Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
RM 1,640,080
Employees' Provident Fund (EPF)
- RM 180,416
Social Security Organization (SOCSO) contribution
- RM 237
Employment Insurance System (EIS) contribution
- RM 94.80
Tax
- RM 413,032
Total tax
- RM 593,780
Net pay
* RM 1,046,300
Marginal tax rate
39.0%
Average tax rate
36.2%
63.8%
Net pay
36.2%
Total tax
Total tax
Net pay
The Taxberg
RM 1,046,300
Net pay
RM 214,139
Tax the employer pays
RM 593,780
Tax you pay
Total tax paid
RM 807,919
Did you know your employer also pays tax on your salary? It costs the employer RM 214,139 to pay you RM 1,640,080. In other words, every time you spend RM 10 of your hard-earned money, RM 4.93 goes to the government.
Real tax rate
43.6%
So, with you and the employer both paying tax, what used to be a 36.2% tax rate now rises to 43.6%, meaning your real tax rate is actually 7.4% higher than what it seemed at first.
Summary
If you make RM 1,640,080 a year living in Malaysia, you will be taxed RM 593,780. That means that your net pay will be RM 1,046,300 per year, or RM 87,192 per month. Your average tax rate is 36.2% and your marginal tax rate is 39.0%. This marginal tax rate means that your immediate additional income will be taxed at this rate. For instance, an increase of RM 100 in your salary will be taxed RM 39, hence, your net pay will only increase by RM 61.
Bonus Example
A RM 1,000 bonus will generate an extra RM 610 of net incomes. A RM 5,000 bonus will generate an extra RM 3,050 of net incomes.
North America
Country 
Net pay
Average tax
Rank
USA
MYR 1013347
38.2%
1
Canada
MYR 865770
47.2%
2
Middle East
Country 
Net pay
Average tax
Rank
Kuwait
MYR 1593091
2.9%
1
Bahrain
MYR 1584128
3.4%
2
Saudi Arabia
MYR 1576301
3.9%
3
United Arab Emirates
MYR 1558076
5.0%
4
Qatar
MYR 1558076
5.0%
5
Oman
MYR 1508874
8.0%
6
Egypt
MYR 1231283
24.9%
7
Lebanon
MYR 1230898
25.0%
8
Turkey
MYR 956047
41.7%
9
Israel
MYR 928506
43.4%
10
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NOTE* Deductions are calculated based on the tables of Malaysia, income tax. For simplification purposes some variables (such as marital status and others) have been assumed. This document does not represent legal authority and shall be used for approximation purposes only.