thanks for the feedback, mtsen.

Ya, i'm from penang. last week i've decided to let accountancy firm do it for me, due to some complication. should have seen your feedback earlier and turn up to the LHDN for their free advice. hahaha.

anyway, thanks a lot for your feedback.

Guys, want to check if it is true, i heard we can contribute up to 7% of our annual income to donation? For eg, you donate 7% of your income to some "gov certified" organisation and you can claim this back in full during yearly income tax filing.

please advice. thanks.

This post has been edited by shakiraa: Apr 13 2009, 10:28 PM

Get to reduce your taxable income by 7% only... thus reducing the tax bracket.
You don't get back the 7% in monetary value.

hi all, i need help from this issue,
If I am working for oversea company (europe) based in Malaysia as technician for south east asia markets. My company pay me salary to local bank every month. But my company not register in Malaysia, and I also not pay for EPF. Should I pay for Incometax?

thanks for your answer

Depends if you have work permit. If you do not have work permit, then you can skip the income tax. But you will have to declare to your own country. If you would go back in the future.

my base is in Malaysia

As long you are receiving income in Malaysia, you are taxable.
I think your company is breaking the law for not paying your EPF.
All business entity need to be register in Malaysia when conducting business here.

Good luck. You need it.

I guess all foreign company conducting business at malaysia must be register, except illegel business.

i think your company has register, just that they does not provide you epf...

currently standard salary more then RM2401 must declare income tax. You no need to declare if you do not plan to buy property... if you do, better declare.

Hi,

just want to know if I haven't declared my paprt-time jobs income for year 2006 and 2007, should I declare it together with year 2008's?

Where should I get the Borang B from?

Refer to Attahun reply on above quote. It's going to depend on the EA form. Below is my situation:

Take an exmaple on my 2009 EA form below:

"Butiran Pembayaran Tunggakan DSB Bagi Tahun Tahun Terdahulu (Sebelum Tahun 2009) "

Bayaran Bagi Tahun Jenis Pendapatan Jumlah Bayaran (RM) Carumah Tunggakan Kepada KWSP
2007 Bonus XXXX xxxx

I Received my bonus at around Jun 2008.

After i read through topics gathering all the advices and experience from the forumens, i found out there is 2 normal practices they fill the tax for above situation:

1. Add the 2007 bonus to TOTAL PENGAJIAN 2008.
2. Declare 2007 Bonus under Section G1 for Pendapatan Tahun Kebelakangan yang belum dilaporkan.

Which one is preferable? If i declare it under Section G1, it won't be taxable in my 2009 tax assessment, but LHDN will approach me to inform me on how much tax i need to pay for year 2007, right?

Appreciate forumens advices on it.

I tried 1. and found that it hike up my tax bracket. So no go.
So use 2. i.e. declare under that section. Because PCB had been deducted for that particular income.

guys, i hope someone can help me with this. i wont be able to submit my 2007 tax due to previous company is being a b1tch in providing me my EA form. i went there 3 times, and im still unable to collect it. they give me really retarded reasons. is there anyway i can complaint or seek help from the income tax dept?

Thanks for your advice, B00n. Jadual cukai specified different categories for the percentage of tax one required to pay based on the taxable income. If i add in the 2007 bonus to my 2007 taxable tax, i will going to reach another scale, which meant i will going to pay more percentage of tax for my previous 2007 year.

So, it is wise for me to include my 2007 bonus in 2008 Total pengajian since i received it in 2008 if considered my above case?

Hope forumens here can give some opinions on it.

Assume your company is not registered here (not discussing legality of it or not)
1) Your salary is paid in RM or foreign currency ? I assume is TT into your local a/c every month (SWIFT code)
2) Based on the TT amount, BNM will have all the track records. I used to received TT <RM20k per month, including expenses, but I was not audited. My friend was receiving >RM50k and was questioned by BNM to justify for it.
3) If your co does not pay you EPF, where does the Employer portion goes to ? Do they pay you the extra amount ?

My suggestion to you:
i) Claim/Submit your EPF to get the Employers ~13%. Goto EPF counter, and request for an employer ID for own self-submission (i.e. sole-proprietor paying salary to ownself). Then you have to submit it monthly yourself.

ii) Tell your company, you need EPF. You think want to try run away from tax and not declare ? Refer #2 above, BNM has all the records, whether is worth it for you to evade tax or not.

iii) Have clear paperwork a/c on your basic salary, commission, bonus, expenses claimed, etc. Only submit the income portion and not the expenses claimed (e.g. help company buy small spare parts)

In this way, you get:
a) The employer 13% EPF + minus your own contribution 8/11%
b) You get to submit proper income tax
c) Your monies are clear.

I think for now bonus paid will be tax under the same year it is received.

When you receive the bonus the PCB increased as well. Thus if you declare bonus for the year it's for (rather than year received), then you ended needing to pay more tax. In fact you paid via PCB on the year it was received.

Matter of fact is that most companies in Malaysia never pay bonus before 31 Dec. Only LHDN thinks in such an utopian manner.

Out of curiosity, how did you get 2009 EA Form ? Everyone should have for 2008 EA form from the employer (ex and present)

Sorry..it should be 2008 EA form for the year 2009 tax assessment. Thanks for reminding me on it, Ronnie. If i put my 2007 bonus into the year 2007 tax assessment, i am wondering how LHDN will calculate how much additional tax that i need to pay even if i have paid it through PCB on year 2007?

@frans, you seem to get the date wrong again.
Year 2008 Tax Assessment uses 2008 EA form.

This year (2009) we are doing the Tax Assessment for Year 2008 using the 2008 EA Form.
Since your 2008 EA Form have written

You need to fill the Borang BE exactly the same. No two ways about it.
The additional taxes for 2007 Bonus (paid to you on June 2008) will be part of your total income received for Year 2008.
The Jumlah Bayaran is the PCB you paid for the bonus.

This post has been edited by ronnie: Apr 14 2009, 02:02 PM

Thanks for your advice, Ronnie..Once again..sorry for misleading forumens here about the year. I am a bit blur on it..

Anyway, based on your above reply, does it mean that i need to add my 2007 bonus to year 2008 Total Pengajian?

No... there is a special column for it on the BE form.