The GOOD news.
The income tax rates are being reduced in 2015 and a comparison of the 2014 and 2015 rates can be found here:
Comparison of Income Tax Rates 2014 and 2015
Basically this means:
Tax steps on annual salary are:
2014 2015
0-5,000 0% 0%
5,001-10,000 2% (RM100) 5,000-10,000 1%
10,001-20,000 2% (RM100) 10,001-20,000 1%
20,001-35,000 6% (RM300) 20,001-35,000 5%
35,001-50,000 11% (RM1,200) 35,001-50,000 10%
50,001-70,000 19% (RM2,850) 50,001-70,000 16%
70,001-100,000 24% (RM6,650) 70,001-100,000 21%
Exceeding 100k 26% 100,001-250,000 24%
250,001-400,000 24.5%
Exceeding 400 000 25%
NOTE: Non-resident individuals are subject to income tax at a fixed rate of 25%, reduced by 1% from current 26%.
GST
A new tax is going to be introduced that will replace the current Sales (10%) and Service (6%) Taxes, which will no longer be charged. It is called GST (Goods and Services Tax). GST will be implemented on 1 April 2015 and the standard rate of GST is fixed at 6%. Certain essential goods and services will be exempted from GST.
List of Zero-Rated Supply
Agricultural products - paddy, fresh or chilled vegetables, certain provisionally preserved vegetables
Essential foodstuff - rice, sugar, flour, cooking oil, vegetable, fish and meat, eggs oils, salt, flour, etc
Livestocks and livestock supplies or poultry - live animals and unprocessed meat
Eggs
Fish - live, fresh, frozen and dried
First 200 units of electricity for domestic use
Water for dosmestic users
Goods supplied to designated areas from Malaysia Labuan, Langkawi & Tioman
Exported goods
Exported services - for example, archiecture services in connection with land outside Malaysia
Services in Malaysia - for example, pilotage, salvage or towage services
International services - for example, transport of passengers or goods from a place in Malaysia to a place outside Malaysia
List of Exempt Supply
Financial Services
Public Transport Services
Private Education Services
Tolled Highways or Bridges
Childcare Services
Funeral, Burial and Cremation Services
Private Healthcare Services
Supplies Made by Societies
Residential Land or Building
Agriculture or General Use Land
Public Transport Services Under Exempt Supply
Mass public transport by rail (LRT, ERL, MRT, Monorail, etc)
Ships or Boats
Ferries
Express bus
Workers bus
School bus
Feeder bus
Taxi
Land, Building and Lease of Property Under Exempt Supply
Goods - Land used for residental or agricultural purposes or general use (for example, burial ground, playground or religious building)
Goods - Building used for residential purposes
Services - Right to use or license to occupy residential property (land or building or both)
Services - Right to use or license to occupy land for agricultural purposes or general use (government building, burial ground, schools, playground, parks, etc.)
All owners of businesses must register before 31st December 2014 and SMEs will receive a RM1.000 subsidy for purchasing software required to calculate the tax.
Subsidy for SMEs
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