It’s another 2 weeks to go before the year closes. If you are thinking of ways on how to maximise your income tax exemptions so that you can save on tax payable during the assessment happening next April, now’s a good time to do so. In the remaining two weeks, here’s what you can do if you have not already maxed out your allowed exemptions.
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Buy more books and magazines from major bookstores like MPH, Borders, Kinokuniya and Times Book Store. Be sure to keep those receipts.
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Donate to charity and remember to ask for a receipt for your kind contribution. Take note that you need to make your donations to charities that are sanctioned by the government in order for your receipt of donation to be considered legitimate.
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Purchase insurance for yourself. However, bear in mind that the exemption on this item is shared with your EPF contribution up to a maximum of RM6,000. So if you EPF contribution is already maxing out this category of exemption, you may not benefit much. Nevertheless, an insurance policy is still a good investment to take upon yourself.
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Take up a study course that helps you in your job to improve and enhance your knowledge. Make sure that you find out which institutions are approved by the government if you are taking advantage of this.
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If you are buying any sport equipment like a racket or even a threadmill, hold on to that receipt because you will get some exemption from it too.
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If you have kids, take up an insurance policy or an education policy for them. You will be able to save not only on some of your taxable income, but also saving for your kids’ future.
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Do you have an old computer dying on you? You might want to get yourself a new desktop or laptop. Your computer purchase can be tax exempted once in every three years.
There are several more ways to save on paying income tax, but the ones above are more doable and practical. Hurry, you only have 2 weeks to do so. It’s not too late and not impossible.
{ 3 comments… read them below or add one }
Okay, I will buy tonnes of books then. huhuhu…
buy treadmill might save income tax????????? gosh, i bought it 3 years ago…..
Neo, remember the cap is at RM1,000 for book receipts.
Mimi, this sports equipment exemption is pretty new, so yeah you’ve missed out on it 3 years back. But if you’re buying anymore new equipment, be sure to claim it back!