Every year, you are required to file your personal income tax. The tax season in Malaysia rolls around the month of March and April. A lot of people could not help but feel anxious because there are many important considerations including the technical, financial, and even legal aspects. It is useful to note that both individuals and companies have a grace period of 15 days in order to submit their filing documents.
Here are some practical suggestions to guide you in your search for ways to save a good amount of money from your personal income taxes:
- Take Courses, Get Refunds –Upgrade yourself through taking courses or improvement programs. It is important to get the receipt of payment for your training whether you attended a local or international program. Claimable tax relief is up to RM5,000 for attending programs that are aimed at acquiring further qualifications at masters or doctorate level or acquiring more knowledge in the fields of law, finance, science.
- Upgrade your computer – One of the ways to claim more tax relief is by purchasing a new device and getting rid of your old computer. Purchase of a new computer entitles you to a RM3,000 tax relief once in every three years.
- Buy Insurance – Buying insurance can help you with tax reliefs and save up to RM12,000 of taxable income. There are three types of insurance account a person could establish to claim tax reliefs, including life insurance premium, education or medical insurance premiums and private retirement scheme or annuity premiums.
- More Children, More Relief – You can use your domestic situation to help you save from your income tax in Malaysia. A home with more children is given more tax reliefs, specifically RM1,000 per child. Besides that, if you have an unmarried child who is aged 18 and above, and pursuing further education , you can claim for tax relief of RM6,000 per child.
- Medical Expenses for Parents – Up to RM5,000 could be claimed for healthcare expenses of parents. It is important to gather proofs and receipts necessary to be able to get your claim for medical treatments such as specialist consultation, vaccination, orthopedic consultation, hospitalization, and dental treatment.
Key point to note
Tax rates are progressive and on chargeable income, therefore the higher your chargeable income, the greater your tax rate and tax payable. Thus it is sensible to properly plan your tax reliefs, especially between spouses so that the spouse with the higher tax bracket claim more of the reliefs. Couples can also opt for joint tax assessment instead of separate tax assessment to maximize the tax reliefs if one of the spouse has low or no income.
Intentional tax avoidance is a serious and punishable offense, thus we are here to help you comply with the tax law while at the same time legally saving tax where permissible. If you want to maximize the rebates and reliefs that you are entitled as taxpayer to get huge tax savings, check out the professional and trusted services from Accounting Services Hub.