Apr 12, 2009

How to save on tax in Malaysia??


Yo guys! April is tax payer month in Malaysia. Here some tips on how to save or escape from paying tax and benefit to your self. Instead of paying to the government (a.k.a IRB @ LHDN - Lembaga Hasil Dalam Negeri), it would be much better you pay to yourself or for your families/children because you work hard all year from 8 to 5 (or more). This is only applicable for individual. If you owned a company, consult with your tax advisor.
  • Save for your children's education with Skim Pendidikan Nasional (Up to RM3,000 in tax relief)
  • Ask your employer to increase your EPF contribution in lieu of income (up to RM6,000 tax relief - shared with life insurance)
  • Change your cash remuneration to cash reimbursement (for benefit-in-kinds that are not entitled to tax exemption)
  • Ask for a company car (part of remuneration repackaging)
  • Make charitable contributions (individuals get rebates of up 7% of their aggregate income)
  • Take up postgraduate studies (tax relief of up to RM5,000)
  • Read, read, read (tax relief of up to RM1,000 for reading material purchases)
  • Get Sporty (tax relief of up to RM300 for purchase of sports equipment)
  • Buy life insurance (tax relief of up to RM6,000 - shared with your EPF contribution)
  • Take up a medical insurance shared together with education policy (tax relief of up to RM5,000)
  • Pay your parents' medical bills (tax relief of up to RM5,000)
  • Do a medical check up (tax relief of up to RM500 for yourself, spouse or children) and medical bills for serious illnesses tax relief of up to RM5000 (combined with medical check up should not exceed RM5,000)
  • Pay zakat for muslim (rebate of up to 2.5% of your aggregate income)
  • Buy a computer (tax relief of up to RM3,000 every 3 years)
  • Buy propery at or below RM250,000 (50% stamp duty exemption, extended to loan agreements under budget 2009)
  • Buy similar property (if similar properties are group together, you can reduce the taxable profit made from one property with the loss, if any, incurred from the others)
(Excerpt from Personal Money April 2009 issues)

Hope this helps. Sharing is caring :P
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