1. What is Commission Tax in Malaysia?

In Malaysia, commission income is taxable under the Income Tax Act 1967. The tax rate depends on your total taxable income bracket and whether you're a resident or non-resident taxpayer.

2. How Does the Calculator Work?

The calculator uses the simple tax formula:

Where:

• Commission Pay — Your commission earnings in Malaysian Ringgit (MYR)
• Malaysia Tax Rate — The applicable tax rate percentage for your income bracket

Explanation: This calculates the tax amount payable on your commission income based on the tax rate you input.

3. Importance of Calculating Commission Taxes

Details: Proper tax calculation ensures compliance with Malaysian tax laws, helps with financial planning, and avoids penalties for underpayment.

4. Using the Calculator

Tips: Enter your commission amount in MYR and the applicable tax rate percentage. The calculator will compute the tax amount payable.

5. Frequently Asked Questions (FAQ)

Q1: Are commission earnings taxable in Malaysia?
A: Yes, commission income is generally taxable in Malaysia as part of your employment or business income.

Q2: How do I know my tax rate in Malaysia?
A: Malaysia has progressive tax rates from 0% to 30% for residents. Your rate depends on your total annual taxable income.

Q3: Are there deductions available for commission earners?
A: Yes, you may claim allowable expenses related to earning your commission income, subject to tax regulations.

Q4: When are commission taxes due in Malaysia?
A: Taxes are typically due by April 30th of the following year for individuals filing their own returns.

Q5: Do I need to pay taxes if my commission is my only income?
A: If your total annual income (including commission) exceeds the taxable threshold (RM34,000 for 2023), you must pay taxes.