Education

To-get tax relief before the year ends

Disclaimer: This is merely a guide based on last year’s tax relief reference.

Few more days before 2022 is coming to its end. How many of the wish list set earlier this year that get ticked?

We understand that not all resolutions can be fulfilled within a year, just like how some of the development projects in Malaysia’s five-year National Plan needed to be carried forward. Hopefully, this analogy will give you some optimism to continue your mission.

These final two days of this year, there are still some things that can do you magic. For those who are paying income could do some transactions to reduce the amount if you do as follow:

Spent RM2,500 for lifestyle

Photo by William Choquette on Pexels.com

This section allows the purchase of books, magazines, newspapers including electronic subscription.

If you need some gadgets such as personal computer, smartphone or tablet for personal use, go for it! (For YA2020, there was an additional

Guess what? you are entitled for tax relief from payment of monthly internet subscription bill under your name.

This is also the good time to buy sports equipment as listed in Sports Development Act 1997 such as racquet, shuttlecocks or payment of gym membership.

Keep RM8,000 at the SSPN

Parking a total of RM8,000 at your child’s account will help you save extra hundred ringgits from the tax.

In fact, SSPN’s performance is considered well with dividend payment between 2.5 and 4.25 per cent for the past few years.

Photo by Andrea Piacquadio on Pexels.com

Max the Private Retirement Savings at RM3,000

For now, the tax relief for the Private Retirement Scheme (PRS) will only be continued until 2025. This is the chance.

While there are many platforms that you could invest your money in PRS, if you prefer no charges fee, do consider using a mobile app such as FSMONE to purchase PRS.

Further reference list is available in this website: https://www.hasil.gov.my/en/individual/individual-life-cycle/how-to-declare-income/tax-reliefs/

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