MALAYSIA’S highest earners contributed a significant share of the RM37.77 billion in individual income tax collected in 2023, with those earning above RM100,000 a year responsible for 86 per cent of the total, the Dewan Rakyat was told.
In a written parliamentary reply, Prime Minister Datuk Seri Anwar Ibrahim said the top 20 per cent of taxpayers — those declaring over RM1 million in taxable income — accounted for one-fifth of the total collection.
“The government greatly appreciates the role and contribution of high-income taxpayers in helping to boost economic stability and strengthen the fiscal position, so that national development can be carried out more equitably,” Anwar, who is also the and Finance Minister, said in response to a question from Aminolhuda Hassan (PH–Sri Gading).
He added that Putrajaya is intensifying efforts to plug tax leakages linked to undeclared assets, offshore earnings, cross-border transactions and online business activities. Digitalisation of the tax system and awareness campaigns are also part of the broader effort to modernise tax administration.
In response to a supplementary question about Malaysia’s ultra-wealthy, Anwar noted that the Inland Revenue Board (LHDN) does not record the number of individuals with a net worth exceeding RM100 million, as wealth does not necessarily equate to taxable income.
“Certain assets, such as specific types of property, are not subject to income tax unless they are sold or disposed of,” he explained.
He reiterated that the government remains committed to ensuring Malaysia’s tax framework evolves in line with international best practices — with an emphasis on transparency, progressivity and fairness. - August 11, 2025
