A credit card is a bit like a chain saw, it’s a very handy tool, but it’s capable of inflicting horrendous damage if used improperly. The same advice applies to both of them – choose the right tool for the job, and follow the safety rules.
With the newly imposed credit card tax by the government, here are a few things to consider before you select a credit card:
Spending habits
The first question to be answered is how you intend to use the card. Are you the kind of person who will pay off the card every month without fail, or do you anticipate carrying a balance from month to month? Are you going to use it to pay for everything, or just for emergencies?
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Property auction is an event where foreclosed properties are sold to bidders at a price that is much lower than the market rate. Property auction is fast gaining popularity among investors in Malaysia.
To facilitate the auction, auction houses will manage the auction events and assist the direct transactions between buyers and sellers.
In Malaysia, the supply of foreclosed properties comes from the Loan Agreement Cum Assignment (LACA) auction. A LACA property auction is conducted by banks for properties without an individual / strata title while a Non-LACA property auction is conducted by the High Court for properties with an individual / strata title.
It is crucial to find out whether the property that is going under the hammer is a LACA or non-LACA property because the bidding procedures are different.
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For income tax purposes, any expenses incurred in the course of a business will only be eligible for tax deduction if the expenses are solely incurred in producing the business income.
It is important to establish the deductibility of an expense as in the event of a field audit which results in the Inland Revenue Board (IRB) discovering an understatement of tax due to claims on expenses which are not tax deductible, a taxpayer will not only suffer additional tax but also a 45% penalty.
With effect from year of assessment 2004, entertainment expense will only be eligible for 50% tax deduction except for specific circumstances where it will qualify for full deduction.
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Gold prices have been rising sharply, breaching the US$1,000 barrier and in recent weeks rising towards US$1,200 an ounce and above. Today’s “gold bugs” argue that the price could top US$2,000. But the recent price surge looks suspiciously like a bubble, with the increase only partly justified by economic fundamentals.
Gold prices rise sharply only in two situations: when inflation is high and rising, gold becomes a hedge against inflation, and when there is a risk of a near depression and investors fear for the security of their bank deposits, gold becomes a safe haven.
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Credit Card Tax for 2010 is to stay no doubt about it. Credit card industry as a whole has come to a consensus that this tax will be borne by the cardholders and not the banks. Association of banks also confirmed on the tax payment date.
Now, banks in Malaysia are strategising to help customers pay the credit card tax by hoping that they can retain their customers.
Most banks are willing to allow customers to utilise their reward points collected to pay the tax charge. However, some banks said that consumers could easily offset the tax with the many cash rebates offered with their credit cards.
For banks that agree to use points, how much are needed?
The table below shows how much points that you need for different banks
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