Wednesday, October 13, 2010
Don't just compare the top marginal tax rate!
Malaysia have one of the lowest top marginal tax rate - is it right or wrong?
In Malaysia, if your chargeable income is RM100,000 or more, you are touching 26%.
Taxpayers in Singapore would only hit the top marginal rate of 20% if their chargeable income exceeds S$320,000 (about RM764,320).
So, effectively our income tax is very high (expensive) for high-income individual, most of them are considered the Talent.
No wonder many talents are leaving Malaysia (of course, for some other reason too).
I don't know about tax structure in Indonesia, Vietnam and Thailand - anyone to share with me?