{"id":7962,"date":"2023-09-11T17:55:38","date_gmt":"2023-09-11T09:55:38","guid":{"rendered":"http:\/\/www.imoney.my\/articles\/?p=7962"},"modified":"2023-12-27T15:31:00","modified_gmt":"2023-12-27T07:31:00","slug":"5-year-end-tax-moves-will-blow-mind","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/5-year-end-tax-moves-will-blow-mind","title":{"rendered":"5 Tax Moves To Make Before 2023 Ends (That Can Boost Your Refunds Next Year)"},"content":{"rendered":"

There is a saying that in life the only thing that is certain is death and taxes. As we enter September, the last few months of the year are\u00a0 just around the corner.<\/p>\n

Undoubtedly this signals not just the closing of yet another year but with it the window of opportunity to save on tax payments.<\/p>\n

Some of these opportunities will need you to pay out substantial amounts in investments so it’s best to spread them out over several months.\u00a0For those scrambling to make last minute deductions before 2023 ends, here are a few smart year-end tax moves to consider:<\/p>\n

<\/span>Planning for retirement pays off<\/b><\/span><\/h2>\n

Every contributor to the Employee Provident Fund (EPF) is entitled to claim a tax relief of up to RM4,000<\/a>. But you need to get started on this early, as EPF requires prior notice of your intention to make larger contributions.<\/p>\n

Enter Private Retirement Scheme (PRS), a voluntary retirement scheme launched in July 2012. In addition to the RM4,000 tax relief you are entitled to claim for your contributions to EPF, contributing to PRS entitles you to claim up to RM3,000 tax relief<\/a>. The icing on top of the cake? This PRS tax relief has been extended until 2025.<\/p>\n

<\/span>Hold that bonus<\/b><\/span><\/h2>\n

In order to grasp the practicality of this move, one has to first understand that tax on income is charged when it is paid; so arranging with your employer to have your bonus or any outstanding income deferred to the following year will ultimately lower your taxable income for this year.<\/p>\n

<\/span>Get tax deduction for your donations<\/b><\/span><\/h2>\n

Donations to charity and aid funds can help you lower your taxable income.<\/p>\n

In order to be eligible for this tax exemption, check that the organisation you are donating to is listed in the LHDN website<\/a>. Be sure to get your tax exemption receipt as proof of donation.<\/p>\n

<\/span>Maximise all lifestyle tax reliefs<\/b><\/span><\/h2>\n

The easiest (and most commonly used) way to reduce taxable income is to fully utilise tax reliefs<\/a> of which you are qualified to claim. The key to this move is to know what qualifies for a tax relief and how much you can claim thus avoiding the mistake of unnecessarily spending more than you can deduct later on.<\/p>\n

While not exhaustive, here are a few things you can consider that will be tax deductible under lifestyle expenses for 2023. Lifestyle expenses for use by yourself, your spouse or child are deductible up to RM2,500.<\/p>\n