To make sure that you have not missed out any claims which you are entitled to, please go through the following check list before submitting your Borang BE 2008.
1. Choose Separate Assessment if your spouse has income of RM3,000 or more in a year (as a general rule of thumb)
2. Profession subscriptions
Ensure subscriptions paid to professional bodies related to your job are deducted from Employment Income before filling up item C1. (Eg. Accountants, Engineers, Lawyers, Architects, Doctors)
Ensure that all dividends received are included. As dividends are taxed at source at 26%, make sure that you declare them in item C2 and claim Section 110 Set off in item E10.
Two exceptions here :-
i) If the dividend received are ‘single tier dividends’, then there’s no need to declare.
ii) If your final tax rate is 27%, then you may have lost your dividend vouchers and forgot all about them. You save the difference of 1%.
4. Interests from bank accounts (Savings, fixed deposits, etc)
These would have been either taxed at source or tax- exempt. No need to declare.
5. Donations or Gifts to the government
As these are not common, I will not discuss them here. Go through the items from C8 – C15.
6. Parent’s Medical Expenses Paid
Keep receipts – Maximum RM5,000
7. Purchase of Equipment for Disabled parents, spouse, children or self
Maximum – RM5,000
8. Disabled persons – Self
Additional RM6,000 relief
9. Own Educational Course Fees Paid
Maximum – RM5,000
10. Medical Expenses for Serious Deceases – Self, spouse or children
11. Fees paid for Full Medical Examination
12. Purchase of books, magazines & journals
Maximum RM1,000 (School books, cookery books, etc. It does not matter who they are for)
13. Purchase of personal computer
Maximum RM3,000 if you have not made a claim in 2007 & 2006
14. Net contribution to SSPN
15. Purchase of sports equipment
16. Husband/Wife Relief
If not assessed separately, RM3,000
17. Disabled Husband/Wife
18. Children Relief
Below 18 years old – RM1,000 each
Above 18 years old and studying in tertiary level – RM4,000 each
Disabled children – Additional RM4,000 on top of the above
19. Life Insurance premium and EPF paid (Self and spouse)
Total maximum RM6,000. If separate assessment, husband and wife claim in own form.
20. Medical and Education Insurance (Self, spouse or children)
All the claims which are not specific to any person, eg. sports equipment, books, SSPN, children, etc. can be claimed by either husband or wife. Therefore, put those claims on the person who is in a higher tax bracket.
21. Tax Rebate
If your Chargeable Income in Item E3 is RM35,000 or less, you are entitled to RM350 tax rebate (Item E4)