A Personal Finance Blog for Malaysian: Don't just compare the top marginal tax rate!

Wednesday, October 13, 2010

Don't just compare the top marginal tax rate!

Published on The Star, 13 October 2010.

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?