#Belanjawan2027: Tax On Wealthy Individuals Earning Over RM1 Million A Year Increased To 30%
Meanwhile, tax rates for two income brackets will be reduced by one percentage point each.
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The government has proposed to increase the tax rate for individuals with an annual income of over RM1 million to 30%
Prime Minister Datuk Seri Anwar Ibrahim, who is also the Finance Minister, announced this during the tabling of the Belanjawan 2027 today, 9 October.
Under the current tax brackets, individuals with an annual income between RM600,001 and RM2 million fall within the 28% tax bracket, while income above RM2 million is taxed at 30%.
The proposal would lower the threshold for the 30% rate from RM2 million to RM1 million, with more individuals expected to pay the higher rate.
Meanwhile, the tax rates for two income groups have been reduced by 1%
The tax rate on individuals with an annual income between RM70,001 and RM100,000 will fall from 19% to 18%, while the rate on income from RM100,001 to RM150,000 will fall from 25% to 24%.
The basic personal tax relief will also rise from RM9,000 to RM12,000, its first increase since 2010.
"Higher tax reliefs and lower individual tax rates are expected to give about five million taxpayers up to RM1,600 more in disposable income," said Anwar.
