2013 Budget : Reduction of 1% on personal tax rate

Being a tax consultant for the past 7 years, of course the main topics when it comes to the yearly Budget Announcement would be when there are matters concerning individual income tax.  Though this Budget 2013 tak banyak pun on individual income tax tapi ada la juga kan daripada takde langsung. So kalau tak boleh nak senyum banyak, senyum sikit pun ok kan dengan penurunan 1% cukai pendapatan individu ni. :))

Ok, as promised in my previous post, I would like to share how the different of 1% should bring a little smile to us.

Based from the above, even though the reduction of income tax is reduced for the chargeable income bracket up to RM50,000, those with chargeable income of more than RM50,000 will also benefited as their taxes for income up to RM50,000 will gives a maximum tax saving up to RM475.  I  have done the following calculation for comparison.  Harap2 faham la ye.. ;p

Ok, to be more clearer, let us look at 2 examples here:

Example 1:
A married man with a monthly income of RM3,500 and received 2 months bonus.  Wife is working and they have 2 children below the age of 18 years.


Example 2:
A married man with a monthly income of RM7,000 and received 2 months bonus.  Wife is working and they have 2 children below the age of 18 years.

So, ok x? Harap2 faham la ye.  Walaupun savings tu maybe not so significant, tapi ada la jugak.  Lets just hope for the years to come, more reduction implemented for all of us, taxpayers!