Personal tax reliefs

It's already November now and in another month or two, we'll be bidding farewell to year 2009. Well, what could you do before the end of year 2009? We always start the year with a resolution (or more) but for year end, I thought a little tax planning would helps to save some $$$.

The individual resident tax rate in Malaysia ranges from 0-27% (for year of assessment 2009). The tax rate will be reduced to 0%-26% from the year of assessment 2010 but it is still pretty high if we compare it to Singapore (20%) and Hong Kong (15%).

Some of the personal tax reliefs available in Malaysia are:-

1) Self - RM8,000

2) Medical expenses for parents - RM5,000

3) Wife / Husband relief - RM3,000

4) Child relief - RM1,000/child (below 18 years old)

5) Child relief - RM4,000 / child (above 18 years old and pursuing full time education in universities, colleges or similar)

6) Life insurance premium & EPF - RM6,000

7) Insurance premium for education or medical benefits - RM3,000

8) Further education in selected post graduate courses- RM5,000

9) Reading materials, both printed and electronic version (except newspaper or banned materials) - RM1,000

10) Purchase of computer - up to RM3,000 (given once in every 3 years)

11) Amount deposited into Skim Simpanan Pendidikan Nasional - RM3,000

12) Purchase of sports equipment - RM300 (but this does not includes purchase of sport attires or shoes!)

13) Complete medical examination for self/spouse/child - RM500

* Please note that the above list is not exhaustive. I've only listed out the most common tax reliefs claimed by individual tax payer!

There will also be a tax relief on broadband subscription from next year until year 2012....so remember to keep all your broadband bills next year.

Hope the above list would helps you to maximise some tax savings!