Monday, August 12, 2013

RM3,000 Tax Relief - Personal Computer (new definition) for YA2013

It is important for taxpayers to take note that with effect from the Year of Assessment (YA) 2013, there will be a new definition of ‘personal computer’ for the purpose of claim for personal relief for personal computer by an individual.
Previously, ‘personal computer’ is defined as a desktop computer, laptop computer and handheld computer and does not include computer accessories. With innovations in information technology, the lines between a ‘computer’ and other electronic equipment have blurred. Therefore, prior to YA 2013, the definition had been expanded to include mobile computers such as tablet PC, iPad and other similar devices as long as the gadget does not include the features of a mobile phone. This personal relief for the purchase of a personal computer of a maximum of RM3,000 is allowed once in 3 years, but no deduction will be granted if the computer is used for business purpose.
However, the Ministry Of Finance had on 20th March 2013, issued a letter stating that an individual is eligible for personal relief for the purchase of a personal computer under paragraph 46(1)(j) Income Tax Act 1967, which is defined to be a desktop computer, a laptop computer, Notebook and Ultrabook not used for the purpose of a business. Therefore, this means that other gadgets that are able to perform functions similar to a computer, for example tablet, iPad or handphone NO LONGER qualify for a deduction for the purchase of ‘personal computer’.
As a concession, any claim for personal relief other than a desktop computer, laptop computer, Notebook and Ultrabook which has been made until YA 2012 will not be withdrawn