Oct 242010
 

Every year, all Malaysian citizens who are working and earned more than RM 2500 per month will need to pay income tax via E-Filling at the range of 1% – 26% based on the Income Tax Rates 2010.

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What Is Tax Relief?

Tax Relief is some kind of tax deduction provided by government to reduce the total income tax paid by citizens. Tax relief is targeted to help individuals or businesses in need of financial breaks.

Without tax relief plans, each eligible citizens might need to pay very high income tax to the government and can be a heavy burden to the poor family. Therefore, tax relief will help people to pay less tax but have more money to pay for children’s education, home purchasing and investment.

If you want to know more about Malaysia Tax Relief Year 2010, check out the below table and deduct the related tax relief items before paying the income tax. You will realize that you actually only pay some portion of your money to the Inland Revenue Board of Malaysia (Lembaga Hasil Dalam Negeri Malaysia)

Tax Relief for Resident Individual Year 2010

No. Individual Relief Types Amount (RM)
1 Self and Dependent 9,000
2 Medical expenses for parents 5,000 (Limited)
3 Basic supporting equipment 5,000 (Limited)
4 Disabled Individual 6,000
5 Education Fees (Individual) 5,000 (Limited)
6 Medical expenses for serious diseases 5,000 (Limited)
7 Complete medical examination 500 (Limited)
8 Purchase of books, journals, magazines and publications 1,000 (Limited)
9 Purchase of personal computer 3,000 (Limited)
10 Net saving in SSPN’s scheme 3,000 (Limited)
11 Purchase of sport equipment for sport activities 300 (Limited)
12 Subscription fees for broadband registered in the name of the individual 500 (Limited)
13 Interest expended to finance purchase of residential property. Relief of up to RM10,000 a year for three consecutive years from the first year the interest is paid.
Subject to the following conditions:

(i) the taxpayer is a Malaysian citizen and a resident;
(ii) limited to one residential unit;
(iii) the sale and purchase agreement is signed between 10th March 2009
and 31st December 2010; and
(iv) the residential property is not rented out.
Where:
(a) 2 or more individuals are eligible to claim relief for the same property ; and
(b) total interest expended by those individuals exceeds the allowable amount for that year. Each individual is allowed an amount of relief for each year based on the following formula:
A x B
C
where;
A = total interest allowable in the relevant year;
B = total interest expended by the relevant individual in the relevant year;
C = total interest expended by all the individuals.

10,000 (Limited)
14 Husband/Wife/Alimony Payments 3,000 (Limited)
15 Disable Wife/Husband 3,500
16 Ordinary Child relief 1,000
17 Child age 18 years old and above, not married and receiving full-time tertiary education 1,000
18 Child age 18 years old and above, not married and pursuing diplomas or above qualification in Malaysia @ bachelor degree or above outside Malaysia in program and in Higher Education Institute that is accredited by related Government authorities 4,000
19 Disabled child

Additional exemption of RM4,000 disable child age 18 years old and above, not married and pursuing diplomas or above qualification in Malaysia @ bachelor degree or above outside Malaysia in program and in Higher Education Institute that is accredited by related Government authorities

5,000
20 Life insurance dan EPF 6,000 (Limited)
21 Premium on new annuity scheme or additional premium paid on existing annuity scheme commencing payment from 01/01/2010 (amount exceeding RM1,000 can be claimed together with life insurance premium) 1,000 (Limited)
22 Insurance premium for education or medical benefit 3,000 (Limited)

To get more information about Tax Relief Malaysia, you can always refer to official website of Inland Revenue Board of Malaysia .

Click to view for Tax Relief resident individual year 2009

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