Budget 2007 Perks

[Calvin Wong]

Let's use this forum to share how we can take advantage of the new budget.

One thing that was 'falsely advertised' to me was the tax relief for buying personal computers. It seems tax relief and tax rebate are not the same thing. Formerly it was a tax rebate of RM500 off your total tax bill but now you can only subtract RM3000 before taxes. This will only benefit those with a taxable income of RM53,000 and above.

Considering that only the upper-middle class (those earning above RM53,000 per year) will benefit, will this increase or decrease PC sales, or will it have no effect?

[Maxforce]

haha... misleading heh?
Well, it will have an effect but like you ve said, its all about those who earns higher income.
Imagine after calculation, you have more than RM35,000 taxable income. ANd with the PC, you can reduce to less than RM35,000 income.
Effectively you qualify for the RM350 rebate and also enjoy a lower tax range.
But in tax, its all about ranges. So if you re not in the range that benefits, tough.
Net impact? GOvt gets more revenue as it will not give RM500 rebate to all. Now it only needs to give RM5,000 relief to certain quarters. Smart heh?

[Calvin Wong]

GOvt gets more revenue as it will not give RM500 rebate to all. Now it only needs to give RM5,000 relief to certain quarters. Smart heh?

I have enough faith in our government to believe that they had good intentions when they decided on this tax relief structure. I'll give them the benefit of doubt and assume that they messed up.

Just like our speeding fines. Now that's another perk!

[Maxforce]

Haha... faith may be misplaced my friend.
Action always speaks louder than words.
And this action really speaks

[jeybon]

The reduction of the corporate tax sounds promising on the sales & marketing of MNCs.  1% meant quite much for an MNC it would sounds like 1million for a 100million revenue.  This 1 million will translate to better perks for employees like incentive trips or even more incentives.  However, I doesn't see the SMI benefit much from the reduction.

[DenLee]

The government tried to help SMI by setting up SME bank.  However, there seemed to be lots of red tape going on in the application process.  Worse if you are a non-bumi.

[Maxforce]

Exactly my sentiment

[julez.lim]

There are a lot of organizations, groups and bodies that are assisting SMI like SMIDEC and etc depending on the field one is in. MATRADE, if you wanna promot your business overseas...

I think you are refering to Micro businesses right? (Those lesser than 100 employees)