2021 is coming to an end. If you are a resident individual earning more than RM34,000 per annum (after EPF deduction), you have to register a tax file. Individual earning does not just constitute your monthly salary but also your rental income, royalties, pension and others. On top of that, your bonus and overtime incomes are also considered your earning.
Who is a tax resident?
For an individual to be considered as tax resident, he needs to meet any of the following conditions as stated by the Inland Revenue Board (LHDN).
What is a chargeable income?
Chargeable income is your income after deducting all your tax reliefs and tax exemptions that you may have.
Let’s take for example:
| Annual Income | Salary | RM56,000 |
| Rental Income | RM14,400 | |
| Total Annual Income | RM70,400 | |
| Tax Exemptions | Dividends earned from ASB | RM1,200 |
| Total Exemptions | RM1,200 | |
| Tax Reliefs | Self | |
| Default | RM9,000 | |
| EPF Contribution | RM4,000 | |
| Life Insurance Premium | RM3,000 | |
| SOCSO Contribution | RM 250 | |
| Private Retirement Scheme | RM3,000 | |
| Lifestyle Relief – Purchase of Laptop | RM2,350 | |
| Dependant | ||
| Medical Expenses for Parents | RM5,750 | |
| Total Reliefs | RM27,350 | |
| Chargeable Income | Total Annual Income – Total Tax Exemptions – Total Tax Reliefs | |
| RM70,400 – RM1,200 – RM27,350 | ||
| Total Chargeable Income | RM41,850 | |
In the printable infographic below, we have summarised all the reliefs that you may get for the Year of Assessment 2021.
Speak to our tax specialists now!
Find out what tax reliefs you are eligible for.