More than 20% tax on those earning above RM100,000, says Amir Hamzah

KUALA LUMPUR: A tax rate exceeding 20% will be set for individuals who earn an income of over RM100,000, says Datuk Seri Amir Hamzah Azizan (pic).

The Finance Minister II said this in his winding-up speech on the Supply Bill 2025 debate in the Dewan Rakyat late Wednesday (Nov 13).

However, he did not specify if the RM100,000 quantum applies to earnings per year or per month.

Amir Hamzah also said those who receive dividends and a salary from their own private limited companies will be subjected to a company tax rate of up to 30%.

He added that those who own private limited companies and only receive dividends without taking a salary would be subjected to a 20% company tax.

Amir Hamzah added that a dividend tax is mandatory for those who have both listed and unlisted shares in companies.

“The principle of the dividend tax is to get those who are financially capable and able to generate lots of income to contribute to national tax revenue,” he said.

He did not state when these taxes will come into force.

Amir Hamzah also said the Finance Ministry was still working on the criteria to determine who will be in the new high-income T15 bracket but added that the criteria “will not be based on income alone”.

He also said the ministry plans to increase the allocation for Rahmah cash aid to RM13bil in 2025 from the current RM10bil.