Very warm welcome to money tells stories blog,
As usual, I received all sorts of mails both locally and internationally daily and I will read through them and respond to them accordingly. In regard to the mail below, I write to the draw the attention of INDIVIDUAL MALAYSIAN TAX PAYERS in regard to APPLE iPad.
APPEND BELOW PLEASE FIND SELF EXPLANTORY NOTES FROM a writer IN REGARDS TO THE APPLE IPAD FOR YOUR REFERENCE AND ACTION, IF APPLICABLE.
Apple iPad is entitled to LHDN personal income tax relief but not Samsung Galaxy Tab
In reference to Paragraph 46(1)(j) of Malaysian Income Tax Act 1967, an amount limited to a maximum of RM3,000 is deductible in respect of the purchase of non-business use personal computer for individual tax payer.
This deduction is allowed once in 3 years, but no deduction will be granted if the computer is used for business purpose.
Now, the question: are tablet computers such as Apple iPad, Samsung Galaxy Tab, Viewsonic ViewPad 7, Toshiba Folio 100, CSL Spice Mi700 DroidPad, Blackberry Playbook, ZTE V9, etc. entitled for this personal income tax relief?
I have asked this question to LHDN, and the official answer is: if the tablet computer only have computer features and is for home and family use only, then it will be treated as "computer" and is entitled to the personal income tax relief of up to RM3,000, claimable once in 3 years.
This will be the case for Apple iPad, Toshiba Folio 100 and Blackberry Playbook. Let's say you purchased an Apple iPad 64GB with Wifi+3G at the price of RM2,599 in year 2010, and your tax rate is 24%, when you file your 2010 personal income tax now, you can claim back RM2,599 tax relief, which is equivalent to a saving of RM623.76 in your income tax. (If you have any family member or friend or colleague who purchased Apple iPad recently, please forward this good news to them using the "Share" button below.)
However, if the tablet computers also have hand phone features in addition to computer features, which mean you can make phone calls and also send SMS/MMS using the telco service with the tablet, then it will be treated as a "phone" and is not entitled to personal income tax relief. This is the case for Samsung Galaxy Tab, Viewsonic ViewPad 7, CSL Spice Mi700 DroidPad, ZTE V9, etc. Bad news.
If you need to verify this information, can make a call to LHDN at 1300-88-3010 or email to firstname.lastname@example.org.
AS FAR AS I AM (FREELANCE QUALIFIED ACCOUNTANT) CONCERNED, THE ACT IS APPLICABLE TO PURCHASING OF NON-BUSINESS USE COMPUTER. HERE, THE ISSUE IS CENTRAL ON THE DEFINITION OF NON BUSINESS USE COMPUTER.
Generally, the law on these fast changing technological devices is still far behind time. As such, it is very likely subject to various interpretations on the terminology and common understanding of its term, for this case is non business computer. Since the purpose of this piece of legislation is silent, therefore it is opens to more floodgates.
Thus, you may try your luck because the term is very wisely and loosely used in our society as a whole.
However, thanks should be given to the author, who has to certain extent taken initiatives to check with IRD for some clarification. To answer his call, I decided to blog it out so as more people can reap its benefits from what he sowed.
Please direct your circle of friends should you find this blog useful, so that others can also reap the values we intended for this blog. Thank you in advance.
Before we ended, kindly revert to us, via comment provided below, should you encounter such similar incidents. Please do brief us of your case and its outcome, regardless if it is the same / different consequence from what we have blogged out from time to time.
Thank you and looking forward to hearing from you,