Malaysia’s Inland Revenue Board (IRB) has reported a significant uptick in the number of young millionaires, noting a 75% rise in 2022 compared to the previous year.
“Last year, 35 individuals aged below 30 reported incomes exceeding RM1 million, up from 20 in 2021,” the IRB disclosed to NST.
Most of them have no outstanding tax balances
The trend of young high earners has been consistent since 2018, with the IRB recording at least 20 individuals each year reaching the millionaire mark.
“However, we have yet to tabulate the figures for 2023 as the e-filing process for the year is still ongoing,” an IRB spokesperson mentioned to the English daily.
The tax compliance among these young millionaires is commendably high, with over 94% having no outstanding tax balances between 2018 and 2021.
The IRB also emphasized the necessity of maintaining high compliance levels, stating, “Assessing the taxpayers’ level of compliance needs to take into consideration including the submission of income tax declaration forms every year, compliance with payment instructions for tax installments and balances, as well as ensuring that tax declarations are made correctly and accurately, among others.”
Read also:
Furthermore, the IRB clarified that all individuals whose earnings surpass the taxable threshold, including social media influencers and online traders, are required to register for an income tax file.
This extends to anyone with an annual employment income over RM34,000 after Monthly Tax Deductions (MTD).
Income in Malaysia is taxed based on accrual within the country or derivation from it, and also on income received from overseas, dependent on residency status.
