Last Friday I was in mamak with a gang of friends, and one of them work as tuition assistant in a tuition center, and here is her real story.
She has been working as a tuition assistant in a tuition center for over 1 year and her scope of work including cleaning the tuition center (like a cleaner), sending documents for photocopying (like a office assistant), and teaching tuition (like a teacher). And her paid only RM 350 at the beginning and just increased to RM 400 a couple months ago.
Few weeks earlier, her boss (the tuition center owner) asked her to provide her identity card (IC) photocopy for income tax matter. And she saw her boss had put RM 700 as her salary in the income tax form.
She has keep her pay slip as a proof that her monthly paid only RM 400. Obviously her boss has breached the Income Tax Act (Akta Cukai Pendapatan 1967 (Akta 53) Pindaan Sehingga Akta 1349 Tahun 2009). Continue reading
After read of our previous post regarding to the tax matter ( Malaysia Individual Income Tax Matters 2010, Income Tax Rates for Assessment Year 2010, Type of income which included in Income Tax, and Tax Exemptions ), we believe you might be feeling upset and asking, why I don’t even know actually I can pay less income tax as so many incomes are belongs to tax exemptions or this is not taxable.
Today, we list out all types of tax relief, and we believe you will be benefit more with this information.
Below is the table of List of Tax Relief for Resident Individual in year 2010.
|No.||Individual Relief Types||Amount (RM) |
|1||Self and Dependent||9,000|
|2||Medical expenses for parents||5,000 (Limited)|
|3||Basic supporting equipment||5,000 (Limited)|
|5||Education Fees (Individual)||5,000 (Limited)|
|6||Medical expenses for serious diseases||5,000 (Limited)|
|7||Complete medical examination||5,00 (Limited)|
|8||Purchase of books, journals and magazines||1,000 (Limited)|
|9||Purchase of personal computer||3,000 (Limited)|
|10||Net saving in SSPN’s scheme||3,000 (Limited)|
|11||Purchase of sport equipment for sport activities||300 (Limited)|
|12||Subscription fees for broadband registered in the name of the individual.||500 (Limited)|
|13||Interest expended to finance purchase of residential property. Relief of up to RM10000 a year for 3 consecutive years from the first year the interest is paid.|
Subject to the following conditions:
(i) the taxpayer is a Malaysian citizen and a resident;
(ii) limited to one residential unit;
(iii) the sale and purchase agreement is signed between 10th March 2009 and 31st December 2010; and
(iv) the residential property is not rented out.
(a) 2 or more individuals are eligible to claim relief for the same property ; and
(b) total interest expended by those individuals exceeds the allowable amount for that year ,
Each individual is allowed an amount of relief for each year based on the following formula:
A x B
A = total interest allowable in the relevant year;
B = total interest expended by the relevant individual in the relevant year;
C = total interest expended by all the individuals.
|14||Husband/Wife/Alimony Payments||3,000 (Limited)|
|16||Ordinary Child relief||1,000|
|17||Child age 18 years old and above, not married and receiving full-time tertiary education||1,000|
|18||Child age 18 years old and above, not married and pursuing diplomas or above qualification in Malaysia @ bachelor degree or above outside Malaysia in program and in Higher Education Institute that is accredited by related Government authorities||4,000|
Additional exemption of RM4,000 disable child age 18 years old and above, not married and pursuing diplomas or above qualification in Malaysia @ bachelor degree or above outside Malaysia in program and in Higher Education Institute that is accredited by related Government authorities
|20||Life insurance and EPF||6,000 (Limited)|
|21||Premium on new annuity scheme or additional premium paid on existing annuity scheme commencing payment from 01/01/2010 (amount exceeding RM1000 can be claimed together with life insurance premium)||1,000 (Limited)|
|22||Insurance premium for education or medical benefit||3,000 (Limited)|
Be a smart tax payer, you can save huge amount of money, legally, of course.
Yesterday we talked about How to Make Payment to Income Tax, and if you pay the income tax under Monthly Tax Deduction (MTD) or Potongan Cukai Bulanan (PCB), you might ask how I gonna pay my income tax monthly?
Actually it doesn’t matter you pay the income tax annually or under Monthly Tax Deduction (MTD) scheme, the methods of payment are same as what we mentioned yesterday. But, if you are employee under some large firm, they will deduct from your monthly salary and pay to IRBM for you, so what you obtain is after tax salary.
For more information about Monthly Tax Deduction (MTD) scheme, you can download the materials here:
MTD Scheduled of year 2010
MTD Explanation Note
Form PCB TP1 (1/2010) – Claim Form of Deduction and Rebate for Individual
If you have any questions or inquiries regarding to this MTD, please go to the nearest IRBM branch for more information.
And for those who are under MTD scheme for year 2010, tomorrow we will talk with you about the tax rate for assessment year 2010.