Boost Rolls Out Boost Beyond Prepaid Card, Currently Available To Selected Users

(
Update on 25 July 2023
: Boost has amended its FAQ with a change to the profit/interest charge of the PayFlex feature.
)

Boost is finally rolling out its long-awaited Mastercard prepaid card, although only to a small pool of selected Boost Premium Wallet users for now. Known as the Boost Beyond Card, it will allow you to make both online and offline payments at any Mastercard touchpoints worldwide, using either your Boost Wallet balance or an additional Boost PayFlex feature.

According to Boost’s support page, users who successfully apply for the card will be issued a virtual card instantly, and they can begin to use it for their online payments right after – no activation needed. Meanwhile, to get a physical card, you will need to opt in and pay a one-time card issuance fee of RM20.

Boost also highlighted that its prepaid cardholders will be able to choose if they’d like to make card payments via their Boost Wallet or the
Boost PayFlex feature
. If you choose Boost Wallet as your source of fund, your prepaid card payments will draw from your Boost Wallet balance to make a lump-sum, upfront payment. Meanwhile, the Boost PayFlex feature allows you to defer the payment of your purchases for 30 days, or split your payments into instalments over a specified period – similar to the buy-now-pay-later (BNPL) payment method – as long as it is within your allowed PayFlex credit limit.

At present, the PayFlex feature – which is
shariah
-compliant – will automatically split your payment into three instalments, but there are plans to add additional instalment options with a longer instalment cycle in the near future. Do also be aware that are fees to use this feature, as indicated below:

PayFlex payment options
Applicable fees
Pay in 30 days
–
Wakalah
fee
: 4% of your transaction amount, or RM5, whichever higher (capped at RM10 per transaction)
–
Late payment charges:
1% p.a. (calculated on daily basis)
Pay in instalments
–
Wakalah
fee
: RM10 flat per transaction
–
Profit/Interest rate
: 2.5% charge on transaction amount
–
Late payment charges:
1% p.a. (calculated on daily basis)

If you’d like to tap into Boost Payflex for your Boost Beyond Card, you’re required to first register for PayFlex through your Boost app. Here’s a video tutorial from Boost to help you out:

Meanwhile, if you’re using the Boost Beyond Card to make payments while travelling abroad or making overseas purchases, note that there is an overseas transaction fee of up to 2% of the transaction amount. To use your card abroad or for cross-border transactions, you’ll have to enable the “International Payments” function for your card ahead of time (can be done in the “Card Settings” section).

Finally, note that the Boost Beyond Card currently does not allow ATM withdrawals. However, Boost plans to enable support for this in the future.

If you’re one of the lucky ones who have been selected to try out the Boost Beyond Card, you can go ahead and apply for the card from your Boost app dashboard. Simply click on the “Beyond Card” tile, followed by “Apply Now”, and then fill in all the required details. Once you’ve made all the necessary payments (where applicable) and submitted your form, your card application will take up to three working days to be processed. If your application is successful, you’ll be notified via the Boost app and email.

Boost said that it expects to roll out the Boost Beyond Card to more eligible users in the future, but no concrete timeline has been shared as of yet. The e-wallet service provider first announced its plans for this prepaid card
in partnership with Mastercard back in 2021
.

(Source:
Boost
)

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About THE AUTHOR

Alex Cheong Pui Yin

Alex Cheong Pui Yin

Previously covered recruitment-related stories and had a short stint as a copywriter for the property industry. She subsequently developed an interest in investment and robo-advisors.

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    cait

    1 month ago

The Profit Rate on Instalment is 2.5%, not 1.5%

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NPE, BESRAYA, And DUKE Accept Credit, Debit Cards For Toll Payment

(Image: The Sun Daily)

Concessionaire IJM Corporation Bhd has announced that its New Pantai Expressway (NPE) and Sungai Besi Highway (BESRAYA) have begun testing the open payment system, allowing motorists to pay their toll fares with credit and debit cards. At the same time, Ekovest Berhad’s subsidiary – Konsortium Lebuhraya Utara-Timur Sdn Bhd (KESTURI) – also began its trial of the system on the Duta-Ulu Klang Expressway (DUKE).

With this latest development, eight highways have begun its implementation of the open payment system; prior to this, the
Kuala Lumpur-Putrajaya Expressway (MEX)
 was the first highway to begin the test at its Putrajaya Toll Plaza. This was quickly followed by the
Damansara-Puchong Expressway (LDP), Western Kuala Lumpur Traffic Dispersal Scheme (SPRINT) highway
,
Shah Alam Expressway (KESAS), and the SMART Tunnel
.

In total, the Works Ministry has enlisted the concessionaires of
12 highways
 to participate in testing this initiative. The remaining four highways that are also expected to begin to trial the system soon include the Ampang-Kuala Lumpur Elevated Highway (AKLEH), Guthrie Corridor Expressway (GCE), Butterworth-Kulim Expressway (BKE), and Penang Bridge (JPP).

(Image: Berita Harian)

As with the other highways that have enabled the open payment system prior to this, motorists who are travelling along the NPE, BESRAYA, and DUKE highways will be able to pay their toll fares using debit and credit cards at selected lanes. These special lanes will be indicated by clear signages, so make sure to keep an eye out for them if you’d like to give these new payment options a try!

The installed terminals – which are situated next to the Touch ‘n Go (TNG) card readers at the booths – will accept payments from MyDebit, Visa, and Mastercard cards. Their acceptance will serve as an alternative to the usual TNG card, SmartTAG, and RFID payment methods.

(Sources:
Malay Mail
,
Lowyat.NET
)

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Alex Cheong Pui Yin

Alex Cheong Pui Yin

Previously covered recruitment-related stories and had a short stint as a copywriter for the property industry. She subsequently developed an interest in investment and robo-advisors.

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Household Items You Should Never Buy for Cheap

In an effort to save as much money as possible, it’s tempting to want to buy your household goods as cheaply as possible. But unfortunately, the benefits of lower prices might not be worth the harm it could bring to your health and finances in the long run.

Here’s a list of stuff you should never buy for cheap whether from your favourite variety stores (RM5 stores), second-hand or online:

1. Knives

It’s best to be extra cautious when buying any item that will be used for food prep. Cheaper, low-quality knives may rust or corrode easily and could be made with unhealthy materials such as low-grade stainless steel or nickel coating.

Moreover, a cheaper knife may be poorly crafted i.e. blades may break off (leaving shards) and handles made from low-density or soft wood could loosen or crumble and cause serious injury.

When choosing knives, you don’t have to look exclusively for an expensive brand. Even your neighbourhood supermarkets should offer a wide range of safe, quality and affordable pieces. Remember to buy individual knives as they suit your kitchen habits instead of buying a full set since those are often way more expensive and include knives you probably won’t even use.

2. Mattresses

If you buy a cheaper mattress made from less-sturdy materials like low-density foam or plain cotton, you may end up having to replace it sooner and spend more money in the long run. But that’s not the only issue with skimping on your mattress purchase; in fact, choosing a mattress that is unsuitable for you could lead to posture problems, body aches and poor overall sleep quality.

If you suffer from a breathing-related ailment such as asthma, you could be worsening your condition if your mattress isn’t dust-resistant. If you can afford it, do spring for a mattress that is hypoallergenic, anti-mites and made of long-lasting materials (e.g. natural latex, high-density memory foam, pocket coils, etc.)

If you do indeed find a good mattress that meets your needs and still happens to be on the cheaper side, do ask about warranties and return policies just to be safe.

3. Extension Cords and Power Strips

Any electrical item that hasn’t received safety certification, no matter how cheap should be purchased with caution. Extension cords and power strips are no exception, especially because it is commonly overloaded which could make it a fire hazard.

The Electrical and Electronics Association of Malaysia
cautioned
that cables made from substandard materials can cause fires. The Association also asked consumers to look for product quality certification such as a
SIRIM
stamp of approval before buying. In addition, make sure your cords and power strips come with internal circuit breakers. Choosing the cheaper option with none of these safety features is not advisable.

4. Phone Chargers and Batteries

If you have to replace your smartphone charger or battery, you might be tempted to buy a knock-off version for a fraction of the price. However, even though the original accessories are more expensive, it’s actually worth the money. This is because it is likely to come with a warranty and be
safer
 to use.

On the other hand, third party chargers or batteries may not be apt for your phone as it could void the warranty of your handset if damage occurs as a result. More worryingly, aftermarket accessories have been linked to scary,
explosive incidents
.

Note that even if original chargers and batteries are faulty, you will at the very least have some legal redress if you suffer injuries or damages to your property. This will not be the case if you buy an imitation product.

5. House Paint

Since this is an expensive buy of which you might need a large supply, you might be tempted to buy the cheap stuff and save more.

However, low-grade house paints sometimes contain
volatile organic compounds
 (VOC) that are released into the air. These compounds may cause breathing difficulty among young children, pets and those with respiratory illnesses.

Look for low-emission, low-VOC paints or organic ones. These will typically cost you more than regular paint, but is certainly worth the extra money. Alternative, if you can’t afford better quality paints, go with basic
matte or low-lustre
 coats as these are usually low in VOCs as well.

Looking for more ways to save money? Why not get a solid cash back credit card to help you stretch your budget a little further. If you don’t already have an awesome card with you or are simply looking to make a change, just use our
comparison page
 to discover the best one for your needs!

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Bad habits that may be costing you financially

Once you establish a good habit, it’s a matter of routine. Imagine having routines in place that keep your finances on course.

Sounds great, right? To get those good habits in place, you first must face the bad financial habits you have now. Face them, and then drop them like the hot potatoes they are.

Always take note of the decisions that you’re making with your money and find ways to either put it into saving or to benefit you more. Here are some common financial mistakes to take note of and how you can save that money for better use instead.

Buying things you don’t need

Possible the biggest mistake most people make. It’s hard to resist buying something new all the time – even if you don’t need it. While you may not realize it, this can actually turn into a very, very expensive habit.

If you DO need to buy something, realize that the most expensive item isn’t always going to benefit you more than a less expensive one.

Failing to negotiate

This is actually something we Malaysians are pretty good at.

Say you do some research on insurance providers and discover that there’s a great deal from another source. Don’t call your current provider to cancel; call to negotiate.

In order to keep your business, your provider might quickly match the competitor’s offer, and you’re saved both the hassle of switching and the extra money you were paying.

Don’t be afraid to negotiate. It’s not bad manners to negotiate; it’s good business.

Bad stock market decisions

Investing in stock markets are a great way to build your income, but it’s incredibly important to do research or consult a proper fund manager if investments aren’t your forte. Instead of being swayed by popular opinion, invest your money the way you (and your finance advisor) is most comfortable with.

Getting those summons or fees

There are some fees that cannot be avoided, but there may be a few that if you knew how to avoid them well, you could be putting that money to better use. Be it due to credit card fees, late rental fees, or even speeding or parking tickets, all of this could be avoided with careful planning on your part. It just takes some discipline to avoid spending more than necessary on these things.

Forgetting to use your Reward Points or other benefits

It’s always good to keep track of your reward points as you could be able to save on the items you want to purchase. For example, instead of buying a new blender, you could use the reward points you’ve accumulated to get you one without having to spend a single cent. Which is why if you allow your reward points to expire, you’re letting go of free money in a way.

Choosing the right rewards points credit card that fits your spending is very important and can mean the difference of potentially hundreds of ringgit! For example, the
HSBC Visa Signature Credit Card
 offers 10x extra points for overseas spending and the
Citibank Cashback Platinum Credit Card
 offers 5x extra points when shopping at selected merchants.

There can be certain circumstances where spending more is unavoidable, but it’s always better to take control of your expenses instead. So take note of the decisions that you’re making with your money, and do what you can to save and make the money work for you instead.

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Frequently Asked Questions for Malaysian Personal Income Tax

Malaysian income tax can be challenging and complicated, we get it. Be it as a seasoned tax filer or a first-timer, you will still run a quick Google search on ‘How to calculate income tax’ to get a better understanding on how to file your taxes efficiently or even add
 ‘income tax calculator’
 or ‘tax calculator 2017’ to your mix for an estimation of the amount of refund you can receive or need to pay.

Fret not as we have compiled our frequently asked questions for all things related to income tax in Malaysia so do check it out to get a clearer idea on what you can do prior to getting your income tax return.

Question 1 : How Do I Verify The Monthly Tax Deduction Made By Employer Is Accurate And Correct?

You can check this with the monthly tax deduction table/schedule to verify the calculation. Another easier way of doing this is to use an income tax calculator to verify the monthly tax deduction calculation.

If the taxable amount as per return form is different from the monthly tax deduction deducted by the employer, you may choose to provide a return form before 30th of April. To make your tax filing easier, we recommend using a
 tax calculator
 for the year assessment 2017.

Question 2 : How Do I Pay My Monthly Tax Deductions To LHDN?

If you are a salaried employee, this is usually done by your employer on your behalf. Your employers will make these payments through the submission of Form CP39 or CP39A. These payments can be done manually by visiting a physical counter, postal services or through e-PCB online.

Question 3 : How Do I Know If I Need To File My Tax Return Even If I Do Not Fulfill The Criteria Of Monthly Tax Deduction As Final Tax?

You will need to file your taxes if:

• You have worked with more than one employer or change employers during the year;

• You have worked less than twelve months during the year;

• Your tax is borne by employer;

• You have opted for joint assessment;

• You have non-employment income such as business income, rental income, and more during the year of assessment

• You wish to claim a refund or deduction/rebate.

Question 4 : Will There Be Any Repercussions For My Employers If My Monthly Tax Deduction Is Calculated Wrongly?

Yes, your employer will be issued a compound under the Under the Income Tax (Deduction From Remuneration) (Amendment) Rules. The compound is issued under the grounds of employers who does not comply with using the correct method to determine the monthly tax deduction. To find out if your tax has been deducted properly, a
 tax return calculator
 can help you to do just that.

Question 5 : Can I Claim My Car Insurance On My Taxes?

No , car insurance does not count for tax relief. However, you can make claims for premiums paid for education or medical insurance as well as life insurance.

*
Read Also :
 Malaysia Personal Income Tax Guide 2018 (YA 2017)
 *

Question 6 : Can I Claim Medical Expenses On My Taxes ?

Yes, if you have your very own medical insurance policy, you can claim medical expenses when you file for your income tax. For this, you get an income tax relief of RM3,000 for medical insurance so make full use of it and get yourself and your children insured if you haven’t. To find out how much you can claim, you can use our free income tax calculator.

Question 7 : What Happens If I Am Penalised By LHDN Even Though My Tax Filings Are Based On The Advice Of Tax Consultants?

According to LHDN, if the taxpayer and the tax consultant are suspected of evading tax, they can be charged in court. It is noted that the Income Tax Act provides that any tax consultant that gives advice or assistance that results in an understatement of tax liability by the taxpayer can be charged with an offence and penalised. So with that said, it is important to know any any error made by a tax consultant is not a factor to be considered in imposing a penalty on the taxpayer.

Question 8 : What Will Happen If I Default In Tax Payments?

You will receive a notification of late payment penalty, and if you fail to act on this notice, you will receive a notice of tax arrears from LHDN. LHDN will proceed to send you reminders as well as a notification of court proceedings. A travel restriction may be imposed on you as well if LHDN fails in their attempts to arrange for payment of taxes from you.

Question 9 : What Are The Expenses That Can Be Claimed Against The Rental Income?

Here are some of the things that can be claimed against rental income :

• Assessment and Quit rent

• Insurance premium – fire /burglary

• Bank loan interest

• Cost of repairs & replacement

• Cost of obtaining tenant to replace the old tenant

• Cost of renewal rental agreement

• Service charges & maintenance (condominiums & apartments)

• Industrial Building Allowance can be claimed if the property qualifies as an industrial building.

• Rental collection

Question 10 : What Is The Difference Between Income Tax Exemption, Income Tax Relief And Income Tax Rebate?

Income tax exemption refers to items which are allowed to be claimed from a specific source of income and not from gross total income.

Income tax relief refers to items which are allowed to be claimed under chargeable income. This usually refers to program or incentive that helps reduce tax.

Income tax rebates refer to items which are allowed to be claimed under tax payable. In general, claim on income tax rebate are made on Tax payable.

Question 11: I Don’t Understand How Tax Exemption Works, What Are The Things I Can Claim For?

Tax exemptions are “a personal allowance or specific monetary exemption which may be claimed by an individual to reduce taxable income”. Tax exemption are items which are completely removed from your taxable income, unlike tax reliefs which are deductions upon your taxable income.

The following items are qualified for tax exemption:

Leave passage
: Leave passage refers to vacation time paid for by your employer. The following leave passages are exempted from tax:

A maximum of 3 local leave passages including meals,

A maximum of one overseas leave passage up to a maximum RM3,000 for fares only.

Medical and dental benefit
: Medical benefits (including traditional medicine and maternity expenses) by your employer is tax exempted.

Retirement gratuity
: Gratuity is a lump sum payment made to the employee in recognition of his/ her service in the company. This payment is given to him/ her upon her resignation or (in this case) retirement. Retirement gratuity is fully tax exempted if:

The retirement is due to ill health; or

The employee reached the age of 55 or any other compulsory age of retirement; or

The employee reached the compulsory age of retirement according to the employment contract etc.

Gratuity paid out of public funds
: Gratuity paid out of public funds upon retirement is tax exempted.

Gratuity paid to a contract officer
: Gratuity paid out of public funds to a contract worker upon the termination of his/ her contract of retirement is tax exempted regardless of renewal.

Compensation for Loss of Employment
: Compensation for the loss of employment is exempted accordingly:

Full exemption if the loss of employment is due to ill health;

Exemption of RM10,000 for every completed year of service for the same employer/ company

Pensions
: Retirement fund for retired government servants. Pension paid to a person is tax exempted if:

The recipient reached the age of 55 or any compulsory age of retirement; or

The retirement is due to ill health

Death gratuities
: Sum received in the form of gratuity or consolidation compensation for death or injuries.

Scholarships
: Any sum of money received by an individual in the form of a scholarship or similar grant whether it is in connection with that individual’s employment or not.

Income of an individual resident in Malaysia in respect of his appearances in cultural performances approved by the Minister

Income Remitted from Outside Malaysia
: Income generated from sources outside of Malaysia and received in Malaysia.

Fees or Honorarium for Expert Services
: Any fees or honorarium received by an individual for validating, moderating or accrediting franchised education programmes in higher educational institutions.

However, the service of these individuals must be verified by The Malaysian Qualifications Agency. These services should not be part of the individuals’ official duty.

Income Derived from Research Findings
: Any income that an individual gained from the commercialisation of a scientific research is eligible for a tax exemption of 50%. This tax exemption applies to an assessment of five year period, starting from the date of the first payment received.

However, the individual must be a Malaysian resident and approved by the Ministry of Science, Technology and Environment.

While the following items are included under taxable income, they are tax exempted if they fall under certain criteria.

Interests

From deposits placed in licensed institutions

Paid to unit trusts and listed closed-end funds in respect of specific conditions.

In respect of the Merdeka Bonds issued by the Central Bank of Malaysia.

Dividends

Received from co-operative societies.

Royalties

Publication of, or the use of, or the right to use, any artistic work (RM10, 000)

Recording discs or tapes (RM10, 000)

Publication of, or the use of or the right to use, any literary work or, any original painting (RM20, 000)

You can find out more from
MIA
 and
PWC
.

Final Word of Advice

If you haven’t done your taxes yet, just bear in mind that the 2017 tax assessment year follows the calendar year (effective 1st January 2017 to 31st December 2017).

Make sure you list down the tax reliefs, deductions, and rebates that you can submit claims for before submitting your income tax return form for the year of 2017. And as always, if you are not sure if your calculations are on the right track, you can always fall back on our free income tax calculator. If you have any uncertainties, you can always contact
LHDN
 for more information.

Here are the due dates for the submission of return forms are as follows:

1) Employers (Form E)- 31 March 2018

2) Residents and non-residents with non-business income (Form BE and M) is 30 April 2018

3) Residents and non-residents with business income (Form B and M) is 30 June 2018

4) Partnerships (Form P ) is 30 June 2018

All the best with your tax filing endeavours!

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Arnie Ruxana

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    Murallidass

    3 years ago

Hi, I have a question regarding Tax submission, hope you can assist. If I’m submitting as an individual;wife not working.. can I still include her education fees in my submission?

Of course I’m paying for her..

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    Jacie Tan

    3 years ago

    Reply to

        Murallidass

The education fees are listed by LHDN as for your “self” so it is unlikely that you can include her fees in your submission.

1

Reply

    Thanni

    3 years ago

Am I eligible to get relief on my yearly Membership Fee paid to MMA. Where do I show in e-BE

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    jeff

    3 years ago

Hi, I have a question regarding wrongly filling the total income, what can  I do in order to amend it as im new to income tax payer. thank you in advance for the assit

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    Lam Cheng Ru

    3 years ago

Hi, I have 1 question regarding the total income.

I have wrongly fill in the figure, may I know how to amend the figure? if can’t amend, whats the impact?

im new for the income tax payer.

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    Valerie Mak

    3 years ago

Hi, I want to transfer the property to my son. He is 18 years old. The property now is being rented out. My son is studying in US. At the moment, the tenancy agreement is under my name but my son gets the rental. Can I know who pay for the taxes?. I am retired. Thanks

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Malaysia Personal Income Tax Guide 2017

It’s income tax season once again! There is still some time to file your yearly income tax and this is the guide you need to get through your filing. We’ll try our best to cover all the necessary bases when it comes to taxes so you can file and pay yours in a timely manner while saving money at the same time. Let’s get started!

Tax Rates

First things first, you need to know your tax rates. It’s always a percentage of your chargeable income (more on that later). The more you earn, the higher the percentage of tax you need to pay. However, that higher percentage is only applied to the amount that’s higher. So you never end up with less net income after tax even if you earn more.

Let’s look at the tax rates for the Year of Assessment 2016 and see how much you need to pay:

You will notice that the final figures on that table are in bold. That’s because the rates for people who earn on that last two higher brackets
have been increased from 25% to 26% and 25% to 28%
. If you didn’t earn that much last year, you probably don’t need to worry about that.

It’s important to note also that the table above only applies to resident individuals who make their income in Malaysia. Not sure if that’s you? Well, if you are:

in Malaysia at least 182 days of the year,

in Malaysia for less than a consecutive 182 days, but the gaps in between those days were spent away on business trips, medical treatment, or social visits (of less than 14 days),

in Malaysia for 90 days or more during the year and in any 3 of the 4 previous years,

…then you’re a tax resident. So the rates on the table above would apply to you.

But if you’re non-resident individual
 earning income in Malaysia, your tax rates are different. It looks more like this:

Some items in bold for the above table deserve special mention. Technical or management service fees are
only liable to tax if the services are rendered in Malaysia
. While the
28% tax rate for non-residents is a 3% increase from the previous year’s 25%
.

No guide to income tax will be complete without a list of tax reliefs. The below reliefs are what you need to subtract from your income to determine your chargeable income.

Chargeable Income

Your chargeable income is best illustrated with an example like so:

Say you are earning a RM40,000 per year salary, you have a RM2,000 local bank interest income as well as RM13,000 from property rental income a year. That’s an annual income of
RM55,000
.

Let’s take into account the standard RM9,000 individual tax relief as well as a maximum relief of RM6,000 for EPF contributions.

Assume your EPF contribution is calculated at 11% of RM40,000. That gives you RM4,400, which is still under RM6,000, meaning your EPF earnings are completely exempted.

All local bank interest income is still tax exempted, so that RM2,000 local bank interest income doesn’t count either.

By applying these exemptions and reliefs, your chargeable income will actually be:

RM55,000 – RM2,000 – (RM 9,000 + RM4,400) =
RM39,600
. A much lower figure than you initially thought it would be.

Of course, these exemptions mentioned in the example are not the only ones. Which is why we’ve included a full list of exemptions for the year assessment of 2016 here for your calculation:

Tax Reliefs for Year of Assessment 2016

Now that you have your reliefs and you have your tax rates, you’re ready to calculate your chargeable income right? Not quite. Because there might be forms of income which count towards your chargeable income but is separate from your salary. By which we mean
perquisites
 and
benefits-in-kind
.

Perquisites

Also referred to as company or employee perks, these items have cash value and are counted as part of your income. Perks include gift vouchers, company credit cards, company insurance premiums, staff discounts, or any other kind of sponsored payment made by the company on your behalf.

A rule of thumb to determine whether or not something is a perk is to think about whether or not you would have to pay (or pay more) for it if you weren’t working for the company. If the answer is yes, that’s a part of your income, and is taxable.

Thankfully, some perquisites are tax exempted by certain amounts:

Another entry in bold for this table refers to the special conditions of the taxable value of travel allowances. If you travel as a heavy part of your work and the company gives you allowance, it’s only exempted up to RM6,000. However, your expenses towards the travel used for work
can be deducted from your gross income
, provided you keep a record of these expenses.

Benefits-in-Kind

These also count towards part of your income. Think of these as perks, but ones that cannot be directly converted to cash. There are two ways to determine the monetary (thus taxable) value of these benefits:

The Formula Method
, which uses this calculation:

Value of asset / Lifespan of asset = Annual value of benefit

and the
Prescribed Value Method
, which assigns a predetermined value from a list sorted by classification of asset.

We recommend sticking to the formula method for most benefits-in-kind since the prescribed value method isn’t really available for all asset classifications. However, we’ve provided the list of prescribed values here anyway so you can decide for yourself whichever is cheaper for you.

Prescribed Value of Motorcars and Related Benefits

Prescribed Value of Household Furnishings, Apparatus, and Appliances

For a fuller list of prescribed value for benefits in kind, you can check out
this official document provided by the Inland Revenue Board of Malaysia
.

After calculating your chargeable income from your perks, benefits, and subtracting your tax exemptions and reliefs, you’ve come to your total chargeable income. Which isn’t yet the amount you have to pay, since we haven’t factored in the tax rebates yet!

Tax rebates (or also known as “tax refunds” but done automatically rather than actually refunded to you). Another type of tax rebate, but which is only applicable for Muslim citizens, is the zakat / fitrah. Zakat is a compulsory payment for charity and considered to be compulsory as it is one of the five pillars in Islam. It can be calculated via the Muslim taxpayer’s acquired wealth or income.

Tax Rebate

Year of Assessment 2009 onwards (RM)

Self where chargeable income does not exceed RM35,000

400

Separate Assessment for Wife or Husband where the other partner has no total income

400

Zakat / Fitrah

Limited to total tax charged

Don’t Forget

The 2016 tax assessment year follows the calendar year, so it is effective from 1st January 2016 to 31st December 2016.

For individuals without business source, the due date is on or before 30th April.

For individuals with business source, the due date is on or before 30th June.

For a non-resident individuals without business source, the due date is on or before 30th April.

For non-resident individuals with business source, the due date is on or before 30th June.

If you have any other questions regarding personal income tax for the 2016 assessment year, feel free to drop them in the comments section down below!

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How to Save Money on Moving Costs

So you finally decide to move to a better place. A new home, a new environment, a fresh start. But before you get there, the biggest hurdle that you will face is the MOVING.

The word itself can send chills down many people’s spine. The tedious process of house shifting is usually visualised as nerve wrecking, tiring, expensive and something that you would not want to do for another 100 years.

Although, we can’t help with the lifting of boxes perhaps we can alleviate the weight on your wallet with tips on moving for less.

Plan Ahead For the Best Deals

Planning early isn’t just good for your sanity; it’s also good for negotiating prices with the mover. A mover who is alerted of your impending move is able to manage his time better and offer you the best rates because he may be able to plan his other moves in turn. It also gives you more time to scour deals.

If you plan to shift at the end of the month, you can start 2-3 weeks earlier so that you have loads of time to prepare everything before the judgment day. Leaving planning to the last minute will mean that you will have to take whichever mover is available for whatever rate he is offering.

Keep Only the Necessities

Why not set up a yard sale to sell all that unwanted stuff? Moving a whole load of items you never use anyway is not the best use of your moving cost. You shouldn’t have much problem unloading your spare stuff. One man’s trash is another man’s gold, so give a chance for your extras to turn into someone’s must-have.

At the same time you will get some extra cash, so it’s totally worth the try! Those extra bucks will be useful for the cost of shifting your house. However, if you feel that setting up a yard sale is not your cup of tea, you can always opt to sell your unwanted items over the Internet.

Websites such as
Mudah

Lelong
,
eBay
 and lots more will give you a pretty decent price for your throwaways. If you don’t even have time to list the items online, you can always make simple brochures and hand it out in your neighborhood that you have things to sell.

Lastly, you could also opt to donate your items. You won’t get any money this way but it will save you the hassle of selling and it can all be donated in one go. Of course, do make sure the items are still in good working condition! Please don’t donate unusable or items in bad condition.

Sharing to Save

If you decided not to pay for professional movers, you would have to get a lorry or van to get all those items over to your new house.
Professional transport services
 are quite convenient, but they can get really pricey since they charge you according to how far you would want to travel.

To overcome this, you might want to consider sharing the lorry or van together with anybody who is stuck in the same situation as you. You can post on social media to see if anyone would like to share a lorry but if not; you can try asking the movers themselves. Say you’re happy to share the lorry if anyone else has only a few items to move and level the cost accordingly.

Apart from lorry pooling, invite your friends over to help you move and then unpack when you finally reach. A friend in need is a friend indeed, so get all those friends of yours to give you a helping hand. It might sound a bit like you’re freeloading but you can always repay your friends in kind such as buying them meals or offering to help them when they move too.

Don’t Pay (Much) For Boxes

You have to pack and packing requires cardboard boxes. But don’t get caught in the trap of spending loads for the boxes and containers. Visit a convenient store nearby or a hypermarket and ask them if they have cardboard boxes to discard. Sometimes, you can simply find these boxes chucked near the supermarket loading area.

The shop would be more than happy to give them to you for free but even if they did feel like charging you, you can be sure it will be a mere fraction of the price you will pay for a pristine, brand new box.

If you want to safely transport your beautiful antique items, just get cheap bubble wraps, raffia strings and old newspapers. That should do the trick! Cheap, easy and it protects your dear and costly antiques, as well as any other fragile item.

Moving can surely be hectic but by taking a mostly DIY approach, you can save on the professional mover fee.

Do you have other tips? Let us know in the comments 🙂

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Free Paradise Getaway with Alliance Credit Cards

If you’ve been meaning to get away from your hectic work routine for a short holiday you don’t want to miss this opportunity to win free accommodation at the Swiss-Garden International Vacation Club.

Alliance Bank in partnership with Mini Vacation is offering a complimentary 3D2N nature retreat package for lucky Alliance Bank credit cardholders who register via
www.vacation-mini.com
 before 30 June 2013.

Registrants may choose from the following packages:

Swiss-Garden Golf Resort & Spa Damai Laut – ‘Nature’s Retreat At Its Best’

Swiss-Court Holiday Apartments Damai Laut – ‘A Home Away From Home’

Swiss-Garden Residences Kuala Lumpur – ‘A Brand New Experience In The Heart Of The City’

Swiss-Garden Resort & Spa Kuantan – ‘Sands That Spell Paradise’

There are of course some Terms & Conditions attached:

Registrants are required to attend a 120-minute Vacation Preview and Mini-Tour presentation by SGIVC on exciting ways to holiday at more than 2,700 destinations worldwide.

Request for reservation of accommodation must be made 2 months from the date the invitation is received and travel date must not exceed 2 months from when the request is made. The travel and stay period must not exceed 31 August 2013.

Registrations are required to stay for the entire 3D2N period.

Registrants are entitled to one room for the entire period of stay with a maximum of 2 adults and 1 child. A surcharge will be applied for extra beds.

A Room Registration Deposit of RM300 is required upon confirmation of reservation. This deposit must be made with an Alliance Bank credit card and is refundable 30 days after the check-out date.

This offer is on a first-come, first-serve basis and requires registration to be made via
www.vacation-mini.com
 with the Paradise Key: 6008

Please check the
Terms & Conditions
 of this offer for vacation preview and mini-tour itinerary.

Are you thinking of getting an Alliance Bank credit card? Get the right one for you at
RinggitPlus.com
.

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Affordable Samsung Gadgets with BSN Credit Cards

Getting a new mobile phone has never been more affordable with BSN’s 0% EasyPay plan. Own a Samsung Galaxy SIII for as low as RM98 a month or a Galaxy Note II for RM84.50 a month. This promotion is open to all BSN credit cardmembers and condition of purchase is subject to availability of the cardmember’s credit limit.

Click
HERE
 to view the catalogue of selected Samsung products.

And as a bonus BSN is also giving away Guess watches worth RM1099 for every 100th approved order. This offer is valid while stocks last.

Please note that to benefit from the 0% interest instalment cardmembers are required to honour monthly payments in full. Should a cardmember opt to only pay the minimum 5% of the outstanding balance an interest/facility fee will be applied.

For a copy of the order form and Terms & Conditions please click
HERE
.

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Everything You Should Claim As Income Tax Relief Malaysia 2023 (YA 2022)

As always, Malaysia’s tax season has rolled around with the arrival of March, and if you’re like most taxpayers, your immediate priority is to start looking for information on all the tax reliefs, tax deductions, and tax rebates that you’re eligible for so that you can pay less tax. (Believe us, this is an inescapable annual ritual for all taxpayers in Malaysia – heck, even around the world.)

It’s worth highlighting from the get-go that
tax reliefs, deductions, and rebates
 are actually three different things meant to help you reduce your aggregate income, chargeable income, and amount of tax charged, respectively – ultimately letting you enjoy a lower tax rate and pay less in tax altogether. But for now, our focus in this article is to give you an overview of all the items that you can claim to maximise your tax refund, so let’s get down to it!

We’ve prepared an infographic that summarises all the tax reliefs, deductions, and rebates that you can claim for YA 2022 – for those of you who just need a quick check. But if you’d like to find out more about the nitty gritty of each item, scroll down further to read the specifics.

YA 2022: Tax Reliefs, Deductions & Rebates In Detail

Understandably, several of these tax reliefs, deductions, and rebates come with certain conditions and requirements to claim, so if you’re looking for the fine prints of each item for clarification, then this section is for you.

Read on to check and make sure that you
really
 are eligible for the reliefs, deductions, and rebates that you want to claim.

Part 1: Tax reliefs

Tax reliefs let you reduce your chargeable income (your income that will determine what tax rate you are charged with). Here are the full details of all the tax reliefs that you can claim for YA 2022:

1) Individual & dependent relatives
Claim: RM9,000

Granted automatically to an individual for themselves and their dependents.

2) Medical treatment, special needs, and carer expenses for parents
Claim: Up to RM8,000

Includes care and treatment by a nursing home, and non-cosmetic dental treatment. Must be evidenced by a registered medical practitioner or written certification of a qualified carer (carer should not be the taxpayer, or his/her spouse or child). Parents must reside and treatment must be provided in Malaysia.

This tax relief was originally capped at a maximum of RM5,000, but it was subsequently raised to RM8,000 in YA 2021. In the same year of assessment, the Inland Revenue Board (LHDN) also removed a sub-category of this tax relief that allowed individuals to claim RM1,500 for each parent (RM3,000 for both father and mother) if they did not make a claim for medical treatment for their parents.

3) Husband/Wife/Alimony
Claim: Up to RM4,000

This relief is only applicable if your spouse has no source or income, or if he/she opts for a joint assessment in your name. Additionally, you cannot claim this relief if your spouse has a gross income exceeding RM4,000 derived from sources outside of Malaysia.

If you’re a husband paying alimony to a former wife, the deduction is allowed for the amount of alimony paid or up to a limit of RM4,000. Note as well that the total deduction for a wife living together and alimony payments to a former wife is also capped at RM4,000. Only formal alimony agreements qualify for this tax relief (voluntary alimony payments under a mutual agreement do not qualify).

4) Education fees in Malaysia
Claim: Up to RM7,000

You can claim this tax relief for the amount spent on a course of study undertaken in a recognised institution or professional body in Malaysia (as listed by the
Ministry of Higher Education Malaysia
), applicable as such:

Education/degree level
Eligible courses of study
Masters or Doctorate degree
Any course of study undertaken is eligible
Other than a Masters/Doctorate degree
Any course of study up to tertiary level undertaken for law, accounting, Islamic finance, technical, vocational, industrial, scientific, or technical skills or qualifications are eligible
Course of study undertaken for up-skilling (sub-limit of RM2,000)
Any skill areas recognised by the Director General of the
Department of Skills Development
 under the National Skills Development Act 2006 (Act 652)

For context, the tax relief for up-skilling courses was first introduced for YA 2021, with a sub-limit of RM1,000. This sub-limit was subsequently increased for YA 2022, and the deduction is currently allowed until YA 2023.

5) Medical expenses
Claim: Up to RM8,000 (in total)

You can claim this tax relief for the following categories of medical expenses, as detailed below:

Expenses
Claim limit
Details
Medical expenses on serious diseases for self, spouse, or child
Up to RM8,000 in total (inclusive of medical expenses for fertility treatment, vaccination expenses, as well as complete medical and mental health examination)
Includes treatment of AIDS, Parkinson’s disease, cancer, renal failure, leukemia, heart attack, pulmonary hypertension, chronic liver disease, fulminant viral hepatitis, head trauma with neurological deficit, tumour in brain or vascular malformation, major burns, major organ transplant, and major amputation of limbs
Medical expenses for fertility treatment for self or spouse
Up to RM8,000 in total (inclusive of medical expenses for fertility treatment, vaccination expenses, as well as complete medical and mental health examination)
– Includes intrauterine insemination (IUI) treatment, in vitro fertilization (IVF), or any other fertility treatments on yourself or your spouse (including consultation fees and medicines)
– Only married individuals are eligible
Vaccination expenses for self, spouse, or child
Up to RM1,000 (included in the overall RM8,000 tax relief allowed under this category)
Includes vaccination for pneumococcal, human papillomavirus (HPV), influenza, rotavirus, varicella, meningococcal, tetanus-diphtheria-acellular-pertussis (TDAP combination), and coronavirus disease 2019 (Covid-19)
Complete medical and mental health examination for self, spouse, or child
Up to RM1,000 (included in the overall RM8,000 tax relief allowed under this category)
– Refers to a thorough examination as defined by the Malaysian Medical Council (MMC)
– Includes Covid-19 detection tests (e.g. PCR and RTK tests) and vaccination expenses
– Includes mental health examination by registered psychiatrists, clinical psychologists, and counsellors

The tax relief for mental health examination was
introduced under Budget 2022
, where the government noted that Covid-19 had a negative impact not only on the economy, but also on the psyche of individuals in general. As such, this tax relief is intended as a form of assistance to those who are in need of expert services.

It is also essential that you retain the receipts of your medical treatments, along with the certification of the registered medical practitioner for future reference.

6) Lifestyle purchases for self, spouse, or child
Claim: Up to RM2,500

You can claim this tax relief for the following expenses:

Books, journals, magazines, printed newspapers, and other similar publications in both hardcopy and electronic forms; banned and offensive materials excluded

Personal computer, smartphone or tablet; additional charges for warranty or devices used for the purposes of own business excluded

Sports equipment for sports activities defined under the Sports Development Act 1997, including golf balls and shuttlecocks, and payment for gym membership. Motorised bicycles and club memberships which provides gym facilities are excluded

Internet subscription paid through monthly bill registered under your own name

7) Expenses related to sports activity for self
Claim: Up to RM500

This tax relief is allocated specifically for
sports-related expenses
 to encourage a more active lifestyle among Malaysians, and covers the following:

Purchase of sports equipment for any sports activity as defined under the Sport Development Act 1997 (excluding motorised two-wheel bicycles)

Payment of rental or entrance fees to sports facilities

Payment of registration fees for sports competitions where the organiser is approved and licensed by the Commissioner of Sports under the Sport Development Act 1997

This tax relief is provided as an additional relief to the general lifestyle tax relief of RM2,500 that was mentioned earlier. In terms of calculation, assuming you purchased sports equipment worth RM3,000 in 2022, you will first claim RM2,500 under the general lifestyle tax relief, then the remaining RM500 under this additional relief specifically for sports.

8) Purchase, installation, or rental of electric vehicles (EV) charging equipment
Claim: Up to RM2,500

You can claim this tax relief for the fees of purchasing (including hire-purchase), installing, and renting EV charging equipment. It also includes the subscription of the use of EV charging facilities.

This tax relief,
introduced under Budget 2022
, is currently applicable for YA 2022 and YA 2023.

9) [Special] Purchase of personal computer, smartphones, or tablet for self, spouse, or child
Claim: Up to RM2,500

This additional lifestyle relief was
first announced for YA 2020
, intended to support work-from-home (WFH) arrangements. Originally applicable between 1 June to 31 December 2020, it was subsequently
extended until 31 December 2021
, and then once more to
31 December 2022
.

LHDN has also confirmed before that this tax relief is
stackable with the general lifestyle tax relief
 of RM2,500; if you’re still unsure how it works, here’s an illustration: Let’s say you’ve purchased a smartphone worth RM2,000 in March 2022, and a laptop for RM4,000 in July 2022. Accordingly, you can claim up to RM2,500 for the purchase of the laptop under this special tax relief. Meanwhile, under the general lifestyle tax relief, you can claim RM2,000 for the smartphone and another RM500 from the purchase of the laptop.

10) [Special] Tourist accommodation, attractions, or tour package
Claim: Up to RM1,000

(Image: The Star/Lim Beng Tatt)

This is another additional relief that was introduced during YA 2020 to
support Malaysia’s domestic tourism and travel industry during the Covid-19 pandemic
. Like the special tax relief for the purchase of selected electronics to boost WFH arrangements, it was also extended twice: first to cover YA 2021, then
YA 2022 as well
 (expenses made until 31 December 2022).

Specifically, you can claim this tax relief for the following domestic tourism expenses:

Accommodation at premises registered with the
Commissioner of Tourism

Entrance fees for tourist attractions

Purchase of domestic tour package through
licensed travel agents
, inclusive of fees for tour guide services, purchase of local handicraft products, F&B, and transportation (Hop-On Hop-Off buses as well)

11) Breastfeeding equipment
Claim: Up to RM1,000 per mother

You can claim this relief if you are a breastfeeding mother and have purchased breastfeeding equipment for your own use to breastfeed your own child (aged 2 years and below). Breastfeeding equipment that qualifies include:

Breast pump kit and ice pack

Breast milk collection and storage equipment

Cooler set or bag

Note that you can only claim this once every two years.

12) Childcare fees
Claim: Up to RM3,000

You can claim this relief for childcare fees for a child aged 6 years and below, paid to a registered childcare centre or kindergarten. It is capped at RM3,000 even if you have more than one child who is eligible for this care.

If a married couple is assessed separately, this relief can only be claimed by either the husband or the wife who makes the expenditure. Divorced couples, meanwhile, can both claim the tax relief, provided they made payments for the childcare fees of different children. Claims made under this category must be evidenced by the child’s birth document and receipts from the childcare centre or kindergarten.

The maximum limit of this relief used to be set at RM1,000, but it was increased to RM3,000 as part of the government’s
Covid-19 economic recovery programme
.

13) Net deposit in SSPN
Claim: Up to RM8,000 per individual with children

Parents who save with the National Education Savings Scheme (SSPN) for their children’s higher education (amount deposited under their children’s name) can claim tax relief for the net deposit in SSPN, up to the claim limitation.

To clarify, net deposit refers to the amount of savings that remain after deducting any withdrawals that you have made during the year. For example, if your SSPN account had a balance of RM4,500 brought forward from 2021 to 2022, and you then deposited RM2,000 and subsequently withdrew RM1,500 throughout the year, you are only allowed to deduct RM500 tax relief (RM2,000 – RM1,500). The balance brought forward (RM4,500) will not be taken into account.

For your convenience, SSPN will generate a tax document that shows you the net deposit you can claim for tax relief.

14) Ordinary child relief (under age of 18)
Claim: RM2,000 per child

A deduction is allowed for every child who is unmarried and is below the age of 18 years at any time during the year of assessment.

15) Child (18+) in full-time education
Claim: RM2,000 or RM8,000 per child

You can claim a tax relief of RM2,000 for each child who is unmarried, 18 years of age and above, and receiving full-time education.

Meanwhile, a deduction of RM8,000 is allowed if the child is unmarried, 18 years of age and above, and meet any of the following criteria:

In full-time education (other than matriculation/pre-degree/A-levels) at an education establishment in Malaysia

Serving under articles or indentures to qualify in a trade or profession in Malaysia (apprenticeship)

Pursuing a full-time degree (or equivalent, including Masters or Doctorate) outside of Malaysia

16) Life insurance and EPF
Claim: Up to RM7,000 (allocation differs for public and non-public employees)

Payments of your or your spouse’s life insurance premiums can be deducted under this tax relief, but not your child’s. Contributions to approved schemes, such as the Employees Provident Fund (EPF), too, is allowed under this relief. Private retirement scheme (PRS) contributions, on the other hand, fall under a different category.

The treatment of this relief differs depending on whether you are a pensionable public servant and private sector employee. Typically, pensionable public servants can claim up to the full RM7,000 relief under life insurance premium payments and takaful contributions; the EPF relief allocation does not apply to them. Meanwhile, private sector employees (who contribute to EPF) are restricted to a limit of RM3,000 for life insurance premium payments and takaful contributions, and RM4,000 for EPF or other approved schemes.

As of YA 2022, the government has expanded the tax relief allocation for EPF to include voluntary contributions as well. As such, this means public servants who make voluntary contributions to the EPF or other approved schemes are now also allowed to tap into the RM3,000 (life insurance premium payments/takaful contributions) and RM4,000 (EPF/other approved schemes) relief allocation as well.

17) Private retirement scheme (PRS) and deferred annuity
Claim: Up to RM3,000

The total deduction under this relief is limited at RM3,000 for an individual, and RM3,000 for a spouse who has a source of income. If you elect for joint assessment, however, the deduction allowed is restricted to RM3,000.

This tax relief has been provided since YA 2012, and has been extended until YA 2025.

18) Education and medical insurance
Claim: Up to RM3,000

This claim is allowed for the payment of insurance premiums that are related to education or medical benefits for yourself, spouse, or child. The total deduction under this relief is restricted to RM3,000 for an individual, and a separate RM3,000 for a spouse who has a source of income. Couples who elect for joint assessment, however, will be restricted to a deduction limit of RM3,000.

19) SOCSO
Claim: Up to RM350

Your contributions to the Social Security Organisation (SOCSO) can be claimed as relief during the year of assessment. Previously, this relief was capped at RM250, but it was subsequently
increased to RM350 under Budget 2022
. The scope of this tax relief was also expanded to include employees’ contributions through the Employment Insurance System (EIS).

20) Equipment for disabled self, spouse, child, and parent
Claim: Up to RM6,000

This relief can be claimed for the expenses incurred to purchase any necessary basic supporting equipment for yourself, spouse, child, or parent. However, the disabled individual must be registered with the Department of Social Welfare.

Basic supporting equipment includes haemodialysis machines, wheelchairs, artificial legs, and hearing aids. Spectacles and optical lenses are excluded.

21) Disabled individual
Claim: RM6,000

(Image: Bernama)

Disabled individuals can claim a further deduction under this tax relief if they have been certified in writing by the Department of Social Welfare.

22) Disabled husband/wife
Claim: RM5,000

Those who have a disabled spouse are entitled to a further deduction under this relief. This relief was previously set at RM3,500; it was then increased to RM5,000 under Budget 2021.

23) Disabled child
Claim: RM6,000

Individuals with a disabled child who is unmarried can claim this tax relief.

24) Additional relief for disabled child (18+) in higher education
Claim: RM8,000

You are also entitled to this additional relief – in addition to the RM6,000 relief provided for those with a disabled child (mentioned above) – if your child is unmarried (18 years of age and above), and meets the following conditions:

In full-time education (other than matriculation/pre-degree/A-levels) at an education establishment in Malaysia

Serving under articles or indentures to qualify in a trade or profession in Malaysia (apprenticeship)

Pursuing a full-time degree (or equivalent, including Masters or Doctorate) outside of Malaysia

Essentially, you can get a child relief of RM14,000 in total.

Part 2: Tax deductions

While tax reliefs reduce your chargeable income, tax deductions reduce the amount of your aggregate income (the sum of your total income for the entire year). Here are the deductions allowed for YA 2022, along with the fine prints:

1) Donations to charities, sports activity, and approved funds/institutions
Deduction: Up to 10% of aggregate income

Donations that fall under the following categories are restricted to 10% of your aggregate income:

Gift of money to approved institutions/organisations/funds

Gift of money for any approved sports activity

Gift of money or cost of contribution in kind for any approved project of national interest

Gift of money in the form of
wakaf
 to religious authorities or public universities or endowment to public universities

Donations and contributions made by individual taxpayers to help fight against the Covid-19 pandemic (to approved institutions, organisations, or funds) also fall under this category. This includes the
Covid-19 Fund
 that was set up by the government in 2020.

If you contribute to the National Disaster Management (NADMA), however, the tax deduction amount is equal to the amount of the contribution.

2) Other donations, gifts, and contributions
Deduction: Up to value of gift, unless stated otherwise

You can enjoy tax deductions (of varying limits) for the following situations:

Gift of artefacts, manuscripts, or paintings to the government or state government

Gift of money not exceeding RM20,000 for libraries

Gift of money or contribution in kind for disability facilities in public places

Gift of money or medical equipment not exceeding RM20,000 to approved healthcare facilities

Gift of paintings to the National Art Gallery or state art galleries

3) Membership subscription for professional bodies
Deduction: Membership subscription paid

Membership subscription fees paid to professional bodies for one’s profession – such as medical or legal professional fees – can be claimed as tax deductions.

Part 3: Tax rebates

Last but not least, tax rebates are calculated at the end of your BE form, after you’ve determined the amount of tax charged on your chargeable income. It directly affects your amount of tax charged.

1) Tax rebate for self
Rebate: RM400

You will be entitled to this rebate of RM400 on the tax charged if your chargeable income (after tax relief and deductions) do not exceed RM35,000.

2) Tax rebate for spouse
Rebate: RM400

If your chargeable income (after tax relief and deductions) do not exceed RM35,000, and you have been allowed the tax relief of RM4,000 for your spouse, then you can also claim this rebate. As a reminder, the RM4,000 tax relief for spouse is provided if your spouse has no source of income, or elects for joint assessment in your name.

3) Departure levy rebate for umrah or religious travel
Rebate: Amount of departure levy paid

This rebate is granted to anyone who leaves Malaysia by air to perform
umrah
 or other kinds of religious pilgrimage, but not for the purpose of performing hajj. The following supporting documents are needed to claim this rebate:

For
umrah
: A copy of the visa issued by the embassy of Saudi Arabia

For other religious pilgrimage: Written verification by a recognised religious body

You can only claim this tax rebate for up to two trips per lifetime.

4) Zakat/fitrah
Rebate: Zakat/fitrah paid

This rebate is applied to the payment of obligatory zakat and fitrah during the basis of the assessment year.

***

Now that you’re aware of the full list of tax reliefs, deductions, and rebates that you can claim for YA 2022, we hope that the tax filing process will be smoother for you. No doubt it’ll take some time for you to go through your spending in the past year and match it to all the reliefs that you’re eligible for, but it’ll be worth it for the tax refunds that you gain!

We’ll also be publishing our Income Tax Guide for YA 2022 very soon! In the meantime, do check out our other
income tax articles for YA 2022 here
 for other tax-related information, such as how to file your taxes for the first time, or if you are a freelancer or have a side business.

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About THE AUTHOR

Alex Cheong Pui Yin

Alex Cheong Pui Yin

Previously covered recruitment-related stories and had a short stint as a copywriter for the property industry. She subsequently developed an interest in investment and robo-advisors.

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    cheehove

    5 months ago

nice, very details on each categories, it clear my doubt on which can apply for child and spouse.

12

Reply

    Audrey

    5 months ago

Civil servants on pension scheme who  self- contributes to EPF, can now claim life insurance + EPF relief? is this verified? Tq

0

Reply

    Anonymous

    4 months ago

I can’t find the section to fill in tax deduction for donation on the e-filing. May I know how to file donation for tax deduction?

0

Reply

    James

    4 months ago

Not a single article tells you whether the EPF, SOCSO and insurance premium values are the total for the whole year or the amount of a monthly contribution.

0

Reply

    Pang Tun Yau

    4 months ago

    Reply to

        James

If the tax assessment is for the whole year, isn’t it natural that the total you’d need to claim is for the whole year instead of the monthly amount? The EA form also gives you the total amount contributed to EPF and SOCSO for the whole year, and your insurer will also provide you with an annual statement. It’s self explanatory.

1

Reply

    Wee You Lee

    4 months ago

Membership subscription for professional bodies…

How do I include this in my submission?

Do I deduct the amount paid from my EA gross salary?

As it is there is no specific column for this deduction in the form.

And how do I make known to LHDN about the deduction?

Tq

5

Reply

    ware

    3 months ago

    Reply to

        Wee You Lee

u ady got ur answer? m seeking answer for this also

0

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    Anonymous

    4 months ago

Thanks for a clear write up. Can you do the same for Yr23. This is so that we can incur any cost now to get the official receipt for the assessment that is done in Yr 2024.

0

Reply

    Pang Tun Yau

    4 months ago

    Reply to

        Anonymous

We have a new article on this topic for every assessment year which is published in March/April, so yes we will do the same 🙂

0

Reply

    Hema

    3 months ago

For each claimable part, do we put maximum claimable amount?

Example: if claimable is rm2500. But spent is rm2000. Can put as max?

1

Reply

    ware

    3 months ago

    Reply to

        Hema

of course cannot, if they did randomly audit on you, then you will be trouble, wrongly declared

0

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    Anonymous

    3 months ago

Does bicycle wheelset consider sports equipment?

0

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    Kh Yap

    1 month ago

Hi. If medical expenses already claimed under insurance coverage, can we still put in as tax relief? Example medical bill is rm2000 and claimed under insurance coverage is rm1500, tax relief is rm2000 or rm500?

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EPF i-Sinar Expanded To Cover All Impacted Members

(Image: The Edge Markets)

Finance Minister Tengku Zafrul Abdul Aziz has announced that the i-Sinar facility will be expanded to all Employees Provident Fund (EPF) contributors whose income is affected by the Covid-19 pandemic.

Speaking in the winding down session of Budget 2021 in the Parliament, the minister clarified that EPF members who are eligible for the i-Sinar facility now include individuals who suffered:

Job losses

Paycuts or reduction in allowance

Forced to take unpaid leave

Loss of income (self-employed)

The facility will be also available to both active and non-active EPF members as well.

Aside from that, the government has also agreed to increase the maximum advance limit for EPF members who have RM90,000 and below in their Akaun 1 from RM9,000 to RM10,000.

(Image: Malay Mail/Miera Zulyana)

According to Tengku Zafrul, these amendments came following a discussion between the Finance Ministry and the EPF. Prior to this, the
i-Sinar facility
 was made available only to active members who have lost their jobs, are on unpaid leave, or have no alternative source of income. It also limited members who have RM90,000 and below in their EPF Akaun 1 to a maximum withdrawal amount of RM9,000. Meanwhile, members with more than RM90,000 in Akaun 1 will have access of up to 10% of their Akaun 1 savings (capped at RM60,000).

Tengku Zafrul also said that affected members can apply for the updated i-Sinar facility online or at any EPF branches. They will need to submit supporting documents to prove their eligibility. With these latest updates, the i-Sinar facility is expected to benefit more than 8 million EPF members, as compared to 2 million members previously.

For context, the i-Sinar facility was introduced by the EPF after Tengku Zafrul proposed to
let targeted EPF contributors make withdrawals from their EPF Akaun 1
 during the tabling of Budget 2021. In that initial proposal, Tengku Zafrul had suggested to allow a withdrawal of RM500 per month for up to RM6,000 for 12 months. In response, the
EPF consulted its stakeholders
 before ultimately introducing i-Sinar as an advance facility as an alternative.

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About THE AUTHOR

Alex Cheong Pui Yin

Alex Cheong Pui Yin

Previously covered recruitment-related stories and had a short stint as a copywriter for the property industry. She subsequently developed an interest in investment and robo-advisors.

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SSPN Made A Record Number Of RM1.13 Billion in Deposits

(Source: The Sun Daily)

The National Education Savings Scheme (SSPN), a scheme designed by the National Higher Education Fund Corporation (PTPTN) for parents to invest in their children’s higher education, successfully collected RM1.13 billion in deposits for the year 2018.

It is a 55.61% increase compared to 2017’s total deposits of RM404.48 million. The amount is the highest ever recorded since SSPN was established in 2004, according to PTPTN Chairman Wan Saiful Wan Jan. With a total of 678,829 new accounts, the record for highest number of new accounts being opened was also made last year.

“This marked increase is due to the persistent and consistent efforts by PTPTN and the government in encouraging people to save for educational purposes,” said Wan Saiful. The chairman said it showed that more and more Malaysians have begun to realise the importance of financial planning for their children’s future.

Since the year 2012, it is prerequisite for students applying for PTPTN loans to have an SSPN account. Of course, the RM6,000 annual
tax relief incentive
 offered for SSPN net savings would also have contributed to the amount of SSPN deposits made.

However, Wan Saiful believes that incentives are only temporary and the important thing is to raise awareness for savings among the people. He added that PTPTN shouldn’t just be seen as a body to finance education, but as a savings body for education instead. With their savings in SSPN, he wishes that students can graduate without amassing education debt.

This year, PTPTN is targeting RM1 billion in SSPN deposits and the chairman is confident it can be achieved. From January to April 2019, PTPTN is offering an additional 0.5% of dividend during the promotional period as part of its
SSPN-i Loyalty Reward
 for depositors who meet the criteria.

(Source:
The Sun Daily
,
Utusan
,
The Edge Markets
)

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Standard Chartered Revises Total Interest Rate For Privilege$aver Campaign To 4.30% p.a.

Standard Chartered Bank has announced that it will be revising the bonus interest rates for its Privilege$aver campaign, reducing the total rate that can be earned from its current 4.75% p.a. to 4.30% p.a. The changes are set to take place starting from 1 July 2021.

Specifically, the bonus rate for the Save category will be lowered by 0.15% p.a., bringing it down from the existing 0.90% p.a. to 0.75% p.a.. Similarly, the rates for the Spend category will also be reduced from 0.90% p.a. to 0.75% p.a. for both credit and debit card spend.

Meanwhile, the base interest rate and the bonus rate for the Invest/Insure categories will see no changes in this round of revision. Here’s a table to better showcase how the new rates will look like, in comparison to the previous rates:

Category
Requirement
Previous interest rate (Before 1 July)
New interest rate
(Starting from 1 July)
Base interest
–
0.05% p.a.
0.05% p.a.
Save
Single deposit of minimum RM3,000 in fresh funds
0.90% p.a.
0.75% p.a.
Spend

(i) Credit card
Minimum spend of RM1,000
  0.90% p.a.
  0.75% p.a.
(ii) Debit card
Minimum 5 transactions per month
0.90% p.a.
0.75% p.a.
Invest/Insure
(i) Minimum RM30,000 investment in unit trust, or
(ii) RM30,000 annual premium in insurance products
2.00% p.a.
2.00% p.a.
Total
4.75% p.a.
4.30% p.a.

This latest round of revision is the second update to be rolled out for the Standard Chartered Privilege$aver campaign this year. The
previous revision
 was carried out in February 2021, which saw several sweeping changes being made. Some key adjustments that were implemented then included the introduction of separate bonus interests for credit and debit card spend under the Spend category, as well as the standardisation of the caps on monthly amounts that you can earn interest on.

Despite this latest revision, Standard Chartered Privilege$aver continues to reign as one of
best high-interest savings accounts
, with its rates that exceed 4% p.a.. It also offers several other perks, such as an unlimited fee waiver on withdrawals at all MEPS ATMs as well as unlimited free instant interbank fund transfers.

You can find out more about the
Standard Chartered Privilege$aver campaign
 here.

(Source:
Standard Chartered
)

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Shopee Introduces Next-Day Delivery Service For Shopee Mart

Shopee has rolled out its next-day delivery service for Shopee Mart via Shopee Express in conjunction with the launch of the 3.3 Supermarket Sale. This is in an effort to cater to the growing reliance on e-commerce and greater expectations for faster deliveries among sellers and buyers in Malaysia.

According to Shopee, users can tap into the next-day delivery service when they purchase selected items on Shopee Mart (marked with the
Next-Day Delivery
 tag) before 12pm. Purchases made after 12pm will be considered as the next day’s order, and will be delivered the following day instead. Here’s a table by Shopee that can help you better understand how the next-day delivery service works:

Note that you must use the “Shopee Express” shipping option during the checkout process to benefit from this next-day delivery service. The service is applicable every day of the week – including weekends – except for public holidays. It is currently available in Klang Valley, Negeri Sembilan, Melaka, Johor, Perak, Pahang, and Penang.

Shopee also said that if your eligible orders are not delivered by the next day as promised, then you will be compensated with a free shipping voucher (capped at RM3.80 with no minimum spend) to use on your next Shopee Mart purchase. Valid for 30 days upon being credited to you, Shopee clarified that only valid failed attempts will be compensated.

In its statement, Shopee further explained that the new next-day delivery service is enabled by an improved and widened logistics network – something which the e-commerce platform has been working on following a study by Parcel Monitor and iPrice Group. The 2020 study found that the Covid-19 lockdown had impacted final mile logistics with delivery time increasing by a 119% in Malaysia.

“We have been working tirelessly alongside various logistics partners and scaling our logistics network by using big data and better projections to improve Malaysia’s delivery lead time since our inception in 2015. Deliveries that used to take up to 10 days and longer in East Malaysia, today have been reduced to one to four days. Now, we are further strengthening the infrastructure through Shopee Express and strategic partnerships with logistics players so that shoppers and businesses can enjoy better delivery services,” said the regional managing director of Shopee, Ian Ho.

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About THE AUTHOR

Alex Cheong Pui Yin

Alex Cheong Pui Yin

Previously covered recruitment-related stories and had a short stint as a copywriter for the property industry. She subsequently developed an interest in investment and robo-advisors.

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    Anonymous

    1 year ago

Who are eligible for the next day delivery? Can all sellers apply for this?

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Virtualflex Launches New KA$Hplus E-Wallet, Equipped With Visa Prepaid Card

Wholly owned subsidiary of Johor Corporation (JCorp), Virtualflex has partnered with Fass Payment Solutions (Fasspay) and Visa to roll out its upgraded payment and loyalty mobile app, KA$H
plus
. The app will also come with a Visa prepaid card, linked to the app for a more convenient payment experience.

According to a statement, KA$H
plus
has a maximum wallet size of RM10,000, and users will be issued a virtual and physical Visa prepaid card to use for their various purchases, including mobile commerce, in-store purchases, and bill payments. You’ll also be able to utilise the app to book e-hailing rides and purchase tickets for various public transportation. Other upcoming features that you can look forward to as well include various financial services, such as insurance, buy-now-pay-later (BNPL) services, and Islamic financing.

On top of that, KA$H
plus
 offers loyalty programmes that are offered by Virtualflex to earn perks like cashback rewards and rebates. There will be automatic rewards issued with the Visa prepaid card for both participating businesses and consumers too, although Virtualflex has yet to release further details on these.

“The introduction of KA$H
plus
 e-wallet and Visa’s prepaid card offer various features and digital services that brings the convenience and benefits of digitalisation to the fingertips of our employees and customers at JCorp,” said the chief technology officer of Virtualflex, Heng Wa Seng, adding that KA$H
plus
 will contribute to the social-economic development in Malaysia through digitalisation.

To note, Virtualflex actually has an existing payment and loyalty platform by the name of
KA$H
, which offers a
KA$H Mastercard prepaid debit card
 as well. The upgraded KA$H
plus
mobile app will serve alongside KA$H to bring enhanced features and benefits for the users. Additionally, Virtualflex shared that current KA$H users who wish to switch over to KA$H
plus
 can do so by opening a KA$H
plus
 account and transferring their current KA$H Wallet balance over to the new mobile app.

If you’d like to give the new
KA$H
plus

a try, go ahead and download the KA$H
plus
 app for free via
Google Play
, the
App Store
, and the
Huawei AppGallery
. After registering and activating your KA$H
plus
 account, top up your account and your Visa prepaid card will be delivered to you. There will also be an upcoming campaign in January 2022 that lets you win cash prizes of up to RM50,000 by signing up and spending with KA$H
plus
 – on top of various other promotions and early bird rewards.

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Alex Cheong Pui Yin

Alex Cheong Pui Yin

Previously covered recruitment-related stories and had a short stint as a copywriter for the property industry. She subsequently developed an interest in investment and robo-advisors.

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Finance Minister: Malaysia’s Economy Is Recovering

Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said that Malaysia’s economic activities and services are showing signs of recovery, based on data from the Department of Statistics Malaysia (DOSM). These include statistics such as the number of employees returning to work and the wholesale and retail trade for May 2020.

According to Tengku Zafrul in the 14
th
 LAKSANA report, DOSM has recorded an increase in the number of employees that have returned to work since May. The department’s data indicated that as of 2 June 2020, approximately 83.5% of employees (12.7 million) are already back at work, compared to the 67.2% (10.2 million) recorded on 17 May 2020.

(Image: Malay Mail/Firdaus Latif)

“We’ve already expected to see an increase in the unemployment rate (5.3% for May 2020 compared to 5.0% in April 2020), but what is more important is whether the steps taken to reopen the economy and to retain employees have had a positive impact on the rate of employees who return to work,” said Tengku Zafrul.

Additionally, the finance minister noted that the wholesale and retail trade in May has increased by 26.3% (RM17.5 billion) since the previous month, bringing it to RM84.4 billion. He said that this, too, confirms the country’s economic recovery.

However, Tengku Zafrul also cautioned that Malaysia still needs to prepare for the possibility that the situation could worsen before it improves. “This is because, as an open economy, the country’s recovery is also partly dependent on how well the global economy recovers. Within our shores, however, we can have more control over certain outcomes. One effort we can undertake is to seek early assistance on repaying our financial obligations if we feel that we may need more time to set our finances on a stronger footing,” he said.

Tengku Zafrul further reminded the public that individuals can seek aid from financial institutions or the Credit Counselling and Debt Management Agency (AKPK). Meanwhile, SMEs and bigger companies can get help from the Small Debt Resolution Scheme (SDRS) and the Corporate Debt Restructuring Committee (CDRC), respectively.

You can read the
14
th
 LAKSANA report
 in full here.

(Source:
Malay Mail
)

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Understanding Income Tax Reliefs, Rebates, Deductions, And Exemptions In Malaysia

When it comes to filing your income tax, you’re probably familiar with claiming for tax reliefs. After all, tax reliefs are what we carefully keep our important receipts for, all with the aim of getting a bigger tax refund, right? While that is correct, tax reliefs aren’t the be all and end all when it comes to reducing amount of tax you pay.

In addition to income tax reliefs, there are tax rebates, tax deductions, and even tax exemptions too – which all pay a different role when it comes to lightening your tax burden. This article is for those of you who want to get a better grasp of how these different types of deductions affect your tax returns.

Income Tax Exemptions In Malaysia

If you think that tax exemptions don’t really concern you because you don’t claim for them in your returns form, you are about half correct. With the exception of incentives claimable under Section 127 of the Income Tax Act 1976, most tax exemptions won’t appear in your income tax returns form.

Tax exemptions are certain types of income that are exempted from tax. They don’t count towards your taxable income and so wouldn’t be part of the aggregate income figure that you fill in in your BE form. Usually, the part of your income or allowances that are tax exempted are displayed in a separate section in your EA form, so that they aren’t included in the total income amount that you will be taxed for.

Therefore, it might not be strictly your responsibility to determine what part of your income is tax exempt as it may already laid out on your EA form. However, if you’re not in regular employment or have a lot of perquisites and benefits-in-kind to keep track of, it’s especially important that you are aware of what tax exemptions you are entitled to.

You can find out more about
tax exemptions, perquisites, and benefits-in-kind here
.

Income Tax Reliefs In Malaysia

If you’ve ever bought a book or a smartphone and made a mental note to claim for income tax relief the next year, then you know how income tax reliefs work. Tax reliefs allow you to reduce your chargeable income. Your chargeable income affects what tax rate you will be charged with, which can ultimately help reduce the amount of tax you have to pay.

For example, let’s say your annual taxable income is RM40,000. Based on this amount, the income tax you should be paying is RM1,000 (at a rate of 8%). However, if you claimed a total of RM11,600 in tax relief, your chargeable income would reduce to RM28,400. This would allow you to drop down a tax bracket, lower your tax rate to 3%, and reduce the amount of taxes you owe to RM402. That’s a difference of RM598!

The Malaysian government has numerous tax reliefs that you can claim, so find out
which tax reliefs you are eligible for here
 (for YA2022).

Income Tax Deductions In Malaysia

A tax deduction actually works quite similarly to a tax relief as it also helps to reduce the amount you need to pay tax on. However, it’s listed under a different part in your income tax returns form and technically reduces your aggregate rather than chargeable income – although the end effect is basically the same.

The types of expenses that are tax deductible are different from that of tax reliefs. Tax deductions generally apply to donations, gifts, and contributions, such as a gift of money to a charity, organisation, or even the government. Members of professional bodies who pay a subscription fee can also claim this amount of expenditure as tax deductible. Meanwhile, tax reliefs cater more to the needs of the everyday Malaysian.

You can find more about the various types of
tax deductions
 in Malaysia here.

Income Tax Rebates In Malaysia

Examples of tax rebates in Malaysia include tax rebates for
zakat/fitrah
, tax rebates for individuals whose chargeable income is below RM35,000, and tax rebates for married couples with joint tax files. Tax rebates work differently compared to tax reliefs and tax rebates because they actually reduce the amount of tax charged, not your chargeable income.

Let’s say you had a total annual income of RM45,000. In tax reliefs, you claim RM9,000 for automatic individual relief and RM2,500 for lifestyle expenses. This brings your chargeable income down to RM33,500, so you are taxed a total of RM555. Without a tax rebate, RM555 would be the amount of tax that you have to pay. However, since you are eligible for the individual tax rebate (RM400 off tax charged for individuals with a chargeable income below RM35,000), you only owe RM155 in tax altogether.

How To Maximise Your Income Tax Refund Malaysia

At the end of the day, we use tax reliefs, rebates, and so on to lessen the amount of tax we pay. Usually, because we’ve already been paying our income tax throughout the year in the form of monthly tax deductions (MTD, or also known as PCB), this would translate to using tax reliefs and the like to get a bigger tax refund. The lesser the amount of tax charged according to your income tax returns form, the more money you will get in your tax refund from the government – and this is always a good thing!

So, as you
file your taxes for YA2022
 make sure you know what
reliefs and rebates to claim for
 to maximise your income tax refund.

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    Janet Lim

    2 years ago

Do I need to register online before purchase new smart phone or laptop for my kids?

1

Reply

    Pang Tun Yau

    2 years ago

    Reply to

        Janet Lim

No, you just need to keep the receipt for when you claim tax relief under your name (under Lifestyle purchase up to RM2,500).

2

Reply

    Kelvin

    1 year ago

Hello, is credit card cashback taxable in Malaysia?

0

Reply

    Pang Tun Yau

    1 year ago

    Reply to

        Kelvin

No, it isn’t taxable because it isn’t considered as income.

0

Reply

    Mywong

    1 year ago

Total scrap of machine(cannot use n sell). Should do calculation  on balancing charges.

0

Reply

    Janet Ng

    1 year ago

Is Cost of living allowance taxable in malaysia?

0

Reply

    Bakthia

    4 months ago

Ok

0

Reply

    Anonymous

    4 months ago

👌

0

Reply

    Claire

    4 months ago

Paid ptptn can claim income tax?

0

Reply

    Pang Tun Yau

    4 months ago

    Reply to

        Claire

PTPTN is an education loan, so no you can’t claim tax reliefs on it.

0

Reply

    Fion Tan

    3 months ago

Is individual tax rebate RM400 for chargeable income less than RM35k still effective for YA 2022?

0

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