Released January 2020
Personal Income Tax Rate Update
Tax calculations have been updated to comply with the new changes as announced in Malaysian Budget 2020.
- A new chargeable income band now introduced for resident individual with income exceeding RM 2 million.
- The fixed income tax rate for non-resident individuals is increased from 28% to 30% with effect from YA 2020.
| P | Total chargeable income for a year |
| M | Amount of the first chargeable income for every range of chargeable income a year |
| R | Percentage of tax rates |
| B | Amount of tax on M after deduction of tax rebate for individual and husband or wife, if qualified |
Tax relief updates
Personal Income Tax Relief changes for the Year 2020 include:
- Medical expenses relief for self, spouse or child suffering from a serious disease has been extended to include the fertility treatment, total relief amount remains RM6,000.00
- Fees Paid To Child Care Centres/Kindergartens has been increased
to RM2,000.00 - Rebate for departure levy on performing umrah and other Islamic religious has been included in Zakat relief
The optional deduction window has been updated in line with above change
TP1 Form – Borang Tuntutan Potongan Dan Rebat Individu has also been updated to reflect the change.
LHDN Payroll Audit File
In accordance with LHDN requirements, there is now an LHDN audit report that will generate the necessary files.
Read more about this feature here.
