. WTF...u r saying u never pay tax b4?? It's difficult to say how much income only taxable bcoz of the deductible expenses and rebate. As a guideline, its above RM2.5k p.m or RM30k p.a. But at RM70k p.a u definitely need to pay tax. No wonder our tax coffer is not full.

Singh Kalan,

I just start work less than 1 year, and my income is not even 2k per month, so I don't think I need to pay tax. However, I wish to learn more about this income tax stuff....

So, if my income deduct all the tax deductible expenses, exceeds RM30k p.a., then I need to pay tax, right?

How about the allowance and claims that I get? Will they be included as my income, or just my salary is counted?

I'm newbie in working life...so trying to learn and learn....

Not necessarily. In fact ur income minus all the deductible, if more than RM2.5k is taxable already (1%) and up.

For allowance, some companies file it some don't. Dont know the reason. Like my case, my allowance r almost same like my basic salary, but my company didn't file it, so no need to pay tax lo.

Is it any limitation to the types of book? Only limit to education type book? or any book will do? For example those personal finance book can?

So computer is rebate RM500 every 5 years or 3.5K every 3 yrs? Confused

Let say i buy computer this year (2006), but can i only claim it on 2nd (2007) or 3rd year (2008)?

Thanks

Before this year announced budget, it is a RM500 rebate in 5 years means that you only can claim once in every 5 years and one off straight away get Rm500 rebate for that year and can't claim after another 5 years. But this has changed next year, it become a RM3500 relief, not rebate for every 3 year.

LOL..
Normally it wont be a problem at all if you dont pay tax and understate your annual income... But having said so, you also must make sure that you dont go around and start buying assets... thats inviting problems...

Normally you will get over it but once you start to purchase assets like car n house, LHDN will open your file and do a rough estimate on your monthly expenses. If it doesnt work out or when they think its impossible, they will come n nab you... and when they nab you, they do make u pay big time...

so basically if u tell te government i earn less than this amount but buy assets round this amount
the government will create a nice headlines on the news with u in it?

exactly. i believe lhdn has had a data mining system in since last year...

This post has been edited by Xer0: Nov 23 2006, 08:54 PM

fear IRB

it's more frightening than all along's combined. they have every details of your money and holds every transaction in every commercial bank in malaysia

Computer definately is a rebate. Which rebates includes 3 of them - zakat(full amount), chargeable income<RM35k per annum and computer.



Jinyee

how does the charity relief works?

Buying lots of asset like property or car might work but u r playing with fire...LHDN might ask u back where the heck you get the $$$ to buy those stuffs? oh yeah since you got that much $$$ maybe i should increase the tax of urs hehe

But then if u got reasonable reason then might accepted or works

Under Individual Assessment

If your annual income is 70k annually,

70k - 6k ( EPF 11%) - 8k (personal relieft) - 3k (insurance premium) = 53k (chargeable income)
Hence, u have to pay TAX RM1,525(on First 35k) and RM2340 ( remaining 18k @ 13%)


Actually by using those info u provided isnt enough.

U can claim other relief as well in order to reduce your chargeable income.
FOr example,
Wife relief (RM3k) ,
Disable wife(Rm3k),
Disable tax payer (RM6k),
Medical Expenses for parents (RM5k),
Medical examination expenses>serious disease for taxpayer, spouse, and children with receipts (rm5k),
Supporting equipment for disable taxpayer,spouse,children or parents (RM5k),
Child relief , >18yrs old studying in local/overseas U/college (RM4k),
disable child (RM5k),
disable child studying in local/overseas Uni/college (rm9k),
EPF or approved fund n life insurance premium (RM6K),
Premium on EPF annuity scheme (RM1k),
Education fees paid by taxpayer for his own improvement(RM5k),
purchase of books,journals,magazines, or other similar publications for the use of taxpayer,spouse or children (RM700),

FOR 2005-2006 PErsonal COmputer rebate is RM500 every 5 yrs,
FOR 2007 RM3000 every 3 years

Other rebates including Wife(joint assessment RM350), zakat n fitrah RM350

In order to reduce your chargeable income,u can claim reliefs as above in order to reduce your chargeable income.

Besides, u can set off your tax payable amount by S110 set off (DIVIDEND INCOME@28%), S 132 bilateral relieft, S133 unilateral relieft, income tax paid under self-assessment- monthly,bi-monthly

As a results, the possilibility of getting REFUND is quite high.

What he meant is buying more FIxed asset under company's name,
hence can claim annual n initial allowance (capital allowance) to set off aggregate income

btw ihave heard that getting allowance from the company does cause u to be income tax taxable...
is this correct?


This post has been edited by medicontherun: Nov 24 2006, 12:42 AM

the cost of ownership / maintenance is still higher than the deduction you get. that also we've not brought in the time / effort involved.

my boss always says that for those who're too lazy to estimate the income tax, the ammount u're gonna pay is around 1 month of ur salary.

anyone know if profit for selling share in oversea is taxable or not?

btw, some info here is outdated. Books deduction is RM1000, and computer is deduction, and no more rebate. according to this year budget announcement.

u are totally correct. that is why company like to give elaun. for company, company can escape from epf for u, but as an employee rugi la....1 side kena tax, 1 side boss no epf on it..

So if u are SMART. talk to boss...tell boss to convert the elaun to EPF, which is increase your epf rate. This way, government wil not be able to get your money.

But how much is your salary, if only have few thousand permonth, dont waste time think how to save money, think how to earn more better. Because few thousand salary only need to pay few hundred dollar tax...so give pak lah lah....

actually those taxable allowance are called BENEFIT IN KIND, eg: accomodation,cars,handphone,drivers,maid n etc.. under section 13 (1).

company can deduct expenses for those allowances that are provided to u, meanwhile u are only taxable on fixed amount basis. In short, which means if your company offer a domestic servant for u, they'll pay the servant's salary for u every months, til end of the year, you are taxable RM4800/annum for it,which meant u are still liable to tax on those benefit. Let's say your taxable rate is 20%, Rm4800 @20% = RM960, and Rm960/12= RM80 , so it's equal to something as you are hiring a servant for RM80/month
Actually both side gain benefit as well

For example, House(fully furnished) Rm3360/annum .gardener RM3600/annum, leave passage 3 locals or 1 local n 1 overseas restricted to RM3000/annum, CARS(including petrol) that your company provided to u are taxable base on BIK schedules (too long to elaborate) if u wanna know the rate PM me