TaxSavvyMY

Rebate for low chargeable income

My chargeable income is RM32,000. Is there a rebate?

The situation

Resident individuals with chargeable income not exceeding RM35,000 may qualify for a RM400 rebate.

The law

  • Part I, Schedule 1, Income Tax Act 1967: Resident individual rates from 0% to 30% (30% above RM2 million for YA 2025)

What it means for you

Tax on RM32,000 is RM150 + RM360 = RM510. After the RM400 rebate, tax is RM110. The rebate reduces tax, not income. The rebate applies only to residents, so non-residents taxed at 30% cannot use it. Zakat paid may also reduce tax, which is a separate rebate.

What to do

  1. Work out chargeable income.
  2. Compute tax.
  3. Apply the rebate.
  4. File e-BE.

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

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