26 Ways to cut Taxes
Buy a Computer:
- A deduction of up to RM 3000 can be claimed once every three years for the purchase of computers , printers and bundled software .
- The similar i9ncentive given previously in the form of a tax rebate was withdrawn with effect from 2007
- Tax deduction : RM 3000 once every three years.
- For Mr A : Getting a computer for RM3000 gives him a saving of RM 720 ( RM 3000@24%)
Buy property valued below or at RM250000:
- Stamp duty must be paid on all property transactions that involve a change of legal ownership.
- Last year’s budget ( 2008 ) announced a 50% stamp duty exemption for the purchase of houses that do not exceed RM250000
- The maximum tax savings that can be found here is RM2000 ( for a house worth RM250000 )
- This exemption is only given for one house per individual and applies to sale and purchase agreement signed between September 2007 and December 2010
Hire your spouse or family member:
- An effective tax-saving strategy is to hire a spouse or family member.
- “For example, a husband who is a business owner can hire his wife. The wife’s salary is tax deductible but you must be able to show that she is doing something to earn it,
- In this situation, you would have to contribute to your wife’s Employees Provident Fund (EPF) savings and that amount entitles her to tax relief.
- Another option is to make your spouse or family member a partner in your business.
- This allows you to divide the income made by the business between the both of you.
- As a partnership has no tax liability, both partners are liable for tax for the respective portion of business income that each earns.
- “By opting for separate tax assessments, a husband and wife who are partners in a business can each claim individual tax relief.
Medical:
- Claim a deduction of up to RM 500 per tax year for a full medical examination and RM 5000 for medical expenses for yourself, spouse or child for serious disease.
- If you have also spent money on full medical in the same year, your claim will be reduce the RM5000 available for serious disease.
- A separate tax reduction of up to RM5000 a year is given for necessary basic supporting equipment for disabilities suffered by yourself ,spouse, children or parent
- Tax Deduction: RM 500 per individual for full medical check-up
- RM5000 for serious diseases or basic supporting equipment
- For Mr A : He claimed for a full medical check-up .The deduction give him of RM 120 ( RM 500@24%)
Take out a Medical or Education policy:
- You can claim deductions of up to RM 3000 a year for education and medical insurance ( combined limit for both )
- This includes medical coverage that is part of life insurance policy( the limit for life insurance is in move 10 )
- A policy of this kind can be written for you , your spouse or your child.
- Tax deduction : RM 3000 per individual
- For Mr A :After acquiring an education policy for his children , Mr A makes a saving of RM 720 ( RM 3000@ 24%)
**********************************************************************************
HAPPY APRIL FOOLS DAY TO EVERYBODY.....
*taxes is real, request your parents buy you IMAC rather than Dell
