Fincrew Income Tax Calculator
It is every Malaysian residents’ legal responsibility to pay personal income tax in Malaysia. However, the problem often arises when determining how much tax to pay from your chargeable income. Thankfully, you have two options in this area. The first is to learn how to calculate income tax yourself. It involves learning several formulas and then crunching the numbers the hard way. It usually consists in digging out your pen and paper and doing some serious calculations. However, as employment income tax is paid progressively in Malaysia, it isn’t always easy to follow this route effectively. What’s more, you risk making human errors during your calculations by choosing to calculate income tax yourself. It brings us to your second option;
Use Our Reliable Malaysia Income Tax Calculator!
It’s simple, fast, and gives you accurate numbers. To leverage this powerful resource, you need to input your details in the required fields and follow all the prompts afterwards. And, in less than 10 minutes, our employment income tax calculator will tell you just how much the government expects you to pay! With that, you might still want to know more about how income tax operates in the country. To that end, here are some vital details to remember.
Essential Details On Income Tax In Malaysia
The tax that a resident pays goes to the Inland Revenue Board, and it’s your responsibility to know just how much your pay is at any given point in time. Down this road, one other important thing you need to be aware of is which tax reliefs you’re automatically entitled to as a resident. It is vital because the list of tax reliefs available to Malaysians is constantly changing. New ones have often been added annually and removed from the old ones. As such, you must stay updated on this information. That way, you’ll be able to know the appropriate tax rates for you.
Filing Income Tax
To file your taxes in the country at the moment, you need to meet specific requirements. We’ll be touching on the most important one and the bearing on the tax rates to pay now. Only individuals who earn a minimum of RM 34 000 after the Employees Provident Fund or EPF contribution removal should file income tax. Please keep in mind that your EPF contribution doesn’t just consider the salary you earn from work; it factors in all your income sources. Even though it’s the law to file your taxes, there are instances where you mightn’t have to pay anything at all due to the effects of tax rebates and tax reliefs. It is yet another reason why it’s essential always to keep yourself apprised of any new developments where your taxes are concerned.
The Most Recent Development In Taxes Today
They allowed the tax relief of RM 6 000 to cover major medical expenses and treatment payments to cover actions like In-vitro Fertilization (IVF) and a wide range of other fertility treatments. In addition to this, parents that have children in childcare centres and kindergartens are now entitled to enjoy higher tax reliefs. In the past, the tax relief for this was RM 1 000. At the moment, it increased to RM 2 000.
Important Things To Note About Tax Reliefs And Rebates
At last count, there are 21 different tax reliefs and rebates that an individual taxpayer can leverage in Malaysia. Please take advantage of these and let them reflect on what personal income tax you pay to know the reliefs and ensure that you keep your receipts as proof when you spend money in those areas. Now, while there are several areas you can easily claim these tax incentives, at the moment, three of the most straightforward tax reliefs you can get fall under:
1. Medical Expenses
The relief and rebate in this category help you claim up to RM 6 000 if at any point in time you had to pay severe medical bills for yourself or any member of your immediate family.
2. Complete Medical Examination
You’re allowed to claim a maximum of RM 500 per annum in this category. You can get tax relief by simply doing a medical checkup to confirm that you’re in perfect health. The immediate benefit of this dividend is that it allows you to be proactive with your health and well-being.
3. Lifestyle Tax Relief
Under this category, you can get as much as RM 2 500 in relief each year. It covers everything from purchasing sports equipment to books and even gadgets like smartphones, laptops, and broadband subscriptions.
In our opinion, it’s by far the easiest to claim as many of the things that fall in this area are very useful for day-to-day living. What’s more, in instances where you find that you can’t max out that RM 2 500 limit. Buy valuable sports equipment or a pricey magazine publication for a friend or loved one!
Make Your Life Easy
As you can imagine, keeping tabs on the specifics of your spending and how that might affect your income tax is no small chore. However, make things easier for yourself when you leverage our Malaysia income tax calculator! In addition to helping you figure out the specifics of your income tax, it can help you plan your spending to max out all your tax reliefs!
