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The example in the previous chapter shows a tax amount of more than RM4,000 – that’s quite a big sum. But this may not be your final tax yet. The last step you can make to reduce your tax is through tax rebate.
Most people confuse income tax rebate with income tax relief. The difference between the two is: a tax relief is deduction from the total income to derive your chargeable income, whereas tax rebate is deducted from the actual taxed amount....

Now that you understand how to derive your chargeable income to file for your 2016 income tax, we can calculate how much tax you will be paying for last year’s assessment.
Here are the progressive income tax rates for Year of Assessment 2015:
Chargeable Income...

Fortunately, taxpayers in Malaysia are not taxed on our total income, as certain portions of our income are tax exempted. For income tax filed in Malaysia, we are entitled for certain tax exemptions that can reduce our overall chargeable income.
Tax exemptions either reduce or entirely eliminate your obligation to pay tax. Most taxpayers are entitled to an exemption on their tax return that reduces your tax bill in the same way a deduction does....

What is a income tax relief? Tax reliefs are set by LHDN, where a taxpayer is able to deduct a certain amount for money expended in that assessment year, from the total annual income. These are for certain activities or behaviours that the government...