personal relief 2016

Loh Boon How, CA

Personal Reliefs &

Rates

YA 2016

2

Personal ReliefsSec 46 , Income Tax Act 1967 – Deduction for personal Reliefs,

B. H. Loh & Associates

3

Every taxpayer will automatically entitled a reliefs RM9,000.00,

Regardless whether the spouse separate assessment or combine assessment,

The objective is to reduce the taxpayer burden.

Personal Reliefs


4

Disability Reliefs (Further Deduction)

If the taxpayer is a disability, he / she will entitle a further reliefs RM6,000.00,

Therefore,Description RMPersonal reliefs 9,000.00Disability reliefs 6,000.00Total 15,000.00


5

Basic Supportive Equipment

If the taxpayer incurred the supportive equipment, he / she will entitle for max relief of RM6,000.00,

The supportive equipment included wheelchair and hearing aids.


6

Purchase Of Book And Magazine

During the YA, if the taxpayer purchase of books, journals, magazines and other similar publication will entitle a max reliefs of RM1,000.00,

However, the publication was excluded newspaper or branded publications for the use of taxpayer, spouse or children.


7

Purchase Of Sport Equipment

Pursuit to Sport Act 1997, the purchase of sport equipment will entitle a max relief of RM300.00,

The example of the sport equipment, racket, ball, golf stick, the purchase will be support by the receipt,

However, the sport equipment does not include the sport wear and sport shoes. B. H. Loh & Associates

8

Purchase Of Computer

The purchase of computer such as notebook, tablet or desktop will entitle a max reliefs RM3,000.00,

However, the definition of computer does not include smartphone, scanner and printer,

Such computer only for personal use and only available once in every 3 years,

If the spouse elect for combine assessment, the spouse purchase of computer could claim under taxpayer reliefs.


9

Tertiary Education Reliefs

If the taxpayer who has incurring fees for pursuing the tertiary education will entitle a max reliefs of RM7,000.00,

Those tertiary education such as : technical, vocation, industrial, scientific, technological, law, accounting, Islamic financing relevance skills or qualifications at tertiary level or any course study at post graduate level.


10

Housing Loan Interest

If the taxpayer who has incurred the housing loan interest will entitle a relief RM10,000.00,

The condition as follows :a) The taxpayer who is a citizen and

resident,b) The resident unit is limited to one unit

and not be rented out,c) The S & P Agreement has been

executed between 10.3.2009 – 31.12.2010.


B. H. Loh & Associates 11

Every employee’s who contributed to Social Security Organisation (Socso) scheme, will entitle to a relief of RM250.00

Socso Reliefs

12

Spouse ReliefsSec 45A , Income Tax Act 1967 – Husband relief,

Sec 47, Income Tax Act 1967 – Wife or former wife relief,

Sec 49, Income Tax Act 1967 – Husband and wife living together


13

Spouse Reliefs

If the spouse of the taxpayer has not source of income, taxpayer will entitle a reliefs of RM4,000.00,

This reliefs grant automatically and need not to apply, with the condition if the spouse who stay together,

If the spouse who has divorced, where the taxpayer paid for an alimony, then the taxpayer will also entitle.B. H. Loh & Associates

14

Spouse Disability Reliefs (Further Deduction)

If the spouse of the taxpayer is a disability, he / she will entitle a further reliefs RM3,500.00.

Therefore,Description RMSpouse reliefs 4,000.00Spouse disability reliefs 3,500.00Total 7,500.00


15


If the taxpayer incurred the expenses for the spouse, the supportive equipment will entitle a max relief of RM6,000.00,



16

Children ReliefsSec 48, Income Tax Act 1967 – Deduction For Child


17

Child Reliefs

Child below 18 years – unmarried and study in the school, thus every child will entitle a reliefs of RM2,000.00,

Child above 18 years – unmarried and study either in local or oversea higher institution, thus every child will entitle a reliefs of RM8,000.00,

If the spouse who elect for separate assessment, each of them entitle half of every child reliefs,


18

Child Disability Reliefs

If the child of the taxpayer is a disability, he / she will entitle a reliefs RM6,000.00,

If the disability child who was pursuing a tertiary education, the taxpayer who will entitle a reliefs of RM8,000.00.


19


If the taxpayer incurred for their children, the supportive equipment will entitle a max relief RM6,000.00,



20

Skim Simpanan Pendidikan Nasional

If the taxpayer who deposit for their children education fund into Skim Simpanan Pendidikan Nasional, will entitle a max relief of RM6,000.00,

The taxpayer will enjoy free takaful insurance for RM1,000.00.


21

Parent ReliefsSec 46(1)(o) Income Tax Act 1967 – Deduction for parents


22

Parents Medical Reliefs

If the taxpayer who paid for parents medical fee or carer, will entitle a max relief of RM5,000.00,

For the parental carer : a) The parent should be regular treatment certified by a qualified medical doctor, b) A official receipt as a proof for claiming tax reliefs, c) The carer must not the taxpayer or the spouse or child of the taxpayer. B. H. Loh & Associates

23


If the taxpayer incurred for their parents, the supportive equipment will entitle a max relief of RM6,000.00,




The parent will be given RM1,500.00 each for a mother or father.

Conditions :1) Taxpayer not claim the relief for the expenses incurred on medical treatment and care,2) Parent are legitimate natural parents and foster parents,3) Parents aged 60 years and above,

Parental Care Relief


(iv) Parents are resident in Malaysia in the current year of assessment,(v) Parents have an annual income not exceeding RM24,000.00 per annum for each year.

Parental Care Relief

26

Medical And Financial Related ReliefsSec 49, Income Tax Act 1967 – Deduction for insurance premium.

Sec 49(1)(d), Income Tax Act 1967 – Deduction for Private Retirement Scheme and Annuity Premium.


27

Medical Fee Reliefs

If the taxpayer incurred medical fee for themselves, spouse and children on critical disease will entitle a max relief of RM6,000.00,

Those critical diseases such as heart disease, kidney failure, Parkinson disease, stroke etc,

The medical relief also include the medical screening fee for a max of RM500.00. (Inclusive RM6,000.00)


28

Medical And Education Insurance Reliefs

If the taxpayer who has contributed the medical and education insurance will entitle a max relief of RM3,000.00,

The beneficial could be taxpayer, the spouse or children.


29

Life Insurance And An Approved Fund

If the taxpayer who has contributed the life insurance and an approved fund will entitle a max relief of RM6,000.00,

The beneficial could be the taxpayer or the spouse.


30

PRS / Annuity Premium Reliefs

If the taxpayer who has contributed the PRS / annuity premium will entitle a max relief of RM3,000.00,

The withdrawal before the age of 55 years, the taxpayer will be subject the withholding tax of 8%. Unless the contributor :

a) Death,b) Permanently leaving Malaysia.


31

Tax Rates And CalendarSch 1, Income Tax Act 1967 – Personal tax rate.


32

Current tax rate – YA 2015 & proposed tax rate - YA 2016

Tax Rates For Individual Taxpayer


33

Tax Calendar


Residence status

Source of income

Form Deadline

Residence Business B 30 JuneEmployment BE 30 AprilKnowledge worker

BT 30 June

Non-residence Business M 30 JuneKnowledge worker

MT 30 June

34

Thank YouB. H. Loh & Associates

Address :No. 1-3-15, Goldhill Complex,

Tingkat Paya Terubong 1,11060 Penang.

H/P No. : 016-4893382Email : [email protected]

Web-site : www.bhloh.com.my


personal relief 2016

Economy & Finance