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Tax Deduction :
Each spouse earning Taxable income can claim personal tax
relief of RM 8000 by filling separate tax returns.
3) Ask your employer to increase
your EPF contributions
Contributions to the employees Provident Fund (EPF) by employers are
tax-exempt for the employees.
To reduce your taxable income , ask your employer to reduce your EPF
monthly salary but increase your EPF contributions by the same
amount.
Tax Deduction :
The deductible amount from your taxable income is dependent on the
arrangement between you and your employer.
Tax Deduction :
The deductible amount from your taxable income is
dependent on the arrangement between you and your
employer
According to the Public ruling for BIKs , the tax payer must pay RM
3600 in taxes every year, for a car worth RM 75000
If the employer pays for fuel , the tax payer is taxed an additional RM
1200 for this BIK
Tax deduction :
Whether you benefit from a company car depends on the value of the
car and your current tax bracket. Do the calculations to ascertain your
tax deduction.
6) Make charitable contributions
A gift of money to an approved charitable organisation entitles you to
a tax deduction for the amount given.
However Charitable donations that were made in 2007 are not subject
to this limit.
Tax deduction :
Up to 7% of your aggregate taxable income can be reduced with this
deduction.
Tax Deduction :
RM 5000 per individual
Tax deduction :
RM 3000 per individual
Tax deduction :
RM 5000 per individual
If you have also spent money on full medical in the same year, your
claim will be reduce the RM5000 available for serious disease.
Tax Deduction :
RM 500 per individual for full medical check-up.
RM5000 for serious diseases or basic supporting equipment
Tax deduction :
The Amount of zakat that you pay
15) Buy a Computer
A deduction of up to RM 3000 can be claimed
once every three years for the purchase of
computers , printers and bundled software .
The similar incentive given previously in the
form of a tax rebate was withdrawn with effect
from 2007
If you own two property in the same category , you can reduce the
taxable profit made from one property with the loss, if any incurred
from the other.
Property investors are also exempt from real property gains tax for all
disposals on on or after 1st April 2007.
Tax deduction :
Taxable income received from renting out a property in a particular
grouping such as residential can be reduced if a loss was incurred by
19) Buy shares ( page1 )
Invest in dividend-yielding shares if your tax bracket is
above 26%.
“In the past, refunds had been slow. From now on, there
is no need to declare or apply for a refund. And as
corporate taxes are falling, companies will be able to pass
19) Buy shares ( page2)
Tax Deduction
Your tax saving is the difference between your tax bracket and
26% (the corporate tax rate). This is only applicable to
dividends given out by companies using the single-tier system.
20) Invest in REITs
You can go into real estate investment trusts ( REITS )if your tax
bracket above 15%.
Only tax brackets exceeding 15% would enjoy some tax savings by
investing in REITs
Tax deduction:
Your tax saving is the difference between your personal tax bracket
and 15%
Moves for Business
Owners
The first rule that small-business
owners should implement with
regards to their taxes is to take it
seriously.
Spend some time strategising for
your business activities to save
hundreds or thousands ringgit.
Here are six
21) Maintain books and records from
Day 1
Keep separate bank accounts for personal and business transactions
and establish a basic accounting system.
Any expenses made fro the business can be deducted from the
business income.
So Keep the receipts for all supplies that you buy for your business
“The business income is reduced by the car’s financing cost if you buy
the car on hire-purchase.
You are also deduct a certain amount for capital allowances every
year,
“For example, a husband who is a business owner can hire his wife.
The wife’s salary is tax deductible but you must be able to show that
she is doing something to earn it,
This allows you to divide the income made by the business between
the both of you.
As a partnership has no tax liability, both partners are liable for tax for
the respective portion of business income that each earns.
“By opting for separate tax assessments, a husband and wife who are
partners in a business can each claim individual tax relief.
25. Implement a process to ‘chase after’ unpaid
debts
The process that you put in place to recover your unpaid debts should be
documented and any conclusion that you make should be supported with
documentation as well.
For example, you must show why it is not cost effective to take legal
action against a customer.
However, if you eventually recover bad debts that have been written off or
partially written off, you must include this amount in your taxable income
for the year that you received payment.
26. Dedicate a space in your home
office
Working in your own house can result in tax deductions for the costs related to your
“home office”.
This includes electricity, telephone bills, quit rent and service charges of apartments.
The best way to claim for these deductions is to dedicate a room or place as the
working environment.
“A dedicated area helps to identify expenses that are specifically for business
purposes and can be claimed in full.
Items that are used by the business as well as personal use, such as electricity, must
be apportioned.
If the business owner pays rent for the working area, this expense can be deducted
from the business income.
This applies to rent that is paid to a spouse who owns the home but is not involved in
the business.
However, this is strategy is only effective if the spouse who is not involved in the
business is taxed at a low tax rate as rental received must be declared as taxable
income.
If this is an appropriate strategy for the business owner, A tenancy agreement that