Example 1:
It is sad that for those who not yet marry. They can’t enjoy much tax relief/rebate.
Comment:
1. Medical check up relief: Go for personal medical check up.
2. Book relief: Subscribe some magazine or buy more books.
3. Sport equipment relief: Buy a bicycle???
4. Medical Insurance relief: emmmm.
5. Tax rebate from S110: Claim rebate from high-dividend yield investment from Section 110. However, government is smarter now. Single tier tax system eliminates this very soon.
For an unmarried man, it is really has nothing much for the tax rebate/relief.
Example 2:
For those who married, they can setup the income allocation in order to reduce tax. Rule of thumb is to allocate the income from high earner to low earner.
Comment:
1. Tax rebate from S110: Placing the high-dividend yield investment under lower earner account. Low tax bracket payer enjoy higher Section 110 dividend from Section 108. However, government is smarter now. Single tier tax system eliminates this very soon.
2. Income allocation: Business is registered for lower income earner e.g. Ong registered the new company under her wife’s name. Thus, business income will not contribute to his personal income.
3. Insurance premium/EPF tax relie: Let us said Ong’s wife have business income, with the new insurance programme taken up, the RM6,000 insurance premium/EPF tax relief for wife will be taken up. She can either choose EPF or insurance premium, RM500 per month will do. No point for Ong to buy life insurance for this relief because his salary is higher than RM 55,000 p.a (RM 6000/0.11).
4. Most of the relief e.g. child relief, book relief etc. shall always be placed under high earner as he/she is facing a much higher income tax bracket.
5. Parent medical relief: To advise their elderly parents to keep all receipts of medical treatments in order to seek tax relief on this item in which currently are not used at all.
6. Professional Education Relief: If the couple is attending any work-related courses on their own expenses such as training programmes or legal-related courses, they are advised to submit their course fees receipts for tax relief on this area of up to RM 5,000 per annum individually.
7. Computer relief: The couple is also recommended to keep any receipts for the purchase of a home computer or accessories as to claim tax rebate of RM 3,000 every 3 years individually.
8. Book relief: For books purchased in approved bookstores, the couple is recommended to keep receipts for books purchased for tax relief.
Diverted original posting from my facebook note dated 22-Nov-09.
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