Bandar Botanic Layout Plan

Bandar Botanic Layout Plan

Tuesday 3 February 2009

BBRAeNews No.5 - Budget 2009 and You (Part I)


Budget 2009 and you (Part I)
What goodies does the budget have for individual taxpayers?

Tax Planning-By Yong Siew Chuen
Personal Money/Taxation-The Edge,
(Yong Siew Chuen has wide experience in Malaysian taxation, in both the public and private sectors. She now focuses on tax training and coaching.)

- edited by Jacob Mathews


Dear residents,
Here are some useful informations before we fill up our 2009 tax return forms.

The following are exemption for exployees, but note that they are not extended to directors of controlled companies, sole proprietors and partners. Also, note that the effective dates differ.

1. Petrol card, petrol allowances or travel allowance from home to workplace.
How much exempted: Up to RM2,400 per year.
Effective from year 2008 to year 2010.

2. Petrol card, petrol allowance or travel allowance and toll card for official duties.
How much exempted: Up to RM6,000 a year.
Effective from year 2008.

3. Allowance or fee for parking.
How much exempted: No limit stipulated.
Effective from year 2008.

4. Meal allowance.
How much exempted: No limit stipulated.
Effective from year 2008.

5. Interest subsidies on housing, motor vehicles and education loans. Exemption applicable to existing and new loans.
How much exempted: Total loans of up to RM300,000
Effective from year 2008.

6. Mobile phones, telephone bills, Internet subscription, PDA and pager.
How much exempted: No limit.
Effective from year 2008.

7. Employer's own traded goods provided free or at discounts.
Example:
Miss A, an employee of Kualiti Goods, a retail chain, bought goods with a total market value of RM10,000 during the year 2009 from the chain, but only paid RM8,500 because she is given a 15% staff discount.
This means she received a staff discount of RM1,500, which constitutes income from employment. However, RM1,000 will exempted and Miss A will only be taxed on the balance of RM500 (RM1,500 - RM1,000).
How much exempted: Discounts of up to RM1,000 a year.
Effective from year 2008.

8. Employer's own services provided free or at discounts.
Example:
Mr B is a science teacher at Ecole Eeksilent, a private school. As part of his benefits, his eldest child attends secondary school there at a 50% discount. The school fees thus waived is RM6,000 per year. His second child attends primary school there as well and the entire annual fee of RM5,000 is waived.
How much exempted: No limit. However, the benefit must not be transferable.
Effective from year 2008.

9. Childcare allowance or subsidies.
How much exempted: Up to RM2,400 a year.
Effective from year 2008.

10. Medical expenses
The scope of expenses is expanded to include maternity expenses and traditional medicine (acupuncture and ayurvedic).
How much exempted: No limit.
Effective from year 2008.

11. Employee awards.
Exemption is extended to awards related to innovations, productivity and efficiency.
How much exempted: Exemption is increased to RM2,000 from RM1,000 a year.
Effective from year 2008.

(The laws relating to the above mueasures have not been disclosed in full. The above is my understanding of what was announced in the Budget on Aug 29,2008 - Yong Siew Chuen).

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