It's the month of April again, and it's time for us to file our personal income tax. Usually, people would wait until the last minute to do perform their once-in-a-year task (I myself is one of them). To encourage taxpayer to do e-filling earlier, Inland Revenue Board of Malaysia (IRB) said that those early birds can get their tax return money in 3 days. I don't know whether this is can be true, but I would like to give a try this year.
For you, readers, Finance Malaysia will write more about topics related to Personal Income Tax this month. Welcome to the "Month of Tax", and we hope that the info posted here could help you to file your income tax confidently, error-free, and wiser.
Generally, any amount paid by the employer to the employee in relation to having or exercising an employment will be taxed. This refers to employment income such as salary, bonus, gratuity, commission, allowance, director fees and many other forms of remunerations. In contrast, the phrase "income exemption" refers to employment income that is excluded from taxability.
What is Tax Relief?
The Income Tax Act provides a list of items which is deductible from any income earned by a resident individual in order to relief him/her from tax burden. That's why it called Tax Relief. These expenses are essential to provide welfare to an individual, and Malaysian government use Tax Relief as an incentive for Malaysians to make decision. Example, government think that insurance is crucial for social welfare, and would gave tax relief on insurance premium paid by citizen. By doing this, government actually encourage Malaysians to buy insurance.
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| Source: IRB, Finance Malaysia Blog |
* Blue color: Tax relief that we can adjust easily in our daily life
* Green color: Tax relief specially for property (to be explained in detail later)
* Light Red color: Tax relief related to child
* Light Red color: Tax relief related to child
* Yellow color: Tax relief related to insurance premium
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