Malaysia Tax Tables 2023 - Tax Rates and Thresholds in Malaysia
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This page contains the tax table information used for the calculation of tax and payroll deductions in Malaysia in 2023. These tax tables are used for the tax and payroll calculators published on iCalculator™ MY, these tools are provided for your free use on our website. If you would like additional tax table information added to the tax calculators for Malaysia or would like to add to or suggest amendments to the information herein then please contact us.
2023 Tax Tables [Quick Links]
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Malaysia Personal Income Tax Tables in 2023
The Income tax rates and personal allowances in Malaysia are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the Malaysia Tax Calculator 2023.
Malaysia Residents Income Tax Tables in 2023
Personal Income Tax Rates and Thresholds (Annual)| Tax Rate | Taxable Income Threshold |
|---|
| 0% | Income from RM 0.000.00 | to | RM 5,000.00 |
| 1% | Income from RM 5,000.01 | to | RM 20,000.00 |
| 3% | Income from RM 20,000.01 | to | RM 35,000.00 |
| 6% | Income from RM 35,000.01 | to | RM 50,000.00 |
| 11% | Income from RM 50,000.01 | to | RM 70,000.00 |
| 19% | Income from RM 70,000.01 | to | RM 100,000.00 |
| 25% | Income from RM 100,000.01 | to | RM 400,000.00 |
| 26% | Income from RM 400,000.01 | to | RM 600,000.00 |
| 28% | Income from RM 600,000.01 | to | RM 2,000,000.00 |
| 30% | Income from RM 2,000,000.01 | | and above |
Malaysia Non-residents Income Tax Tables in 2023
Personal Income Tax Rates and Thresholds (Annual)| Tax Rate | Taxable Income Threshold |
|---|
| 30% | Flat rate on all taxable income |
In Malaysia, contributions made by employees to the Employees Provident Fund (EPF) and the Social Security Organization (SOCSO) are deductible from their gross income for the purpose of calculating taxable income. This means that the amounts contributed towards these social security schemes can reduce an employee's taxable base, potentially lowering their overall income tax liability. This provision not only encourages savings and participation in social security programs but also provides tax relief to employees, aligning with Malaysia's broader goals of promoting financial security and welfare for its workforce.
Malaysia Social Security and Payroll Deduction Rates in 2023
In Malaysia, the social security framework encompasses multiple programs designed to protect workers and provide essential benefits. These programs are funded through mandatory contributions from both employers and employees, ensuring a comprehensive safety net for the workforce.
Malaysia Social Security in 2023: Rates for Employers and Employees| Category | Employee | Employer | Total |
|---|
| Employees Provident Fund (EPF Tier 1) | 11% | 12% | 23% |
| EPF Tier 2 | 11% | 13% | 24% |
| Social Security Organization (SOCSO) | 0% | 1.25% | 1.25% |
| Employment Insurance | 0.2% | 0.2% | 0.4% |
| Human Resources Development Fund (HRDF) | 0% | 1% | 1% |
Malaysia Social Security and Payroll Deduction in 2023: Earnings Thresholds for Employers and Employees| Category | Employee | Employer |
|---|
| Min. | Max. | Min. | Max. |
|---|
| Employees Provident Fund (EPF Tier 1) | n/a | RM 60,000.00 | n/a | RM 60,000.00 |
| EPF Tier 2 | RM 60,000.00 | n/a | RM 60,000.00 | n/a |
| Social Security Organization (SOCSO) | n/a | n/a | n/a | n/a |
| Employment Insurance | n/a | RM 48,000.00 | n/a | RM 48,000.00 |
| Human Resources Development Fund (HRDF) | n/a | n/a | n/a | n/a |
Malaysia VAT Rates in 2023
VAT rates for Malaysia are reviewed annually, you can use the VAT Calculator to calculate VAT due in Malaysia or use the Reverse VAT Calculator to calculate the net cost of goods/services after deducting VAT.
Malaysia VAT Rates| VAT Rate | VAT Description |
|---|
| 5% | Reduced Rate |
| 6% | Standard Rate |
| 10% | Standard Rate |
Historic Tax Tables supported for Malaysia
The following tax tables are supported by iCalculator™ MY as part of the suite of free tax tools we provide for Malaysia.