Tax updates: Individual income tax

Some key highlights for individual tax submission without business income and with business income due 30 April 2019 and 30 June 2019, respectively.
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​Reduction of income tax rates for resident individuals

•  Tax rates for resident individuals for year of assessment 2018 are revised as follows:-   

Chargeable income (RM)	Previous tax rate (%)	Current tax rate (%)
20,001 - 35,000	5	3
35,001 - 50,000	10	8
50,000 - 70,000	16	14

• Tax rates for the other bands remain unchanged.

Tax exemption on rental income from residential homes received by resident individuals

• In Year of Assessment 2018, 50% income tax exemption be given on rental income from residential homes received by Malaysian resident individuals, or otherwise be subject to income tax based on the normal progressive rate, provided the following conditions are met:-
  1. Rental income received not exceeding RM2,000 per month for each residential home;
  2. The residential home must be rented under a legal tenancy agreement between the owner and the tenant; and
  3. Tax exemption is given for a maximum period of three (3) consecutive years of assessment.

Extension of income tax relief on net savings in SSPN

• Tax relief up to RM 6,000 for net savings in the National Education Savings Scheme (SSPN) eligible for claim by resident individuals is extended for another three (3) years. Previously the claim was only effective from year of assessment 2012 until year of assessment 2017.

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If you need further clarification or information, please contact us.
 
Source:
- http://www.hasil.gov.my/bt_goindex.php?bt_kump=5&bt_skum=1&bt_posi=2&bt_unit=5000&bt_sequ=11&bt_lgv=2
- https://www.taxathand.com/article/7694/Malaysia/2017/Individual-income-tax-highlights-of-2018-national-budget