Year 2019 is going to end, and many people has started their spring cleaning since Chinese New Year is coming soon.

Hey, wait a minute!

While you are busy with the spring cleaning, there is one more thing you should not missed out! Do your 2019 income tax planning now!

Why need to do it now?

Isn’t it tax filing is only happen next year April (for employed) or June (for self-employed)?

That is right. But please think about if you have changed job, salary increment, or you have more income source happen in this year? Do you know that these extra income may cause you enter the next level of tax rates, which result you may have to pay the income tax by a few hundreds or thousands more ?

Let’s take an example. Your last year chargeable income is RM60,000. In this year, you have rent out the house you bought for investment, and you start to collect rental from that. As rental is part of the income, your year 2019 chargeable income now become RM80,000. With this change, your income tax will increased from RM3,200 to RM6,700. Are you aware about this??

What shall I do now?

I am going to share some useful tips below. There are than 20 days before we end the year of 2019, you have to act NOW!

Improve your lifestyle

December is a month for school kids enjoy their school holiday while a lot of working adults clearing their annual leaves. Why not buy some book to enrich yourself? At the same time, we shall do more exercise to improve our health, or you may buy handphone or personal computer to explore more for the technology life style. For these books, personal computer, phone, sports equipment, gym membership that can improve your lifestyle, you can enjoy up to RM2,500 tax exemption.

Medical & health

Arrange a time for medical check up! You can get RM500 tax exemption from here.

Further, have you get yourself and your family member a medical card? Medical card is a hassle free card if someone has to admit to hospital for medical treatment. Medical insurance and education insurance can give you RM3,000 tax exemption.

Increase your protection

Life is unpredictable. When any member from a family passed away, it not only brings the sadness and sorrow to the family, it will somehow have the impact to the household income. The government has determined to promote the awareness of protection, therefore, the 2020 budget has propose to change the RM6,000 tax exemption of EPF & life insurance to break into RM4,000 EPF & RM3,000 life insurance. Let’s get a life insurance to provide the protection for your family and enjoy the tax exemption!

Retirement Planning

Retirement planning for a lot of people is only rely on EPF for their retirement fund. Do you know from the research conducted, there are more than 50% people used up their EPF retirement fund in 5 yrs time. So, let’s start saving now, but where to save?

You can choose to save into Private Retirement Scheme (PRS), it shown a 5% – 8% return based on past performance, and you can enjoy RM3,000 tax exemption from PRS! What a win win situation.

If you are interest to know more about these tax exemption, welcome to contact us for a free consultation!