Young millionaires on the rise in Malaysia, 75pc jump recorded in 2022

KUALA LUMPUR, April 20 — Malaysia reportedly recorded a 75 per cent increase in young millionaires in 2022, the Inland Revenue Board (IRB) was reported saying.

The New Straits Times reported IRB saying that the number of those aged under 30 declaring their income as being above RM1 million, went up from 20 in the previous year to 35.

“However, we have yet to tabulate the figures for 2023 since the e-filing process for the year is still ongoing,” it was quoted as saying.

The IRB said in the period from 2018 to 2021, 94 per cent of young millionaires have not recorded any outstanding tax balances.

“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.

In a related matter, the IRB said it has recovered RM5.2 billion in additional assessment tax raised due to unreported, under-declared and evasion of reported income by individuals and companies in 2023.

“IRB will take measures under the provision of the Income Tax Act 1967 to combat tax evasion, including enhanced enforcement, legislation and taxpayer education.

“We are also committed to tackling tax evasion and at the same time, strengthening the tax net by broadening the tax base to address any existing leakages or gaps to make sure that everyone pays an equal share to the government without discriminating either individuals or companies,” it said.

The IRB said it has implemented Tax Identification Number (TIN) and e-invoices to address tax evasion in the country.

Last year, property consultancy Knight Frank’s latest report showed Malaysia was among the top 10 countries with the fastest-growing population of ultra-rich individuals — which is defined as having a minimum of US$30 million or RM139 million in net wealth.

While in 2017 there were already 491 ultra-high-worth individuals in Malaysia, this number grew to 659 in 2021 and then 721 people in 2022.