There are just 6 more days to go before Tax submission time in Malaysia. Have you done your taxes?
Whether you opt for the online e-filing submission or the traditional hard copy forms, here’s a recap of tax savings for perquisites from the Budget 2009 announcement which might help you legally reduce your taxes!
All these tax exemptions are to be deducted from your EA form total (if shown as gross) before you fill in the “Penggajian” section in C1 of your Borang BE 2008. Read more below.
Petrol Allowances (Personal)
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Petrol allowances, petrol cards and transport allowances from home to work are tax exempt up to RM2,400 per annum from 2008 up to 2010.
Petrol Allowances (Official)
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Petrol allowances, petrol cards and transport allowances for official use are tax exempt up to RM6,000 per annum effective 2008.
Awards From Your Company
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If you have been given an excellence award, long service award or monetary recognition from your company, up to RM2,000 of that award is tax free and does not need to be declared in your tax form.
Parking & Meal Allowance
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Tax exempt with no limits with effect from 2008.
Childcare Allowance Or Subsidies
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Tax exempt to a maximum of RM2,400 per annum with effect from 2008.
Telephone & Bills
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Telephone, PDAs, mobile phones and pagers provided by the company and its corresponding bills are tax exempt with no limits, effective 2008.
Computers & Broadband
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Computers provided by the company and monthly broadband fees (paid by employer) are tax exempt for 2008 to 2010.
Medical Benefits
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Maternity expenses and traditional medical treatments are tax exempt without limit, effective 2008.
Discounted Goods Or Services
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Discounted or free goods or services provided by the employer are tax exempt effective 2008, provided the benefits are non-transferable.
Interest Subsidy
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Interest subsidies provided by the company for loans up to RM300,000 for housing, motor vehicles and education are tax exempt, effective 2008.
It is a whole long list of goodies which you might benefit from in reducing your overall tax payable!
However, if you have submitted your tax forms, don’t fret as most of these benefits are still applicable up to 2010 or beyond. Instead, think of how best you can restructure your compensation package with your company to take full advantage of these tax exempt perquisites.
Look out for more ways to save on your taxes with these Tax Saving Strategies:
Don’t forget the April 30 Submission Deadline!
