The Budget 2023 study has been successfully presented in the National Assembly, and we will take a look at the new tax-related policies and measures.
1. Personal income tax rate adjustment
The tax rate for personal income between RM50,000 and RM70,000 will be reduced from 13% to 11% and the tax rate for personal income between RM70,000 and RM100,000 will be reduced from 21% to 19%. The tax rate for personal leviable income from RM250,000 to RM400,000 is increased from 24.50% to 25%.
2. Stamp duty exemption for home purchases
First-time buyers are entitled to a 70% reduction in stamp duty on the purchase of properties between RM500,000 and RM1 million. First time buyers are exempted from paying stamp duty on properties below RM500,000 until 2025.
3. Personal Income Tax Deduction
A tax deduction of RM1,000 is also available for dental check-ups and treatments. Tax deduction of up to RM8,000 for your child’s SSPN education savings will continue. Families who send their children to nursery and kindergarten will receive a tax deduction of up to RM3,000 for tax years 2023 and 2024.
4. Tax exemption for women re-entering the workforce
Women returning to the workforce can enjoy tax exemptions for up to 5 years, which will be extended to 2028.
5. Reduced Tax Rate for Micro Enterprises and SMEs
The first RM100,000 of taxable income for MSMEs is reduced to 15%, compared to 17%, a reduction of 2%.
6. Self-employed insurance for Self-contributory Provident Fund
Self-employed persons are entitled to a tax deduction of up to RM3,000 for life insurance after participating in the Self-contributory Provident Fund (SCP).
7. Tax Identification Number (TIN)
The Tax Identification Number (TIN) scheme will be implemented in phases from next year and will be required for home and car purchases and loans.
8. Carbon Emission Tax
The government will study the feasibility of a carbon tax and plans to impose a carbon tax on companies that emit large amounts of carbon.
9. Electric vehicle import tax and sales tax exemption
Original imported electric vehicles will continue to enjoy import duty and sales tax exemptions until December 31, 2024.
