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 ?

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) ?

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

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

They do random audit lah.
I kena before, but nothing to scare, as I have everything in order including receipts and explanation. Just like going to interview and show your certs, etc.

No other reason, they just random pick me. I asked them anything, they say nothing specific. They did not ask any weird questions or deep probe also. Just ask mana receipt ini insuran nyawa ? Apasal tak declare bulan November XX (cause in between new job after resign, show them EPF statements) Mana receipt donation ini ? Mana slip resit bayaran income tax tahun dahulu ?

Even if you declare 100k, but buy a house at 90k cash, LHDN may question how you survive on 10k PER YEAR. It is possible to survive on less than that, but they'll ask you further or for you to prove to them. They may ask further questions like your car loan, your dressing (armani on 10k per year? ), etc. If you say pay car cash that you buy last year, then

90k house (cash) + 50k car (cash) = 140k cash > 100k declared income.

Yes, then LHDN will start to query all your previous years income, tax declaration (why no declare ???) , huge purchases, stock shares, overseas holiday, branded/luxury goods, where you stay, who own the house, etc. It must make sense for all the years of income and expenses.

If you say parents (or someone) give you money, even better. LHDN will call them up to audit as well asking similiar questions like above, if your answers are too fishy. Then you get your parents into trouble (if they ever evade tax)

The reasoning is, be logical. If it doesn't sounds right, there is high chance of cheat/fraud (tax evasion).

Yes, I'm taxable. Maybe I should start find work in HK/SG (lower 10+% max tax only)

Declare tax from Jan-Dec.

Look closely at your previous company EA form. If it is for salary Jan'08 to Dec'08, then you will declare it in year 2009. If it is salary for Jan'09 to Mar'09, then keep the EA form and declare it in year 2010.

Call up and get clarificaiton from your previous Jan-May'08 employer. If it is clear up as e.g. salary after leaving or bonus paid, etc. then just total up for Penggajian:
Jan-May'08 + May'08 extra + Jun-Dec'08 new job
= 11k + 2k + ??k

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.

A lot of your friends/families will tell you:
1) no need declare since below xxx amount
2) don't waste time go open file, etc.
3) no need pay tax, declare for what ?
etc. Tidak apa attitude

My advise, just take half-day off, goto LHDN and request open a new file (or ask them check MyKad if you file-number is already created, but your company did not inform you). Then start to fill up and declare using form/online, even though not taxable. It is good to practice and learn first, for your future years.

Then, remember pass your income tax file number to your company HR/Finance for their records.

LHDN Working Hours

Just provide your MyKad to LHDN to verify/get your file number.

It is like making U-Turn at a junction without any U-Turn sign. It can be legal/illegal.
However, it is a duty to declare any INCOME

As long as your sister in NZ does not remit money back into MY, then just declare RM0 in BE form and submit.

RPGT is abolished since a few years ago.

I tried whole day yesterday from office network - leased line with guaranteed upload & download bandwidth, unlike broadband best-effort basis. LHDN website too slow. Finally submitted it this morning 1am+

Tomorrow (last day) going over to pay by physical cheque and get a physical temporary-receipt (old school )

Cheat ? Same like cheating in exam. No one catch/audit you, you are lucky. Get caught, either retake the exam (pay fees/penalty) or get kicked out (tax evasion - court case/jail/etc.) and get sleepless night.

They trace by randomly audit people. Like an interview, they will ask you show this receipt, that receipt, ask you explain this, explain why that, where you stay, with who, what car you drive, got go holidays, overseas/local, see what you wear, etc. If you don't have proper proof ->>

If you say parents/relatives give you money, even better. They'll start audit your dad, mom, uncle, etc. Drag all in one net.

7pm-10pm+ I went out for dinner

Yes, they will audit for several years, about 3-5 years back. If everything in order and not suspicious, it will be done in <20 min. Else be prepared for hours/days

Your finance/HR should have taken out the allowance from the EA form salary, or to itemised it for you to declare. Refer earlier postings in this thread and also this thread.

Not audit. Just check and verify all the computations are correct and the figures doesn't look funny to them (not you). If audit, they will call you to come in for an appointment, bring all the relevant documents, receipts, etc.

I thought the rule of the thumb is, if no receipt, do not try your luck by putting into deductions.

Receipt lost/misplaced/don't have/don't know is not acceptable by LHDN audit. They will take out the amount and re-calculate the taxable amount. Worse, they fine you for wrong/falso submission. The small fine RM50 maybe 10x more than the amount deducted.

Also, if you work in countries which does not have double-taxation rules (e.g. SG), then you can bring in your money legally, caused you already paid taxes in that country.