However, this is indeed the loss that caused by such rulling made by our PM during the budget.

What do you think the chances of getting deductible? I juz submit the tax return with such inclusion, but no feedback yet from my tax agent.

I received a letter from them, demanding me to pay them 2010 bonus income tax. I was like wtf, this year dunno got bonus or not and amount also unsure, you want me to pay what!!

Apparently a few in my company also get it. We are some sort of partnership among relatives, therefore low salary but compensate with higher bonus depending on company performance. IRB really dare to abuse their power.

Yeah, Im paying. I mean, my boss is deducting my contribution as stated. When receiving bonus, it will be deducted before being pay to us. Why IRB has to force me to pay something that I havent received?

Apparently a few in my company also get it. We are some sort of partnership among relatives, therefore low salary but compensate with higher bonus depending on company performance.

Cherroy,

Im just an employee. All the directors are my relatives, so I ter-use 'we' there. Right now my salary is RM3k and the norm is I pay somewhere less than RM100 if Im not mistaken. But now IRB wants me to pay RM500++ from July till Feb. Make sense to pay RM500++ for RM3k salary?

All allowances are chargeable income as they are a form of income to you. However, certain allowances can be reduced should you have incurred actual expenses. For example,

Monthly Allowance  = RM300
Actual expenses    =(RM220)
Chargeable income = RM 80
As above, it's chargeable income. Unlike travelling allowance, productivity allowance may not have expenses that can be used to deduct against the allowance.

That's the common belief among people sometimes even tax agents... see example 8 of the rulling

So long as the expense relates to that of the allowance, it is deductible up to the allowance received.

Quote from Malaysian Taxation 2005 Eleventh Edition pg 97,

2.5.2 All allowances paid by employer to the employees will be assessed on gross amount under s 13(1)(a). In general, the allowances provided would be clothing, travelling and entertainment allowances.

2.5.2.2 Travelling and entertainment allowances are assessable on gross amount. Should the employee incur any expense in performing his duties, the expense would then be allowed as a deduction against gross income in arriving at his adjusted income from employment. Such expenses need to substantiate with receipts, if required by the tax authorities.

This is that from a 2005 edition however i belief it still applies. I remember i've read a ruling on this before but i believe this book from Choong Kwai Fatt will do.

reason for edit:
change grammar mistake.

The following tax benefits provided to employees from Jan 1, 2008 to Dec 31, 2008 will be tax deductible against business income for employers AND exempted from tax on employees. These benefits are also available for YA2009.

(a) Petrol card/petrol allowance/travel allowance

An employer providing petrol cards, petrol allowance or travelling allowance to employees to travel from home to workplace or office will be allowed up to RM2,400 a year.

(b) Meal allowance for working overtime, travelling outstation.

© Parking allowance.

(For (b) and ©, the allowance must be reasonable and justifiable depending on the nature of work and position of employee.)

(d) Medical treatment for employees, spouses and children to include traditional medicine such as ayurvedic treatment and acupuncture.

(e) Interest subsidies on housing, car and education. The total loan amount is restricted to RM300,000.

(f) Childcare allowance up to RM2,400 a year.

(g) Employers’ products or services which can be provided free or at a discount which must not exceed RM1,000 a year.

Employers involved in the manufacture of food and car accessories may consider providing the products to employees to reduce their cost of living in the current economic slowdown.

These allowances need to be disclosed in the Form EA as tax-exempt benefits although they are not taxable on employees.

Official duties – travelling allowance

When employers provide petrol cards, petrol allowance or travelling allowance to salaried personnel, such as reporters and other employees, to carry out official duties, this form of allowance is taxable on the employee and must be reflected in their respective EA Forms.

Employees must keep a record of the actual expenses incurred in relation to official duties and set off the amount incurred against the allowance received. This is an added burden and responsibility on the employee. The records have to be kept for a period of seven years.

Employees may end up paying additional tax under the self-assessment system if they report the employment income as per the EA Form without deducting the actual travelling expenses incurred while on official duty to carry out the employers’ business.

In the Budget 2009 announcement, the Government said petrol cards, petrol allowance, travelling allowance and toll cards for official duties up to RM6,000 a year will be tax-exempt.

This means that the employer will exclude RM6,000 a year from the taxable income of employees as reported in the EA Form. However, the employer needs to disclose this RM6,000 as a tax-exempt benefit in the EA Form.

Employees receiving travelling allowances not exceeding RM6,000 a year will no longer be required to keep the required receipts to substantiate their claims.

This incentive applies from YA2008.

However, if the employer provides, for official duties, petrol card, petrol allowance, travelling allowance and toll card exceeding RM6,000 a year, the employer is required to report in Form EA in two sections:

(a) Tax exempt benefits: RM6,000

(b) Part of taxable employment income – salary, bonus, entertainment allowance – and the petrol/travelling/toll amount in excess of RM6,000

In this case, the employee is now required to keep all receipts to substantiate her claims.

Lol, looks like both of us is partially correct. First RM6k exempted, thereafter is taxable but can reduced by actual expense. Am I right cherroy?

I bought books at Popular with member card discounts. The price and amount discounted are clearly printed on the receipts. Which amount should I use to calculate the tax exemption for books, the original price or the discounted price?

first house?
meaning previously got another house  but sold already
then buy a house at 2009, can claim the 10k rebate?

like my income about rm175k per year
is it a lot if claim the 10k rebate? since interest one month for the housing loan itself is rm2200

last yr i tersilap claimed the 10k but actually interest only rm5k because first yr low interest..... my mistake

at end kena penalty from tax deprt rm2k++ and they ask me pay back the tax and never gave any i mean any rebate at all for the housing loan
how come no rebate since got rm5k interest accured?

I am not sure about bonus.  But I think:-

- PCB is deducted in the month they pay you the bonus
- Bonus us taxed in the year the performence relates to (Pay in 2011 for 2010 work, taxed in 2010)

You can double check with your HR on this.

Pls help on bonus issue as below:-

If i receive the bonus for Year 2010 in Jan 2011, will the related PCB for bonus be calculated in Jan 2011..??
Or i have to include it in Year 2010 when i submit my form BE this coming April..??

If my company include year 2010 bonus in 2010 EA from (which i received the $$ only in Jan 2011), is it the correct way to declare..?? or they should show in my 2011 Ea form..??

Many Thanks..!!

F) Tax Treatment on Bonus and Directors' Fees
Present Position-
Income tax on bonus and directors' fees is based on the year such incomes are receivable. However, generally bonus and directors' fees are received in the following year. The tax payer will declare the bonus and directors' fees in the year such incomes are received.

Proposed change-
It is proposed that bonus and directors' fees be taxed in the year such incomes are received.

Effective: Year of Assessment 2009

Comment:
i) The proposal allowed companies to declare and accrued the directors' fees and bonuses in 2008 and paid in the following year in 2009;and

ii) Employees need only to declared the 2008 directors' fees and bonuses in Form EA 2009 and Form B or B 2009 , based on receipt basis in 2009;

iii) This would eliminate the administrative work of the DG of inland revenue from issuing Form JA 2008.

Ok. If i get audited. I just need to show them those receipt? Those receipt will be kept by company or me?

Thanks cherroy . On my side, What are the proper documents i should have from the company for those claims? Cause my claims can reach up to 20-30k a year and thats where my headache start

Because my company dont have inhouse accountant or auditor so everything i have to DIY 

I am using those Off the shelves RM 5 pre-made salary slip that have a reimbursement column. Is that ok?

i just received the year 2010 Statement Of Live Assurance Premium Paid.
As we knew, for medical/life, only 60% of premium paid are eligible for tax relief as medical policy (normally life policy is full cause got EPF), just not sure where should we fill the OTHERS? can we categorize it as medical relief?

This is boggling my mind.

I made RM 300k+ last year all through: (example amount)

1. Sell software, oversea.
2. Sell ownership of software.
3. AdSense.
4. Sell websites.

All of these occurred while I was in Malaysia but none of the money came from Malaysia. The money is in a current account that I opened under a Sole Prop registered with SSM.

Can I be tax-exempted since these are all income derived from sources outside of Malaysia, none of the websites were hosted in Malaysia, etc.

Only problem is the money is in Malaysia?

What should I do?

Can somebody recommend an accountant?

Cherroy.

I did find a article at Chartered accountants website here
http://chartered-accountants.com.my/tax_gu...0individual.pdf

It states that

Travelling Expenses which you have incurred on traveling in the course
of performing your duties.Reimbursement for actual expenses is not taxable on you. However, you cannot claim for the
expenses of travelling between your home and place of work

That Place of work is confusing to me because my home is my office and my place of work is normally at Hospitals. So i cant claim for reimbursement for the petrol from my home to the work site?

My questions:-
1. Is it better to file separately?
2. If file separately, there is a column in the registration form that require my husband's information (name, IC number, No. Rujukan Cukai etc). Should i leave it blank? or fill in the information? If i fill it in, LHDN would question why do i file it separately since i am married?

Please advise.

I'm a homemaker doing some freelance accounting job for few companies. Would like to ask about Tax issue. I use to sell some of my stuff (such as gift with purchase, sample , free gift, good used condition kids item and etc ) via ebay . May I know does these receipts from my online selling need to pay income tax ? How do I take up in my account book ? ( I prepare a simple account for all my freelance income when submitting my Form B )

Thanks 

hi need to enquire about rental income tax. Let's say i have a house which i am paying RM1k for installments, and getting RM1.5k mthly for rental. Am i going to be charged at a flat rate of RM1.5x12mth or RM1.5k minus RM1k x12mths for tax?

Very simple example

Gross rent  =                    18k (calender year)
less
  interest on loan say          6k  ( not installment paid)

Nett rental    =                  12k (taxable)