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By September 30, 2012 0 Comments

Budget 2013 : Personal Income Tax

Budget 2013

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Budget 2013 : Personal Income Tax

During Budget 2013 (Bajet 2013) presentation last Friday, our Prime Minister has announced lot of initiative and tax Revision on Individual Income and Cooperatives. We share some of the Budget 2013 Highlights on personal income tax.

  • The Government is concerned about the rising cost of living on the rakyat as well as their income tax liabilities. The Government has provided 20 individual tax reliefs and two tax rebates. With these tax reliefs and rebates, only 1.7 million persons pay tax compared to the overall workforce of 12 million.
  • In the transition process from the current tax system, based on income to a tax system that is fairer, the Government proposes that individual income tax rate be reduced by 1 percentage point for each grouped annual income tax exceeding RM2,500 to RM50,000. The measure will remove 170,000 taxpayers from paying tax as well as provide savings on their tax payment. As an example, unmarried young professional with a monthly income of RM5,000 will enjoy income tax savings up to RM425 per person.
  • Meanwhile, to continue spearheading the transformation of the cooperative movement, the Government proposes that cooperative income tax rate be reduced between 1 to 7 percentage points on income tax groups. With this, 7 million cooperative members will enjoy this benefit as an encouragement to increase entrepreneurial participation in business.
  • The existing tax relief on the children’s higher education amounting to RM4,000 per person be increased to RM6,000, commencing from year of assessment 2013.
  • The current relief of RM3,000 for savings in the National Education Savings Scheme (SSPN) will be increased to RM6,000.

Budget 2013 : Personal Income Tax

If you have queries about Budget 2013 and tax reduction can call the Customer Service Centre line 1-300-88-3010 or email at callcentre@hasil.gov.my.

 

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