Joint or Separate Assessment?
Most people have the perception that a couple enter into a wedded bliss – the most perfect and romantic time of a couple’s life together – right after their wedding. Along with its many joys, marriage brings new challenges.
Like it or not, saying the words “I do” means committing, among other things, to making joint decisions. One such decision relates to taxes – more specifically, whether to file separate or joint tax returns.Choosing the appropriate filing status is a major tax decision for newlyweds.
According to Section 45 of Malaysia’s Income Tax Act 1967, all married couples in Malaysia have the right to choose whether to file individual or joint taxes. So, which tax status should you choose? Both have their advantages and disadvantages, but here are some facts to help married couples make an educated decision.