1. What is Salary and Commission Tax?

In Malaysia, income tax is calculated on total income which includes both salary and commission. This calculator helps estimate the tax liability based on your combined salary and commission income at a given tax rate.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( Salary \) — Base salary in Malaysian Ringgit (MYR)
• \( Commission \) — Additional commission earnings in MYR
• \( Tax\ Rate \) — Applicable tax rate percentage

Explanation: The calculator sums your salary and commission, then applies the tax rate percentage to calculate your tax liability.

3. Importance of Tax Calculation

Details: Accurate tax calculation helps with financial planning, budgeting, and ensures compliance with Malaysian tax laws. It's important for both employees and employers to understand tax liabilities.

4. Using the Calculator

Tips: Enter your salary and commission amounts in MYR, then input the applicable tax rate percentage. All values must be positive numbers, with tax rate between 0-100%.

5. Frequently Asked Questions (FAQ)

Q1: Is commission taxed differently from salary in Malaysia?
A: No, both salary and commission are considered part of your employment income and are taxed at the same rate when combined.

Q2: What are typical tax rates in Malaysia?
A: Malaysia has progressive tax rates from 0% to 30% depending on your chargeable income. This calculator lets you input your specific rate.

Q3: Are there deductions or reliefs available?
A: Yes, Malaysia offers various tax reliefs and deductions which would be applied before calculating your final tax liability.

Q4: When is tax due in Malaysia?
A: For employees, tax is typically deducted monthly (PCB) and reconciled when filing your annual tax return.

Q5: Should I consult a tax professional?
A: For complex situations or if you're unsure about your tax rate, consulting a Malaysian tax professional is recommended.