Thursday, 23 January 2014

Computer Vision Syndrome

Oh Mann...!!
Losing My Vision

Since I started this blog, i've been using my computer for longer hours than ever before.
Starring at each and every words i wrote, double checking, just to make sure everything is in place.
When lately, i experience blurring of vision, although its temporary, relief with a good night sleep,
but now headache and neck stiffness starting to kick in. Crap !!

My Eyes Can't Handle It

If you think I simply write things,
Its time for you to think again !!
Lots of research, lots of reading, and of course hours of computer-starring-activity
which directly cause this problem, damn it, helping people can be a real challenge
I did NOT see this coming T_T

Sorry lots more to share, but i'm gonna need some rest,
Yes, this is not a housemanship secret,
This is ME suffering from computer glare overload,
Please don't tell my mom, lol
See You Guys Soon (or later)... !!
p/s : Hope I didn't disappoint anyone. Tq for reading & sharing my thoughts

Friday, 17 January 2014

How To Pay Less Tax LEGALLY

Disclaimer : I am NOT a qualified tax advisor, this is solely based on my research and experience! You should not believe what a total stranger tells you, do your own research & listen to the government, :D

Haven't Heard of "Leverage" Yet !??

Leverage is the ability to do MORE with LESS

To fully understand what I am going to share with you,
You need to read or re-read my previous post, so that you will benefit from it

Again, I am here to share my short experience during housemanship, so my focus will always be and always will, in the point of view AS A HOUSEMAN. However, since we all have a medical degree, please use your creativity, this can be universal once you get the whole idea, if you're a medical officer or specialist (hopefully my boss don't read this, lol), think hard, you be amazed on how much money you've DONATED to the government legally and unnecessarily all these years !!!

To understand this concept, although its not a rocket science, it is just that nobody care to share it with you or medical field related profession just don't care (I bet my money on the latter), you need to master 3 things only !!

1 . How to calculate your Taxable Income
2 . The difference between Relief and Rebate
3 . Simple Primary School Mathematics

Houseman's Income Tax, for 2013
You all did not start housemanship on the same day, so your income can be different from this due to several reason (eg : annual income increment, bonuses, back-dated salary payment, bla bla bla). I have calculated based on a houseman payslip.

** This is an actual screenshot, on how i keep my record, its practical & easy

So, the total gross income, for year assessment 2013, is RM 65,063.27 (kaya meh this houseman? )
by applying the "tax bracket", the taxable income should look like below :-

** note that the arrow shows gross total income, before and after, minus the relief by LHDN
** the red box shows the tax you need to PAY, before and after, minus the relief

You save almost 50% legally in tax right ?? So what lesson can be learnt here ??
Sure you won't think, because you know i will tell you, right... haizzz...

Le$$on #1 : the more relief you use, the lesser the tax !!
- This is possible because "relief" is design to REDUCE your total income, so less money will end up in the "higher bracket", thus reducing the tax
- In the above case, note that the bracket 19%, is zero on the right side !!

Le$$on #2 : we can aim our income to stop at 7% bracket
- How is this possible? Yes, more or less, houseman income tax looks like this. But the above example, i only use relief which are :-
1) self relief (-9000)
2) EPF (-6000)               ** this total up RM 16,000, note that on the left, money in
3) Books (-1000)                bracket 19% is only RM 15,067.27 , will be nil after relief !!

- To aim for bracket 7%, how much relief do you need, to wipe off the 12% bracket ??
Yes, depends on the money inside bracket 12% lohh !!  Which is about 14k, right ??
- Any more relief you can use? Sure, several of them !! Check LHDN website.

Le$$on #3 : rich people has tons of relief / loophole
- That is why, the rich stays rich and gets richer !!
- They leverage on tax, they have alot of relief given through their company or corporation (not as individual), while they make more profit, they pay less taxes !!
- Make sense or not ??? Now you wonder why they get richer day by day
- Of course this is only one strategy and considered as "small" for them

It's like, either you pay higher tax to the government (of course they will use it wisely)
Use RM 1000 of your money (throughout one whole year) to buy books, get to own the knowledge and income tax relief at the same time !! 

Save your hard-earned money, unless if you love "kangkung" so much !! Mari.. Mari...!!

p/s : some strategy to pay less tax legally, i can't share it here, the government doesn't like it, there is even rules to make sure this "strategy" doesn't circulate to the public. Never mind lah, just pay only, we love our country, it is peaceful, no corruption, we are the best in Asia lorr !!

Monday, 6 January 2014

$s$ Income Tax $s$

How Much Are You Paying The Govt Back
I am NOT a qualified Tax Advisor, your FINANCIAL INTELLIGENCE is advised !!
Consult your Tax Advisor, They need to make a living as well, LOL

" Two Things Are CERTAIN In Life, Death and TAXES "
    - Benjamin Franklin (1706-1790)

Why Houseman Need To Know?

  1. Obviously because you are required to pay income tax by law, ignorance is not a valid excuse
  2. You don't want to pay EXTRA on income tax, unless you love to do so
  3. In fact, the Govt already take your hard earned money, to pay income tax, before you even get your hands on those money. (refer to HO payslip screenshot, in my Previous Post, if you fail to notice that)
Take Control of Your Hard-Earned Money
I just can't understand why some doctors and nurses, don't bother to LEARN about Income Tax, let alone to learn about money. I have spoken to a nurse, who still has very little idea when it comes to income tax, although she has been working for the past 25 years, on top of that, her husband retired 5 years ago without any "pencen" and has 2 teenagers studying in local university. I pity her, for her financial constrain, but she CHOOSE to be like that, there's very little room for me to help her.

Self Assessment
This is the system we're using right now, meaning, we (taxpayers) are required to assess ourself (financially), fill + declare our own income per calendar year, calculate the taxable income ourself, make payment (or claim our money back) on time and the best part is, make it right for the first time !!

Who Need To Declare Income Tax ?

Answer :  Anyone who earns RM 26, 501 per calendar year, after EPF/KWSP deduction. Around RM 2300 per month of salary. Yes, we are required by law to declare our income. Other source, give a different amount, but the point is, Houseman NEED to !!
Source : LHDN ,

How | Macam Mana
There are 2 ways to declare your income. Offline (using forms) and Online (e-filing LHDN).
My advice, declare using e-filing. Technology is there to make our life easier. Due to the nature of our work, using computer is better, instead of filling up forms and then submit via post or by hand to LHDN.
For first timer, you need to register at LHDN (just need your I/C), after registration, you can fill the e-form later using e-filing at the comfort of your king-size bed !! 

When | Bila
e-filing can only be access 1st March onwards.
Due for submission is April 30th for each calender year.
So this march, 1.3.2014 you will need to declare your income for year 2013 (year assessment).

What If I Don't
Theres Audit from LHDN, they will detect, sooner or later, they will find those who don't declare or under-declare.. but... if you over-declare, they keep their mouth shut !!
Remember, audit is done regularly and extensively, as i mentioned earlier, ignorance is not an excuse. Be prepare for penalty up to RM 20,000 , 3 years of jail or both, if found guilty, and not to forget, you still have to pay the amount of tax you did not declare previously, with interest of course !!

What Happens After I Declare ?
  1. Notice (eg: Penalty if late, Request for more information/receipt)
  2. Repayment (you receive back the money they auto-deduct)
  3. Nothing (govt will spend your money WISELY)

How Much Do Houseman Pay ?
To calculate how much you need to pay (taxable or chargeable income), you need to know the formula. As shown below :-

Taxable Income = Total Income - Tax Relief
After you get your taxable income, there's a way of calculating it, using "income bracket"
Refer HERE, on how to calculate, because someone else has done a good job on explaining this, and i'm lazy btw, lol. Do check with LHDN website, as these bracket can change anytime the govt want.

Know The Difference Between "Relief" and "Rebate"
Relief is use to reduce your income, so that you'll end up in a LOWER bracket, thus lower percentage of tax. Meanwhile, rebate is the amount of tax money that you can CLAIM BACK (since they auto-deduct it).
Refer HERE / DI SINI as he did a great job there, hehe.

Example :-
At the end of year assessment 2013, our beloved govt has auto-deduct my income, total of RM 500. After i calculated my taxable income, the total income tax (after i deduct all the relief) i should be paying is RM 3400. My maths is telling me that, i need to pay the govt another RM 2900 ( 3400 - 500 ) right?

But wait a minute, i paid RM 5000 of Zakat in total that year. 
As any zakat is considered as REBATE, regardless of the amount, so now, i DON'T have to pay the RM 3400 (total of tax according to my bracket), which means, i DON'T have to pay the "remaining" RM 2900 and the govt has to REPAY me back the RM 500 they auto-deduct initially.
Note that i get RM 500 of "rebate from the govt" only, NOT the total amount of my paid zakat !!

There are many TAX RELIEF available

Always visit LHDN website as these relief can change from time to time !!

Save money LEGALLY

Stop giving "tips" to the govt

Pay Your Tax Accordingly

As our Country's debt increases,

what I can guarantee you is, Govt will increase TAX, its already happening, starting with GST, subsidy withdrawn (eg : oil prices), increase toll and so on.

Its the matter of TIME only

Learning How To Manage Your Money Is More Vital Than Ever Before And Managing Income Tax Is A Good Place To Start With

70% of Malaysian end up financially BROKE, 10 years after retirement
- If you retire at 65, your EPF is likely to finished in 10 years time. With increasing inflation, increasing tax and health problems, you will most likely to OUTLIVE your "saving".

That Includes Doctor as well !!

"No one can go back and start a new beginning, but ANYONE can start now and have a new ENDING"