Buy Computer this year or Next year? Any tax implication?

If you are higher income groups said you annual income 70K above you will be benefit under the change in rebate system for buying news computer. If you are normal guy like me. Annual income less than 70 k, you will be better off to buy computer this year to enjoy the benefit.

The following is example to describe:

Both my husband’s and my income are assessed separately. My husband is taxed at the marginal income tax rate of 13% while I am being taxed at the marginal income tax rate of 28%. We are considering buying a new computer for the house worth RM3,000 and would like to understand the impact of the proposed budget changes.

Before the proposed changes take effect, a tax rebate amounting to RM500 was granted to either the husband or wife. Therefore, it would have had a similar tax impact whoever claims it. However, based on the proposed budget changes, it would be more tax advantageous if you purchase and claim the expense as a relief in your tax return as it will result in tax savings at 28% (RM3,000 at 28% = RM840) versus 13% (RM3,000 at 13% = RM390) for your husband.

Additional consideration
1. That is only example that you marginal tax rates at 13% or 28%. If your income
level is lower, then the less benefit you will enjoy!
2. Now in Market , many computer will cost you less than 2000 per unit so the
benefit you granted will be less than the example above.

Just for another example, if i buy a computer 2006, at costs RM 1,500.00 and I enjoy the RM500 rebate or 33% tax rebate of my computer costs. if i buy at 2007, i will only enjoy RM1,500.00 X Marginal tax rates

Conclusion:

If you want to buy PC at near term better buy it at 2006, instead of waiting to 2007. The only exception when your marginal tax rates exceeds 17% and you are willing to buy a computer costs more than RM3,000.00