As long as you draw a monthly salary of RM5,000 or below, you do not have to pay a single cent in tax. I think it's that simple, but tell me if you understand it otherwise.
Truth is, it's not so. Those RM4,999 earners please don't celebrate just yet.
It seem that even mainstream media can be sweet-talking to keep you reading. Somehow I felt cheated after reading the whole article. A monthly income of RM5,000 would give you annual salary of RM60,000. In this year's budget (2012), if you earn less than RM30,000 annually, you do not have to pay tax. That works out to be about RM2,480 per month. Next year (budget 2013), that'd be RM5,000, or so it seem..
No tax for individuals earning less than RM5,000?
This could only mean one thing: You'd have to be earning double that threshold of this year's figure to qualify yourself to start paying tax. And that's a massive jump. But like I mentioned, it is not the case and you have to keep reading to find out.
I have appended herewith the article for your reading pleasure and clarification of what IRB meant to say.
No Tax For Individuals Earning Less RM5,000
Truth is, it's not so. Those RM4,999 earners please don't celebrate just yet.
It seem that even mainstream media can be sweet-talking to keep you reading. Somehow I felt cheated after reading the whole article. A monthly income of RM5,000 would give you annual salary of RM60,000. In this year's budget (2012), if you earn less than RM30,000 annually, you do not have to pay tax. That works out to be about RM2,480 per month. Next year (budget 2013), that'd be RM5,000, or so it seem..
No tax for individuals earning less than RM5,000?
This could only mean one thing: You'd have to be earning double that threshold of this year's figure to qualify yourself to start paying tax. And that's a massive jump. But like I mentioned, it is not the case and you have to keep reading to find out.
I have appended herewith the article for your reading pleasure and clarification of what IRB meant to say.
No Tax For Individuals Earning Less RM5,000
Bernama via The New Straits Times. September 29, 2012
CYBERJAYA, Sept 29 (Bernama) - The one percent tax cut in the budget means that individuals with chargeable income under RM5,000 do not have to pay tax starting 2013 assessment year.
Inland Revenue Board (IRB) chief executive officer Tan Sri Dr Mohd Shukor Mahfar said those with taxable income of RM5,000-RM20,000 will enjoy two percent tax compared to three percent.
"Individuals with taxable income of RM20,001 to RM35,000 will be taxed six percent compared to seven percent previously," he told reporters Friday night.
Mohd Shukor said the tax reduction takes into account all exemptions and not according to gross income. Those with queries about Budget 2013 and tax reduction can call the Customer Service Centre line 1-300-88-3010 or email at callcentre@hasil.gov.my.
The tax cut annouced by Prime Minister Datuk Seri Najib Tun Razak in Budget 2013 means that about 170,000 individuals no longer need to pay income tax.
Source : Bernama, The Borneo Post, New Straits Times
Date of Publication : Saturday, 29 September 2012
Related story : No Tax For Individuals Earning Less Than RM5,000
CYBERJAYA, Sept 29 (Bernama) - The one percent tax cut in the budget means that individuals with chargeable income under RM5,000 do not have to pay tax starting 2013 assessment year.
Inland Revenue Board (IRB) chief executive officer Tan Sri Dr Mohd Shukor Mahfar said those with taxable income of RM5,000-RM20,000 will enjoy two percent tax compared to three percent.
"Individuals with taxable income of RM20,001 to RM35,000 will be taxed six percent compared to seven percent previously," he told reporters Friday night.
Mohd Shukor said the tax reduction takes into account all exemptions and not according to gross income. Those with queries about Budget 2013 and tax reduction can call the Customer Service Centre line 1-300-88-3010 or email at callcentre@hasil.gov.my.
The tax cut annouced by Prime Minister Datuk Seri Najib Tun Razak in Budget 2013 means that about 170,000 individuals no longer need to pay income tax.
Source : Bernama, The Borneo Post, New Straits Times
Date of Publication : Saturday, 29 September 2012
Related story : No Tax For Individuals Earning Less Than RM5,000
3 comments:
Some of our main stream media are behaving like the road side scratch and win cheaters.
aku belum betul2 faham mengenai cukai ni
pengumuman dalam bajet 2013 agak bagus, cuma perinciannya belum diketahui
Goodness gracious.. I am one of those who takes everything at face value never learning how to read the fine lines.
Thanks for the info.
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