Income tax for 2016 increases between one and three percent

The income tax rates for resident individuals whose chargeable income from RM600,001 to RM1 million are proposed to be increased by one percent to 26 percent from 25 percent now.

For those with income exceeding RM1 million, the tax will be higher by three percent at 28 percent from 25 percent, from year of assessment 2016, Prime Minister, Datuk Seri Najib Razak announced here, today.

The fixed income tax rate for non-resident individuals will be increased by three percent to 28 percent from 25 percent, he said when tabling the Budget 2016 at the Dewan Rakyat here, today.

He said the move was to enhance the progressivity of the individual income tax structure.