Proposal for tax relief measures in 2021 budget

While drafting the 2021 Budget, it is hoped that our leaders will feel the people’s pulse and take into consideration the challenges we are facing, especially the ever-increasing cost of living during the pandemic.

To reduce the severity of the impact of the pandemic, we appeal for additional tax relief measures to be considered, especially a “Covid-19 tax relief” of RM5,000 and RM500 for fees to test for Covid-19 under medical expenses in the year of assessment (YA) 2020 for individual taxpayers.

https://www.thestar.com.my/opinion/letters/...-in-2021-budget

I welcome this proposal!

But maybe I'm dreaming too early.

rapple has actually answered your questions and he has taxation background.

I dig extra for you:



https://www.ibanding.my/want-maximize-tax-r...insurance-read/

Technically only policy owner can claim for tax relief.
The same applies for medical and/or education bought by you (under your name as policy owner) and your child name as the beneficiary.

Another article under The Most Overlooked Malaysian Income Tax Relief You Can Miss Out:
https://howtofinancemoney.com/malaysian-income-tax-relief



This post has been edited by GrumpyNooby: May 7 2020, 09:45 PM

IRB: Hasil Care Line operating from Monday to Friday starting next week

https://www.theedgemarkets.com/article/irb-...rting-next-week

Hadiah wang kepada institusi / organisasi / tabung yang diluluskan

Hadiah wang kepada institusi / organisasi / tabung yang diluluskan oleh Ketua Pengarah Hasil Dalam Negeri.
Subseksyen 44(6) dan proviso, ACP 1967

If not listed, then not eligible for taxable income reduction.
Normally because I do a donation, I check the background of the respective non-profit or charity organization.

Those registered and eligible usually carry a registration number starts with PPM:

For example:
Malaysian Medical Relief Society (Reg. No: PPM-020-14-16091999)



This post has been edited by GrumpyNooby: May 17 2020, 10:51 AM

Usually not eligible.
Best to counter check with list in the LHDN database, some may have expired.



This post has been edited by GrumpyNooby: May 17 2020, 10:43 AM

The current year filing is for last year income till December 2019.
It has nothing to do with your current unemployed status.

Yes.



http://lampiran1.hasil.gov.my/pdf/pdfam/KM...ERASI_DS_PB.pdf
https://www.hmetro.com.my/mutakhir/2020/05/...JHOkjl4qv-l09Ho

It is highly encouraged (amat sangat digalakkan) to do so.

*Borrow the phrase from Datuk Noor Hisham

This post has been edited by GrumpyNooby: May 21 2020, 03:48 PM

31/08/2020

Before determine if your source of income tax is taxable or not, one needs to determine if you're a tax resident for that particular country.

For instance, a citizen of Malaysia is not automatically a tax resident of Malaysia as you need to determine your residency status:

Determination of Residence Status
Generally, residence status for tax purposes is determined based on the number of physical presence (182 days or more) of that individual in Malaysia in a basis period for a year of assessment and not by his nationality or citizenship.

If an individual resides in Malaysia permanently, the question of determining his residence status would not arise. However, citizens of Malaysia are not automatically tax residents. The rules governing the determination of residence status will still apply.

An individual is considered to be physically present in Malaysia for a whole day although he is present in Malaysia for part(s) of a day.

Circumstances Determining Residence Status
Section 7 of the Act sets down 4 circumstances of which an individual can qualify as a tax resident in Malaysia for the basis year for a year of assessment:
1) The individual is in Malaysia for 182 days or more in a basis year.
2) The individual is in Malaysia for less than 182 days in a basis year.
3) The individual is in Malaysia for 90 days or more in a basis year.
4) The individual is not in Malaysia or in Malaysia for a period of less than 90 days in the basis year.

https://www.oecd.org/tax/automatic-exchange...a-Residency.pdf

That is common sense because income is not earned or derived in Malaysia which is in compliance of Malaysia Income Tax Act 1967

1. First, determine tax residency status of the country one resides especially for employment
2. Second, then determine if the income is earned or derived in the country of residency
3. Third, start to assess if the source of income is taxable or not in accordance to country of residency local laws

This post has been edited by GrumpyNooby: May 31 2020, 12:16 PM

Also read the additional clause:
Any earnings remitted to Malaysia from abroad will be also exempted under Paragraph 28, Schedule 6 of the ITA 1967.

Under (2), yes as long as your parents meet the eligibility criteria stated in the Nota Penerangan BE 2019.



Under (12), yes as long as your spouse is not working nor has income.





This post has been edited by GrumpyNooby: May 31 2020, 05:38 PM

From LHDN website:
http://lampiran1.hasil.gov.my/pdf/pdfam/No...rangan_BE_1.pdf

Get a qualified accountant to do a proper bookkeeping and taxation under e-B.

Part of Penjana short term economic stimulus package that was announced by PM in the telecast.

https://www.nst.com.my/news/nation/2020/06/...ome-arrangement

I'm also waiting for detailed released circulation from LHDN.

This post has been edited by GrumpyNooby: Jun 6 2020, 09:34 AM

I'm a curious cat as you too.
That's why I rather wait for released info from LHDN.

Got open on federal public holidays?

This post has been edited by GrumpyNooby: Jun 8 2020, 09:05 AM