Personal Income Tax 2019 :
Tax Relief For Year Of Assessment 2018 (Tax Filed In 2019)
What is a income tax relief? Tax reliefs are set by LHDN, where a taxpayer is able to deduct a certain amount for money expended in that assessment year, from the total annual income. These are for certain activities or behaviours that the government encourages or even necessities or burdens to lighten our financial loads.
For income tax Malaysia, tax reliefs can help reduce your chargeable income, and thus your taxes. If planned properly, you can save a significant amount of taxes.
In our example, a taxpayer would have been taxed about 10% of his total chargeable income of RM84,300 if he had claimed no tax reliefs at all.
However, with the self & dependent tax relief of RM9,000, life insurance & EPF relief at RM6,000, his total chargeable income is now RM69,300, hence, he would only be taxed about 8% of his chargeable income.
Other than the above three common tax reliefs, there are many other reliefs tax payers in Malaysia can maximise.
The government has added a lifestyle tax relief during the 2017 budget, which now includes smartphones, tablets and monthly internet subscription bills. The previous laptop, books, stationary and sports equipment tax relief is now grouped under lifestyle tax too.
Refer to this list of the income tax relief 2018 Malaysia:
There really are a lot of tax reliefs and if you plan your reliefs effectively every year, you could be saving thousands in taxes every year.
credit to The Definitive Guide To Personal Income Tax In Malaysia For 2019, iMoney.my Learning Centre