A MALAYSIAN woman was shocked to learn that more than RM500 had been deducted from her friend’s monthly salary for tax.
She shared the matter on Threads, questioning why RM520.50 in Monthly Tax Deduction (MTD) was taken from a RM1,700 salary.
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She said the payslip belonged to her friend, a dental surgery assistant at a clinic in Bahau, Negeri Sembilan, showing earnings of RM1,734.85 in January 2026, including overtime.
However, the deductions were unusually high, totalling RM719.75, with RM520.50 listed as MTD.
After EPF, Socso and EIS contributions, her friend’s take-home pay was RM1,015.10.
The woman added that her friend had been working at the clinic since September 2025 and had been losing more than RM500 monthly to tax, only discovering the issue recently before seeking advice online.
Users questioned how someone earning RM1,700 a month could face such heavy tax deductions, noting that this income level generally falls below the taxable threshold.
Several pointed out that RM1,700 monthly amounts to RM20,400 annually, well below the estimated tax threshold of about RM37,000 after reliefs, suggesting the correct MTD should be zero.
Some suspected a payroll error and suggested the employee may have been incorrectly classified as a non-resident.
Non-residents in Malaysia are taxed at 30 per cent, and one user calculated that 30 per cent of RM1,734.85 is approximately RM520 — matching the deduction.
Users advised her friend to check with IRB via the MyTax portal or by contacting the agency directly, warning that if the deduction is not reflected in IRB’s system, it could indicate a serious issue.
