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MALAYSIA TAX BUDGET 2010: TOP PERSONAL TAX RATE REDUCED BY 1%

slang — Wed, 28 Oct 2009 10:39:39 +0000

Beginning from year of assessment 2010, under the proposed legislation, the top personal tax rate has reduced by 1% (i.e. from 27% in YA 2009 to 26% effective from YA 2010). This means that, in respect of chargeable income above RM100,000, for every RM1,000 a person earns, he will be paying RM10 less in taxes.

Related posts:MALAYSIA TAX BUDGET 2010: PERSONAL INCOME TAX INCENTIVES FOR THOSE WORKING IN THE ISKANDAR REGION. MALAYSIA TAX BUDGET 2010: PERSONAL TAX INCENTIVE FOR BROADBAND EXPENSES MALAYSIA TAX BUDGET 2010: EXPENSES INCURRED ON THE REGISTRATION OF TRADEMARKS IN MALAYSIA WILL BE ALLOWED AS TAX DEDUCTION FOR PURPOSES OF INCOME TAX COMPUTATION. MALAYSIA TAX BUDGET 2010: ENHANCED TAX INCENTIVES FOR HEALTHCARE COMPANY. MALAYSIA TAX BUDGET 2010 BUSINESS HIGHLIGHTS MALAYSIA TAX BUDGET 2010: TAX INCENTIVE IN RELATION TO THE GREEN BUILDING INDEX (GBI) MALAYSIA TAX BUDGET 2010: EXEMPTION FROM STAMP DUTY ON THE PURCHASE OF BUILDING THAT INCORPORATE WITH “GREEN TECHNOLOGY”

MALAYSIA TAX BUDGET 2010: PERSONAL TAX INCENTIVE FOR BROADBAND EXPENSES

slang — Wed, 28 Oct 2009 10:38:16 +0000

An individual can claim a maximum of RM500 of the monthly Internet broadband bills issued under his name in his tax return.

In the current self-assessment taxation system, he will be required to maintain receipts for such expenses paid for up to seven years in the event of an audit by the Inland Revenue Board.

In the event that the broadband expense was reimbursed by the employer, this is an exempt employment income hence not taxable on the employee income. Therefore he is not eligible to claim the tax relief in his annual personal tax return.

MALAYSIA TAX BUDGET 2010: PERSONAL INCOME TAX INCENTIVES FOR THOSE WORKING IN THE ISKANDAR REGION.

slang — Tue, 27 Oct 2009 15:24:53 +0000

If a person apply and commence his or her employment in Iskandar Malaysia between Oct 24, 2009 and Dec 31, 2015, provided that he or she is qualify as a Malaysian tax resident, his/her employment income will be taxed at the flat rate of 15%.

This could be substantially lower compared to the effective tax rate of a Malaysian tax resident.

Personal Tax Planning:Benefit-In-Kind & Perquisites

slang — Fri, 05 Dec 2008 10:40:36 +0000

As usual, before we do our personal income tax planning, we need at least to understand the latest tax law legislations on employees tax exempt benefit-in-kind and perquisites.

Append below in this article are the latest/up to-date benefits-in-kinds and perquisites (cash related) which are exempted from personal tax which the employee can plan to mitigate his/her personal income tax liability:

	Benefit-in-kind, tax exempt (YA 2008 onwards):	Ringgit per Annum
1	Petrol/traveling allowance between house and work place (wef YA 2008 to 2010)	2,400
2	Petrol/traveling allowance and toll card for official duties	6,000
3	Child care allowances	2,400
4	Company free products/discount	<1,000
5	Interest subsidy for existing/new house, passenger motor vehicles/education loans up to Rm300k
5	Parking allowances/fees
6	Meal allowances
7	Phone, mobile phone, phone bill, PDA, internet charges, broadband subscription ( even in employee’s name)
8	Gift of computer
8	Non transferable company free/discounted services
9	Medical, dental treatment and child care facility
10	Medical benefits extended to maternity/traditional treatments

Note that the above tax exempt benefit-in-kind and perquisites are not extended to director of a controlled company, sole proprietor and partnership.