TaxSavvyMY

Budget 2027 changes for individuals

Will Budget 2027 reduce my income tax?

The situation

Budget 2027 proposed raising individual relief to RM12,000, a 1 point cut for chargeable income of RM70,000 to RM150,000, and the 30% rate from RM1 million.

The law

  • Part I, Schedule 1, Income Tax Act 1967: Resident individual rates from 0% to 30% (30% above RM2 million for YA 2025)
  • Sec 46, Income Tax Act 1967: Personal reliefs, including RM9,000 individual relief and RM7,000 for EPF and life insurance

What it means for you

These are proposals and need the Finance Act. Deloitte estimates about RM840 saved at RM100,000 income. Do not apply them to returns until enacted; plan payroll changes after gazettement.

What to do

  1. Keep current rules for your next return.
  2. Watch for the Finance Act.
  3. Ask HR to update PCB when enacted.
  4. Re-plan reliefs.

We can do this for youIndividual tax return Form BE for employees: MYR 150

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