Sunday, November 15, 2009

Malaysia 2010 Budget - What should I do with it?

If you're Malaysian, you may wonder what are the action that you should take with the recent budget 2010 announcement. If you're not Malaysian, you can ignore this post. These are the KEY summary of Malaysia budget 2010 which most likely may impact or relevant to you.

For Credit Card Holders

If you're credit card holder and you've more than 1 credit card, go to bank directly and cancel your credit cards. Keep one credit card will be enough. This is due to the fact that you're now required to pay annual RM50 fees per credit card and RM25 for each supplementary card. What a crap?

My 2 cents: If RM50 is NOT too much for you or you lazy to go to bank, you can just wait and see what are the respond from the bank to play around with our government to waive this RM50.

For Property or Real Estate Owners

If you're the owner of property and this year is your fifth year of your purchase, sell your property as soon as possible before the end of 2009. If you can't sell, you can either sell it with 5% tax starting from Jan 2010 or just don't sell it at all and pray until the next announcement to waive it. Possible?

If you plan to sell your property which is within the 4 years of your purchase, don't sell it until next year Jan 2010 because the tax is more than 5%. Hold it until 2010 only sell your property. :)

Background: It used to tax 30% out of your property gain if you sell your property within 2 years, third year is 20%, fourth year is 15% and fifth year onward is NO TAX at all. With this recent 2010 budget announcement, everything will be stick to 5% regardless of what years you're selling. So it is good for those love to sell the property within 4 years but not good for those who love to sell their properties in long term (i.e after 4 years).

For Broadband Subscribers

If you have subscribed to any broadband services (e.g. streamyx), please keep your broadband bills receipt every month. This is due to the fact that you can get claim up to RM500 for tax relief starting from 2010 to 2012.

My 2 cents:
This is probably the best news in this budget 2010 announcement. By the way, for student, there will be some incentive about PTPTN conversion to scholarship and free netbook package which I don't feel any great about it. Do you?

For EPF Contributors

If you're EPF contributors, basically you do NOT need to do anything. Your contribution will be reverted back to 11% if you opted to decrease your contribution previously. Also for 2010 tax filling, EPF and life insurance schemes to be increased to RM7K from RM5K.

My 2 cents: It is clear that this new scheme is good for everyone especially for those who has exceeded RM5K for many years.

For Self-Employed Folks

If you're self-employed, starting in 2010, you can go to the EPF office directly to open an EPF account and the government will top up 5% of every RM100 that you contribute. However the maximum amount that the government will pay you is RM60 which is RM300 for 5 years.

My 2 cents: What so big deal about this RM60 per annum? Isn't that too little? Should I say better than nothing?

p/s: Hope this helps and clear things up on what you should react to this Malaysia 2010 budget announcement. Good luck!


Alvin said...

Haha quite a good summary u came out with here. I think you've explained the RPGT way better than I did. :P

aih, this time budget has more bad news than good news. reli pity those credit card fellas, esp when most banks said they wont b doing anything to cover that rm50 cost.

ChampDog said...

Thanks! Alvin. :) Yes, it is also very funny that they said it meant to solve the debt problem. I hope the bank will come out something soon to counter this. Let's wait for the good news! :)

min said...

the budget, does not really have a lot of goodies for us commoners.

ChampDog said...

Yes, I think the most benefits one are those which can be used for tax relief. I think many of us will be happier if there are more tax relief options. :)

Pig said...

U helped me clear up the confusion on the property gain tax :) Now i'm wondering if I should transfer my TM account name to mine so that I can claim tax!

ChampDog said...

You're welcome! :)

I"m not sure if you really need to have your name on the TM account.

Maybe you can just claim for it since now we no longer need a submit the receipt. :D

stock market for beginners said...

Good job and great article! Yes, I agree that the more tax relief, the more people will get happy. :-)

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