Malaysia sees increased number of young millionaires

The number of young millionaires in Malaysia is on the rise, with a 75% increase in millionaires aged 30 and under recorded in 2022.

Figures from the country’s Inland Revenue Board (IRB) show that 35 people aged under 30 declared their income as being above 1 million Malaysian ringgit (about 209,000 USD) in 2022, a sharp increase from 20 in the previous year.

The figures for 2023 have not been announced as the e-filing process for the year is still ongoing," the IRB said.

It also said that over 94% of taxpayers under the age of 30 who earn over MYR1 million have not recorded any outstanding tax balances in the year between 2018 and 2021.

The IRB also said it recovered an additional MYR5.2 billion in additional taxes from individuals and companies that failed to declare, underdeclared, and evaded income reporting in 2023.

It affirmed that IRB will take measures under the provision of the Income Tax Act 1967 to combat tax evasion, including enhanced enforcement, legislation and taxpayer education. The agency is 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.

The IRB said it has implemented Tax Identification Number (TIN) and e-invoicing to address the issue of 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 $30 million in net wealth.

In 2017, there were 491 ultra-high-worth individuals in Malaysia. The number grew to 659 in 2021 and 721 in 2022.