other-Than-Individual-for-the-Year-of-Assessment-2022-begin-from-1-March-2023Download

Update: The Ismail Sabri Government Budget is no longer applicable. Malaysia’s national budget for 2023 was re-tabled again in February 2023.

To Download Revised Budget 2023 Speech and some other related publications – https://www.ccs-co.com/post/budget-2023-malaysia-madani

Current Position | 目前情况

The resident individual income tax rate is progressive between 0% and 30% on chargeable income.

The income tax rate for non-resident individuals is 30%.

居民个人所得税的税率在课税收入 [chargeable income] 的0%和30%之间累进。

非居民个人的所得税税率为30%。

The Resident Individual income tax rate effective from the year of assessment 2021 is as follows:

从2021年评估年度开始生效的居民个人所得税税率如下:-

Proposal | 建议

Here are the current and proposed individual income tax rates for comparison:

以下是现行和提议的个人所得税税率，以供比较:-

Below are the savings and increase in income tax for individuals resulting from the changes in tax rates:

以下是税率变化带来的个人所得税的节省和增加:

Assuming that after deducting personal reliefs, your chargeable income is exactly RM50,000, under the current tax rate, you would be required to pay a tax of RM1,800. Under this proposal, you would be required to pay a tax of RM1,500, which is a reduction of 16.7%.

Assuming that after deducting personal reliefs, your chargeable income is exactly RM70,000, under the current tax rate, you would be required to pay a tax of RM4,400. Under this proposal, you would be required to pay a tax of RM3,700, which is a reduction of 15.9%.

假设在扣除个人税务减免[Personal relief] 后，如果你的课税收入 [chargeable income] 刚好是 RM50,000，按照现有的税率，你所需要缴付的税款为 RM 1,800 。然而，在这项建议下，你所需要缴付的税款为 RM 1,500 ，减少了16.7%。

假设在扣除个人税务减免[Personal relief] 后，如果你的课税收入 [chargeable income] 刚好是 RM70,000，按照现有的税率，你所需要缴付的税款为 RM 4,400 。然而，在这项建议下，你所需要缴付的税款为 RM 3,700 ，减少了15.9%。

Assuming that after deducting personal reliefs, your chargeable income is exactly RM100,000, under the current tax rate, you would be required to pay a tax of RM10,700. Under this proposal, you would be required to pay a tax of RM9,400, which is a reduction of 12.1%.

假设在扣除个人税务减免[Personal relief] 后，如果你的课税收入 [chargeable income] 刚好是 RM100,000，按照现有的税率，你所需要缴付的税款为 RM 10,700 。然而，在这项建议下，你所需要缴付的税款为 RM 9,400 ，减少了12.1%。

However, if you are a high-income earner, assuming that after deducting personal reliefs, your chargeable income is exactly RM250,000, under the current tax rate, you would be required to pay a tax of RM46,700. However, under this proposal, you would be required to pay a tax of RM46,900, which is an increase of 0.4%. 但是，如果你是高收入群体。假设在扣除个人税务减免[Personal relief] 后，如果你的课税收入 [chargeable income] 刚好是 RM 250,000，按照现有的税率，你所需要缴付的税款为 RM 46,700 。然而，在这项建议下，你所需要缴付的税款为 RM 46,900 ，增加了0.4%。

Assuming that after deducting personal reliefs, your chargeable income is exactly RM2,000,000, under the current tax rate, you would be required to pay a tax of RM517,450. However, under this proposal, you would be required to pay a tax of RM528,400, which is an increase of 2.1%. 假设在扣除个人税务减免[Personal relief] 后，如果你的课税收入 [chargeable income] 刚好是 RM 2,00,000，按照现有的税率，你所需要缴付的税款为 RM 517,450 。然而，在这项建议下，你所需要缴付的税款为 RM 528,400 ，增加了2.1%。

Effective Date

From the year of assessment 2023.

Comments | 评论

The proposed changes in the individual income tax rate aim to address the high cost of living in Malaysia and increase disposable income among middle-income earners.

By reducing the tax rate for chargeable incomes between RM35,001 to RM100,000, and increasing the tax rate for those with higher chargeable incomes, the tax system becomes more progressive.

This means that individuals with higher incomes pay a proportionally larger share of their income in taxes.

The proposed changes are also intended to stimulate economic growth by increasing consumer spending, which could ultimately lead to job creation and a more robust economy.

这项建议的个人所得税率变动旨在应对马来西亚的高物价和提高中等收入者的可支配收入。

通过降低 RM35,001 至 RM100,000 之间的课税收入的税率，并增加更高课税收入的纳税比例，个人所得税制度变得更具累进性 [more progressive]。

这意味着高收入者需要按比例支付更大份额的所得税。

这项建议的变化也旨在通过增加消费支出刺激经济增长，这最终可能会导致就业增加和更强劲的经济。

Update: The Ismail Sabri Government Budget is no longer applicable. Malaysia’s national budget for 2023 was re-tabled again in February 2023.

To Download Revised Budget 2023 Speech and some other related publications – https://www.ccs-co.com/post/budget-2023-malaysia-madani

Current Position | 目前情况

Income tax relief is given on medical treatment expenses of up to RM8,000 as follows:

1. serious illness for taxpayer, spouse or child;
2. fertility treatment for taxpayer or spouse;
3. vaccination for taxpayer, spouse or child limited to RM1,000; and
4. full medical check-up including mental health check-up or consultation, COVID-19 detection test inclusive of the purchase of self-test kit for taxpayer, spouse or child limited to RM1,000.

针对医疗费用，最高可获得8,000令吉的所得税减免：

1. 纳税人、配偶或子女的严重疾病；
2. 纳税人或配偶的生育治疗；
3. 纳税人、配偶或子女的疫苗接种，以1,000令吉为限；以及
4. 全面体检，包括精神健康检查或咨询，为纳税人、配偶或子女进行COVID-19检测（包括购买自我测试工具），限额为1,000令吉。

Proposal | 建议

To ease the financial commitment on early intervention for children with learning disabilities, it is proposed the scope of income tax relief for medical treatment expenses be expanded to include the intervention expenditure for Autism, Attention Deficit Hyperactivity Disorder (ADHD), Global Developmental Delay (GDD), Intellectual Disability, Down Syndrome and Specific Learning Disabilities limited to RM4,000 as below:

1. diagnostic assessment certified by a medical practitioner registered with the Malaysian Medical Council (MMC);
2. early intervention and rehabilitation programmes conducted by health profession practitioners registered under the Allied Health Profession Act 2016.

With the expansion of this scope, it is proposed that the amount of tax relief for medical treatment expenditure be increased from RM8,000 to RM10,000.

为了减轻对有学习障碍的儿童的早期療育的负担，建议扩大医疗费用的所得税减免范围，以包括自闭症、注意力缺陷多动症（ADHD）、全面性发育迟缓（GDD）、智力障碍、唐氏综合症和特殊学习障碍的早期療育开支，限额为4,000令吉，条件是：

1. 诊断评估获得马来西亚医学理事会（MMC）注册医生鉴定；
2. 由根据《2016年联合健康专业法令》注册的健康专业从业人员进行的早期治疗和康复计划。

随着这一范围的扩大，因此，也建议将医疗支出的减税额度从8,000令吉提高到10,000令吉。

早期療育: 又稱早期干预、早期介入，指对小年龄的，发展偏离正常和可能偏离正常的儿童所采用的一种特殊教育手段，以便使这部分儿童所提高并获得一定的生活能力和技能

注意力缺陷多动症（ADHD）: 一种大脑疾病，其特点为持续的注意力不集中和/或多 动症-冲动模式，对功能或发育造成干扰。

注意力不集中是指人在工作中分心、缺乏毅力、难以持续集中注意力以及 缺乏条理；这些问题的原因并非违抗或缺乏理解]

全面性发育迟缓（GDD）: 指一名婴幼儿在多个方面的 发育出现落后，同时这些迟缓现象至少持续六 个月。 发育迟缓可能涉及言语、行动、智力、 情感或其他方面。

Effective Date | 生效日期

From the year of assessment 2023

Comments

The proposal to expand the scope of income tax relief for medical treatment expenses is aimed at supporting families with children who have learning disabilities, such as Autism, ADHD, GDD, Intellectual Disability, Down Syndrome, and Specific Learning Disabilities.

By providing tax relief on early intervention and rehabilitation programs, the government hopes to encourage parents to seek early diagnosis and treatment for their children, which can lead to better outcomes and reduce the financial burden on families. Increasing the amount of tax relief from RM8,000 to RM10,000 is intended to further ease the financial burden on affected families and incentivize them to seek necessary medical treatment.

扩大医疗治疗费用的所得税减免范围的建议旨在协助有学习障碍的儿童家庭，例如自闭症、ADHD、GDD、智力障碍、唐氏综合症和特殊学习障碍。

通过为早期治疗和康复计划提供税务减免，政府希望鼓励家长及早为孩子寻求诊断和治疗，这有助于取得更好的效果，减轻家庭的经济负担。

将税务减免额从8,000令吉增加到10,000令吉的提议，主要是为了进一步减轻受影响家庭的经济负担，激励他们寻求必要的医疗治疗。

Update: The Ismail Sabri Government Budget is no longer applicable. Malaysia’s national budget for 2023 was re-tabled again in February 2023.

To Download Revised Budget 2023 Speech and some other related publications – https://www.ccs-co.com/post/budget-2023-malaysia-madani

Current Position

Subsection 49(1) of the ITA provides that a deduction up to RM 7,000 can be claimed by an individual on –

1. payment of premium on life insurance policy;
2. contribution to an approved scheme (other than a private retirement scheme) made by the employee or by a self-employed person within the meaning of the Employees Provident Fund Act 1991 [Act 452]; or
3. contribution made under any written law relating to widow, widower and orphan’s pension or under any approved scheme within the meaning of any such law.

From the year of assessment 2022, the scope of individual income tax relief for EPF contributors is expanded to include self-employed voluntary contributors including civil servants under the pension scheme

For civil servants under the pension scheme not voluntarily contributing to EPF, income tax relief on takaful contribution or life insurance premium payment can be claimed up to RM7,000.

Proposal

To further encourage voluntary contribution to increase savings in preparation for old age, it is proposed tax relief for life insurance premium or takaful contribution be restructured as follows:

This new treatment is applicable to civil servants under the pension scheme.

Effective Date

From the year of assessment 2023.

Comments

EPF is a government-managed retirement savings fund in Malaysia that requires both employers and employees to make regular contributions to the fund.

The fund serves as a social security net for employees and provides retirement, disability, and death benefits.

By encouraging voluntary contributions to the EPF, the government hopes to ensure that individuals have enough savings for their retirement years, thereby reducing the burden on social welfare programs in the future. The tax relief is a way to incentivize individuals to prioritize their retirement savings and take responsibility for their financial future.

Expanding the annual tax relief scope to include voluntary contributions to the Employees Provident Fund (EPF) of up to RM3,000 is welcomed by the EPF.

This initiative is available to all employees, regardless of whether they work in the formal or informal sector and make voluntary contributions to the EPF. Consequently,

EPF members who contribute compulsorily (up to RM4,000 tax relief) and increase their savings through voluntary contributions will be eligible for tax relief of up to RM7,000.

This measure aims to encourage more Malaysians to save for their retirement and prepare for their old age.

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