[Malaysia] Tax Rate Changes 2021

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.