QUOTE(winner @ Dec 27 2009, 06:12 PM)
I was paying income tax at 27%, the maximum level. Under the new PCB system, my monthly salary is even deducted more. It is actually over-deducted for quite a big sum. Budget 2010 announced that maximum personal income tax rate will be reduced to 26% but I doesn't help to relief me much.
I know it is our responsibility to pay tax based on income level. I am only an employee earning fixed salary in corporate world, and there is not much room to structure my taxable income even though I maximise donotion, medical and purchase of books and computer.
I would like to ask those who are also paying the maximum 27% income tax rate or tax consultants, that how you strategise income tax matter in order to minimise taxable income.
Joke aside, having more kids also can increase your tax relief.
If one is an employee and max out the relief part of story like insurance + EPF, like your example, nothing much you can do about it.
One should be glad one is paying the max bracket rate or pay more tax because it just means you are earning more. Every year if you are paying more tax, it is good sign as it means your income has increased (generally)
For sole-proprietorship, if amount is large enough, then there is an option, tax consultant generally will advise open up a sdn bhd as under SME (paid up capital not more than RM2 million <-- I don't quite remember this figure, correct me on this issue) which the first 500K profit is being taxed at 20% only.