PETALING JAYA: As income tax filing season approaches and public attention has turned to the RM37,333 personal tax exemption threshold, taxpayers are calling for a broader overhaul of Malaysia’s personal tax relief system. Besides an increasingly complex web of deductions, they are of the view that relief levels are outdated and no longer reflect the real cost of living. Tax experts stressed that the tax-free income threshold should not be confused with the RM9,000 personal tax relief, as it is a technical outcome of Malaysia’s tax framework rather than a standalone policy measure. The tax-free income threshold has been in place since the year of assessment 2023 and is derived from Malaysia’s progressive tax rate structure, a RM9,000 personal relief and a RM400 tax rebate for chargeable income of RM35,000 or below, said Datin Christine Koh, managing director of Owen KLCA PLT. Koh said that several key reliefs, including the RM9,000 personal relief, have remained unchanged since 2010.

Source: The Star February 02, 2026 07:23 UTC