INDIVIDUALS with taxable incomes more than RM100,000 annually contributed a significant 86% of the total individual income tax collected in 2023, the Finance Ministry revealed.
It said this contribution formed part of the RM37.77bil in individual income tax collected by the government for that year, which represented 22% of the total direct tax collection of RM171.34bil.
“Of this, the top 20% of taxpayers, with taxable incomes over RM1mil, played a substantial role in bolstering Malaysia’s fiscal resources.
“Their contributions are crucial in maintaining economic stability and supporting national development,” said the ministry in a written parliament reply.
Aminolhuda Hassan (PH-Sri Gading) asked about the number of individuals in Malaysia with net wealth exceeding RM100mil and their tax contributions.
The ministry said such specific data is unavailable in the Inland Revenue Board’s records, as net wealth does not directly correlate with income tax liabilities.
“Certain assets are not subject to income tax unless sold or disposed of, such as real estate or specific investments,” it said.
The government, it added, appreciates the role of high-income taxpayers in bolstering economic stability and strengthening the country’s fiscal position.
“The government remains committed to enhancing tax compliance and addressing tax leakage issues, especially among high-income individuals with assets and wealth not aligned with reported taxes.
“This includes income kept in offshore accounts, cross-border transactions, domestic transfer pricing, online activities and shadow economy cases,” it added.
In addition to tackling tax leakage, the government is focused on improving tax administration efficiency through digitalisation and encouraging tax compliance via ongoing awareness efforts.
“We are continually refining the structure and treatment of income tax to ensure a fair and progressive taxation system in Malaysia,” it added.
