With one week left to complete the current year, we can still tax plan for the next annual tax return for assessment year 2009. The annual tax filing due date for individual with employment income is 30 April 2010. Individual with business income is on 30 June 2010.
Here are some of the reliefs and rebate that you can check to minimise the tax liability. Do consult and work with your tax agent to ensure your claim is in order. And remember to keep the receipts and supporting documents as the Inland Revenue Board will require them for inspection.
1. Education relief
Fees for acquiring technical, vocational, industrial, scientific, technological, law, accounting, Islamic financing, skills or qualification at tertiary level or any course of studies at post graduate level – max RM5,000
2. Medical expenses
a) Medical expenses for self, wife and children on serious diseases – maximum claim RM5,000 (also include medical examination expenses of RM500).
b) Parent medical expenses – max RM5,000.
3. Purchase of books, magazines and other similar publications for self, wife or children- max RM1,000.
4. Purchase of computer – a maximum of RM3,000 is given once in three years. If separate assessment is elected, spouse will be eligible for a separate claim.
5. Saving for children in Skim Simpanan Pendidikan Nasional (SSPN) – max RM3,000.
6. Purchase of sport equipment – RM300 (attire and shoes not included).
7. Interest paid on housing loan – Relief of up to RM10,000 is given for 3 consecutive years from the first year the housing loan interest is paid. Subject to following conditions:-
a) Malaysian citizen and resident;
b) Limited to one house including flat, apartment or condominium;
c) The sale and purchase agreement is executed between 10 March 2009 and 31 December 2010.
8. Spouse and children relief
a) Spouse relief
If a husband/wife has no source of income or elects for combined assessment, a relief of RM3,000 is given to the spouse.
b) Child relief
a) Relief can be claimed by husband or wife.
b) Child below 18 years – RM1,000
c) Child above 18 years – overseas and local universities, colleges and similar establishments – RM4,000
d) Disabled child (unmarried) – RM5,000
e) Disabled child pursuing tertiary education – RM4,000
9. Relief for EPF (or other approved fund contributions) and life insurance premiums savings – max RM6,000.
10. Insurance premiums for medical and educations – RM3,000 max
11. Disabled relief
a) Disabled person will be given a further deduction of RM5,000.
b) Purchase of supporting equipment for disabled will qualify for RM5,000 relief (parent, wife and children included).
12. Rebate for zakat
Settle the zakat dues by 31 December and you can claim rebate from taxes due. On top of that you can cleanse and purify your wealth. It is best investment of all investments.