Budget 2015
Personal Income Tax
- Personal income tax rates reduced by between 1% to 3%
- Chargeable income subject to maximum rate increased from exceeding RM100,000.00 to exceeding RM400,000.00
- Maximum tax rate reduced from 26% to 24%, 24.5% and 25%
Tax payers earning RM4,000.00 or less will no longer need to pay income tax for the year of assessment 2015.
Malaysian Personal Income Tax Rates
Corporate Tax
- Secretarial and tax filing fees allowed for tax deductions
- Corporate tax rate reduced by 1% from 25% to 24%
- Tax rate for small and medium sized enterprises reduced to 19% from 20%
From year of assessment 2016.
Goods & Services Tax (GST)
The list of products and services not subject to GST has been expanded to cover additional items, some of which include:
- RON 95 petrol, diesel and LPG
- Local and imported fruits
- White and wholemeal bread
- Coffee and cocoa powder and tea dust
- Medication for certain diseases like heart failure, diabetes, hypertension, cancer
- Exercise books, reference and text books, religious books, newspapers
- Electrical appliances such as washing machines and refrigerators
- Textile products
- Plastic products
- Household furniture
Employment Act
Employment Act 1955 and related laws to be reviewed to develop human capital. Measures outlined include:
- Improved terms and conditions of employment, appointment and dismissal
- Flexible working hours
- Termination benefits
- Introduction of insurance system for retrenched employees
