Annual tax filing season is approaching. Working people have until 30 April to file their tax returns, while business people have until 30 June to file their tax returns.
Married people can choose to file their tax returns separately or jointly. If both spouses are working, it is advisable to file separately. If you file separately, you are entitled to a personal allowance of RM9,000 and two separate tax returns, adding up to a total of RM18,000.
Filing tax returns together will only entitle you to the RM13,000 exemption, i.e. RM9,000 personal exemption and RM4,000 partner exemption.
However, if one of the spouses is not working or has a lower income, then they can choose to file their tax return together.
Married persons will need to consider whether to file separately or together, as well as other tax deductions such as the RM3,000 tax deduction for sending children to kindergarten. RM2,000 tax deduction is also available for children under 18 years of age.
Simply put, if your spouse’s income is lower, you can consider choosing to file your tax returns together.
