Tuesday, February 8, 2011

Apple iPad is entitled to LHDN personal income tax relief but not Samsung Galaxy Tab

In reference to Paragraph 46(1)(j) of Malaysian Income Tax Act 1967, an amount limited to a maximum of RM3,000 is deductible in respect of the purchase of non-business use personal computer for individual tax payer.

This deduction is allowed once in 3 years, but no deduction will be granted if the computer is used for business purpose.

Now, the question: are tablet computers such as Apple iPad, Samsung Galaxy Tab, Viewsonic ViewPad 7, Toshiba Folio 100, CSL Spice Mi700 DroidPad, Blackberry Playbook, ZTE V9, etc. entitled for this personal income tax relief?
 
I have asked this question to LHDN, and the official answer is: if the tablet computer only have computer features and is for home and family use only, then it will be treated as "computer" and is entitled to the personal income tax relief of up to RM3,000, claimable once in 3 years.
 
This will be the case for Apple iPad, Toshiba Folio 100 and Blackberry Playbook. Let's say you purchased an Apple iPad 64GB with Wifi+3G at the price of RM2,599 in year 2010, and your tax rate is 24%, when you file your 2010 personal income tax now, you can claim back RM2,599 tax relief, which is equilvalent to a saving of RM623.76 in your income tax. (If you have any family member or friend or colleague who purchased Apple iPad recently, please forward this good news to them using the "Share" button below.)
 
However, if the tablet computer also have handphone features in addition to computer features, which mean you can make phone calls and also send SMS/MMS using the telco service with the tablet, then it will be treated as a "phone" and is not entitled to personal income tax relief. This is the case for Samsung Galaxy Tab, Viewsonic ViewPad 7, CSL Spice Mi700 DroidPad, ZTE V9, etc. Bad news.
 
If you need to verify this information, can make a call to LHDN at 1300-88-3010 or email to callcentre@hasil.gov.my.

9 comments:

RaGeMyDreaM said... Reply To This Comment

can you post the reply from lhdn so that we could make as reference? thank you

Voyager8 said... Reply To This Comment

@RaGeMyDreaM

The reply is already copy-and-pasted as in the bold text above.

You can always call or email to LHDN and ask them to confirm.

Mylifedesire said... Reply To This Comment

I have come to Malaysia in September 2014 and have to complete 182 days which is possible only next year in 2015 to become as resident. Can I get the refund for tax paid for year 2014 in 2015 April. Since when I will file my Income Return in April 2015 I will be still called as Non-resident but in just another 2 months i.e. in June 2015 I will become resident. How do I claim the refund for all these 9 months starting from Oct 2014 till June 2015?

Voyager8 said... Reply To This Comment

@Mylifedesire

If you are on business, can get advise from your tax consultant.

If you are on employment, can get advise from your HR.

Mylifedesire said... Reply To This Comment

@Voyager8

Thanks, Do you know the good and reliable Tax Consultant in KL?

Regards,
John

Voyager8 said... Reply To This Comment

@Mylifedesire

Can try Great Vision.

Mylifedesire said... Reply To This Comment

Hi All, I called Income Tax customer care and according to them you can not get benefit on ipad.

Also just to clarify for any laptop purchase do we get total amount refund or just benefit of tax on that amount in income tax return. I do not think we will get refund of 3000 RM :)

Voyager8 said... Reply To This Comment

@Mylifedesire

Policy changed last year, now all tablets are no longer entitled.

You can get the laptop tax relief on your taxable income, not on your tax amount.

Mylifedesire said... Reply To This Comment

Hi All,

Is there any tax benefit in Malaysia on Travelling allowance other than petrol etc. For example if i travel to Thailand from Malaysia on tour package or self planned can i claim this travel expenses to get the tax benefits under Travelling allowance?

Thanks

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