Young millionaires on the rise [NSTTV]

KUALA LUMPUR: The number of young millionaires in Malaysia are on the rise, with a 75 per cent increase in millionaires aged 30 and under recorded in 2022.

Figures from the Inland Revenue Board (IRB) show that 35 people aged under 30 had that year declared their income as being above RM1 million.

This marked a sharp increase from 20 people the previous year.

IRB said the tax body has recorded a steady number of young millionaires, with at least 20 young people declaring an income of at least RM1 million each year since 2018.

"However, we have yet to tabulate the figures for 2023 since the e-filing process for the year is still ongoing," it said.

It also said that over 94 per cent of taxpayers under the age of 30 who earn over RM1 million have not recorded any outstanding tax balances in the year between 2018 and 2021.

"However, assessing the taxpayers' level of compliance needs to take into consideration including the submission of income tax declaration forms every year, compliance with payment instructions for tax instalments and balances, as well as ensuring that tax declarations are made correctly and accurately, among others," it said.

IRB said every individual, including social media influencers whose total taxable income exceeds the threshold value, must register for an income tax file.

Individuals earning an annual employment income of more than RM34,000 and having Monthly Tax Deductions (MTD) are eligible for taxation.

"Income tax shall be charged for each year of assessment on the income of any person accruing in or derived from Malaysia, or received in Malaysia from outside of the country.

"The scope of taxation for an individual also depends on their residency status.

"Therefore all eligible individuals, including social media influencers and online traders are subject to taxation if they meet the criteria," it said.

Additionally, gains or profits from conducting a business, trade, vocation, or profession are subject to taxation, including those from the shadow economy."

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