On 23rd October 2009, Prime Minister Datuk Seri Najib Tun Razak has tabled Budget 2010 with the theme “1Malaysia, Together We Prosper”.
These are the main highlights that interest me in the area of Personal Finance
- 5% property gain tax will be imposed on gains from the disposal of real property from Jan 1, 2010. Existing tax exemption will be retained for gifts between parent-child, husband-wife, grandparent-grandchild.
- A service charge of RM50 a year to be imposed on each principal credit card and charge card and RM25 a year on each supplementary card including those with free for life effective from Jan 1, 2010.
- The maximum income tax rate for individuals to be reduced to 26% from assessment year 2010.
- Personal relief on income tax will be increased to RM9,000.
- Govt will launch a scheme that enables EPF contributors to utilise current and future savings in Account 2 to promote house ownership.
- Personal relief for EPF and life insurance schemes to be increased to RM7,000.
- Government will launch 1Malaysia Sukuk (Islamic Bond) totalling RM3 billion. The Sukuk will be matured in 3 years with 5% annual return. Malaysian aged 21 and above can invest between RM1000 to RM50,000.
- Taxpayers will get tax relief on broadband subscription fee of up to RM500 from 2010 to 2012.
- PTPTN loans will be converted to scholarships for students who graduate with 1st class honours degree, beginning from 2010.
- University students will be offer of netbook package & free broadband service, for RM50 per month for 2 years.
Year 2010 coming to an end. Most of us will have to submit tax return by April 2011 or June 2011.
Start planning now before too late. Plan after that is no longer planning, that is cheating. Price to pay for cheating is high. Gain from planning is worthwhile.