Last updated on December 25, 2025
KUALA LUMPUR: High-income earners accounted for the majority of Malaysia’s RM37.77 billion in individual income tax collected in 2023, according to Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim.
In a written parliamentary reply, Anwar said those earning more than RM100,000 annually contributed 86% of total income tax revenue. The top 20% of taxpayers, individuals with taxable income exceeding RM1 million, made up one-fifth of the total collection.
He emphasised the government’s recognition of their role in supporting the nation’s fiscal stability and highlighted ongoing efforts to tackle tax leakages, including undeclared assets, offshore income, cross-border transactions, and online business activities.
“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,” he said in response to Aminolhuda Hassan (PH–Sri Gading).
Anwar added that initiatives are underway to improve tax administration efficiency through digitalisation and to raise public awareness.
He also clarified that the Inland Revenue Board does not track the number of individuals in Malaysia with a net worth exceeding RM100 million, as wealth levels do not directly correspond to taxable income.
This was in reply to Aminolhuda’s query on the number of such individuals and how many from this group had paid more than RM1 million in annual income tax over the past five years.
Anwar further explained that certain assets, such as specific types of property, are not subject to income tax unless sold or disposed of. The government, he said, continues to enhance the structure and treatment of income tax to ensure Malaysia’s tax system remains fair and progressive.
| Taxpayer Group | Income Threshold | Share of Total Individual Income Tax (2023) | Notes |
|---|---|---|---|
| High-income earners | > RM100,000/year | 86% | Prime Minister Anwar Ibrahim said this group contributed the majority of RM37.77 billion collected. |
| Top 20% of taxpayers | > RM1 million/year | 20% | This is a subset of the above group. |
| Total individual income tax collected | — | RM37.77 billion | Year 2023 figure. |
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