Book 5A - Synergy TAS · 2020. 12. 7. · Billiards and Snooker 8. Body Building 9. Bowling 10. Boxing 10A. Canoeing 11. Cricket 12. Cycling 13. Equestrian Sports 14. Fencing 14A.

Book 5A

9 December 2020

[email protected]

B.Acc(Hons)(Malaya), LL.B(Hons)(London), CLP, MCL(IIUM), PhD(IIUM), FCCA(UK), CPA(M), CA(M), ACA(ICAEW), CA(Aust. & NZ), FCPA(Aust.).

DR CHOONG KWAI FATT

Advocate and Solicitor (High Court of Malaya), Tax Consultant

Tax Relief on Individual

Riding on

Budget 2021

with Finance Bill 2020

Tax relief on medical treatment, special needs and parental care

Parents

Natural parentsFoster parents

(taxpayer is adopted child)

Resident in Malaysia

or

Each children

Eligible to claim tax relief max. RM8,000 (YA2020: RM5,000)

Performed in Malaysia

Medical treatment

Special need

Carer

Parents required[s 46(1)(c)]

2

w.e.f. YA 2021

© Dr Choong Kwai Fatt 2020-12-06


a. Medical treatment❖ Suffer from diseases❖ Physical disabilities❖ Mental disabilities

c. Parental carer

✓ Medicine and treatment in clinic✓ Medicine and treatment in hospital✓ Treatment at nursing homes✓ Dental treatment

b. Dental services ✓ Tooth extraction, filling, scaling andcleaning

Cosmetic dental treatment Teeth restoration and replacement

(crowning, root canal and dentures)

✓ Treatment at home✓ Day care centres✓ Home care centres Carer shall not be

Taxpayer himself / herself His wife / Her husband Child of that taxpayer

Carer to physically and mentally healthy parents 3© Dr Choong Kwai Fatt 2020-12-06


d. Special needs ✓ Equipment allowable for deduction

List of equipment – PR 8/2020

❖ Portable automatic blood pressure monitor

❖ Automatic adjustable bed ❖ Moist dressings

❖ Silicone ryles tube ❖ Ripple mattress ❖ Glucometer

❖ Common chair ❖ J-cushion ❖ Diapers

❖ Detachable arm rest wheel chair

❖ Transfer board ❖ Urinary condom and bag

❖ Standard wheel chair ❖ Accapella (for lung physiotherapy)

❖ Backpan

❖ Walking frame ❖ Long term oxygen therapy ❖ Nebulizer

❖ Quadripod ❖ Portable suction machine ❖ Inhalers

❖ Rollator with 2 wheel and brake

❖ Food thickener ❖ Insulin pen

❖ Roller with elbow support ❖ Clean intermittent catheterization

❖ Urinary catheter

Include other equipment as determined by medical practitioners registered with the MMC4



Supporting documents

✓ Receipts issued by:✓ Registered medical centres ✓ Pharmacies✓ Licensed medical stores✓ Qualified medical practitioner

registered with MMC✓ Carers

✓ Written certification

✓ Work permit and valid Visa (foreigner carer)

Receipts under the name of parents✓ Endorsement of receipts by

qualified medical practitioner registered with MMC

✓ Certificate of birth to prove relationship

Joint expenses between siblings✓ Apportionment on incurred

expenses between children

5© Dr Choong Kwai Fatt 2020-12-06


Assessed party

Incurred on “his” parents ONLY

Incurred on “her” parents ONLY

Separate assessment

Husband

Wife

Incurred on “his” parents

Claims tax relief on parent’s medical expenses

Incurred on “her” parents

Tax relief Husband – max. RM8,000Wife – max. RM8,000

Either husband or wife – max. RM8,000

Joint assessmentor

Spouse has no income


Voluntary long-term savings and investment scheme;

Opened to all individuals age 18 years and above;

Operates as a unit trust scheme with trustee;

Option to switch funds within same or different PRS Provider;

Both Individual or his employer* can make contributions; and

Contributions are flexible. No fixed amounts or fixed intervals.

Individual tax relief up to RM 3,000

4years

(YA 2022 – YA 2025)

*Employer tax relief up to 19% of the employees’ remuneration contributed by employer. [ss 34(4) of the ITA].

Tax Relief on Private Retirement Scheme (PRS) [s 49(1D)]


Pre-retirement and Retirement Withdrawal

Partial / Full Withdrawal

Pre-retirement Withdrawal(Before 55 years old)

Retirement Withdrawal(Upon reaching 55 years old)

Tax penalty Tax Penalty

Income tax exemption on Pre-Retirement Withdrawal [ss 6(1)(l), 109 G, Part XVI, Sch 1]

• Permanent total disability;• Serious disease;• Mental disability; • Death;• Permanent leaving Malaysia; • Healthcare (w.e.f. 1.1.2020); and• Housing (w.e.f. 1.1.2020). 8


Tax Relief on Lifestyle

1. Books / journals / magazines / printed newspapers / other similar publications.

2. Personal computer, smartphone or tablet.

3. Purchase of sports equipment for sports activity and payment for gym membership.

Additional RM 500 [s 46(1)(u)]:i. Cost of purchasing sports

equipmentii. Entry/rental fees for sports

facilitiesiii. Participation fees in sports

competitions

4. Monthly bill for internet subscription.

Electronic newspapers

YA 2017 to YA 2020Up to RM 2,500

YA 2021Up to RM 3,000



1. In the form of hard copy or electronic.

✓ School textbooks, periodicals, (Locally and oversea).

X Banned reading materials

✓ E-newspapers w.e.f YA 2021

2. Personal computer, smartphone or tablet.

✓ For personal use only. X Additional charge for warranty.


3. Purchase of sports equipment for sports activity and payment for gym membership.

✓ Equipment with short lifespan.

X Motorized bicycles.

X Club membership which provides gym facilities.

4. Monthly bill for internet subscription.

✓ Use by own self, spouse or child

X Under someone else’s name



1. Archery 2. Athletics 3. Aquatics 4. Automobile Sports 5. Badminton 5A. Baseball 6. Basketball 7. Billiards and Snooker 8. Body Building 9. Bowling 10. Boxing 10A. Canoeing 11. Cricket 12. Cycling 13. Equestrian Sports 14. Fencing 14A. Fitness

15. Football 16. Golf 17. Gymnastics 18. Handball19. Hockey 19A. Ice Skating 20. Judo 20A. Kabbadi21. Karate Do 22. Lawn Bowls 22A. Martial Arts 23. Netball 23A. Paralimpiad23B. Petanque23C. Recreational 23D. Rowing 24. Rugby

25. Sepak Takraw26. Shooting26A. Silambam27. Silat Olahraga28. Soft Tennis29. Softball30. Squash31. Table Tennis32. Tae kwan do33. Tennis33A. Traditional Games34. Volleyball35. Waterski36. Weightlifting37. Wrestling38. Wushu39. Yachting

Sport Activities under Sport Development Act 1997


Resident individual

1

2

Net annual savings(Deposit – Withdrawal)

❖ For his/her children until age < 29

❖ Account is under parents or guardian’s name

and/or

SSPN-i + Takaful

Income tax relief up to RM8,000 for each resident individual.

(YA 2021 – YA 2022)2years

National Education Saving Scheme[Skim Simpanan Pendidikan National (SSPN)] [Act 566]

[s 46(1)(k)]


Tax Relief on SSPN

Net deposit for his/her children in Skim

Simpanan PendidikanNasional (SSPN)

Relief up to RM8,000 Relief up to RM8,000

Life insurance premium payments

and takaful contributions

N/A Relief up to RM3,000

Up to RM11,000

Comparison

Up to RM8,000


* An additional 1% bonus, as long as making new

deposit into the account within stipulated date.

Historical SSPN-I dividend payout rate

2019 4.00% + 1.00%(T&C)

2018 4.00%

2017 4.00%

2016 4.00%

2015 4.00%

2014 4.25%

2013 4.25%

2012 4.25%

2011 3.75%

2010 3.25%


Comparison of Dividend Rate from 2017 to 2019

2019 4.00% + 1.00%(T&C)

5.45%

2018 4.00% 6.15%

2017 4.00% 6.9%


Angel investors

Investment sum (Z) through approved equity crowdfunding platform

Income tax exemption for each YA= 50% x Z (a) limited to RM50,000(b) limited deduction to 10% of

aggregate income(c) excess disregarded(d) investor, investee co and

investment sum must be verified by SC

(e) investment must not be disposed within 2 years

Resident individual

≠ family relationship

Investment made from 1.1.2021—31.12.2023

High tech, infrastructure

Start up company


Approved equity crowdfunding

1. Leet Capital Sdn Bhd2. Ata Plus Sdn Bhd3. Crowdo Malaysia Sdn Bhd4. Ethis Ventures Sdn Bhd5. Eureeca SEA Sdn Bhd6. FBM Crowdtech Sdn Bhd7. Fundnel Technologies Sdn Bhd8. MyStartr Sdn Bhd9. Pitch Platforms Sdn Bhd10. Crowdplus Sdn Bhd

https://www.sc.com.my/development/digital/list-of-registered-recognized-market-operators


(a) Advanced electronics and information technology;(b) Telecommunications;(c) Equipment/instrumentation, automation and flexible

manufacturing systems;(d) Healthcare;(e) Electro-optics, non-linear optics and optoelectronics;(f) Advanced materials;(g) Transportation;(h) Value-add services; and(i) Emerging technologies

Investee company- Qualifying activities approved by MOF

- Has been in operation for ≤ 3 years (based on latest financial year result upon application)

- Cumulative revenue < RM5 million


20

Tax incentive to women entrepreneur

Malaysian government

Micro credit financingRM95 million

• Profit forecast• Cash flow

projection• Experience• Capability• Ability

Business income

- Single shareholder

- Single director

Issuance of shares for

finance

- Ordinary shares

- RPS @ 4.5%Contact: Ms Wong (011-2388 1519)

Sdn Bhd


21

Tax planning for SMI

1. Financing under TEKUN and Perbadanan Usahawan Nasional Bhd (PUNB) for Bumiputera SMEs and micro SMEs

RM million

Email: [email protected]

510

2. Lestari Bumi Financing Facility Scheme (SME Bank) 300

3. Financing for Chinese community through Bank Simpanan Nasional (BSN)

177

4. SME Digitalization Grant Scheme and the Automation Grant

150

5. Financing under PUNB for working capital, upgrade automation system and equipment and expenditure related to COVID-19 SOP compliance for SMEs

230

6. e-Commerce SME and Micro SME Campaign- Training programmes, sales assistance and digital

equipment

150


Book 5A - Synergy TAS · 2020. 12. 7. · Billiards and Snooker 8. Body Building 9. Bowling 10. Boxing 10A. Canoeing 11. Cricket 12. Cycling 13. Equestrian Sports 14. Fencing 14A.

Documents