Income Tax - this is one of the ways how the government earns money, and this money is used for the general good of the people of Malaysia.
The poor, and those in the lower income groups pay no tax...or very little income tax, and the more you earn, the more you pay...and this is justice. But in Malaysia, over the past few years there has been a reduction in the amount tax paid by the very rich. Something is very wrong.
Let us concentrate on those earning RM100,000 and more...and we see that the UMNO-led BN government of Malaysia have been reducing the personal income tax payable for the rich...and very rich.
We also note that there is no significant jump in tax payable for rich, very rich...and very very rich... in fact in 2010 those earning above RM100,000 , and those earning RM500,000...or millions are all paying only 26%. Why? Comparatively, those earning above RM10,000 pay 3%, above RM20,000 pay 7%, and above RM35,000 pay 12%, above RM50,000 pay 19%, and above RM70,000 pay 24%....then it suddenly stays put at 26% for those earning above RM100,000 - this is certainly unjust...and it shows that our government seems to be favouring the very rich...the higher the income, the greater the tax that one should be paying...
In Australia, those earning above AUD35,000[about RM96,000] are paying 30%, those earning above AUD80,000 [about RM220,000] are paying 38%, and those earning above AUD180,000[about RM495,000] are paying 45%. lSource
In US, with regard to Federal tax, above USD34,000[about RM114,000] pay 25%, above USD82,400 [about RM277,000] pay 28%, above USD171,850 [about RM577,000] pay 33%, and above USD373,650 [about RM1.26 million] pay 35%. source: Money Blue Book
Personal income tax rates applicable to taxable income are as follows.
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In short, the higher you earn...the more personal income tax you pay, and we wonder why the UMNO-led BN government is making the rich and super rich of Malaysia pay so little income tax...whilst they claim financial problems, and seek to inflict the poor by introduction of the GST, etc...
Previously, Malaysia wooed the foreign investor to Malaysia to open factories...do business...and gave them all long tax-holidays as an incentive. The government spent the rakyat's money to build up the area, the infrastructure, the roads, etc... and these foreign companies are excluded from paying taxes on the profits that they make from their Malaysian operation. [Note previously, these companies provided large number of jobs for locals....hundreds...and thousands of jobs, but today, with increased automation and the other obligations of existing free trade agreements...the amount of jobs provided for locals are very minimal - and that too usually unskilled jobs - where there will be almost no technological/skills transfer. Further, today most of these companies are relying on migrant workers...and not so many locals]. I believe Malaysia is doing this, and these companies are still not paying taxes (or just minimal taxes...)]
We really need to re-look Malaysia's personal income tax rates - and increase the taxes payable by the very rich...the biggest income earners. The Malaysian personal income rates from those earning more RM100,000 (whose taxable income is more than RM100,000) and above for the last 3 years is laid out below. Below that is our income tax rates for the last 3 years...[Source: Official Website of Malaysia's Inland Revenue Board]
RM100,000 (RM100,001 - RM149,999)
In 2008 - 14,475 (27%)
In 2009 - 14,325 (27%)
In 2010 - 14,325 (26%)
RM150,000 (RM150,001 - RM249,999)
In 2008 - 27,975 (27%)
In 2009 - 27,825 (27%)
In 2010 - 27,325 (26%)
RM250,000 (RM250,001 - .......)
In 2008 - 54,975 (28%)
In 2009 - 54,825 (27%)
In 2010 - 53,325 (26%)
2010
Chargeable Income | Calculations (RM) | Rate % | Tax(RM) |
0-2500 | On the First 2,500 | 0 | 0 |
2,501-5,000 | Next 2,500 | 1 | 25 |
5,001-10,000 | On the First 5,000 Next 5,000 | 3 | 25 150 |
10,001-20,000 | On the First 10,000 Next 10,000 | 3 | 175 300 |
20,001-35,000 | On the First 20,000 Next 15,000 | 7 | 475 1,050 |
35,001-50,000 | On the First 35,000 Next 15,000 | 12 | 1,525 1,800 |
50,001-70,000 | On the First 50,000 Next 20,000 | 19 | 3,325 3,800 |
70,001-100,000 | On the First 70,000 Next 30,000 | 24 | 7,125 7,200 |
100,001-150,000 | On the First 100,000 Next 50,000 | 26 | 14,325 13,000 |
150,001-250,000 | On the First 150,000 Next 100,000 | 26 | 27,325 26,000 |
Lebih 250,000 | On the First 250,000 Next RM | 26 | 53,325 .......... |
2009
Chargeable Income | Calculations (RM) | Rate % | Tax(RM) |
0-2500 | On the First 2,500 | 0 | 0 |
2,501-5,000 | Next 2,500 | 1 | 25 |
5,001-10,000 | On the First 5,000 Next 5,000 | 3 | 25 150 |
10,001-20,000 | On the First 10,000 Next 10,000 | 3 | 175 300 |
20,001-35,000 | On the First 20,000 Next 15,000 | 7 | 475 1,050 |
35,001-50,000 | On the First 35,000 Next 15,000 | 12 | 1,525 1,800 |
50,001-70,000 | On the First 50,000 Next 20,000 | 19 | 3,325 3,800 |
70,001-100,000 | On the First 70,000 Next 30,000 | 24 | 7,125 7,200 |
100,001-150,000 | On the First 100,000 Next 50,000 | 27 | 14,325 13,500 |
150,001-250,000 | On the First 150,000 Next 100,000 | 27 | 27,825 27,000 |
Exceeding 250,000 | On the First 250,000 Next RM | 27 | 54,825 .......... |
2008
Chargeable Income | Calculations (RM) | Rate % | Tax(RM) |
0-2500 | On the First 2,500 | 0 | 0 |
2,501-5,000 | Next 2,500 | 1 | 25 |
5,001-10,000 | On the First 5,000 Next 5,000 | 3 | 25 150 |
10,001-20,000 | On the First 10,000 Next 10,000 | 3 | 175 300 |
20,001-35,000 | On the First 20,000 Next 15,000 | 7 | 475 1,050 |
35,001-50,000 | On the first 35,000 Next 15,000 | 13 | 1,525 1,950 |
50,001-70,000 | On the First 50,000 Next 20,000 | 19 | 3,475 3,800 |
70,001-100,000 | On the First 70,000 Next 30,000 | 24 | 7,275 7,200 |
100,001-150,000 | On the First 100,000 Next 50,000 | 27 | 14,475 13,500 |
150,001-250,000 | On the First 150,000 Next 100,000 | 27 | 27,975 27,000 |
Lebih 250,000 | On the First 250,000 Next RM | 28 | 54,975 .......... |
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