Reduction of individual income tax rate in Malaysia

September 28, 2012 20:08 PM

BUDGET: Government To Reduce Income Tax Rate By One Percentage Point

KUALA LUMPUR, Sept 28 (Bernama) — The government has proposed to reduce individual income tax rate by one percentage point for each grouped annual income tax exceeding RM2,500 to RM50,000.

Prime Minister Datuk Seri Najib Tun Razak said the measure would remove 170,000 taxpayers from paying tax as well as provide savings on their tax payment.

Tabling the 2013 Budget in the Dewan Rakyat, Najib said, for example, unmarried young professional with a monthly income of RM5,000 would enjoy income tax savings of up to RM425 per person.

He also said that to spearhead the transformation of the cooperative movement, the government proposed to reduce the cooperative income tax rate by between one and seven percentage points on income tax groups.

“With this, seven million cooperative members will enjoy this benefit as an encouragement to increase entrepreneurial participation in business,” he said.

— BERNAMA

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