You still have time to do your 2019 Personal Income Tax planning!

December 14, 2019

Category : Financial Planning , Tax Planning

Year 2019 is going to end, and many people has started their spring cleaning since Chinese New Year is coming soon.

Hey, wait a minute!

While you are busy with the spring cleaning, there is one more thing you should not missed out! Do your 2019 income tax planning now!

Why need to do it now?

Isn’t it tax filing is only happen next year April (for employed) or June (for self-employed)?

That is right. But please think about if you have changed job, salary increment, or you have more income source happen in this year? Do you know that these extra income may cause you enter the next level of tax rates, which result you may have to pay the income tax by a few hundreds or thousands more ?

Let’s take an example. Your last year chargeable income is RM60,000. In this year, you have rent out the house you bought for investment, and you start to collect rental from that. As rental is part of the income, your year 2019 chargeable income now become RM80,000. With this change, your income tax will increased from RM3,200 to RM6,700. Are you aware about this??

What shall I do now?

I am going to share some useful tips below. There are than 20 days before we end the year of 2019, you have to act NOW!

Improve your lifestyle

December is a month for school kids enjoy their school holiday while a lot of working adults clearing their annual leaves. Why not buy some book to enrich yourself? At the same time, we shall do more exercise to improve our health, or you may buy handphone or personal computer to explore more for the technology life style. For these books, personal computer, phone, sports equipment, gym membership that can improve your lifestyle, you can enjoy up to RM2,500 tax exemption.

Medical & health

Arrange a time for medical check up! You can get RM500 tax exemption from here.

Further, have you get yourself and your family member a medical card? Medical card is a hassle free card if someone has to admit to hospital for medical treatment. Medical insurance and education insurance can give you RM3,000 tax exemption.

Increase your protection

Life is unpredictable. When any member from a family passed away, it not only brings the sadness and sorrow to the family, it will somehow have the impact to the household income. The government has determined to promote the awareness of protection, therefore, the 2020 budget has propose to change the RM6,000 tax exemption of EPF & life insurance to break into RM4,000 EPF & RM3,000 life insurance. Let’s get a life insurance to provide the protection for your family and enjoy the tax exemption!

Retirement Planning

Retirement planning for a lot of people is only rely on EPF for their retirement fund. Do you know from the research conducted, there are more than 50% people used up their EPF retirement fund in 5 yrs time. So, let’s start saving now, but where to save?

You can choose to save into Private Retirement Scheme (PRS), it shown a 5% – 8% return based on past performance, and you can enjoy RM3,000 tax exemption from PRS! What a win win situation.

If you are interest to know more about these tax exemption, welcome to contact us for a free consultation!

Year 2019 is going to end, and many people has started their spring cleaning since Chinese New Read more

2019年的个人所得税，你现在还来得及规划！

December 12, 2019

Category : Financial Planning , Tax Planning

2019年接近尾声了，而明年的农历新年来得早，很多人趁这个时候开始大扫除了。

等等！当你在忙着去旧迎新的时候，还有件事你还得这个时候做的！做好你的2019年个人所得税规划。

急什么？报税不是明年 4月（受雇人士） / 6月（自雇人士）的事吗？

没错。可是请你仔细想想，你今年是否有换工作、升职加薪；或者多了其他的收入来源？

你知道你这些多的收入，很可能会让你跳到下一个税务阶级，而导致明年可能要比往年多还数百到数千令吉不等的所得税吗？

打个比方，你往年的应纳所得税 (chargable income)是 RM60,000。今年你买来投资的房子开始租出去收租了，导致2019年的应纳所得税变成是RM80,000。所以你得缴的个人所得税会从去年的RM3,200 变成RM6,700。你有发现到吗？？？

那该怎么办？？？

下面跟大家分享一些小贴士。趁2019年还剩下不到20天，快点行动了哦！

充实生活

12月，孩子欢度学校假期，也是不少工作人士在清年假的时候，也买些书籍充实自己吧~ 在充实脑袋的同时，也应该多做做运动保持身体健康，或者购入手机或电脑科等，让你在来年能够更好的掌握科技生活。这些凡是能够提升生活品质的书籍、个人电脑、电话、运动器材、健身中心会员费等等，都能够让你享有总值 RM2,500 的税务豁免哦！

医疗健康

安排时间去做个身体检查吧！这里可以享有 RM500 的税务豁免；除此之外，每年的医药费用节节高升，你是否已经为自己或家人购买了医药保险？医药保险和教育保险总共能享有RM3000 的豁免额。

提升保障

人生无常，任何家人一旦离开，除了带来情感上的伤痛，也可能会对家庭收入带来一定的影响。政府为了鼓励人民多重视这一块的保障，从2019 年开始，就把原有的EPF + 人寿保险共享 RM6,000 的豁免改成 EPF 享有 RM4,000, 人寿保险享有 RM3,000。趁现在找个适合的人寿保险，让你给家人一个保障的同时，也享有扣税的福利吧！

退休规划

很多工作人士对于退休规划，就仅仅依靠EPF. 可是你知道吗？根据报道，其实有超过一半的人五年内就把退休金给用完了。那现在就开始储蓄吧，要储蓄哪里好呢？

你可以放进私人退休计划 (Private Retirement Scheme, PRS) 里头，按照过去的基金表现，除了享有 5 – 8 % 的回酬以外，还能够享有 RM3,000 的扣税。何乐不为呢！

对哪个税务豁免想再详细了解的话，欢迎联络我们以获取免费的咨询服务！

2019年接近尾声了，而明年的农历新年来得早，很多人趁这个时候开始大扫除了。等等！当你在忙着去旧迎新的时候，还有件事你还得这个时候做的！做好你的2019年个人所得税规划。Read more

WHAT YOU DIDN’T KNOW ABOUT THE COST OF RETIREMENT?

December 2, 2019

Category : Article , Financial Planning

RETIREMENT ! Ha ! it is an exciting and significant milestone that many look forward to after years of hard work. Are you ready for your retirement ? What do you anticipate during your retirement ? What do you expect , or rather, what do you know or didnt’ know about the cost involved during Retirement ?

Regardless what are your visions or what you anticipate your retirement would be …. well, life is unpredictable! Some imagine to be traveling around the world with their loved ones, some may imagine staying home with their grand children, while some dream to be doing “nothing” and just resting at home, entertaining themselves with their hobbies…Whatever you plans are and no matter how solid you have planned out your retirement funds, you may want to take note of some of these areas.

Let’s discuss about some unexpected expenses that retirees often face :

HEALTHCARE

For many retirees, the cost involved in healthcare is often one of the most critical and crucial concern. Any unexpected illnesses can devastate the finance and the fund saved up for retirement. Even if you are in the pink of heath condition now, it is always good to have a separate amount set up to stand-by for healthcare. Besides all the regular medical check ups, it is advisable to have funding set aside in case nursing home is needed, special care, or treatments are required.

2. ENTERTAINMENT

Well, you may not see the needs for entertainment while you are working now, simply because you are spending most of your days in the office. However, once you are in the situation where you are no longer need to be in the office, you will be having the additional 10 to 12 hours a day to yourself, and that is when you need activities to entertain and occupy your time with ! Whatever your entertainment or hobbies are, eating, watching TV, travelling, golfing, shopping, socializing etc etc cost money! With no regular income, think about the funding of these activities. Well, of course, you can still enjoy these activities, but just to be more cautious with the spending.

3. REGULAR EXPENSES

With proper financial planning prior to retirement, hopefully you have had your home loans, car loans, personal loans etc settled by the time you retire. Having to pay for regular bills without a fixed income like before may be a burden and worrying matters by then.

4. UNEXPECTED BILLS

Annual quit rent, car repair, tax matters, a much needed house maintenance or renovation etc may be some of the unexpected expenses that pops up and affect your regular monthly expenses calculations. Therefore, having a separate emergency fund is not a bad idea.

Well, many think that they have EPF / KWSP / investment / savings etc in place and need not worry much. However, the tips is to firstly determine what kind of lifestyle would you want to live and then identify the expenses required to achieve that kind of lifestyle, and well of course the cost of inflation needs to be calculated too! And, it is always good to over estimate what you need and be prepared for the worst.

In summary, being financially independent during your old days is not just about leading a debt free and living comfortable, it is also bout aging gracefully with dignity, pride and not giving burden to your loved ones.

RETIREMENT ! Ha ! it is an exciting and significant milestone that many look forward to after Read more

Do i Need Financial Planning?

November 20, 2019

Category : Financial Planning

Financial Planning ? Do i really need it?

Now, a quick example : What do you do when you want to go somewhere this year end holiday ? Most probably, you will ask yourself and discuss with your loved ones :

Is it going to be a local or overseas destination ?
What are the options of accommodations – Home Stay or Hotel ?
What is the budget available / how much total cost?
How long will be the holiday?

Now, by discussing the above, the planning starts and these questions help evaluate options, budget and the overall holiday itinerary. These questions leads to decision making. So, similar senario goes to Financial Planning, only if we know what we want to achieve, then we will be able to start thinking, discussing, planning and eventually work towards achieving our financial goals. In personal financial planning, areas to consider involve questions like “what is your dream and goals?”, “what do you want to achieve in 5 / 10 / 20 years time?” “At what age would you want to retire?” and so on. To achieve your life dreams and goals, one need to start planning from the financial perspective, which involves budgeting, managing cash flow, saving, protecting and distributing one’s assets over time.

Without setting clear Financial Goals, one may not have clear directions to work towards. How much to save up, how much savings to achieve before retirement, is there emergency funds available etc.

There are many benefits of Financial Planning

Many may have have the impression that with Financial Planning, they cant enjoy life because they have to save up and not able to spend on what they like to do. This perception is incorrect, because with Financial Planning, you will get to understand, plan and spend according to your capability, needs and eventually have a balance of saving, spending and protections covered. Here are some of the key benefits to Financial Planning :

You will have better control over your financial affairs. With the better understanding and control, you will avoid unnecessary spending, manage debts, avoid bankruptcy and avoid depending on others when come to financial matters.
The most important area is the relationships with your loved ones, family and friends. With financial well managed, you will get less stress, better managed emotions and thus build a better relationships with people around you, instead of having to borrow money from them.
You will have a more meaningful life. Meaningful life in the way where you will get to create your life goals, plan strategically how to achieving these goals and have better control at the later part of your life journey.

So, hope you have a better idea about Financial Planning after reading this. Contact www.eraadvisory.com.my for more details. Financial Planning ? Do i really need it? Now, a quick example : What do you do when you Read more