Income Tax Deduction Malaysia

How to file your taxes manually in.

Income tax deduction malaysia. Pursuant to the income tax deduction from remuneration amendment no. A malaysian company can claim a deduction for royalties management service fees and interest charges paid to foreign affiliates provided that these are made at arm s length and the relevant whts where applicable have been deducted and remitted to the malaysian tax authorities. For employees who receive wages salary of rm5 000 and below the portion of employee s contribution is 11 of their monthly salary while the employer contributes 13. For income tax filing in the year 2020 ya 2019 you can deduct the following contributions from your aggregate income.

The acronym is popularly known for monthly tax deduction among many malaysians. For example let s say your annual taxable income is rm48 000. Based on this amount the income tax to pay the government is rm1 640 at a rate of 8. Pcb stands for potongan cukai berjadual in malaysia national language.

Malaysia income tax deduction ya 2019 donations a tax deduction reduces the amount of your aggregate income which the sum of your total income for the year put together. For income tax 2019 if your chargeable income is rm55 000 and you ve donated rm2 500 to an approved charitable organisation you are allowed to deduct 7 of your aggregate income to reduce your chargeable income. However if you claimed rm13 500 in tax deductions and tax reliefs your chargeable income would reduce to rm34 500. Special relief of rm2 000 will be given to tax payers earning on income of up to rm8 000 per month aggregate income of up to rm96 000 annually.

How does monthly tax deduction mtd pcb work in malaysia. Here are the income tax rates for personal income tax in malaysia for ya 2019. Other personal deductions reliefs reliefs ya 2020. Mortgage interest incurred to finance the purchase of a house is deductible only if income is derived from the house.

Simple pcb calculator is a monthly tax deduction calculator to calculate income tax required by lhdn malaysia. What is income tax return. How to pay income tax in malaysia. This relief is applicable for year assessment 2013 and 2015 only.

Malaysia income tax e filing guide. Tax offences and penalties in malaysia. Total chargeable income after tax deduction rm55 000 rm55 000 x 7 rm55 000 rm3 850.