Tengky Adam Kamil

Personal Taxation

Income Rm

salary 90,000

Less:Tax relief
Individual/self 9000

children-1st 2000
-
2nd 8000
-
3vd 2000

4th 200
-
5+ h 2000

Life insurance 3000

EpF 4000
Lifestyle (texbook) 2000

Total tax relief 40000

chargeable income 50000

Tax rate
Firsts 500 1200
Next 11 .
570
15000 x

Total income tax

Less:Rebate

Zakat fitrah 45
zakout
.
Tax payable 1205
B) Four suggestions to minimize tax payment:

1.Take advantage of tax deductions and reliefs: Taxpayers can reduce their taxable
income by claiming tax deductions and reliefs, such as personal relief, education fees
relief, and medical expenses relief. For example, Tengku Adam Kamil can claim
education fees relief for his children's education expenses.

2. Plan for capital gains: Taxpayers can minimize capital gains tax by holding their
assets for more than a year before selling them. They can also offset capital gains with
capital losses. For example, if Tengku Adam Kamil has investments that have
increased in value, he can hold them for more than a year before selling them to
minimize capital gains tax.

3. Invest in tax-efficient vehicles: Taxpayers can invest in tax-efficient vehicles, such

as retirement accounts or unit trust funds, to minimize their tax liability. For example,
Tengku Adam Kamil can invest in a Private Retirement Scheme (PRS) to enjoy tax
relief and earn tax-free returns.

4. Consider income splitting: Taxpayers can reduce their tax liability by splitting their
income with family members who are in a lower tax bracket.