Experts: Young taxpayers watch out
PETALING JAYA: Young taxpayers often face challenges with tax filing, primarily due to confusion about the necessary forms and failing to keep track of personal tax reliefs, experts say.
Associated Chinese Chambers of Commerce and Industry of Malaysia treasurer-general Datuk Koong Lin Loong said first-time taxpayers often face uncertainty regarding the appropriate tax return forms, making the process overwhelming.
'Additional common errors include filing tax returns without leveraging personal tax reliefs, overlooking passive and part-time income, and missing the submission deadline,' he said.
ALSO READ: Newbies becoming lost in taxation
Koong added that newcomers to tax filing should be well-informed about the personal tax reliefs they qualify for.
These reliefs encompass medical expenses for parents, lifestyle purchases such as gadgets, young mother's relief for breastfeeding equipment and early education for young children.
Moreover, there are specific reliefs for installing electric vehicle chargers at home.
'The younger generation should also understand the importance of saving and investing wisely to avoid financial pitfalls such as trading in listed companies without proper knowledge of their background and fundamentals.
'Financial planning should also encompass income protection through insurance policies,' he said, adding that accurate tax reporting would provide proof of income for future needs.
Accounting firm KPMG's senior tax policy adviser, Dr Veerinderjeet Singh, pointed out that some taxpayers mistakenly claim ineligible personal reliefs.
'Common mistakes arise from a lack of clarity about eligibility, leading some to claim reliefs unjustifiably.
'Typical reliefs are for the Employees Provident Fund and Social Security Organisation contributions, insurance premiums and lifestyle expenses.
'But it's crucial to retain the necessary documentation or receipts, as the Inland Revenue Board may request them during a tax audit,' he said.
Meanwhile, Renganathan Kannan, executive director at tax consulting firm Tratax Sdn Bhd, highlighted the significance of tax filing for young Malaysians involved in the gig economy.
'With a global trend of youth engagement in the gig economy, such as becoming Key Opinion Leaders or influencers, Malaysia is no exception.
'Whether this income is primary or supplementary, filing tax returns is essential,' he said.
Renganathan advised determining whether the income is from a business source or casual work, as the latter offers limited capital allowance claims on expenses like phones, cameras or air conditioners for home studios.
He cautioned about the necessity of timely tax filings to avoid penalties and complications, particularly for business and start-up owners seeking financing.
'Late submission penalties can adversely affect start-ups' profiles, making it challenging to build credibility with stakeholders, government agencies, investors and financial institutions,' he added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
5 hours ago
- The Sun
Malaysia optimistic trade with Uzbekistan will pick up, says envoy
TASHKENT: Malaysia is optimistic about a potential increase in trade with Uzbekistan, as both countries work to deepen cooperation in new areas such as halal certification, Islamic finance, tourism and green technology. In an interview with Bernama and RTM, here, Malaysian ambassador to Uzbekistan Ilham Tuah Illias acknowledged a recent drop in trade volume, mainly due to import tax on palm oil. However, he expressed confidence in a potential turnaround. 'We are hopeful that trade will pick up, if both governments can agree to waive or continue waiving the (import) tax on Malaysian palm oil. This would enable Uzbek retailers here to resume sourcing their palm oil supply from Malaysia,' he said. In 2024, Malaysia-Uzbekistan trade reached RM369.8 million, making Uzbekistan Malaysia's second-largest trading partner in Central Asia. The trade balance was in Malaysia's favour at RM360.3 million. From January to April 2025, trade between both countries reached RM106 million. Major exports from Malaysia to Uzbekistan include palm oil, coffee, palm-based oleochemical, margarine and shortening, processed food and coconut oil. Imports from Uzbekistan comprise mainly fertilisers, fruits and textiles. Ilham Tuah said the 5% tax on Malaysian palm oil is being reconsidered by Uzbek authorities. A continued exemption could significantly boost Malaysia's exports. 'We hope this move will encourage Uzbek buyers to continue to source their supply from Malaysia. Discussions between the relevant authorities in both countries will be essential in finding a mutually beneficial solution,' he added. The ambassador emphasised the importance of raising public awareness in Uzbekistan about the health benefits of palm oil. 'We must continue educating the Uzbek people about the nutritional value of palm oil and counter the negative narratives promoted by certain parties.' On the tourism front, Ilham Tuah highlighted that over 15,000 Uzbek tourists visited Malaysia last year – a significant increase from previous years, driven by enhanced air connectivity, including direct flights by Batik Air and Uzbekistan Airways. 'This improved connectivity benefits not only tourists but also students from Uzbekistan. Many are drawn to Malaysia's beaches, as Uzbekistan is a landlocked country.' He also noted a growing interest among Malaysian travellers in Uzbekistan, particularly for spiritual tourism. 'Many Malaysians visit Uzbekistan particularly for spiritual reasons. They love to explore the Imam Al Bukhari Mausoleum, which is currently under renovation. Once completed, it is expected to become a favourite destination for Malaysians,' he added. Ilham Tuah noted strong interest in Malaysian halal certification in Uzbekistan, and said the Malaysian Islamic Development Department has signed a memorandum of understanding with the relevant Uzbek authorities to strengthen cooperation in halal certification efforts. 'This collaboration will help local products meet Malaysian halal standards, potentially opening access to broader markets that recognise our certification.' To facilitate smoother trade and investment, both countries are exploring the possibility of establishing a preferential trade agreement. Ilham Tuah said with such a framework, Malaysia could send semifinished goods for final processing in Uzbekistan, which has access to markets in the European Union and Eurasia. 'It's a win-win for both sides. A preferential trade agreement between Malaysia and Uzbekistan is something we are actively considering ... so the relevant agencies of both countries should meet up to discuss and explore this further,' he added. Ilham Tuah also noted the growing demand in halal consumer goods and Muslimah fashion. 'Muslimah fashion is making a strong comeback here. So I encourage Malaysian women entrepreneurs to engage with their counterparts here. There is huge demand here for Muslimah fashion, cosmetics and halal products,' he concluded. – Bernama
New Straits Times
9 hours ago
- New Straits Times
Tour bus group denies RM700 basic pay claim for drivers
KUALA LUMPUR: The Malaysian Tour Bus Operators Association has refuted claims that full-time tour bus drivers receive a basic salary as low as RM700 a month. Deputy president Mohd Rofik Mohd Yusoff said full-time tour bus drivers in Malaysia are paid a minimum monthly wage of RM1,700. He said drivers who are paid below the minimum wage are most likely part-time drivers who have permanent jobs elsewhere. "Most tour bus drivers in Malaysia are full-time salaried employees. If someone claims that full-time tour bus drivers earn RM700, that is incorrect. "The minimum wage, as set by the government, is RM1,700, and this is paid to full-time drivers by their companies," he told "Harian Metro". Rofik said full-time drivers often increase their earnings through additional trips, for which they are paid a 15 per cent commission by their employer. He said the issue of inconsistent income affects only part-time drivers, who are not tied to any company. "Part-time drivers might feel that their earnings are insufficient, but they have other full-time jobs. They only drive occasionally to earn some extra income." Meanwhile, he said the tour bus industry is facing a shortage of qualified, full-time drivers. "The industry is struggling to find drivers willing to work full time. That's the main issue. It's why part-time drivers exist in the first place. "Some drivers do not want to commit to a full-time position. "They prefer to drive when they feel like it and opt out when they don't. In such cases, companies are unable to take action." He advised part-time drivers to consider applying for full-time positions to enjoy benefits, such as Employees Provident Fund contributions, Social Security Organisation coverage and insurance protection. Rofik said full-time drivers continue to receive their salaries even during low-travel periods, such as Ramadan. "For drivers employed on a full-time basis, regardless of whether there are trips during the fasting month or festive seasons, they still receive their monthly salary." Yesterday, "Harian Metro" reported that some bus drivers are forced to rely on travel allowances and overtime, often sacrificing their days off to cover living expenses, with a basic salary as low as RM700 a month, or in some cases, no basic salary at all.
New Straits Times
9 hours ago
- New Straits Times
CAP calls for food waste law
KUALA LUMPUR: The Consumers Association of Penang (CAP) has urged the government to introduce a comprehensive Food Waste Act to tackle the alarming rate of food wastage in Malaysia, while also encouraging Malaysians to grow their own vegetables and herbs to cope with rising food prices. CAP education officer N.V. Subbarow said such a law would enable Malaysia to address environmental, social and economic challenges related to food waste, while supporting its commitment to the United Nations' Sustainable Development Goals (SDGs). "Malaysia throws away about 17,000 tonnes of food every day, and more than 3,000 tonnes of it are still edible. "That's why we need a dedicated law to reduce this wastage and encourage sustainable habits," he told Bernama when met after appearing as a guest on Bernama TV's pre-recorded Tamil talk show 'Paarvai' at Wisma Bernama here last Friday. Subbarow said most Malaysians do not realise the scale of the issue. "We live in a country blessed with delicious food, but unfortunately, we often discard edible items without thinking, and this contributes significantly to national food waste. "The only way to change this societal habit is through an effective law that encourages responsible consumption and educates the public," he said. He pointed out that France passed a pioneering law in 2016 which bans supermarkets from throwing away unsold edible food, requiring them instead to donate it to charities. "Malaysia can learn from such examples," he added. Subbarow also welcomed Prime Minister Datuk Seri Anwar Ibrahim's recent directive for government departments to stop using imported goods, particularly food, at official events, saying it was a timely move that complements efforts to reduce waste and support local producers. "We fully support the prime minister's call. "Prioritising local produce empowers farmers and reduces the environmental cost of long-haul food transport," he said. To help ease the burden of rising vegetable prices, he encouraged Malaysians to grow their own food, noting that many fruiting plants, leafy greens and herbs can be cultivated even in limited spaces like balconies or small backyards. He also cited a projection by the Food and Agriculture Organisation (FAO) of the United Nations that global food demand may rise by 70 per cent by 2050, driven by increasing consumer incomes in Asia, Eastern Europe, and Latin America. "This further highlights the urgency for Malaysia to adopt a food waste law and promote self-sufficiency through home gardening," he said. – Bernama
