Adoption of new tax rates to calculate the Monthly Tax Deduction

The Inland Revenue Board of Malaysia (“IRB”) announced on its website the adoption of new tax rates to calculate the Monthly Tax Deduction (“MTD”) effective from 1 June 2023. The announcement made by IRB is in line with the changes to the income tax rate for resident individuals via Section 16(a) of the Finance Act 2023, which was gazetted on 31 May 2023. 

The latest tax rates for resident individuals is set out in the following table.