โœ‹ MOST ๐Ÿ›‘ Over-Looked Tax Relief in Malaysia


Hi, CF Lieu here again, uh, independent licensed
financial advisor in Malaysia. Now we are still on this series of
lesson about Malaysia personal income tax relief, how to maximize your tax relief, pay less tax legally or get
more tax refund while still
staying as a responsible tax payer according to
Lembaga Hasil Dalam Negeri guideline and what they expect
every year of one of us to be. Now this lesson we want to talk about
the most overlook Malaysian income tax relief, the most overload.
So it’s very easy to, I can miss this out and uh, which means that you end up paying
a lot more tax unnecessarily. So for the employee, you know, for
if you are working for a company, for someone, just don’t
forget, you know, to, you know, this goes without saying no brainer
to put in your own, you know, the EPF or KWSP deduction monthly, um, that is being deducted on
your portion. Normally 11%, you know, contribution to the EPF. Now normally you can actually
calculate that on a monthly basis, multiply it by 12, you know,
including bonus and all that. But you will find it always almost easier
when you refer back to an EA form the company we normally provide to
you some way in February or March. So you can actually put text if
you can just put that amount. Um, here’s the thing, it’s very, very easy to maximize these tax relief
under the EPF because if your salary is, it’s just exactly your
salary is at 3001 and B, a contribution of 11% to EPF or KWSP. The Employee Provident fund. Now, assuming you don’t talk
about anymore by debt alone, by having a salary of 3000 when a load a
bet equals to a monthly contribution of 240 per month, multiply by 12 easily, you have like four thousand and
more than 4,000 a year already. So it’s enough to actually maximize
this EPF deduction and EPF or KWSP tax relief. But here’s the thing,
it used to be at 6,000, right? And this 6,000 is a combination of a
life insurance and EPF. But you know, since 2018 again, okay,
they split that, you know, they split Antony and I don’t know when
they actually split this to and uh, KWSP employee, Provident fund tax
relief, they have a separate column, but the amount of it is only 4,000. So the life insurance potion are split
out and that this amount to 3000 each, I’m going to talk about a very soon, so still back on the EPF
or KW S P tax relief. So if you are self employed,
you’re running all business, you should or you know, you could be the kind of
salary for yourself or if
not so before 31st December, 2019 a beach. Sure. Just pay
attention that if you don’t, you know, for whatever reason, don’t contribute
to the EPF you just on a monthly basis, you just remember to contribute at
least, uh, lie. Uh, from about it, I was this computer and could you be
at least like a two EPF about 4,000 insight, you know, inside, EPF,
self contribution, actually count, self contribution actually count,
right? So now it’s separated. So the maximum tax relief for EPF
KWSP contribution is at 4,000. Now, which brings me to
another thing, right? Uh, life insurance used to be like, no, 6,000
EPF relationship insurance tax relief. But that is not the case anymore. Um,
a lot of people I can miss out on that. Uh, very simply. It’s because
again, I don’t buy life insurance, but actually they do. Now evidently a lot of people
buy a house and that house, for whatever reason,
the bank or the banker, the mortgage officer asks you to take a
mortgage insurance nowadays actually a life insurance. But if you don’t,
if you have not smart enough, you don’t have the awareness, you will have let the bang actually
take this so called the premium of the insurance of imagine.
It’s not MRTA imagine. It’s like that kind of insurance
that runs for it forever. I not ask. We need the coverage. Like you have
to pay like a few thousand every year, just for example, a 1 million or 500,000 or 1
million of life insurance. Now if you actually, uh, uh, do this
together for your loan agreement, which is really stupid
because you actually pay
interest on the life insurance premium, which you actually don’t need to. So you don’t really don’t want to do that. But my point it from tax relief stand
point is still very non efficient way to do it because that way is part of
your loan payment and you know, your mortgage repayment is
not entitled for tax relief. But if you were to actually say, look, I’m going to actually buy this a life
insurance to cover my house loan, uh, separately. Like you just buy a normal life insurance
that you pay very transparently, you know, you, you’re putting on
your credit card 300, 400 a month. So it’s very, evidently you are paying for life
insurance and now this like insurance is actually entitled for a, what I call SP
life insurance tax relief if not easily. I say 3000, 3000 divided by 10 so easily. If you are taking that 250 per month is
you can easily maximize that eligible income tax with day four. You know,
the life insurance approach. And so, you know, it’s crazy when you go
actually lump together the
insurance pre premium inside a loan, a mortgage repayment is
totally crazy. Don’t do that. If you’re watching this, you
will find that I do in math, just say Hey on the like button and
any further questions or just comments below, I know that it really helps.
Uh, so they might multiple uh, know about this. So again, smash on the like button and subscribe
if you really feel this lesson has been available. Normally if
you have a life, you know, a life insurance or you intend, you eat, you are aware of the importance of a
ligation of 1 million or whatnot. It’s a, it’s very easy to, to actually meet a 1 million insurance
because it would take a 1 million house loan, which is, you know,
by one two house normally. Now the house price nowadays is not cheap, so think you’ll have a liability of a 1
million or so. But you might think like, Whoa, Holy shit, if I were to buy
a 1 million, 500,000, 600,000, 700,000 kind of insurance, and that’s
going to be very, very expensive. Now here’s the thing, um, that,
that drum about no complaint. Basically, if you complain it is
expensive, it’s likely that, uh, you don’t know what you don’t know
or when insurance agent approach you, you are being recommended that
kind of insurance product, which is a kind of expensive, cheap insurance product and
expensive insurance product, the cheap insurance
product you can, you know, there’s nothing wrong with the cheaper
option, but they still cover you with, uh, they can enough kind of coverage
basin, all that you want. You are, you buy insurance. I think you
shouldn’t be looking at that. I the cash value and owe that.
You only need the life insurance. We say that if you die, then they will pay out whatever the
guarantee amount of your coverage, 1 million or so. Right? So here’s the thing that a lot of
people don’t know and a lot, you know, these things might be a conceal,
conceal truth or secret from a, for you, if you feel that you feel that you really
think that two by 1 million insurance is expensive as a licensed independent,
licensed financial advisor. I know I have to disagree with that,
but you might say so what, what, why? No, I want to check out the,
this video, this lesson that I’ve, that previously popping up on the lower
right up upper right hand corner. Just, just go to that. And you know, I suggest you actually watched
this another lesson on mine. I know people went through complain about, especially our insurance savings
plan, but the concept is the same. These are the very kind of
expensive kind of insurance. So you’re on that video after
this video, this lesson. And so I think it would give rev a lot
of value from that. And a really, if you, if you feel after watching that video
and you still didn’t feel that you actually need, um, you know, you have a few of policies
that you already have and
you are pretty confused of what to do with it, whether you can
actually be structured that save, some premium on them, you don’t
maintain or even increase your coverage, without actually significantly increased
your premium or even keep keeping the right amount of insurance
premium. Get, uh, more value of money out of your policy. What he called a best bang for your back.
Then, uh, you might want to check out, you know, uh, our membership site askcf.com I put in
links up below the description or is coming up here. Um, so
if you finish this video, maybe check out that where you
are in askcf.com some amendment, but the subscribed, you know, very
cheap, uh, for as a membership, uh, from, from, from us. So they
have questions like, how do I buy the buy the maximum
insurance with the lowest premium. Um, so in that we actually give you answer, we answer your burning
urgent financial question, just like you’re walking into a
GP or a doctor to get, you know, to get some consultation so you get
the truth and nothing but the truth, like independent, non-biased answers or advice to your
financial question in askcf.com. Just wanted to check it out after
this video ads. Now I’ve, uh, one or two more things for you for this
lesson. Now coming back to this, um, the most overlooked, um, uh,
tax relief in Malaysia. Uh, there’s only this other category we call
[inaudible] the issue of premium pay for education or medical benefit, right? So this is a different thing
from the life insurance. This is for medical insurance and
to a certain extent we are kids. So education insurance, whether you should or should not buy
it so you still can check out, uh, just now the video, the lesson that his power on the upper
right hand corner of your, of this video, this lesson go to the end. I think that
lesson actually answered a lot of your, you’re probably the questions
that you have. Uh, but, but if we’re talking about like medical
insurance premium that there is still came about and a different category
which is good, like 3000 yesterday, this additional 3000. Now you
might have question like, um, if you as a husband you actually paying
for medical insurance for your wife. So the thing is you might
have a question like, can I actually claim these are
income tax, uh, relief in Malaysia? If I do like that, I buy for my,
my wife [inaudible] my wife name. I’ve been paying it for
you. So can I came for that? I have all you matched the question I
have of insurance policy or one issue policy only. But you said the
insurance policy. I have LIFE, I have a medical card, I have a
critical illness coverage. So, uh, how should I claim the tax
relief for all of them, how do I allocate the premium? Is
it just put in by whatever amount, the lump sum amount?
Now the question is no, but just to keep this or we
do video compact and short Um, let me know if these are some
of your questions. Uh, is this, just cut the comments below in this
or wherever you’re seeing this, this video or these posts, comments below
and leave your comments, let me know. Right. Let me know and I are able
to actually answer you on there. So give us some time, but you know, just and leave your
comments below and I’m so, I hope so far for this, I’m most
overlooked income tax relief in Malaysia. You have really enjoyed this video. If
you do, give it a LIKE and subscribe, stay on to watch the following lessons
view on the Malaysia income tax relief. Um, stay as a responsible,
responsible tax payer. And as usually if investing is your thing
and you’re interested to actually get the most, the best, the investment that pays
the most consistent in the
best dividend in Malaysia or anywhere in the world at
a rate that is like six, 7% or even 5% matching the
kind annual return of EPF And without, you know, you need to need to actually
do day trading and constant
monitoring without that kind of hassle of, or that kind of
effort or the times spend, uh, okay. Huge capital needed to actually
invest in property you’re not a tenant management has, so that it’s really,
you know, wasting time and all that. So you might want to check out the
other lesson that I have for you after, I mean, before this
video ends, so the best, the best dividend investment
in Malaysia, the channel, and then you definitely don’t want to
miss out on that because that is one of our most watched, most popular
lesson of video in the, an entire channel four
for many years. So, uh, that’s all I have for you and
I’ll see you in the next lesson.

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