INCOME TAX ACT 1967 (ACT 53)




SCHEDULE 1 [Section 6] - Rates Of Tax.

PART I

1. Except where paragraphs 1A, 2 and 3 provide otherwise, income tax shall be charged for a year of assessment upon the chargeable income of every person at the following rates:


Chargeable Income RM Rate of Income Tax

For every ringgit of the first 2,500 0 per cent
For every ringgit of the next 2,500 1 per cent
For every ringgit of the next 15,000 3 per cent
For every ringgit of the next 15,000 7 per cent
For every ringgit of the next 15,000 13 per cent
For every ringgit of the next 20,000 19 per cent
For every ringgit of the next 30,000 24 per cent
For every ringgit of the next 150,000 27 per cent
For every ringgit exceeding 250,000 28 per cent

[Subs. Act 309: s.15; Subs. Act 451: s.24; Subs. Act 471: s.12; Subs. Act 497: s.9; Subs. Act 531: s.19; Subs. Act 544: s.14; Ins. Act 578: s.19; Subs. Act 600: s.12; Subs. Act 619:s.7]

1A. Except where paragraph 2 provides otherwise, income tax shall be charged for a year of assessment on the chargeable income of a person (other than a company) not resident for the basis year for that year of assessment at the rate of 28 per cent on every ringgit of the chargeable income. [Ins. Act 578: s.19; Am. Act 600: s.12; Am. Act 619:s.7]

2. Subject to paragraph 3, income tax shall be charged for a year of assessment on the chargeable income of- [Subs. Act A471: s.12]

                (a) a company;

                (b) (repealed by Act 578: s.19]

                (c) a trust body;

                (d) an executor of an estate of a deceased individual who was domiciled outside Malaysia at the time of his death;

                (e) a receiver with respect to whom section 68(4) applies,

at the rate of 28 per cent on every ringgit of the chargeable income. [Subs. Act 364: s.11; Subs. Act 497: s.9; Subs. Act 531: s.19; Subs. Act 578: s.19]

3. Income tax shall be charged for a year of assessment on the chargeable income of an insurer from inward re-insurance business or off-shore insurance business at the rate of 5 per cent on every ringgit of the chargeable income. [Ins. Act A471: s.12; Ins. Act 264: s.11]

PART II

Notwithstanding Part I, income tax shall be charged on the following income at the following rates-

Type of income

Rate of income tax

1. Income of a non-resident person consisting of interest (other than interest on an approved loan or interest of the kind referred to in paragraph 33 of Part I, Schedule 6) derived from Malaysia.


[Am. Act 323: s.20; Subs. Act 531: s.19]
15% of gross
2. Income of a non-resident person consisting of royalty derived from Malaysia.


[Subs. Act 531: s.19]
10% of gross
3. Income of a non-resident person (other than a company) consisting of remuneration or other income in respect of services performed or rendered in Malaysia by a public entertainer.
15% of gross



PART III


[Subs. Act 323: s.21; Subs. Act 337: s.16; Del. by Act 451: s.24]

PART IV


Notwithstanding Part I, income tax shall be charged for a year of assessment upon the chargeable income of every co-operative society at the following rates-


Chargeable Income RM
Rate of Income Tax

For every ringgit of the first 20,000 0 per cent
For every ringgit of the next 10,000 3 per cent
For every ringgit of the next 10,000 6 per cent
For every ringgit of the next 10,000 9 per cent
For every ringgit of the next 25,000 12 per cent
For every ringgit of the next 25,000 16 per cent
For every ringgit of the next 50,000 20 per cent
For every ringgit of the next 100,000 23 per cent
For every ringgit of the next 250,000 26 per cent
For every ringgit of the next 500,000 28 per cent

[Subs. Act 476: s.17; Subs. Act 497: s.9; Subs. Act 531: s.19; Subs. Act 544: s.14; Subs. Act 600: s.12; Subs. Act 619:s.7]

PART V

Notwithstanding Part I and Part II, income tax shall be charged on the income of a non-resident person consisting of-

(i) amounts paid in consideration of services rendered by the person or his employee in connection with the use of property or rights belonging to, or to the installation or operation of any plant, machinery or other apparatus purchased from, such person;

(ii) amounts paid in consideration of technical advice, assistance or services rendered in connection with technical management or administration of any scientific, industrial or commercial undertaking, venture, project or scheme; or

(iii) rent or other payment made under any agreement or arrangement for the use of any moveable property; [Ins. Act 309: s.15; Ins. Act 328: s.16; Am. Act 557: s.21]

which is derived from Malaysia at the rate of 10% of gross. [Ins. Act 293: s.13; Subs. Act 531: s.19]

PART VI

Notwithstanding Part I, income tax shall be charged on the income of an individual resident in Malaysia consisting of interest (other than interest exempt under this Act or any order made thereto) accruing in or derived from Malaysia and received from a person referred to in section 109C at the rate of..... 5% of gross. [Ins. Act 323: s.22]

PART VII

Notwithstanding Part I, income tax shall be charged upon the chargeable income of an approved operational headquarters company in relation to the source consisting of the provision of qualifying services as defined under subsection 60E (7) at the rate of ..................10 per cent [Ins. Act 420: s.14]

PART VIII

Notwithstanding Part I and Part II, income tax shall be charged on the chargeable income of a life fund, other than income arising from life re-insurance business and inward life re-insurance business, of a resident or non-resident insurer at the rate of............................................ 8 per cent. [Ins. Act 531: s.19; Ins. Act 578: s.19]

PART IX

Notwithstanding Part I, income tax shall be charged on the chargeable income of a foreign fund management company in relation to the source consisting of the provision of fund management services to foreign investors as referred to in section 60G at the rate of ............................................. 10 per cent. [Ins. Act 544: s.14]

Related reading:
[Act 264: s.11; Act 293: s.13; Act 309: s.15; Act 323: s.20; Act 323: s.21; Act 323: s.22; Act 328: s.16; Act 364: s.11; Act 337: s.16; Act 420: s.14; Act 451: s.24; Act 471: s.12; Act 476: s. 17; Act 497: s.9; Act 531: s.19; Act 544: s.14; Act 557: s.21; Act 578: s.19; Act 600: s.12; Act 619:s.7]



Copyright 2002 PNMB LawNet. All rights reserved.