Different Types of Taxes and Government Revenue in Malaysia

Different Types of Taxes and Government Revenue in Malaysia

The Federal Government revenue which includes taxation is classified into four main categories, namely Tax Revenue, Non-Tax Revenue, Non-Revenue Receipts and Revenue from Federal Territories.

Tax Revenue

Tax Revenue is classified into Direct Tax Revenue and Indirect Tax Revenue.

Direct Tax Revenue

1. Individual Income Tax
2. Corporate and Business Income Tax
3. Petroleum Income Tax
4. Withholding Tax
5. Cooperative
6. Real property gain tax; and
7. Stamp duty.

Indirect Tax Revenue

1. Export Duty
2. Import Duty
3. Excise Duties
4. Sales and Service Tax
5. Tourism Tax

Non Tax Revenue

Non-Tax Revenue consists of:-

1. Licences and permits including all charges imposed on granting of rights to individuals, corporations, businesses and other enterprises, among others are in the form of petroleum royalty and motor vehicle licences for purpose of control or regulation.
2. Service fees which include receipts from services rendered by the Federal Government to the public

There are two types of taxes in Malaysia which consists of direct tax and indirect tax.

What is Direct Tax?

Direct tax is a tax that is levied on a person or enterprise’s income. The taxpayer is paid directly to the tax collector. Inland Revenue Board Malaysia (IRBM) is responsible for the direct tax. The direct tax consists of:

• Income tax;
• Petroleum income tax;
• Real property gain tax; and
• Stamp duty.