The Malaysian authorities’s price range for 2025 is anticipated to incorporate various modifications to the nation’s revenue tax system. These modifications are designed to make the tax system extra environment friendly and equitable, and to encourage financial progress. One of the crucial important modifications is the introduction of a brand new tax bracket for high-income earners. This bracket will apply to people incomes over RM1 million per 12 months, and will likely be taxed at a fee of 30%. The federal government estimates that this variation will generate a further RM2 billion in income, which will likely be used to fund public companies and infrastructure initiatives.
Along with the brand new tax bracket, the federal government can also be planning to introduce various different modifications to the revenue tax system. These modifications embrace growing the non-public revenue tax exemption restrict from RM5,000 to RM7,000, and decreasing the company revenue tax fee from 24% to 22%. The federal government estimates that these modifications will scale back the tax burden on people and companies by a complete of RM4 billion.
