A Personal Finance Blog for Malaysian: How to save RM600 or more without much effort?

Saturday, October 9, 2010

How to save RM600 or more without much effort?

If your boss has just decided to give you increment of RM500.00 - don't accept it as it is.

Ask to convert it to EPF contribution. Under Income Tax Act 1967, a contribution to EPF up to 19% is a tax deductible expenses for a company, therefore, make use of the 7% (19% - 12% normal contribution rate).

If you have RM500 per month x 12 months = RM6,000 converted into EPF - you reap the following benefits:-

  1. Learn to spend less when you earn more;
  2. Saving your tax expense by easily RM6,000 x 12% or more depends on your tax bracket.
Win-win for you and your boss. He/she give you something extra without a cost.