2019 tax deductible items: Unifi buys phone PTPTN donations to support parents tax deduction

2020 tax return must know: 2018 tax deductible consumption items

• You can deduct tax when filing your tax return in 2020 under the following consumption items, and be sure to keep your consumption receipts.

1) Dependent parents tax deduction conditions: Dependent parents can deduct tax

• To ease the burden of children caring for aging parents, taxpayers can deduct RM1,500 (total of RM3,000).
• However, it must be pointed out that such tax deductions must be eligible and not the sole taxpayer.It must be shared with siblings unless the taxpayer is the only child.
• For example, if a taxpayer has four siblings at home, 3,000 ringgit divided by 4, each person will only be entitled to an average tax credit of RM750.
• The taxpayer is entitled to the RM3,000 tax credit alone only if the other siblings are not eligible to file a tax return.
• If only one parent is alive, taxpayers can only split the RM1,500 tax credit equally from their siblings.
• On the other hand, taxpayers can get up to RM5,000 in relief for medical expenses, special needs and care expenses paid by parents.
• However, taxpayers can only choose one of the parent's medical expenses and maintenance deductions.If they claim a tax deduction for their parents' medical bills, they can't get a tax deduction for their adoptive parents.

2) Can I deduct tax on buying a phone? Is Unifi tax deductible?

优质LifeTax deductible groups (up to RM2,500 per item)

• Tax deduction groups include purchases from existing reading materials, computer purchases, sporting goods, expansion to newspaper purchases, smartphone and tablet technology products, internet packages and gym memberships.
• Each group is tax deductible up to a maximum of RM2,500 per annum.
• In other words, you can get tax deductions of up to RM2,500 on your purchases of newspapers, smartphones and tablets, internet packages, gym memberships.

3) Baby breastfeeding equipment is tax deductible

• Breastfeeding is encouraged, with a tax deduction of RM2 for infant feeding equipment for children under 1,000 (once in 2 years)

4) The education of children under the age of 6 is tax deductible

• A tax deduction of RM6 is available for children under the age of 1,000 who attend pre-primary education.

5) Physical examination

• Medical check up to RM500 tax relief.

6) Personal education expenses

• The maximum tax deduction is RM7000.

7) Higher Education Fund (Tabungan bersih dalam skim SSPN)

• Tax deductible up to RM6000
• If you save for your child's education fund through the State Education Savings Plan (SSPN) launched by the State Tertiary Education Fund (PTPTN), you will receive a tax credit of RM6,000 from the relevant net deposit.

8) Life Insurance and Provident Fund

• Tax deductible up to RM6000

9) Education and health insurance

• Tax deductible up to RM3000.

10) Private Retirement Scheme (Private Retirement Scheme)

• Tax deductible up to RM3000.

11) Donations to schools are tax deductible

• Not only that, but starting in 2019, everyone who donates to a public school or college of education will be eligible for a personal income tax deduction.

List of 2018 tax deductible items in 21

The following is a list of 2018 items that can be deducted in Malaysia in 21▼

F2 Parents' medical expenses (a) or living expenses (b) (only one of them can be selected)

F2a) Parents’ medical expenses (Max – RM 5,000)

• i) Medical care and treatment provided by a nursing home.
• ii) Dental treatment (excluding cosmetic dentistry).

Things to note

• The parent's need for treatment or care must be confirmed by a doctor licensed by the Malaysian Medical Council
• Parents must be residents of Malaysia.
• The treatment or care must be performed within Malaysia.
  

F2b) Living expenses for parents (Max – RM 3,000)

*Children of dependent parents will enjoy a tax deduction of RM3, with a deduction of RM1 each.

Things to note

• To be eligible for tax relief, a tax filer must be a legal child or a legally adopted child.
• Only one father can be exempted up to RM1 and one mother can be exempted up to RM5.
• Parents must be Malaysian residents and over 60 years old.
• Parents' annual income should not exceed RM2.
• If other siblings also apply for the deduction (each person needs to share the deduction amount equally), please remember to fill in the HK-15 and save this information. This document can be presented as proof when the tax bureau reviews.

F3 Basic Aids for Disabled Persons (Max-RM 6,000)

• Purchase basic aids for individuals, partners, children or parents with disabilities.
• Basic aids include medical equipment - hemodialysis machines, wheelchairs, prosthetics and hearing aids, but not optical lenses and glasses.

F5 Personal Education Fee (Max-RM 7,000)

Individuals enroll in courses in domestic higher education institutions approved by the Higher Education Authority of Malaysia. The scope of courses includes:

• (i) Up to university level (other than at master's or doctoral level) - in the fields of law, accounting, Islamic finance, technology, crafts, industry or information skills.
• (ii) Master's or Doctorate level - any field or program of study.

F6 Serious Illness Medical Fee (Max-RM 6,000)

• Medical expenses for serious illnesses of individuals, partners, children.
• Serious illnesses include: AIDS, Parkinson's, cancer, kidney failure, leukemia, heart disease, pulmonary hypertension, chronic liver disease, acute severe hepatitis, neurological deficit due to head trauma, brain tumor or vascular malformation, severe burns, organ transplant surgery and major limb amputations.

F7 Complete Physical Exam (Max-RM 500)

• Included in F6's RM6,000 limit
• A complete physical examination refers to a full body examination.
• A maximum of RM500 can be waived for full body check-ups for individuals, partners and children.

F8 Lifestyle (Max – RM 2,500)

include:

• (i) Purchase of books, magazines, newspapers and other similar publications.
• Books, journals, magazines, newspapers and other similar publications (in hard copy or electronic form, excluding prohibited books) for purchase by yourself, your partner or your children.
• (ii) purchase of a personal computer, smartphone or tablet.
• Expenses on the purchase of a PC, smartphone or tablet will be tax deductible.Can be used by oneself, partner or children (non-business use).

(iii) Purchase of sports equipment and fitness membership fees.

• Expenses for self, partner or children:
• (a) purchase of any sports equipment (including short-lived equipment such as golf balls and badminton but excluding sportswear)
  (b) Gym Membership.
  

(iv) Payment of monthly internet subscription fee

• Sign up for an internet subscription bill in your own name.

F9 Breastfeeding Equipment (Max – RM 1,000)

(a) This tax relief is only available to female taxpayers with income and children under the age of 2:

(b) Eligible breastfeeding equipment includes:

• (i) milker sets and ice packs;
• (ii) breast milk collection and storage equipment; and
• (iii) coolers or bags.

(c) This tax relief can be used once every 2 years.

F10 Nursing class or pre-school education fee (Max – RM 1,000)

• Taxpayers send children under the age of 6 to a childcare centre registered with the Ministry of Social Affairs or a kindergarten registered with the Ministry of Education Malaysia.

F11 SSPN Savings Plan (Max – RM 6,000)

Net savings of taxpayers into the State Education Savings Plan (SSPN) account for children

F12 Husband/wife relief or alimony (Max – RM 4,000)

• A deduction of RM4 is available for domestic partners with no income, and alimony paid to an ex-wife is also deducted by RM4. (formal agreement required)

F14 child support

F14a) Children under the age of 18 who are still in education are entitled to a tax deduction of RM2 each.

F14b) 18 years old and above, unmarried children and children who meet the following conditions are tax deductible RM8.

• (i) Study at a domestic university or college (excluding university preparatory courses)
• (ii) a bachelor's or equivalent educational program (including a master's or doctorate) abroad
• (iii) The relevant educational institution must be approved by the relevant government unit

F14c) Children with disabilities (Max – RM 6,000)

• The tax deduction for parents raising disabled children is RM6.Parents are entitled to a tax deduction of up to RM1 if the child is studying in the country or abroad.

F15 Life Insurance and Provident Fund EPF (Max – RM 6,000)

• Payment of life insurance premiums and provident fund (EPF) or other approved schemes with a total deduction of RM6.

F16 Private Pension Scheme PRS (Max – RM 3,000)

• The total deduction for PRS and insurance premiums paid to private pensions is RM3.

F17 Education or medical insurance (Max – RM 3,000)

• For education and medical insurance premiums, the total deduction is limited to RM3.
  

F18 Social Insurance (SOCSO) (Max – RM250)

• The maximum deduction for social insurance (SOCSO/PERKESO) payments is RM2.

Tax misconception #1: Not reporting extra income

• Many salaried people earn some more income outside the company, but they do not report additional income such as rental income, commissions, referral fees, etc.Where will it be filled in?
• However, you only need to report net income after deducting costs.
• For example, rental income can be deducted from property taxes, home insurance premiums, maintenance fees, etc., but equipment costs for furniture or air conditioners cannot be deducted.
• If you have other income, please fill in "B3", that is, "other interest, discounts, insurance premiums, other regular income...".

Tax Return Misconception 2: Incorrect Income Tax Form

• Taxpayers with a large number of sources of income are often unable to distinguish the income tax forms they report.
• In short, those who do not do business are filing Form BE;
• If they are running their own business, such as a restaurant partnership with friends, the income from those businesses should be submitted to Form B.

Tax misconception 3: Late tax returns

• Many taxpayers like to file their taxes at the last minute, and can't even complete their tax returns by the deadline.
• Remember, the tax filing deadline for Form BE is April 4;
• The deadline to submit Form B is June 6.

1. Form BE – personal income from part-time work, no business – before April 4 (electronic tax return before May 30)
2. Form B – personal business, clubs, etc. – before June 6 (electronic filing before July 30)

Malaysia Income Tax Filing Deadline, please click the following link to view▼

Malaysia 2024 Electronic Filing Deadline Penalties for Late Filing Exceeded the Deadline

March every year is the time for Malaysian citizens to fulfill their tax obligations. Maybe many people still don’t know what tax is? Especially those young people who are new to social work, they mistakenly believe that taxation is something only those who open companies and do business need to do. therefore,……

Tax misconception 4: Not reporting material benefits

• For some employers that provide benefits in kind to employees, such as company cars, mobile phones, companies that pay for lodging, etc., employees often ignore that these benefits are not reported when filing tax returns.
• These material benefits are taxable income and must be taxed.
• The gross value of this significant benefit will be noted in Item 2 of the taxpayer's EA Form "B" and must be entered on Form BE along with other income.

Tax misconception 5: There is no tax deduction certificate

• If you have rental income in your name, you should write "B2" in Part B of the BE form, which is legal income from rent.
• When the government provides tax deductions, taxpayers also need to apply for relevant documents.
• For example, proof of receipts for purchases of books, computers, parents' medical bills, etc.

Tax misconception #6: Faded receipts

• When the officials go to the door to check your taxes, when you are so confident you can pull out a receipt that has been kept for years, you will be surprised to find that most of the receipts turn to "blank paper" without any ink!It's so tragic...
• The taxpayer may know that he has to keep the receipts, but ignore that many receipts on the market are thermal receipts that will fade or leave no writing.
• A more appropriate method is to save these receipts by scanning or photographing them.

Tax misconception 7: Tax-exempt income as taxable income

• Some taxpayers mistakenly treat some allowances or benefits as taxable income when estimating their tax returns.
• As a result, they pay more taxes in disguise.
• According to the Inland Revenue Department, there are 11 allowances, discounts or benefits offered by employers that are entitled to designated allowances each year.
• For example, up to RM6,000 in petrol subsidies, medicines or childcare allowances.
• The total amount of the allowance will be listed separately on the EA form prepared by the employer for the taxpayer, in section "G" at the bottom.
• Note that the amount in this column does not require a tax return and does not have to be entered on the BE form.

Tax misconception #8: Applying for unrecognized donations

• Not all donations are tax deductible, and only donations from government-approved agencies or foundations can claim a deduction.
• The total is limited to 7% of accumulated earnings.
• However, some taxpayers do not understand whether the donations are deductible, and they apply for donation relief.
• How do you identify government-approved donor organizations?
• If a donation is made to an accredited institution or foundation, the receipt will be marked "Governmentally Accredited Donor".

See if the agency is approved

Follow the steps below to see if the agency is approved:

Step 1:Log in to the IRS website

• You can choose the English version in the upper right corner.

Step 2:Select Internal Link;

Step 3:Click on "List of Institutions under Section 1967(44) ITA 6" in the lower right corner;

Step 4:Enter relevant information such as state name, charity or fund name.

Tax misconception #9: You cannot prove that you have filed your taxes

• Electronic tax returns and receipts will be submitted to demonstrate that taxes have been filed and paid.
• However, taxpayers who manually or mail their tax return may not be able to prove that the tax return has been filed and tax has been paid.
• Because the tax office does not issue a "received" notice, if the tax form is lost in the mail, the taxpayer is in big trouble.
• Unless the taxpayer has paid the tax and kept the receipt, you can prove that the tax was filed.

Tax Return Mistake 10: Not Keeping Receipt Records

• Once your tax return is complete, don't assume that all your receipts, premium statements, and other documents are free to litter around.
• The Tax Office requires taxpayers to keep these receipts and documentation after filing their tax return.