Young Family

Zarin is married with two kids below 18 years old. He earns RM8,000 per month from a single employer. He also has an apartment that he rents out for RM1,000 per month. His wife is a stay-at-home mum who has no income. During the year, he paid RM5,000 for medical insurance.

He bought two laptops, for him and his wife, that cost him RM5,000. Since his dad passed away, he has been supporting his mother.

Description RM Explanation
Salary per annum 96,000.00 Total salary earned in the year
Bonus 12,000 Total bonus for the year
All other income 0 No Other income
Total income 108,000.00  
Tax reliefs    
– Personal and Family (automated) -9,000.00 Automated relief given to all individuals
– Personal and Family (Wife) -4,000.00 Relief for husband/wife who doesn’t work (maximum RM4,000)
– Personal and Family (Child) -4,000.00 RM2,000 relief for each unmarried child under 18
– Personal and Family (Parent) -1,500.00 If you take care of a parent who does not earn an income, you can claim RM1,500 for each parent. (If you have claimed this, brothers or sisters can’t).
– EPF -4,000.00 Total EPF deductions for the year (capped at RM4,000)
-Medical -3,000.00 You can claim this relief, which is limited to RM3,000, if you have expenses related to education or medical insurance. In this case, although Zarin has spent RM5,000 on medical insurance, he is only able to claim for the maximum amount.
– Lifestyle -2,500.00 Although he spent RM5,000 on two laptops, the lifestyle relief is capped at RM2,500. So, he can only claim up to RM2,500.
Total Chargeable income 80,000.00 Although he made RM108,000 for the year, the tax reliefs brought his chargeable income to RM78,000.
Tax payable on RM80,000 of chargeable income

 

  
On the first RM5,000 (0%) –  

Based on tax rate for the assessment years 2018-2019
On the next RM15,000 (1%) 150.00
On the next RM15,000 (3%) 450.00
On the next RM15,000 (8%) 1,200.00
On the next RM20,000 (14%) 2,800.00
Balance RM10,000 (21%) 2,100.00
Tax Payable 6,700.00
Tax Rebates   
– Zakat -1,500.00 Zakat payments for the year
– Rebate for wife with no income -400.00 Rebate for husband or wife who has no income or earns below RM34,000 of chargeable income.
Total Tax Payable 4,800.00* From his tax payable of RM6,700, Zarin’s total tax payable for the year was lowered to RM4,800 because of the tax rebates.

*Usually, when you work for a single employer, payments towards your tax will be taken from your salary through Monthly Tax Deductions (PCB). So, you won’t have to pay a huge amount when you file your taxes.

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