Income Tax

8:40 PM



Tax. Its not something that people look forward to, especially with the rising costs of living. However, for the past 3 years, April is the time of year I can get some money back...from the Government (Lembaga Hasil Dalam Negeri)...LEGALLY.

I have heard a lot of grouses from my colleagues about taxes such as..

"Why do we pay taxes when the politicians keep on abusing it?"

"I don't want to pay taxes because I am not getting any benefit from it"

Well, maybe you are not eligible to pay income tax in the first place because according to LHDN (IRB), only ONE million out of the FOUR million individuals with files in LHDN are eligible to pay income tax.



So how come so many people come to a ceruk dan cabuk clinic demanding for high end drugs with the ever so common "Doktor jangan main main dengan saya, saya bayar cukai. Saya BAYAR GAJI DOKTOR!!!!!"

....well, theoretically these people are still taxpayers as they pay for sales and service tax, road tax, quit rent etc. So, just SMILE and say "Kami sedia membantu tapi kami tak berapa ada duit"

Anyhow, back to the income tax filing. Ever since I started working, I am a happy user of the e-filing system. I think the chaps at LHDN has done a good job in making tax filing as hassle free as possible.

To start off, you will have to get the pin number to access your e-filing account at the nearest LHDN office.

Once you have registered, you are good to go. Do take note that you have to be good at filing all receipts and documents to fully benefit from all the tax reliefs. I have a file at home where I keep all receipts. Among the important documents to keep are:

1. Receipts of books that are bought throughout the year (the best investment is investment in knowledge, so READ, READ, READ). The limit is up to RM 1000.

2. Receipts for laptop or PC purchase. You can only get this relief once every 3 years with maximum purchase of RM 3000.

3. Receipts for sports equipment such as a bicycle.

4. Payment receipts to any charitable organizations such as MAKNA or NKF.

5. Payment receipt for any medical insurance or cards.

6. Zakat payments. Some Muslims can be quite strange though...complain that tax is HARAM because it pays for corrupt politicians but NEVER pay Zakat. Hey, you can still donate directly to an orphanage if you don't trust the Zakat center.

7. Payment for academic courses.

If you don't have a file for your tax claims, start doing it this year.

Most, if not all government servants have PCB or Pantai Cahaya Bulan   Potongan Cukai Berjadual. I think of it as a mini savings. You are FORCED to put aside monthly savings and at the end of the year you can claim a portion of it back....don't agree with me? Then you can call it what ever you want.

The details are nicely put together in the diagram by imoney. I went through LDHN's version in Bahasa Malaysia and vomited blood after going through ONE page, so this diagram is a real blessing.

If you pay your taxes duly, you can always scream at the government servant that you don't like and say

"Saya bayar gaji awak sebab saya bayar cukai. Saya nak ini, itu, sini, situ bla, bla, bla"

......even though the government servant being screamed at pays more tax...Aaaaahhhh, what a wonderful Malaysia!

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