Friday, October 23, 2009

2010 Malaysia Budget

Malaysia Prime Minister is delivering Malaysia Budget of year 2010 in Parliment today.

Below are some highlights which related to personal financial planning:

1. Personal Income Tax reduce 1%.

2. Broadband subscribers can get tax relief up to RM500 a year during year 2010-2012.

3. Personal expenses tax relief increase to RM9000 from RM8000.

4. Service Tax of RM50 will be imposed by Jan 2010 to each of the principal credit card, charge card including free card. RM25 will be imposed for supplementary card.

5. Tax relief of EPF and Life insurance increases to RM7000 from RM6000.

6. RM3billion of sukuk 1Malaysia will be issued to Malaysian of 21 year old and above, 3 year maturity with 5% return per annum.

7. Government to look into micro insurance, takaful coverage. Premiums from as low as RM20 per month, coverage from RM10,000 to RM20,000.

8. Government to impose 5% tax on gains from disposal of real property from Jan 1, 2010. However,it will be retained for gifts between parent and child, husband and wife, grandparent and grandchild. This tax exemption will also be given on disposal of residential property once in a lifetime.

9. Government to launch scheme for EPF contributors to use current, future savings in Account Two to get higher financing to buy higher value house or additional houses.

10. 1Malaysia retirement scheme for self-employed, run by EPF. For every RM100 contribution, government to contribute 5%, maximum RM60.