It’s still early of the year but it’s better to plan early rather than last minute rush.
Tax. Income tax. The dateline is 3 months from now. For 2010, the individual relief for “Self And Dependent” increases RM1000 to RM9000. Well, it’s better than RM8000.
The cost of living is getting expensive, no thanks to inflation. According to Bank Negara Malaysia, the inflation rate in Nov’10 is 2.0%. I’m not economist, statistician or banker but an ordinary layman.
From my understanding of math calculation, 2% means 2 cents increase for RM1 items, 4 cents increase for RM2 items and so on. But then, how come a bowl of laksa costs me 8% more than before?
Service tax is 6% effective from Jan 2011. 1% increment may seem small for one time transaction but when add up together, it’s definitely not small amount. You’re paying 10 cent extra for RM10 food each time!!! There is a good solution for this case. Well, we can go eat at places where service tax is not applicable.
But then again, isn’t hawker food prices keep on increasing like my bowl of laksa.
A bowl of laksa (Big serving) plus water = RM6.00
McDonald McValue Lunch = RM6.30 after service tax added
It’s just a matter of time before my laksa costs more than fillet-o-fish
On top of that, income tax is icing on the top. The more you make, the more of it going to government. The current system doesn’t leave much room to move around.
The question is, “How to keep more money inside your pocket?”
Talk to your employers to change part of your basic salary as travelling allowance. Below is an example,
Ms. A works for Company B as administrator and her basic salary is RM3,000. Thus, she has a taxable income of RM32,040 after EPF deduction.
If changes made to her paid status with RM2,800 as basic salary and RM200 as traveling allowance. Her taxable income will be RM29,640 after EPF deduction.
This means, pay less tax
Applicable to Assessment Year 2008 - 2010
If you receive travelling allowance, up to RM2,400 for your travels from home to office is tax-free. Further, travelling allowance of up to RM6,000 for official duties is tax-exempt.
