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 Malaysia Tax System should be reform to tally with, Ringgit depreciation

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Wedchar2912
post Oct 14 2023, 01:29 PM

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that's not the right benchmark...

it should be, if one earns say 500K rm, how much is the tax.
if 500K rm but in USD and in America, how much is the tax.
if 500K rm but in SGD and in SG, how much is the tax.
Wedchar2912
post Oct 14 2023, 04:48 PM

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QUOTE(xiaojohn @ Oct 14 2023, 04:00 PM)
Here you go...
user posted image
For RM120K income....

in Malaysia - effective tax rate is 12%
in Singapore - effective tax rate is 1%
in USA - effective tax rate is 16%
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Isn't this a better representation?

10K per month in Malaysia lands you clearly in T20, and you most probably have to pay 12% tax.
But in america, that is clearly B40 and the B40 there have to pay 16% tax.

Of course the best would be to earn in SG and pay only 1% tax.

And there are many ways to slice the info. One can complain why 10K rm, which is low in SG, have to pay almost America's tax level and we don't get the best army and navy in the world? haha.
Wedchar2912
post Oct 14 2023, 05:01 PM

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QUOTE(xiaojohn @ Oct 14 2023, 04:55 PM)
it is not....actually...

in fact, government adjust the tax base on their spending needs (which is budget)....not base on statistical bell shape distribution....

so we still keep this old tax structure until today....so sad...

everytime government want to lure MNC here by giving tax break - unker will shake my head for sure....government do not realised the real situation, or maybe they are inccapbale to do anything on it...because of 3R
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well, many countries already added spending taxes and wealth transfer taxes, which Malaysia didn't really move into yet. we still love our SST, when it should be GST to be introduced.
the current tax brackets in Malaysia is already too lopsided... i would have preferred everyone to pay tax, even 1% at the below 1K salary level. If intro GST, then maybe can leave the other brackets intact.

wealth tax I don't agree... cos then I will kena for all my working life effort of accumulating wealth. haha.

3R? malaysia is pretty much doomed... But I will still tell everyone that Malaysia is a great place to be your base of retirement. If want to work and earn a good and honest living, go elsewhere.

 

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