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Ultimate tax relief guide for Malaysians

ULTIMATE TAX RELIE E MALAYSIANS GUIDE FOR 19 TAX RELIEF ITEMS + Other Rebates You Must Know About Filing your taxes? You may qualify for some of these tax relief items and you don't even know it yet! Use this quick guide to see how you can reduce your taxes legally right now. WHAT IS TAX RELIEF? IN MALAYSIA, YOUR TOTAL INCOME it is the amount of tax breaks that can - TAX RELIEF / reduce your taxable income. = YOUR TAXABLE INCOME INDIVIDUAL AND DEPENDENT RELATIVES MEDICAL EXPENSES FOR PARENTS For medical treatments, special needs and carer expenses certified by medical practitioners. Includes medical care and treatment provided by a Nursing Home as well as basic, non-cosmetic dental treatment. All tax payers enjoy this tax relief YOUR DEDUCTIBLE AMOUNT RM9,000 YOUR DEDUCTIBLE AMOUNT UP TO RM5,000 BASIC SUPPORTING EQUIPMENT 4 DISABLED PERSON Supporting equipments refer to those used by a disabled individual, spouse, child or parent, such as haemodialysis machine, wheelchair, artificial limbs and hearing aids. All disabled persons automatically get this tax YOUR DEDUCTIBLE AMOUNT RM6,000 YOUR DEDUCTIBLE AMOUNT UP TO RM5,000 MEDICAL EXPENSES FOR SERIOUS DISEASES EDUCATION For any course up to tertiary level in law, accounting, Islamic financing, technical, vocational, industrial, scientific or technology skills; and any course to acquire Masters or Doctorate degree at institutions recognised / approved by the Authorities. Diseases that qualify: AIDS, Parkinson's disease, cancer, renal failure, leukaemia, heart attack, pulmonary hypertension, chronic liver disease, fulminant viral hepatitis, head trauma with neurological deficit, brain tumour or vascular malformation, major burns, major organ transplants and major amputations. Tax relief is provided for self, spouse and child. YOUR DEDUCTIBLE AMOUNT YOUR DEDUCTIBLE AMOUNT UP TO RM5,000 UP TO RM5,000 BOOKS, JOURNALS, MAGAZINES O AND PUBLICATIONS MEDICAL EXAMINATION Get this tax relief when you, your spouse or your child undergo a medical examination. Relief is capped at RM500 per person, and should not exceed RM5,00o when added together with TAX RELIEF 6. Good news for all bookworms as this applies for both hard copies and electronic books. Take note relief items do not cover newspapers and banned reading materials. YOUR DEDUCTIBLE AMOUNT UP TO RM500 PER PERSON FOR SELF. SPOUSE AND CHILD YOUR DEDUCTIBLE AMOUNT UP TO RM1,000 10 NET DEPOSIT IN SKIM SIMPANAN PENDIDIKAN NASIONAL (SSPN) COMPUTER That's right, you get tax relief just for buying a computer for personal use! Take note you can only do this once every three years. If you contribute to SSPN for your child's education, you get tax relief for the amount you've deposited minus the amount you've withdrawn for the year. YOUR DEDUCTIBLE AMOUNT UP TO RM3,000 YOUR DEDUCTIBLE AMOUNT UP TO RM6,000 11 SPORT EQUIPMENT 12 BROADBAND SUBSCRIPTION This covers a full range of sporting activities under the Sports Development Act 1997. For the general public, just know that your swim suit, sports shoes, golf balls and shuttlecocks are all deductible! You heard right! You get tax deduction simply for having a broadband line back home. Until we hear otherwise, taxes filed in 2013 will be the last year this tax relief item will be available. YOUR DEDUCTIBLE AMOUNT UP TO RM300 YOUR DEDUCTIBLE AMOUNT UP TO RM50O 13 14 HUSBAND / WIFE OR ALIMONY PAYMENT INTEREST ON HOUSING LOAN If you have a home loan for a property that isn't rented out, you get tax relief for 3 consecutive years starting from the date in which your interest is first expended. This applies only for residing Malaysians, and is limited to one unit per person as well as for SPAS executed between 10 March 'o9 and 31 December '10. For sole bread earners, you get this tax relief if your spouse has no income and has elected for joint assessment. You also get this if you're paying alimony to a former wife under a formal agreement (provided that the deduction for wife and alimony payments shall not exceed RM3,000). YOUR DEDUCTIBLE AMOUNT UP TO RM10,00 YOUR DEDUCTIBLE AMOUNT RM3,000 15 16 CHILDREN DISABLED SPOUSE All persons living with a disabled spouse automatically qualify for this. You get tax relief of various amounts if you have children. These include: (a) RM1,000 per unmarried child under 18 YOUR DEDUCTIBLE AMOUNT RM3,500 (b) RM1,000 per child of 18 and above who is unmarried and undertaking fulltime education. (c) RM4,000 per child of 18 and above who is unmarried and receiving further education in Malaysia (Diploma and above) or outside Malaysia (Degree and above) at an institution approved by the Authorities. INSURANCE AND PROVIDENT FUND (d) RM5,000 per disabled child You'll enjoy this tax relief if you have life insurance for yourself or your spouse, or if you contribute to EPF or any other approved provident funds / pension schemes. (e) RM9,000 per disabled child of 18 and above and receiving education in Malaysia (Diploma and above) or outside Malaysia (Degree and above) at an institution approved by the Authorities. YOUR DEDUCTIBLE AMOUNT UP TO RM6,000 ШI NOTE: You can only claim 50% if you and your spouse are both filing individual assessments and claiming for tax deductions for your children. YOUR DEDUCTIBLE AMOUNT UP TO RM9,000 PER CHILD 18 PRIVATE RETIREMENT SCHEMES (PRS) & DEFERRED ANNUITY For those who contribute to a PRS, you'll get a tax relief for your contribution and total payment of deferred annuity. To find out what PRS is, go to www.imoney.my/articles/prs. 19 EDUCATION & MEDICAL INSURANCE If you're paying for an education or a medical insurance for yourself, your spouse or your child; you'll get to enjoy this tax relief. YOUR DEDUCTIBLE AMOUNT UP TO RM3,000 YOUR DEDUCTIBLE AMOUNT UP TO RM3,000 THERE'S MORE! You also get to DEDUCT from your taxable income : GIFTS OF MONEY OR CONTRIBUTIONS n. .you've made including those made to the Government and local authorities, approved organisations, approved sport activities / bodies, projects of national interest (as determined by the Ministry of Finance), libraries, public facilities for disabled people, healthcare facilities (approved by the Ministry of Health) and national or state art galleries. TO TOP IT OFF, YOU CAN ALSO ENJOY TAX REBATES WHAT IS TAX REBATE? IN MACAYSIA, it is the amount you can deduct from the taxes you're / obliged to pay (NOT taxable income) 1- -2 TAX REBATE TAX REBATE TAX REBATE FOR SELF - RM400 FOR SPOUSE- RM400 FOR ZAKAT OR FITRAH - THE ACTUAL RM EXPENDED You'll enjoy this if your taxable income (i.e. Total Income minus Tax Relief) is less than RM35,000 per year. You'll enjoy this if your taxable income (i.e. Total Income minus Tax Relief) is less than RM35,000 per year and you're entitled to a deduction of RM3,000 for your spouse under TAX RELIEF 14. You'll enjoy this if you've paid Zakat, Fitrah or any other obligatory Islamic religious dues. SO. HOW DO I CALCULATE MY TAXES? YOUR PAYABLE TAX, BASED ON YOUR TAXABLE INCOME, IS CALCULATED LIKE THIS : YOUR TOTAL INCOME - (TAX RELIEFS YOU ARE ENTITLED TO) = YOUR TAXABLE INCOME YOUR TAXABLE YOUR PAYABLE TAX (% OF TAXABLE INCOME) INCOME NO TAX 19 % 1% 24 % 3 % 26 % Beyond RM 100.000 26% 12 % SAY YOUR TAXABLE INCOME IS RM20,0003; YOUR PAYABLE TAX = (0% X 2,500) RM 100,000 + (1% X 2,500) + (3% OF 15,000) = RM475 24% > Next RM 30,000 YOUR PAYABLE TAX - (TAX REBATES YOU ARE ENTITLED TO) RM 70,000 = ACTUAL AMOUNT OF TAX YOU’LL BE PAYING! 19% Next RM 20.000 RM 50,000 12% Next RM 15.000 RM 35,000 7% Next RM 15,000 RM 20,000 3% Next RM 15,000 RM 5,000 1% Next RM 2,500 RM 2,500 No Tax Up RM 2,500 KNOW YOUR RIGHTS AS A TAX-PAYING MALAYSIAN. Though paying your taxes makes you a respectable citizen, you don't have to pay much more than what you're supposed to. With this guide, you're now ready to get your taxes done to your best benefits before the due date of 30 April 2013. This infograph is brought to you by iMoney.mY a price comparison website dedicated to helping Malaysians make the best use of their money. We can be contacted at hello@imoney.my. SOURCES * BE 2012 GUIDEBOOK, DOWNLOADABLE FROM WW W.HASIL.GOV.MY. * INFOGRAPHIC DESIGN BY spurpress

Ultimate tax relief guide for Malaysians

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Tax season is upon us. To help maximise your tax returns, iMoney.my has drawn up a comprehensive guide that’ll show you ALL the tax reliefs and rebates you are legally entitled to. So if you’re cu...

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