Preparing personal income tax returns

Hi, how much i need to pay the income tax based on my salary amount.

I have tried look at the income tax website, but please forgive that i am just poor at searching infos from gov sites.

Please enlighten me.

And I heard that salary below a certain amount would not have to pay the tax, what it is ?
and do we need to declare our income even it is not under that taxable category.

Thanks in advance.

This post has been edited by mindkiller6610: Dec 11 2008, 10:16 AM

first, you go lhdn website download the pcb table ...

then ur monthly salary x 0.89, that 1 is your nett, and you match with the amount in the pcb table ... then you can know roughly how much a month for the tax ... the purpose of monthly deduction is government scare people no money to pay when come april every year ...

actually government tax us base on annual income, not monthly ... last time i ask in lhdn is 27k a year then taxable ... means 2.25k++ a month ... but if someone with 2k a month, he could be taxable as well if he get 3-4 months bonus at the same year ...

once you notice your payslip got pcb deduction, then you should go open an account already ...

This post has been edited by Ken: Dec 11 2008, 11:08 AM

navigation
http://hasil.gov.my/english/eng_index.asp

Payment -> SCHEDULAR TAX DEDUCTION

click on the pdf link
PCB Schedular 2004 (*.pdf)

How much is your salary?

I wrote something about income tax here. you can refer to this

http://dragonajie.blogspot.com/2008/12/inc...nothing-is.html

if you want a spreadsheet on income tax calculation (but its is an old one, yet still usable), can PM me.

go to price water house coopers to get the updated 2008/2009 tax info

Hello everyone,

I had been informed earlier, and recently been confirmed by our HR department that the PCB (monthly income tax deduction rate) is revised higher than last year (by 10 - 20%). Any comment what is the government trying to do during this difficult time? Base on my experience, my previous PCB deduction is almost sufficient to cover the yearly tax. The higher rate means that we need to pre-deduct (or overly deduct) monthly income tax from salary before the final submission of tax form and tax payment, and... resulted in trouble to claim back "excess tax amount" paid to tax department.

Thanks.

Regards,
HelloMalaysia

You can check the PCB rates for yourself at hasil.gov.my to see if your company is deducting the correct amount.

yup, the new PCB will be higher. and another thing is: it is more complicated. make those HR Department and Tax Agent difficult life.

i dun understand why Beeeeeeeennnnddddddddd want to change this. the old system already established quite sometimes and everybody happy with that.

this is our Beeeeeeeeennnnnnnddddddddddd, bad thing never amend, good thing sure amend.

old system assume maximum deduction where the new one assume some basic deduction while others not, so what you need to do is to tell your employer what you are deducting ie. buy RM 1000 books etc to reduce your monthly deduction, good luck !

always not-so-smart moves the G likes to make.

Hello!

The deadline for Individual Income Tax submission is coming soon on 30 April 09.

The Income Tax officers will be here in i-City on Tuesday 24th March 09 from 9.30am - 3.00pm to provide online training and assistance for e-filing submission.

What you need to bring along are all your documents (e.g receipts, EA form & etc.) to process your income tax submission and a thumb drive/ CD to save your e-filing file.

Please find this link as our location map: http://www.i-city.my/malaysia/location/index.html

If you're coming or should you need to make group arrangements, please email us to avoid disappointment.

Thank You.

Facebook link for this event: http://www.facebook.com/event.php?sid=08f5...eid=67566206239

I heard that the annual income more then 2500X12 only need to paid tax

i do heard some company deduct their income tax monthly.

I have a friend recently join a company which provide him 3k salary, according to him, each month his salary deduct a portion for income tax automatically

i also found an article on income tax reduction, hope you guys can get some infor there

This post has been edited by calvynlee: Mar 13 2009, 02:03 PM

its rm2233/month x 12month and consider no bonus already need to pay tax, to be exact..

and based on recent announcements, salary of RM2500/month is subjected to PCB (potongan cukai berjadual) already.

Today I registered at the e-Filing website for the first time. I entered my PIN and did my first-time login. Then I went to click on Verify Digital Certificate. I type in my IC number and a message displays Your Digital Certificate Is Valid For Use.

To visualize what I did, refer to the official FAQ.

My question is, what is a roaming digital certificate? How does it work? My experience with digital certificates is that your browser has to store a soft copy. But I switched computers and I was still able to verify my digital certificate successfully.

I haven't completed all the tax forms yet, I'm just afraid that when I finally click on submit, the server will reject me because I used a machine different from the one I registered at.

This post has been edited by Andrew Lim: Mar 13 2009, 10:21 PM

The e-filing now uses "Roaming PKI" certificate where the certificate is not stored in a local computer but the LHDN server. Upon correct username/password, the cert will be retrieved from server for further access and use. Do click "logout" to ensure the cert be cleared from local comp after use.

Correct me if i am wrong.

I see. There doesn't seem to much literature concerning the subject. The most helpful reference I could google up was this.

So I guess the LHDN server acts as a middleman between us and some backend network.

yup,something like that.

since its ur first time, do save copy of ur data filled up coz after u click 'submit' u can't access that e-filing anymore. i print pdf for both data fill up as well as submission slip. note these are 2 different thing.

I have a question about this:



Is this where I put all the total sum of the EPF that's been deducted from my salary in 2008? So I should sum up the amount in my 2008 EPF statement under the Syer Pekerja column?

Edit: Er, I just found out the EA form states the total amount EPF paid by me. So... I guess I use this amount?

This post has been edited by Andrew Lim: Mar 14 2009, 02:00 AM

yes. EPF in EA form.

Your company might have life/medical insurance coverage so that counts as well.

What you meant by your company might have life/medical insurance coverage so that counts as well?

Count as in what?

Hi all, for the "PENDAPATAN TAHUN KEBELAKANGAN YANG BELUM DILAPORKAN" section, i got arrears payment in year 2007 to be reported, however the e-Filing does not has "PCB" column in this section which i actually had paid for arrears payment, what should I do? Appreciate your enlightening...

I got charged back by LHDN for 4 years because of that too.
The mistake I did was I reported the arrears in that section but I declared my overall PCB deduction inclusive of the "bonus" payout in one lump sum.

What I'm going to do this year is filling all those under the same line as earnings, i.e. the total earnings stated in EA form + bonus received previous year under the same line.

Unless there's any other suggestions.

I'm still waiting for my EA form from HR.

Rough assessment showed that I need to pay RM 100+ and monthly PCB deduction is not enough to cover.

life insurance and KWSP (terhad RM6,000) - so if your EPF contribution is RM4500 and company life insurance let's say rm600 (provided stated in ur salary slip the deductions every month), so you can claim under that exemption a value of rm5100 and not just rm4500. get it?

better be safe than sorry, will call them up for clarification by monday.

1-300-88-3010 (mon to fri 7.30am to 5.30pm)
03-42893636 (24hr hotline)

And pls update us if you got any infor.

Under INCOME OF PRECEDING YEARS NOT DECLARED, the 4th column Provident and Pension Fund Contribution, does this include PCB + EPF, or just EPF?

Edit: I think I should put (Total Income) under Amaun kasar Gross Amount.

This post has been edited by Andrew Lim: Mar 15 2009, 05:08 PM

Dear All,

This would be my first year filling tax return so im kinda blur and do not know how should i do it?
In my situation, im working for a company who pays me RM2k per month, other than that i do have my one sole proprieter business register with SSM, my company is currently earning and average of RM 3k per month. The question is how should i declare my tax?
1) which form should i fill, Borang B or BE?
2) Can i declare both of my salaried income and business income in one form?

Thanks in advance.

Both income are submit together but business income should deduct expenses first.

Borang B since u got carry on business.

hi all...

this is my first time filling in income tax so i'm a bit blur to to all of this...

hope you guys could help me on these questions:

1. Purpose of Borang BE

2. Purpose of Borang EA

3. Is Borang EA acts as a reference when filling up Borang BE?? i switch company in May'08 so the borang EA provided by my current company only states my total income from Jun'08 onwards...can i just add up the salary i rec from Jan-May with the one i got from my current company and declare under Borang BE? btw, do i need to provide any supporting documents for the above?

I'm also quite new to this, but from what I gather so far...

1. Borang BE is for employees who don't have income from businesses. According to the English Hasil FAQ:


2. Borang EA is a Statement of Remuneration from Employment. This form EA must be prepared and provided to the employee for income tax purposes.

3. EA is a reference to fill up BE. And I think you have to declare all your income for the whole year. Your previous company should have prepared an EA for you also. For the employer number, use your current employer.

---

Added on March 15, 2009, 3:24 pmDoes anybody know what this section is all about?

Ketetapan Umum Dipatuhi
Compliance with Public Rulings

You're allowed to select Yes or No.

So I read the FAQ, and it says


Er, okay. But I still don't know if I've complied with the rulings or not.

Interestingly, the default option on the e-filing site is "", based on the HTML code:


This post has been edited by Andrew Lim: Mar 15 2009, 03:24 PM

it is confirm the rate revsied and higher and we pay more.

so teh money we pay extra , tehy can generate money somwhere else, since it is also interest free,

let say , each invidual pay extea rm500, how much they can earn already, ritE?

it is cosnpiracy

Thanks for that reply

I guess then i need to get the EA from my previous employer...hope they still have it in their system...
Does that mean when we submit our Borang BE do we need to provide them Borang EA as reference too??

You do not need to submit along your EA form.

this news got announce in newspaper ? the stupid government covers it ?

Well, its totally different with we. Our HR told me a month back that they will reduce the PCB deduction by 1%.

This is not silly at all. The new system is definately better than the old.

the OLD system is not accurate. Everytime will have balance of tax paid.

If you are hardworking enough, go and do some research on formulas IRB use, then only complain.

Here's the new PCB table.

in theory, it's true that the new system is more accurate. in practise however, it will almost always over-deduct if you are not savvy enough about tax matters to inform your HR Dept to make the necessary deductions beforehand (such as medical ins, books, purchasing new computer, medical for parents etc). This puts additional work burden on the HR.

furthermore, there is additional duty of the HR to satisfy themselves that your request for deductions are genuine and not simply taruh one. otherwise if there is any tax evasion on your part, the IRB may punish your company as well for "abetting" it.
Thus many companies are reluctant to allow such adhoc deductions.

Under the old system, many ppl are already overpaying..thus you always hear complains about the inefficiency of IRB in refunding the money. Now with this new system, they will be more of such cases. What IRB should do is to pay interest on this monies that are overpaid until such time when they refund.

if u're working and getting above the RM2.3K/month, you comply to the ruling. The option to say you don't comply is just an option, for them to say that they gave u option i guess just joking..i was wondering about that since the first time i did e-filing but didn't check in length. Basically if u read the ruling, u'll see its just crap and everyone is eligible to the tax.

yah.. this deduction start on jan 2009 , but it din announce it on newspaper. Some more , is this helping our individual financial burden in eco crisis?. Our G doing things kind of dilemma.

Got lar.
Somemore its understood liao, change in tax rate sure got new STD/PCB table.

They want our money but they make it so complicated for us to give it to them.

Hi Guys,
I am filling my income tax for the first time,
i own a sole proprietor license company and work as an employee . my income/salary is not taxable but my company made a gross profit(before deduct-is it gross or something) of RM 75000.00 this year.

I have went to the HASIL and get my tax id/reference number now i cant find resource what to do next.
I really dont want to use an accountant for this, would like to learn how to do it but cannot find information on the internet,
can anyone of you give me advise?

In the end I just left it empty when I submitted.

is it possible to submit with it being left empty. the last time i did that it came with an error. thats why i said i dun really understand the purpose for it.

When I submitted, it was not a compulsory field, and the default value (inside the HTML) is "". So I guess it's not really important.

Bro, eventhough u wan to do accounts by yrself but at the end u must employ a tax agent to help u compute the tax for u.

to do a tax return he/she needs to be qualified under Section 153(3) of the Income Tax Act 1967. that's mean u cant be a tax agent and submit the return for yrself. u need to employ a qualified person are authorised to act on behalf of u for the income tax act purposes.

normally tax agent will help u do all the accounts, compute tax, fill in Borang B and submit it for u too. 1 leg kick all. u juz have to pay the agent fee.

r u good in accounting? if u have knowledge in accounting juz start do it with the cash book first. record all the receipts and payments side then do all the posting. normally, if u finished yr cash book u already done 80% of yr accounting works. when doing CB make sure u refer back with yr bank statement/chq butt so that no transaction are left out. after that records all the sales and purchases. then do Fixed assets & capital allowance schedule, Income statement and balance sheet.

make sure u kept all the payment vouchers, receipts and relevant documents at least 7 years.

Are you sure or not?
I cannot submit my OWN tax return meh?
Wei check before posting lar

Edit : Don't mislead other people lar.

This post has been edited by wufei: Mar 17 2009, 10:18 PM

ofcoz u can submit yr own tax return~

if u oredi employ a tax agent y u still submit it by yrself. ask the agent to submit it for u. u pay him and agent should provide his service what.

You sure about that? I thought this Self Assessment System is all about doing your own computation AND doing your own return?

This post has been edited by GeminiGeek: Mar 18 2009, 12:24 AM

Normally ppl know how to do all the accounts but they dun have the tax knowledge. That's y u have to get a tax agent to do a tax return on behalf of u.
what i'm talking is referring to booleanx. not everyone dude

"to do a tax return he/she needs to be qualified under Section 153(3) of the Income Tax Act 1967" what i mean here is for someone (agent) to do a tax return on behalf of another person. is not u muz qualified under Section 153(3).

sry if got any misleading~

Income Tax is levied on "Chargeable Income" and not "Profit" or Salary.

In Income Tax terms, you have Gross Income, Adjusted Income, Statutory Income, Total Income and Chargeable Income.

Tax computation is easier for salaried employees compared to business owners.

I have prepared some write-up on Borang BE 2008 in www.mytaxation.blogspot.com

PCB is just a tax collection method, not a final tax. What is deducted from your salaries monthly is totalled up in a year and compared to your actual tax for the year when you calculate your tax when filing in the Borang BE. If there are shorfall, then you have to pay the balance. If there are overpayments, then you will get a refund from the IRD.

For business owners, your profit of, say RM75,000 is not taxable as it is. You have to calculate what is your chargeable income. If you do not know how to calculate, then you need to look for an approved tax agent.

It does not mean that you cannot file in your own tax returns. The 'approved' means that a person who opens up a shop claiming himself to be a tax agent must be approved by the IRB. Just like a doctor or a lawyer, they must be licensed.

My opinion is, if you own a small business, no need to go to those big accounting firms, their fees may be higher than your tax itself. Go look for a smaller firm. The list of approved firms can be found in the IRB's website.

I just registered myself for the first time and got a tax reference number. What next? Wait for the goverment to send me a form?

If you have a tax reference number, you can call the LHDN office and ask for a PIN to fill in the Borang BE online.

u can take a blank Borang B & fill in 1st if u want

I'm assuming you just started working since you mentioned you just registered with LHDN and just gotten your tax reference number.
So if I'm correct; than you'll only need to declare your income comes next year.

happy4ever, for the past 2 year 2007 + 2008 i'm working overseas and lhdn mailed me the BE form(2008). how am i suppose to proceed?

technically am i eligible to pay taxes? since i'm not in the country?

Form BE is for Resident who does not carry on business in Malaysia.

An individual is regarded as tax resident if he meets any of the following conditions, i.e. if he is
- in Malaysia for at least 182 days in a calendar year;
- in Malaysia for a period of less than 182 days during the year
(“shorter period�) but that period is linked to a period of physical presence of 182 or more “consecutive� days in the following or preceding year (“longer period�). Temporary absences from Malaysia for certain specified reasons during the shorter or longer period are counted as part of the consecutive days, provided that the individual is in Malaysia before and after each temporary absence;
- in Malaysia for 90 days or more during the year and, in any 3 of the 4 immediately preceding years, he was in Malaysia for at least 90 days or was resident in Malaysia;
- resident for the year immediately following that year and for each of the 3 immediately preceding years.

You hv to submit Borang BE & pay tax if u meet any conditions above. If not u still hv to pay yr tax and submit Form M (Return form of a non-resident invidual) instead of Borang BE.

Correct me if i'm wrong

[quote=chanti-sama,Mar 19 2009, 10:47 PM]
happy4ever, for the past 2 year 2007 + 2008 i'm working overseas and lhdn mailed me the BE form(2008). how am i suppose to proceed?

technically am i eligible to pay taxes? since i'm not in the country?

[/quote]

Depends on whether you have any income from Malaysia- rent/dividends. If not then depends on who your employer is. If Govt ie you are with Foreign ministry/other govt agencis then yes salary is taxable.

If foreign employer then ,the salary earned abroad is not taxable in Malaysia.Just return the BE form with explanation note.



[/quote]

if i rent out an office, and there is a cleaner who cleans the office,
and i pay the cleaner, the amount paid is deductible under expenses, yes?

if i have a SOHO, at home, and i pay my maid to to the same thing,
clean up after me
can i deduct her salary under expenses?

during the YA if you stayed in malaysia less than 60 days ..then no need because no Permanent establishment

ic.... is there a procedure to notify them that i'm not eligible for tax?

aik..this is not apply for foreigner who working in M'sia but less than 60 days meh?

Someone has done the spring cleaning.
Why my post disappear from this thread? and plunge to a closed thread>

I don't know what you are talking about. But there are another income tax related thread is going on if you can't find income tax related discussion, besides this one.
http://forum.lowyat.net/topic/654361/+240

Posts won't be deleted or disappeared simply, only those non-related to the topic discussed or post being reported offensive etc will not be showed and taken action on it.
Even if a topic is closed, whatever posts are still there.

Edited, none of the post in this thread is being reported nor any modification has been done before. It is still a clean stage topic until now which forumers are contributing lot of information in between.

This post has been edited by cherroy: Mar 21 2009, 10:51 AM

http://forum.lowyat.net/topic/649044

this post suppose to belong here but it was moved to a closed thread.

Is that means my post is non-related to the topic discussed or post being reported offensive etc

The reason could be duplicating discussion (income tax related issue), which someone might report it, which fellow moderators or TS himself closed it which I am not aware it. Moderators rarely move individual post to other topic unless requested by poster him/herself.

Edited : do you post in this thread in the first place or just a mistake as it is unlikely moderators moving your posts to a closed topic which I am not aware of.

It is best interest to all, all discussion being concentrated in one thread so that ease fo reference and serve a platform of information. Thank you for the cooperation.

If really need the closed thread, and merged into this thread, can PM the moderator.

Cheers.

This post has been edited by cherroy: Mar 21 2009, 11:22 AM

To clear the air;
I'm responsible to move it here as it is related to income tax issues.
I didn't move that post of yours which is left untouched as I felt that it's just a sarcastic remark which bears no help to the said poster asking the question.

It's better to have a consolidated topic as income tax filing is near.

Cheers.

For income tax RM300 deductions on sports equipments, I read from yesterday (or Saturday?) TheStar saying:
1) Sport shoes are not deductible (even if you are an atheletic runner)
2) However, short-lasting equipments like badminton shuttlecocks, etc. are allowed.

I try find in www.hasil.gov.my for the FAQ or doc or more info, but can't it. Anyone can help to point the link on what are the items allowed or not allowed ?

i checked with the efilling today. found out that HK3 form is included in the system this year. So do we need to go to LHDN to verify all the dividend voucher?

Been following this thread.

Just wondering, in the

Complete medical examination for self, spouse or child (Restricted to 500)

Purchase of books/magazines/journals/similar publications (except newspapers and banned reading materials) for self, spouse or child (Restricted to 1,000)

Purchase of personal computer for individual (deduction allowed once in every 3 years) (Restricted to 3,000)

the amount we fill in via e-filling, how are they going to verify if the amount i entered is correct.

do i need to submit the receipts or just wait for them to check up and demand for proof of purchases?

if just fill in any amount, CAN OR NOT? lolz

Bro, sport shoes is sportswear not equipment

You are responsible to declare your actual numbers. Yes, you can fill in what ever you want, but if you get audited, you are required to prove what you have declared.

Once u submitted yr form...IRB will treat yr account / tax are correct first. after that, when IRB's staff are free then they will start doing their job. they use the computer and select based on evalaution risk criteria. Beside that they also will select base on location, industries, third-party etc to do the tax audit.
Receipts no need submit to them. If they selected u then u maybe have to provide all/some of the receipts/documents for them to audit yr accounts. that's y u hv to keep all the relevant documents up to 7 years.
if they found out, u simply fill in the amount then u'll kena penalty lo.

http://mytaxation.blogspot.com/2009/02/inc...e-tax-free.html

For me i think this is quite a diff comparing to last year. However in the last section it stated that
THE ABOVE EXEMPTIONS ARE NOT APPLICABLE TO EMPLOYEES HAVING CONTROL OVER THE COMPANY, SOLE PROPRIETORS OR PARTNERS OF PARTNERSHIP BUSINESSES.

If i am working in a SDN. BHD. company then i won't be enjoy all these benefit is it?

Then i just go stationery shop buy few receipt books lo.
Can?

Cause for eg, my CPU bought last year, the receipt also hand written only wor.
That one they accept also right?

work in oversea no need to pay tax to malaysia . however if oversea charged u a tax ... u can always get a tax credit from malaysia irb ...

*only apply to countries which have DTA with malaysia

I've just logged into the e-filing thing for the first time and noticed that it's lacking in some things. For example, there is a space to declare rental income but no space to enter expenses related to that rental? Or should I just enter the net rental income after all expenses have been deducted?

But to a runner (marathon), it is his most basic equipment. However, LHDN does not accept it.

Anyone has the weblink which details all the items allowed to deduct from tax (max RM300) ?

employees having control over company is quite subjective, isn't it?

Also another question. Bonuses are considered for the year they are paid right? I mean if I get paid a bonus in February 2009, this should really be considered for income tax purposes only for 2009 even though on paper the bonus is supposedly for services rendered in 2008. Is that correct?

depends on EA form. just follow the EA form.

---

Added on March 24, 2009, 12:32 pmdownload the "buku penerangan borang be2008" from their website. its in there.

This post has been edited by attahun: Mar 24 2009, 12:32 PM

Thanks for the info. Further digging and I found this to share with everyone here:

A) RESIDENT INDIVIDUAL
Employment and Other Income (Without Business Income)
Explanatory Notes BE2008
This form is only for viewing. Please use the Malay language version for submission to the Inland Revenue Board of Malaysia.




This post has been edited by cute_boboi: Mar 24 2009, 01:27 PM

boon izit u meant tat I can declare 2008 income + 2007 bonus tat paid in 2008 together??? anyone know exactly what to do for this case???

guys.. got some questions to ask on this "PENDAPATAN TAHUN KEBELAKANGAN YANG BELUM DILAPORKAN" will i get penalize if the figure reported under this field doesn't exactly match with the figure on my past year ea form?

Hi all,

Some advices are needed.

I have started working in Singapore from 2008/01 till now.

So, am I still need to fill BE form and declare I do not have income earned in Malaysia? I was doing tax-filling for the past few years.

Thanks for the help.

hi, just want to ask..
I have worked in year 2007 and i didn't declare tax last year since my income is low and is not tax-able tat time.
So, for 2008 tax declaration now(which is my 1st time declare tax), do i need to fill in the income of year 2007 in "PENDAPATAN TAHUN KEBELAKANGAN YANG BELUM DILAPORKAN" section???

if not mistaken, failure to declare (even though not taxable) will subject you to LHDN penalty. others can correct me if i'm wrong.

From my understanding, whether your income is above/below, as long as there is income, it is the individual responsibility to declare the income, even if you earn RM10 per month (=RM120 p.a.).

You will still need to register, request BE form, fill up RM120 (penggajian), then RM8000 personal relief.
Hence, taxable amount = 0
Tax payable = 0

But a lot of people have this Tidak Apa attitude, say below RM30k no need to declare, don't waste time fill up form, etc. Later when get caught/audit, make a lot of noise say govt is stupid need to declare this lah, that lah

last time i asked at LHDN. They only look at pay date.
if pay date is 2008 then you have to declare for 2008 tax.