Friday, April 10, 2009

Income Tax?

Yup, the title speaks for itself... the deadline is approaching, 30th April, to be precise. All I can say is that this year's Self Assessment result (2008 income) is the most shocking of all! I don't know about all of you, but RM 8,000 worth of tax-to-be-paid is ridiculously high.
Well, like we have a choice though. Of course the higher the income, the higher the tax you have to pay.
Combine assessment or separate assessment (with spouse?)
My personal advice to my friends out there, do it separately. Why?
1. A combined income will be greater in terms of number, so you might loose the following:
a) Personal rebate of RM 350;
b) Spouse rebate of RM 350
This is because, ONLY people with a taxable income of RM 35,000 and below is eligible for this.
2. For both working husband and wife, they will loose the EPF deduction because the maximum we can claim is only RM 6,000. So, if both of you, the EPF contribution exceed that RM 6,000, better split up, do a separate assessment.
3. By doing a separate assessment (for equal salaried husband and wife of RM 2,000 ++ per month), the chances are very high that you are not even qualified to be taxed (taxable income is less or insufficient). On the other hand, if you combine, your total income will be higher (RM 4,000 ++ per month), right? So, with limited number of deductions (EPF, Insurance, etc.), most likely your total income is taxable.
4. If you combine, your self exclusion will be RM 8,000 and the wife's will be RM 3,000. So, only RM 11,000 is deducted from your total income. However, for the case of a separate assessment, both of you will get a deduction of RM 8,000 each.
Tips on rebates and claims
1. Claim to the maximum for books and magazines (hahaha, who's going to check?);
2. Claim your parents' medical expenditure. See, it's not only 'barakah' to take care of your parents but it's also tax deductible as well. Never hesitate to serve your parents and take care of their well being.
3. For Muslims, I suggest you better make Zakat deduction for your salary. Not only that you will 'purify' your income by doing this Rukun Islam, but it will also contribute significantly to your tax outcome. This is because, other deductions only effect your gross income but Zakat give direct effect and solid deduction from the final amount of tax-to-be-paid.
Which one do you prefer? Pay Zakat which is wajib and be rewarded 'pahala' OR spend on paying Tax... which in the end, some 'moron' might use your hard earned money to pay 'ex-gratia' to the judges who are already receiving pensions. Or even better, another 'moron' who suggested to buy the capsule (one time use junk that is ready to be thrown as scrap metal) from Russia as a souvenir to remind Malaysians that we successfully sent a space tourist to ISS... ops!
In the end, it's still our money
When it comes to paying tax, every year I will curse those 'good for nothing' students who were sponsored by our money yet refuse to come home after graduation to serve the people. Same goes to my own cousin who can now brag that he can pay back in full whatever amount the government had spent to send him overseas. Have all these people forgotten their roots? Where are these people should the government did not sponsor their study back then?
In addition, I got furious when the 'morons' in power made stupid decisions and spend lavishly people's money (yours and mine) like their own. They should realized by now, why many people turned their vote to the opposition in the last election.
Moving on ...
I've just submitted my e-BE forms and yet to pay my tax (waiting for this month's salary, of course).
I used to be the 'unofficial tax reference' back at my old office. Most of the time, my friends and colleagues would asked me to complete mine first and used it as guidance to complete theirs. The good old days...
Even now, at my new workplace, I still carry the title 'unofficial tax reference'; but this time around is to my staff. Some of them even only starting to use the e-BE this year.
Well, it's not such a big deal. Glad that I can assist people however I can, within my capabilities.


salzahari said...

oohhh...pls help me.0 knowledge on where to start!

Pedang Bertuah said...

Sure, why not. Contact me sis...