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Monthly Update

Malaysia

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2023 MY Tax Changes Now in Force

System Changes Effective 12 June 2023


We have received confirmation from LHDN that the proposed changes to tax rate and tax relief in Malaysia Budget 2023, tabled on 24 February, are now in force.

Tax rates for tax resident individuals for the year of assessment 2023 for the following chargeable income bands will be reduced by two percents:

  • RM35,001 to RM50,000 (-2%)
  • RM50,001 to RM70,000 (-2%)
  • RM70,001 to RM100,000 (-2%)

Tax rates for tax resident individuals for the year of assessment 2023 for the following chargeable income bands will be increased by between 0.5 to two percents:

  • RM100,001 to RM250,000 (1%)
  • RM250,001 to RM400,000 (0.5%)
  • RM400,001 to RM600,000 (1%)
  • RM600,001 to RM1,000,000 (2%)


Tax relief

  • Medical treatment expenses limit is increased from RM8000 to RM10,000. The scope of relief is expanded to include intervention expenditure for Autism, Attention Deficit Hyperactivity Disorder (ADHD), Global Developmental Delay (GDD), Intellectual Disability, Down Syndrome and Specific Learning Disabilities, limited to RM4,000.
  • The existing relief of RM3,000 on life insurance premiums is expanded to cover voluntary EPF contributions.
  • Tax relief for child care fees is extended until the year of assessment 2024.
  • Tax relief on net deposit into the slim simpanan pendidikan is extended until the year of assessment 2024.


We have implemented these changes in our system effective from 12 June. For more information, refer to the article below for more details.

PCB/ MTD tax calculations

Tax Relief

Detailed Activity Report Enhancements


Available Now

Detailed Activity Report has been updated to include a breakdown of employee activity by location, specifically focusing on employee statutory contributions from gross income to net pay for Singapore and Malaysia.

This enhancement only applies to newly created pay runs.

Pay Slip Customisation Enhancements

Released 6 July 2023

You will soon be able to personalise pay slip presentation to ensure relevant information specific to your business’s needs is communicated to employees on their pay slips. This enhancement will apply to all pay slips accessible in Employment Hero HR, Payroll & Swag.

Enhancements include:

  • Control the visibility of the Year-to-Date (YTD) column on pay slips
  • Hide the Total Hours Paid in the pay slip header
  • Set Pay Period dates to reflect an employee’s actual employment if they join or leave during a pay period.
  • Display line notes for deductions.

These features can be accessed under:

Payroll Business Settings > Pay Slips

Read more [SG]: Pay Slips - Customise

Read more [MY]: Pay Slips - Customise