1. Increase expenditure - More effective to Sole Proprietor and Sdn Bhd. For Both Sole Proprietor and Sdn. Bhd., Only Expenditure that is use for business operation are allowed for tax deduction or Otherwise for Sole Proprietor, refer to below website. For example if you are a Director of the Company and you bought a ticket to Paris for Vacation and not for business purpose, the Amount of air fair cannot be included as company's Expenditure.

2. Buy lots of assetts - vehicles h&p, building s&p, etc - ONLY apply to Sdn Bhd.

3. Pay high salary to "family employees" - Some people do that, But u have to proof that u really give them the Amount of salary by Amount u paid for EPF at KWSP, otherwise, LHDN will says it's a Drawing from the Owner of the company.

For Updated Individual (Sole Proprietor & Partnership) Tax Relief, U can refer to Inland Revenue Board of Malaysia - Individual

For Company, You can refer to Public Rulings

This post has been edited by chamyk2311: Sep 30 2009, 10:04 AM

@nothingz: Under Section 46(1)(j), A tax rebate of RM3,000 given once in every 3 years to an individual for the purchase of a personal computer for family use. Effective Date, Year of Assessment 2007.

So, A personal Computer is refer as a set of Desktop Computer, Laptop Computer & Handheld Computer. Printer is an Hardware and definitely cannot be included for tax deduction as the IRB does not states that "Hardware" can be claim under computer Relief.

@Turnip. A PC without a Monitor cannot be claimed because it's not a PC anymore. It is known as a Hardware too. A Personal Computer must contain a Monitor, a CPU, a Key Board and a Speaker in a Single Receipt. Therefore, if Your bought a new Hard Disk for your computer, I'm sorry, they are not included for Tax deduction too.

This Explanation Does not created By me nor my Audit Firm's Auditor. It's explained by A Fellow Member of The Association of Chartered Certified Accountants (FCCA) in a Practical Auditing which will be held every year when there is Amendments in Income Tax.

FYI: You cannot Simply put Something for claim as "Worth a Try" because IF IRB discovered a Mistakes in Your Tax Computation, you will be in a very Big trouble. If they take it easy on you, they will penalize u for the Year only. If they took it seriously, they will not only penalize you for that year only, they will penalize every previous 10 years. That is why we need to refer a Auditor for Advice before we Submit our Form B/BE. Therefore, All others Personal Reliefs must exactly same with the Legislation. Even a small amount is counted (You know how Poor our government now right?).

This post has been edited by chamyk2311: Oct 1 2009, 10:17 AM

The Legislation says purchase "A Personal Computer". So, Your supercomputer receipts must have included a monitor, otherwise they won't let you to have the rebate. They can give you the excuse saying that it is a Hardware. You know how poor in our government now right? The will try to get as much taxes as they can while we must provide solid proofs to shut their mouth.

This post has been edited by chamyk2311: Oct 1 2009, 02:26 PM