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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• The similar i9ncentive given previously in the form of a tax rebate was withdrawn with effect from 2007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%)

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HAPPY APRIL FOOLS DAY TO EVERYBODY.....

*taxes is real, request your parents buy you IMAC rather than Dell