Dec 8 2012, 12:17 PM
QUOTE(xuzen @ Dec 7 2012, 04:34 PM)
Lets say your total income for 2012 is RM 103,000.00.
The tax you have to pay to our beloved govt is RM 14,315.00 (first RM100K) + RM 780.00 (next RM 3K @ 26%) = RM 15,095.00 accoding to the LHDN schedule.
If you have made a RM 3,000 contribution to PRS, then you need to pay RM 14,315.00 only because the govt allowed you a RM 3,000.00 tax relief from this scheme. In essense you save RM 780.00 in tax.
If that is the case, you are actually contributing only RM 3,000.00 - 780.00 = RM 2,220.00. So in essense, you have already made a 26% gain.
Understand?
Xuzen
A person with total annual income RM 103,000.00, may save $780 bcos they are in highest tax bracket 26%The tax you have to pay to our beloved govt is RM 14,315.00 (first RM100K) + RM 780.00 (next RM 3K @ 26%) = RM 15,095.00 accoding to the LHDN schedule.
If you have made a RM 3,000 contribution to PRS, then you need to pay RM 14,315.00 only because the govt allowed you a RM 3,000.00 tax relief from this scheme. In essense you save RM 780.00 in tax.
If that is the case, you are actually contributing only RM 3,000.00 - 780.00 = RM 2,220.00. So in essense, you have already made a 26% gain.
Understand?
Xuzen
How about those total TAXABLE income RM 53,000.00 contributing the same $3000
save how much? 19%
If i sells PRS i also will use 26% to promote as if all malaysians earns over taxable 100,000 a year
most ppl who consider only thinks about money but never realised who they are, after invested only knows their tax bracket only 3%
Added on December 8, 2012, 12:26 pm
QUOTE(cybermaster98 @ Dec 8 2012, 09:38 AM)
Thats wht i thought as well. But he just mentioned 26% which isnt really correct. He's merely saving on the equivalent of a 26% tax on the taxable amount above 100K which equates to RM780 only for the whole year.
But my question is, to get that RM780 tax relief per year, you have to ensure you invest in a PRS fund that gives you back a better return. I mean it would be pointless to invest in something that 'loses' money rite? So although u may be saving RM780 from taxes, you risk losing much more through the investment itself. Is this a risk or am i being too paranoid?
Let say u contribute 3000 month for 3 yearsBut my question is, to get that RM780 tax relief per year, you have to ensure you invest in a PRS fund that gives you back a better return. I mean it would be pointless to invest in something that 'loses' money rite? So although u may be saving RM780 from taxes, you risk losing much more through the investment itself. Is this a risk or am i being too paranoid?
U would have contribute a total $108,000
Is there any possbilities at end of year 3 your investment is worth = $92,000?
U need to earn back your capital the next few years
How different is PRS compare to regular unit trusts?
Does EFP pays u less after u contribute $108,000?
This post has been edited by Kinitos: Dec 8 2012, 12:26 PM
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