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Message: <blockquote data-quote="jarance" data-source="post: 321079" data-attributes="member: 21">Wah you so terror one.. Never pay tax before for 11 years. How do you do it? :wink:Nowadays, it is compulsory to for the company to deduct first based on your monthly income.There is a guide where the amount of deduction is made based on "month income +  number of children + number of wife". At the end of the year, you are supposed to submit your form to IRS where they will further adjust your taxable income afetr taking into account the EPF and Insurance. There are not much you can claim for tax deduction. Some of the deduction allowable are:-1. Medical for immediate family2. a Computer (1 time for every 3 years)3. Travelling (airfare - 1 trip)4. Books.5. Professional course.6. EPF and Insurance (Limited to a maximum of RM6000).7. Special relief for kids.I find that the Govt decision to allow a maximum of RM6000 for Insurance and EPF contribution to be a bit silly considering it is saving for our future. FYI, Singapore allow full deduction for all the CPF that is deducted from your monthly salary. Employee + employer contribute to about 40% of the basic salary. (I do not know what the actual amount nowadays). In the case of Malaysia, EPF contribution is employee 11% and employer 19% = 30% of the basic salary. With the reduction in EPF contribution to 8%, your saving would be 27% of your basic salary. Compound it over a span of 15 years, the amount at the day when you retired would be quite substantial.If your are in business or sole owner of the business, there is more flexibilty in claiming for tax rebate. Get a professional to do it if you have not done so.</blockquote>

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