With effect from 2021, Malaysia individual tax residents under the chargeable income band of RM50,001-RM70,000 will have their tax rate reduced by 1%, from 14% to 13%. This resulted in a tax saving for chargeable income bands above MYR 50,001. Non-resident individual's tax rate however, remains at a flat rate of 30%.
How does this affect payroll?
This means that the "Monthly Tax Deduction" in your payroll will have to be applied for employees within the income bands of RM50,000 and above.
Get in touch with us at info@payrollserve.com.my or reach out to +603 2787 7600 | +6019 220 6337
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