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 Income Tax Issues

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lostasylum
post Apr 13 2011, 09:21 AM

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QUOTE(vin_ann @ Apr 12 2011, 05:14 PM)
1. Rental Income - it can be either classified under Rental Income Section 4(D) where you still can use Borang BE or Business Income Section 4(A) where you got to use Borang B.

if you are own more than 3 residential houses collecting rental or 1/2 commercial units, you will falls under Section 4(A) - Business income (Borang B)

2. as long you have business income, its Borang B.

Borang BE is only for empolyment income only.

3. Sorry cant help, as no follows up closely on updates.
*
thanks for the clarification vin_ann. it's really helpful... now, if someone can help me out with the tax relief for properties purchased in 2010...

vin_ann
post Apr 13 2011, 09:31 AM

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QUOTE(uNeVErwaLkaloNe @ Apr 12 2011, 05:36 PM)
Actually he did answer you with this (see bold), sport/running shoes cannot be claim in tax relief
*
That's IRB stand in law but in the reality, people do challenge IRB's definition on the law.

QUOTE(nemo2 @ Apr 13 2011, 02:24 AM)
@ vin_ann

If i were you, i will claim. In the event that income tax question me on the deduction, i will negotiate and appeal. If still not allowed, just forget it since the saving (RM300 x 25%) is not much.

If no one question me... then keep silent lor...
*
Yeah! that's what my pro tax relief friend told me! Its oly gives you RM75 reduction in tax. If IRB were to audit and spend lots of time to investigate and its cost time and energy for IRB.

finally, if there's wrong doing, then fine with penalty but IRB officer wasted hours if not days to investigate!


QUOTE(ronnie @ Apr 13 2011, 08:36 AM)
Bad advice.... if everyone will do like you say, then everyone can practically claim all the tax relief possible, right ?

My take on the sports equipment : it must be an item from the sports in which if you remove it, it no longer becomes that sports.
Eg.
Shuttlecocks: without it how to play badminton ?
Racquets: without it how to play badminton/tennis/squash/.... ?

BUT without shoes, can you still run the marathon ? BUT without swimming suit, can you still swim ?
- The answer is YES, thus you cannot claim these items
*
It's arguable. Just matter of whether you willing to spend time and energy to appeal for it.

Anyways, this RM300 relief, its up to individual to decide whether want to claims or not. just voicing out the possible tax relief you can claims and possibility of time used when tax audit found out. tongue.gif



Chester
post Apr 13 2011, 09:39 AM

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QUOTE(ronnie @ Apr 13 2011, 08:36 AM)
Bad advice.... if everyone will do like you say, then everyone can practically claim all the tax relief possible, right ?

My take on the sports equipment : it must be an item from the sports in which if you remove it, it no longer becomes that sports.
Eg.
Shuttlecocks: without it how to play badminton ?
Racquets: without it how to play badminton/tennis/squash/.... ?

BUT without shoes, can you still run the marathon ? BUT without swimming suit, can you still swim ?
- The answer is YES, thus you cannot claim these items
*
what about cycling machine?
vin_ann
post Apr 13 2011, 10:00 AM

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QUOTE(Chester @ Apr 13 2011, 09:39 AM)
what about cycling machine?
*
Yes, you can.

How you going to cycle without a bicycle.

Wait.. did u mention cycling machine? those stagnant cycling workout machine?

Yes, you can. Its an equipment for cycling (sport).




RDPD
post Apr 13 2011, 10:06 AM

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I have a question here. My previous company already terminate their business, thus i don't have the EA form, what should i do?
vin_ann
post Apr 13 2011, 10:18 AM

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Btw, just to share my last experience with E-Filling.

I forget my "kata laluan". So i called the IRB customer service.

She teach me: go to "lupa Kata Laluan" and click.

you have to enter your IC number without dash and you type

"password" in the password colunm and press Hantar.

After that, you will be lead to change new password.

and its DONE!
wufei
post Apr 13 2011, 10:55 AM

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QUOTE(vin_ann @ Apr 12 2011, 05:14 PM)
you did not get my point huh.

nvm la.


Added on April 12, 2011, 5:20 pm

1. Rental Income - it can be either classified under Rental Income Section 4(D) where you still can use Borang BE or Business Income Section 4(A) where you got to use Borang B.

if you are own more than 3 residential houses collecting rental or 1/2 commercial units, you will falls under Section 4(A) - Business income (Borang B)

2. as long you have business income, its Borang B.

Borang BE is only for empolyment income only.

3. Sorry cant help, as no follows up closely on updates.
*
Kawan you better be correct on the line I have highlighted.


Added on April 13, 2011, 10:56 am
QUOTE(RDPD @ Apr 13 2011, 10:06 AM)
I have a question here. My previous company already terminate their business, thus i don't have the EA form, what should i do?
*
Report to Inland Revenue Board that this company does not prepare EA form.

For your tax submission you can add up all the numbers in your payslip.

This post has been edited by wufei: Apr 13 2011, 10:56 AM
mother84
post Apr 13 2011, 10:57 AM

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If want save the trouble,

We provide the service for income tax submission and computation.

see my signature smile.gif

This post has been edited by mother84: Apr 13 2011, 10:57 AM
nemo2
post Apr 13 2011, 11:42 AM

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QUOTE(ronnie @ Apr 13 2011, 08:36 AM)
Bad advice.... if everyone will do like you say, then everyone can practically claim all the tax relief possible, right ?

My take on the sports equipment : it must be an item from the sports in which if you remove it, it no longer becomes that sports.
Eg.
Shuttlecocks: without it how to play badminton ?
Racquets: without it how to play badminton/tennis/squash/.... ?

BUT without shoes, can you still run the marathon ? BUT without swimming suit, can you still swim ?
- The answer is YES, thus you cannot claim these items
*
Just to share my view. The spirit of this relief given by the Malaysian government is to encourage people to do more sports. And if you ask me, for a marathon runner, what is more important than having a pair of shoes?

I'm not asking people to claim all possible tax relief, just that in this instance, we are discussing an example for marathon runner. If im a marathon runner, i think shoes is very important to me. And, there is no clear definition of "equipment" by income tax.


Added on April 13, 2011, 11:49 am
QUOTE(vin_ann @ Apr 13 2011, 10:18 AM)
Btw, just to share my last experience with E-Filling.

I forget my "kata laluan". So i called the IRB customer service.

She teach me: go to "lupa Kata Laluan" and click.

you have to enter your IC number without dash and you type

"password" in the password colunm and press Hantar.

After that, you will be lead to change new password.

and its DONE!
*
Wah... must try this!

This post has been edited by nemo2: Apr 13 2011, 11:49 AM
wufei
post Apr 13 2011, 02:07 PM

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QUOTE(nemo2 @ Apr 13 2011, 11:42 AM)
Just to share my view. The spirit of this relief given by the Malaysian government is to encourage people to do more sports. And if you ask me, for a marathon runner, what is more important than having a pair of shoes?

I'm not asking people to claim all possible tax relief, just that in this instance, we are discussing an example for marathon runner. If im a marathon runner, i think shoes is very important to me. And, there is no clear definition of "equipment" by income tax.


Added on April 13, 2011, 11:49 am

Wah... must try this!
*
I agree with this. IRB thinking is too narrow.
In my opinion why swimming attire and sport shoes are not allow because they only think that swimming attire just for past time (I mean those ppl bought the attire and just rendam in the pool) and this does not spark the idea of encourage sports other than professional swimmers. They need the attire to swim and to archieve a better time record.

Same as sport shoes, some might misuse it, you know lar Malaysia Boleh. Some might buy the sports shoes and go jalan jalan. Where is the sprit of sport. Unless you are an atheletes who runs on the track or like you say Marathon or cross country runner, then sport shoes is an equipment. Don't tell me to run with my CROCS or sandals.


zzzxtreme
post Apr 13 2011, 02:28 PM

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hi guys, for business expense for sole proprietorship, I heard that there are expenses which can claim 40% and there are those which can claim 100%.

let's say I have a music studio, I bought a piano for RM10,000 to rent out for business. Is that considered full business expense? what about office supplies, like stationaries, computers , or company van for transportation of goods ?
deodorant
post Apr 13 2011, 02:29 PM

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QUOTE(vin_ann @ Apr 13 2011, 09:31 AM)
... just voicing out the possible tax relief you can claims and possibility of time used when tax audit found out.  tongue.gif

well, in this thread we should be talking only about what exemptions/deductions can be made strictly following the letter of the law.

those grey area where ppl want to risk saving a few ringgits only to kena mahfan'ness if they so unlucky to kena audit later on ... is up to personal choice lor.

Regretful
post Apr 13 2011, 03:24 PM

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Hi, question here. If i work for some company and then i myself have a partnership business. Which form should i fill in? Any guide to fill the form will be good as well.
a-ei-a
post Apr 13 2011, 09:36 PM

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Is is true that SSPN under my own name is not eligible for tax rebate?
Eg. I am working now, just thinking to put some money to SSPN for tax rebate...anyone did that?

ssek76
post Apr 13 2011, 09:58 PM

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QUOTE(a-ei-a @ Apr 13 2011, 09:36 PM)
Is is true that SSPN under my own name is not eligible for tax rebate?
Eg. I am working now, just thinking to put some money to SSPN for tax rebate...anyone did that?
*
SSPN is for ur kids which the deposit is ur name!

a-ei-a
post Apr 13 2011, 11:21 PM

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QUOTE(ssek76 @ Apr 13 2011, 09:58 PM)
SSPN is for ur kids which the deposit is ur name!
*
How if I am single?? Understand I can still open an SSPN account thou..
ronnie
post Apr 13 2011, 11:28 PM

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http://www.ptptn.gov.my/web/guest/simpanan/cukai

QUOTE
Pelepasan cukai pendapatan ke atas simpanan SSPN:

Ibu bapa dan ibu bapa angkat/penjaga yang sah dari segi undang-undang yang menyimpan dalam akaun SSPN untuk manfaat anak diberi pelepasan sehingga maksimum RM3,000 setahun tertakluk kepada jumlah simpanan bersih tahun semasa;
Ibu bapa yang membuat taksiran berasingan dan telah membuka akaun simpanan SSPN berasingan atas anak yang sama diberikan pelepasan sehingga maksimum RM3,000 seorang setahun;
Ibu bapa yang membuat taksiran bersama dan telah membuka akaun simpanan SSPN berasingan diberi pelepasan sehingga maksimum RM3,000 setahun; dan
Individu yang menyimpan untuk diri sendiri tidak diberi pelepasan cukai.
vin_ann
post Apr 14 2011, 09:59 AM

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QUOTE(wufei @ Apr 13 2011, 10:55 AM)
Kawan you better be correct on the line I have highlighted.


Added on April 13, 2011, 10:56 am
Report to Inland Revenue Board that this company does not prepare EA form.

For your tax submission you can add up all the numbers in your payslip.
*
Thanks for highlight.

what i mentioned were old rulling. Sorry about that.

Now updated with the new public ruling which state on the basis providing management property service to differentiate between business income and non-business income for rental.

for more detail can find in the attachment regards Rental income.


Attached File(s)
Attached File  PR4_2011.pdf ( 256.54k ) Number of downloads: 25
soul2soul
post Apr 14 2011, 10:19 AM

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do we have to declare our income from AS1M, FD interest?
ronnie
post Apr 14 2011, 10:24 AM

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QUOTE(soul2soul @ Apr 14 2011, 10:19 AM)
do we have to declare our income from AS1M, FD interest?
*
Those interest income is tax free

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