What Is A Tax Exemption?

Fortunately, taxpayers in Malaysia are not taxed on our total income, as certain portions of our income are tax exempted. For income tax filed in Malaysia, we are entitled for certain tax exemptions that can reduce our overall chargeable income.

Tax exemptions either reduce or entirely eliminate your obligation to pay tax. Most taxpayers are entitled to an exemption on their tax return that reduces your tax bill in the same way a deduction does.

The following tax exemptions will not be included in the taxpayer’s EA Form:

The above tax exemptions are subject to approval, and conditions set by LHDN.

Read on to understand more about the above tax exemptions:

Tax Reliefs For Year Of Assessment 2016 (Tax Filed In 2017)

What is a income tax relief? Tax reliefs are set by LHDN, where a taxpayer is able to deduct a certain amount for money expended in that assessment year, from the total annual income. These are for certain activities or behaviours that the government encourages or even necessities or burdens to lighten our financial loads.

For income tax Malaysia, tax reliefs can help reduce your chargeable income, and thus your taxes. If planned properly, you can save a significant amount of taxes.

In our example, a taxpayer would have been taxed about 10% of his total chargeable income of RM84,300 if he had claimed no tax reliefs at all.

However, with the self & dependent tax relief of RM9,000, life insurance & EPF relief at RM6,000, his total chargeable income is now RM69,300, hence, he would only be taxed about 8% of his chargeable income.

What Is A Tax Deduction?

After deducting tax reliefs from your annual income, you can still reduce your chargeable income with tax deductions.

In Malaysia, a tax deduction is similar to a tax relief, where it reduces your chargeable income. Tax deductions are a result of Gifts and Donations.

Donations are only tax deductible if the donations are made to Government approved charitable organisation or directly to the Government, and you must keep the receipt of the donation.

For income tax 2017, if your chargeable income is RM55,000, and you’ve donated RM2,500 to an approved charitable organisation, you are allowed to deduct 7% of your aggregate income to reduce your chargeable income.

For income tax 2017, if your chargeable income is RM55,000, and you’ve donated RM2,500 to an approved charitable organisation, you are allowed to deduct 7% of your aggregate income to reduce your chargeable income.

Total chargeable income after tax deduction

= RM55,000 – (RM55,000 x 7%)

= RM55,000 – RM3,850

= RM51,150

The Top 7 Malaysian Brands Taking Over the Region

Whether you realise it or not, Malaysian brands are going from strength to strength. As you know, we are passionate about supporting local companies so we’re pretty excited by the development!

From fashion accessories to fast food outlets, cheesecake to beauty products, the next time you’re travelling in the region, keep an eye out for some of these familiar made-at-home brands…
 

A place in Malaysia you’ve probably never heard of : Bau, Sarawak

The people that live there

There are over 40 sub-ethnic groups in Sarawak and three main linguistic groups: Biatah, Singai-Jagoi, and Bukar and Sadong. In the Bau region located about 40 minutes from Kuching, the major sub-ethnic group are the Singai-Jagoi Bidayuhs. Bidayuh, which translates to ‘people of the land’, were formerly known as the Land Dayaks and they make up the second largest native ethnic group in Sarawak after the Ibans.

People of the Bidayuh tribe during the Gawai Dayak festival | Photo credit: CHEN WS / Shutterstock.com

Tribes in the Bau region are believe to have come from West Kalimantan some 700 years ago. In particular, the Jagoi-Bratak people chose to settle on top of Mount Bratak where they felt it was safe, and that actually held true for quite some time as the settlement was well fortified and flourished.

8 Novel Melayu Berkualiti Mesti Di Baca

Tidak banyak novel melayu terbitan baru yang menyamai semangat novel melayu yang ditulis oleh sasterawan dan enthusiasts bangsa dan bahasa.

Kebanyakkan novel melayu tidak lagi diterbitkan setelah habis cetakan. Institut seperti DBP dan ITBM mempunyai sebilangan besar jumlah novel-novel ini, tetapi tidak ramai yang mengetahui kewujudan novel melayu berkualiti ini . Tidak dilupakan, penerbit indie seperti Dubokpress juga ada menerbitkan novel melayu berkualiti tinggi, selain buku bukan-fiksyen yang banyak menyentuh isu kemasyarakatan dan kritis sosial. 

Listopia 100 Novel Melayu Yang Mesti Di Baca, adalah permulaan yang baik untuk mencari semula karya karya emas ini. Kombinasi penulis lama dan baru, mereka sama sama merancakkan lagi dunia novel melayu berkualiti yang pernah kita nikmati dulu.

Kuching Waterfront: Bazaar far from bizarre

East Malaysia, on the island of Borneo, has many appealing qualities and the Sarawak capital of Kuching offers a relaxed and yet, vibrant setting. The riverfront district along the Sarawak River, in downtown Kuching, is now an open space used mostly for recreation. It’s a lively pedestrian-only precinct that is frequented by the locals who use it for leisure activities, to enjoy a sunset drink, or have a meal beneath shady trees.

A fascinating part of this riverfront area is the street named Main Bazaar which runs alongside the river. Retail shops, bazaars, and a few dining outlets front the street but there are numerous uniquely Sarawakian and Bornean products sold in the shops here to ensure that the bazaars are a bit more bizarre than mainstream.

The former trading houses, or go-downs, along Jalan Main Bazaar offer an intriguing insight to the area’s historic activities before it became a major tourism precinct. With awnings providing shade, it’s easy to amble along here, and the best place to start your walk is at the former Court House which has recently been converted to an amazing lifestyle concept under the ChinaHouse banner.

What were once go-downs for goods unloaded at the riverside docks are now mostly craft and souvenir shops selling items from Borneo. These old shops with captivating names present a face of a bygone era – names such as Dayak Art, Sarawak Steamship Berhad, and Haiyen Bird’s Nest offer some intrigue before you even step inside.

5 Most Expensive International Schools In The Klang Valley

To ensure their children remain competitive in the increasingly borderless world, more and more Malaysian parents are opting for international and private education for their children. However, these schools do not come for cheap.

In 2012, the Malaysian government has eliminated the quota for Malaysian enrolment at international schools. Due to the quota and the lack of affordable options, only selected affluent Malaysians could afford to send their children to these schools previously.

The 2012 decision to remove the quota has opened the floodgates and more international schools are mushrooming all over the country. According to the latest data by the International School Consultancy Group (ISC), a UK-based organisation, there are currently 99 English-medium international schools in the country, with a total of 39,460 students.

The market has been growing at a rate of 19% per annum for the past five years, and it is showing no signs of stagnation.

Based on latest findings, 40% of the students in these premium schools are local Malaysians, 9% British, 6% South Korean and 4% American.

How expensive are these premium schools really? We have collated the top 5 most expensive international schools in the country and this is how much you will have to fork out to send your child to these schools from nursery all the way till graduation:

7 Signs You Are Heading For Bankruptcy

Identifying the warning signs of an impending personal financial crisis is extremely important. Sometimes these signs may be the only thing keeping you from bankruptcy.

You may be headed into a serious debt problem if you’re seeing one or more of these signs:

1. Maxing out on your credit cards or charging more than you can pay off each month

The Malaysian Department of Insolvency stated that credit card debt made up 5% of all bankruptcy cases in Malaysia between 2005 and 2012. You can see other causes here.

It is important to ensure that you use credit cards prudently. The general rule of thumb is to use no more than 30% to 40% of your credit limit at any one time. This gives you flexibility in case of job loss, illness, divorce, or other threats to your income.

7 Kesilapan Ini Biasa Orang Lakukan Semasa 'Interview'

Tidak semua syarikat di dunia mementingkan resume yang diberikan pemburu kerja semasa temuduga. Penemuduga selalunya mengambil masa kurang 10 minit untuk menyelak resume yang diberi, dan selebihnya bergantung kepada bahasa badan calon temu duga itu sendiri.

Bahasa badan atau 'body language' sering dipandang remeh atau langsung tidak dipedulikan oleh calon temuduga disebabkan mereka terlalu fokus kepada penyampaian resume atau penampilan diri.

Namun sebaliknya, pergerakan badan memainkan peranan penting dalam menyokong resume calon, sekali gus menampilkan calon sebagai individu yang berkeyakinan tinggi atau kreatif.

Berikut adalah tujuh kesilapan besar melibatkan bahasa badan yang dilakukan oleh calon semasa temuduga.

4 Ways To Simplify Insurance Planning For Your Growing Family

Being a parent means a life full of joy and love, but at times, with a dash of sacrifice and a few heaps of sleepless nights plagued with worries. And us, parents won’t have it any other way.

Even when we are not around our kids, we constantly think about them and wonder what they are up to. Perhaps nothing can really take away the constant worries, but if we prepare for it sufficiently, we can be better equipped at providing the best for our children.

If one of the family members is ill, the last thing a parent wants to worry about is money. As a parent we want to be able to afford the best care and the best treatment – without a second thought. However, the truth is, medical treatment has become so expensive in recent years that in such a situation, money is the first problem that we have to tackle.

One of the most effective ways to prepare for such eventualities is by building an adequate insurance portfolio, not just for the children, but for the entire family.

How do you ensure that your insurance portfolio stand the test of time? Starting and raising a family are expensive affairs. One wrong move can result in a financial hit that may take years to recover from, which is why you need to ensure your insurance planning is able to withstand any stress as your children grow up.

Here are a few things you need to consider to ensure your insurance portfolio for the whole family is financially sustainable:

5 Ways To Pay Your Mortgage When You Are Struggling

Going through another sleepless night thinking about your overdue home loan repayments? The possibility of losing your home can be terrifying. Perhaps you’re having trouble making ends meet because you or a family member lost a job, or you’re having other financial problems.

Maybe things are not as bad yet, but you would like to prepare yourself with all possible scenarios, just in case. For those who took out a variable rate home loan – you may want to know what your payments will be in the event the rate increases and whether you’ll be able to make them.

Regardless of the cause of your anxiety, there are ways to protect your home even in times of financial trouble. Here are three things you can do to save your struggling mortgage.

What Is Zakat?

Earlier this month, the chief of Federal Territories Zakat Council stated that it is sinful to pay zakat directly to the poor instead of handing it to Zakat collection centers. Subsequently, it was also reported that distrust was amongst the reasons some Muslim’s choose not to contribute to the Zakat collection centers.

In an effort to shed some light on the Zakat issue, we talked to Employer Collection Sector Manager from Lembaga Zakat Selangor (LZS), Encik Wira Mustafa to understand what it entails, why it’s not encouraged to pay Zakat directly to the poor and to find out how the funds are used.

What is Zakat?

Encik Wira: Zakat is the third pillar of Islam and is wajib (compulsory) on Muslim’s who meet all the conditions. The word Zakat itself means to purify. Technically Zakat means a fixed proportion collected from a specific type of mal (wealth) when they reach the haul (specific term) which must be distributed to specific categories of people. Giving Zakat means Muslim’s are purifying their wealth by giving a part of it to the needy as well as to gain Allah’s blessing on their wealth. It teaches us to sacrifice a part of our wealth, to cleanse our wealth by means of Zakat.

What Multitasking Does To Our Brains

We've all heard it hundreds of times: to work efficiently we have to single task. No multitasking. And yet, we let it slip. We end up eating lunch in front of the TV with our laptop open. We browse Twitter and Facebook whilst sending emails, and probably chatting in Google+ too. If we should be focusing on just one assignment, blog post, or proposal...why the heck is it so hard to focus? 

 

Why we multitask in the first place: It makes us feel good

 

To understand why we always fall into the habit of multitasking, when we know we shouldn't, I found some very interesting studies. The answer is in fact quite simple:

[People who multitask] are not being more productive—they just feel more emotionally satisfied from their work.

How to Manage Your Time on a Chaotic, Irregular Schedule

 

Not everyone works 9-5. When you schedule doesn't fit into neat little boxes, it can require some special skills to keep everything in order. Here are some tactics you can use to keep your energy up and maintain a bit of control.

In a past life, I worked as a video producer, writing, shooting, and editing short films. Anyone who's worked in this field for more than a day can tell you that regular hours are not something you keep. Some days you'll work 16 hours straight, other days you'll shoot for three hours in the middle of the night because that's the only time everyone's free. Developing skills to manage a chaotic schedule becomes incredibly important when you can't know when you're working from week to week (and, notably, these skills transfer very well to working multiple jobs and/or retail).

Benefits of Antioxidants

Antioxidants come up frequently in discussions about good health and preventing diseases. These powerful substances, which mostly come from the fresh fruits and vegetables we eat, prohibit (and in some cases even prevent), the oxidation of other molecules in the body. The benefits of antioxidants are very important to good health, because if free radicals are left unchallenged, they can cause a wide range of illnesses and chronic diseases.

Antioxidants and Free Radicals

The human body naturally produces free radicals and the antioxidants to counteract their damaging effects. However, in most cases, free radicals far outnumber the naturally occurring antioxidants. In order to maintain the balance, a continual supply of external sources of antioxidants is necessary in order to obtain the maximum benefits of antioxidants. Antioxidants benefit the body by neutralizing and removing the free radicals from the bloodstream.

Simple Tips To Relieve Stress

Stressed? Our lifestyle today is very stressful. Some factors that cause this stress is pollution, stressful working environment, working two jobs, searching for a job and family problems. With so many things affecting our quality of life stress is one of the factors that can affect us mentally and physically. So, what do you do to relieve yourself from this stress? Have you ever considered giving yourself a stress free environment? Start pampering yourself and to reward yourself for doing such a good job at life and succumbing to stress. All you need is time, a little cash and a positive mindset. Pack away your mental stress and take the weight off your shoulder its time to distress.

Tips On How To Relieve Stress

Have Time For Yourself:

How Company Culture Shapes Employee Motivation

In a recent strategy meeting we attended with the leaders of a Fortune-500 company, the word “culture” came up 27 times in 90 minutes. Business leaders believe a strong organizational culture is critical to success, yet culture tends to feel like some magic force that few know how to control. So most executives manage it according to their intuition.

We’ve found that answering three questions can help transform culture from a mystery to a science: 1) How does culture drive performance? 2) What is culture worth? 3) What processes in an organization affect culture? In this article, we address each of these to show how leaders can engineer high-performing organizational cultures — and measure their impact on the bottom line.

How does culture drive performance?

After surveying over 20,000 workers around the world, analyzing 50 major companies, conducting scores of experiments, and scouring the landscape of academic research in a range of disciplines, we came to one conclusion: Why we work determines how well we work.

10 Amalan Menambah Air Mani Lelaki!!!

Dr Ismail Thamby, pakar sakit tuan menulis 10 Kaedah di dalam Harian Metro. air mani ialah campuran cecair dari pundi prostat, pundi seminal, pundi cowpers, pepundi dalam salur kencing, cecair dari pundi epididimis dan sperma dari kilang sperma.

Ada 10 cara yang dapat membantu meningkatkan isi padu air mani, antaranya:

How Much Do Top Politicians In Malaysia Earn?

“I am one of the best paid and probably one of the poorest of the Third World prime ministers,” Lee Kuan Yew, the late minister mentor of Singapore was once quoted.

The saying of “if you pay peanuts, you get monkeys,” is also undeniable. To get good quality people, you need to pay for it. However, paying high does not always guarantee good quality people.

Prior to the amendments to the Members of Parliament (Remuneration) (Amendment) Act on April 10, 2015, members of the parliament (MPs) in Malaysia were paid RM4,112 a month, excluding allowances.

Some of the allowances claimable by MPs are:

• Entertainment allowance – up to RM2,500
• Fuel allowance – up to RM1,500
• Toll allowance – up to RM300