Although i am not an accountant or tax auditor but I still want to share my thought with you all on how to reduce income tax without breaking any laws. First of all, it is determined by whether you are a fixed income earner or running own business.
If you are under employment, then you can increase expenditure by:
– Buying life insurance, educational insurance, and medical insurance
– Buying educational books include magazine subscriptions with the condition that it can directly improve your job service. For example, if an engineer buy accounting book, and then cannot get that relief.
– Getting married, and have lots of children
Or increase your assets by:
– Buying property
– Buying computer RM3, 500 instant rebate but I think is for every 3 years (This is New Announced Budget, before that is RM500 for every 5 years)
If you are doing business, then there are more ways of to reduce income tax as you can claim many of your personal expenses as business deductions.
–Appoint your family members as directors. They get pay and no need have to work. They just only have to attend meeting.
–Time your holidays during some conference related to your business. Fly first class; stay in the most expensive hotel.
– Put all sort of expenses into “salary package” which may include vacation, transportation, meal allowance and etc.
Why Company Like To Give Allowance To Their Employees?
There may have the reason behind its as the company can escape from EPF. So try to tell boss to convert the allowance to EPF, which can increase your EPF rate. This way, government will not be able to get your money
It is not necessarily to say that the allowance and claims will be included as you income. It is depends on some companies whether got file it or not. If they did not file it, then you no need to pay.
i am 1st time here but i found your blog quite interesting..esp this topic attract me lot!
haha..ur picture of income tax word plus the the middle hand makes me laugh without stop
My salary too low, no need to pay income tax =P
wa… 4k salary tax RM2008… suck blood meh? fark robin hood ass hole lo…
what is the mean of relief??is it common claims?
har, buy handphone can deduct meh?
can buy insurance using EPF, really?
i like the middle finger!! luckily i din kena any income tax yet…yohoo
thanks for the information…I get to learn so many new things here…..hehe…
LOL… I have no salary yet… so no need worry yet now. 🙂
make money from internet can avoid income tax too…
allowances are not subjected to epf but if you are receiving allowances, u still need to disclose it under s 4(b)[s 13(1)(a)] if u are deriving employment income and yes, u are subjected to tax. if you are getting travelling allowance, please make sure that u keep the toll receipts as evidence and u can deduct that amount against your travelling allowance. the excess of allowance not being deducted fully against the related expenses are still subject to tax on a scaled rate if u are a resident in malaysia (according to s 7 of Income Tax Act)
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Personal Money has an entire column with 26 tax-saving moves for everyone.
Check it out, I think it’s highly relevant with your topic.
CekikDarah.com
Empowering Youth
the due date of income tax submission is falls on 30th of april, right?
It is a quite interesting post but quite difficult to understand for me –
A very good article 🙂
Thanks for your sharing. Income tax is really an unfair burden on us, when we lose money in business or not enough money to survive as an emloyee..they don’t care..
but when we have earn money with our own hand, they want us to pay income tax 🙁
tuie..them lar..we earning like hell,but this fuckers take it from us n give to blady arrogant feller.
How to reduce my income tax payable amount?…. heart bleeding…
Put all sort of expenses into “salary package” which may include vacation, transportation, meal allowance and etc.
is that mean car allowance is not taxable?