From RM27k a year and above is about right to start paying minimum tax. (few ringgit worth of tax).

I think the RM2.5k per month you've mentioned is referring to the STD/PCB schedule. Altough you earn less than RM2.5k per month, you could still be subject to tax even if you don't have bonus. However though, the tax liability will be very minimal.

This post has been edited by legiwei: Apr 10 2009, 12:24 AM

Profit sharing is determined by the partnership itself. Normally it is split based on the capital that each have contributed but not necessary so. So long as you guys agree on the cut, it is acceptable. Partnership is also not a company and also not a chargeable entity.

All partnership income is taxed at the partner level, meaning at your personal income tax comp (File using Form B). So say, the "profit" is RM60k shared equally, you will be tax at RM30k for your partnership income.

So, in your tax comp, business (partnership) income 30k + employment income 60k = 90k aggregate income assuming no source of income.

Hope this helps.

This post has been edited by legiwei: Apr 24 2009, 01:15 AM

All your employment income (salary, bonus, allowance, incentive, etc) is to be posted under the employment or penggajian column in the form.

I thought I might just drop by and give some free tax "advice".

Yes you still need to file your return for 2009 eventhough you are not taxable.

If you are making payments for your balance of tax (still in a net tax paying after deducting your PCB/STD, please choose "Bayaran Cukai Pendapatan (tidak termasuk skim ansuran)".

All fixed allowance are taxable but if this allowance is in relation to exercising your employment wholly and exclusively, you are entitled for a deduction. If you choose to do so, you will need to substantiate your claims in event you are being audited. I may also suggest if you could keep a travel log on your claims i.e. visiting which client in case if there is dispute with IRB.

Yes you can appeal on your own tax computation. But I'm not too sure if the form for individual is the same for company which if i'm not mistaken is Form M. But ya of course u can call the tax officer which I hope you've already did. But all taxes must still be paid even if you submit an appeal.

If your insurance plans includes both medical and life, it must be seperated. Normally, the statements will show it separately on the premiums that you have paid for the year. If it isn't, please call them and get them segregated. Also, best is to get a written reply from them.

It is not essential to provide your bank acc number eventhough you have a refund. All refunds are given back via cheque anyway. Yet to heard IRB banking in refunds as of now.

All premiums that you paid must be segregated. Only life and medical/education premium can be deducted but they are not interchangeable. You're not permitted to deduct the portion attributable to life insurance under the medical/education category. As I've said, referring to the statements will provide you the necessary information as to the allocation of premiums between medical/life/education/investment linked etc.

Actually, the annual membership do qualify for a deduction provided that he is paying for the membership fees and it is incidental to it's employment. i.e. His job must be related to his qualification. You will deduct the fees in arriving at statutory income of your employment source.

I don't know but others could be for like your investment linked portion, savings plan, etc. I'm no insurance agent. And in any case, has no use whatsoever from tax point of view.

Even if you submit your annual return using the traditional paper filing way, you are also not required to submit your EA form as proof as we've already moved to self assessment system (SAS). I think it's a good idea to just file it up and provide it upon request.

Actually, it is possible. The question is whether who has incur the life/medical insurance. The person who pays for it is entitled for the claim. However, only insurance premiums paid for your immediate family (spouse and children) are entitled for a deduction.

As to the medical expenses, we will have to see as to whom this medical expenses has been paid for. If it is for your parents, all medical expenses incurred for your parents (only your side, inlaws do not count), a sum up to a maximum of RM5k is allowed for deduction. All you need is to keep the receipts of payment. In this case, all of it will be allowed subject to the maximum deduction.

If it is for your self, spouse or child, the Act provides that a relief of up to maximum of RM5k is allowed for medical expenses on "critical illness". From the description provided, it seems that those medical procedures are incurred on an emergency operation and does not constitute critical illness, hence not allowed.

Hope it helps.

Yes the code of payment is correct if you are using it to settle your balance of tax.

There is a form for you to fill on the types of deduction i.e. medical/child/parent's medical expenses/sports equipment/books/etc that you are going to claim for the year. Sorry but I couldn't remember the name of the form. Upon doing so, you employer will adjust your PCB payment to take into account all the deduction and will be reflected in your next PCB/STD deduction.

If you fill up everything and claim exactly as the amount in your return, the PCB/STD that you pay will be exactly the tax that you will pay, a few sen give or take. The new PCB/STD deduction system is actually to address the issue of excess amount of taxes paid to IRB.