Individual - Significant developments

Last reviewed - 06 December 2023

New personal income tax (PIT) rates for certain chargeable income bands from the year of assessment 2023

From the year of assessment 2023, the income tax rates of Malaysian tax resident individuals for: 

  • each of the chargeable income bands from 35,001 to 100,000 Malaysian ringgits (MYR) is reduced by 2%, and
  • each of the chargeable income bands from MYR 100,001 to MYR 1 million is increased by between 0.5% to 2%.

See the Taxes on personal income section for new PIT rates from the year of assessment 2023 onwards.

High value goods tax

A high value goods tax is expected to be introduced at the rate of 5% to 10% on certain high-value items such as jewellery and watches, based on the threshold of price. The implementation date was proposed to be on 1 May 2024.

Increase in service tax rate from 6% to 8%

Effective from 1 March 2024, the service tax rate has increased from 6% to 8% for all taxable services previously subject to tax at 6%, except for:

  • Provision of food & beverage services
  • Telecommunication services
  • Parking services
  • Logistics services