u r right just trying to simplify things for newbies

No worries Whenever possible, we try to guide newbies in understanding taxation on the proper path.

Hi sifu.
If we doing the sub job and get money but no have any transaction in epf/socso.
When I apply loan @ bank, they ask me the income tax, I don;t have it.
SO, I need to declare to Income tax?.

All income must be declared, even if you receive RM1 per year.

Whether you get tax or not, that is after you fill up the form and you will know.

thanks for your tip, i will ask the officer for further detail.

Hi all,

I'm newbie here. My salary is less than RM 2.5k and I had plan to buy a car.. do i need to register as new income tax? or do I need to pay income tax when I purchase the new car?

Thanks

It's two separate things, which I would say non-related. For your income, a lot (if not all) of your friends, colleagues, family will tell you under 2.5k, no need income tax lah, etc.

Yes, it is MAYBE true that 2.5k/mth income does not need to pay tax.
But it is the responsibility of citizen to DECLARE your income. Declaring income does not mean you are taxable (pay tax).

My advise is, just proceed to open a new LHDN file if you have not done so. Next year in Feb-Apr, submit your income declaration. Once you fill up the e-Filing, you will know the auto calculation there, which is non-taxable.

Once done that, you are safe.

On buying car, it is not related. You can buy, get loan, etc. No problem. Unlikely LHDN will come to random audit you.
BUT, if you were that bad luck and get audited, nothing too big to worry also. Most likely you will get fined due to non-declaration of income only. Just RM50 or few hundred max, provided you do not have any side/illegal income, etc.

Hi guys

Need some advice.

Just got a letter from IRB to provide proof of documents for certain items like parents medical, sports, magazine subscription, dividend vouchers etc for last year's income declaration.

My question is,

1- I have overstated some deductions, ie cannot be substantiated by receipt, I know I will attract a recalculation and possibly a penalty. How much is the penalty?

2- they have asked for documents for 2011 only. Will my providing or meeting up with them will attract them to audit into previous years as well?

3- fearing for scenario 2 above, should I just ignore the notice, let them do their automatic recalculation ie voiding my declared deductions and possibly add on a penalty, if no response within 21 days as was stated in their letter. I then pay whatever is the recalculated assessment? This tactic avoids meeting the tax officer which may attract further scrutiny. What do you guys think?

Thanks

https://spsd.hasil.gov.my/PKI/e/ReqPinNo.html

How to get the "Tax Reference No"?

1. Penalty is depends, check LHDN website or there is some info here.

2. Yes, possibility of them audit previous years also. If you don't bring, they MAY ask you to come again another day. Cause since kantoi for YA2011, LHDN assumption is that sure got problem on previous years also.

3. "Two things you can't escape in life: (1) Death , (2) Tax"

Your individual tax file number. Something like your unique number like IC no., EPF no., etc.

For Computer Tax Relief, can I claim for 2 items ie 1 desktop and 1 tablet if the total is less than RM3000?

Then it looks like whether I submit now or later, it makes no difference. I will be audited for previous year's declaration anyway.

For discussion sake, it's always been said and advised that one should not buy assets with cash which may attract immediate attention from IRB. I really wonder how true this statement is or is just a myth.

Granted, IRB can do a random check or otherwise get info from a tip off but is IRB itself alerted by some sort of trigger that when you buy a car or house in cash, you get audited from IRB.

No. Only one computer (max 3k), claimable once every 3 years.

Not necessary 100% you'll get audited for previous years. But the percentage is higher, I would say 60-80% (I'm not working or related to LHDN in anyway)

There is no issue to buy in cash, if anyone has proper proof of their income and tax declaration.
e.g. If my monthly nett salary/income is 10k, and pay all tax dued properly, 1 year, theoretically, I can save 120k cash.
In 5 years (5 x 120k = 600k), if I buy a property for 500k cash, I am not scared of LHDN come to find me, provided I declare all previous 5 years tax and paid all the taxes.

Any seller who sell property, need to submit CHKT form to income tax, and there maybe buyer info there as well But as said above, if everything is in order, there is nothing to hide.

What I meant was how does IRB know when you buy assets in cash, whether you declare your income truthfully or not. Tip off is one but I can't comprehend that when people say, better don't buy cash if your taxes are not in order bcos IRB will know. How?

Yes, when you sell property, there is a chkt form but that's for seller to be assessed if he needs to pay rpgt. How does that form trigger IRB to the buyer who bought cash? Also, I may buy the property in cash now, I then refinance later, when I sell, in my chkt, I still have an interest paid deduction as well, so, it looks proper too.

I've just looked at the chkt form, yes, it contains the acquirer's details and income tax file number but it doesn't ask if the acquirer is paying cash or paying via a bank loan

This post has been edited by kuntakinte: Nov 16 2012, 04:24 PM

Any buyer details, LHDN key into their system to check any history of declaration and tax payment (if any).
That is the reason I always ask people to DECLARE their income, even though it is not taxable.

e.g. If a person never declares his 30k p.a. income, and then suddenly buy a 200k house. LHDN key in buyer MyKad into system, no records found. What you think ? Should call up for audit ?

2nd e.g. If a person declares his income 60k p.a. but goes and buy a 1.2M property. LHDN key in MyKad, found got declaration for 5 years and his age about 30 years old. Age, taxation, etc. all sounds reasonable, but 1.2M property ???

No doubt, there can be valid reason for it, whatever it is, but LHDN may just want to confirm it and hence, call up the buyer for audit. If can prove, e.g. kena Toto jackpot 48 million ... then no problem. Else kantoi

How to register your home address as your business address when you register with Local council?

Is this permissible?

Hi, I would like to ask for computer Tax Relief, can I buy for FY2012 and claim for tax relief for FY2013 since it stated once every 3 years?

It's based on the receipt of the Computer Purchase.. to claim FY2013, the receipt must be dated 1-Jan-2013 to 31-Dec-2013

ａｆｔｅｒ　ｃｌａｉｍ，　ｔｈｅ　ｎｅｘｔ　ｔｗｏ　ｙｅａｒ　ｎｏｔ　ｅｎｔｉｔｌｅｄ　ｔｏ　ｃｌａｉｍ　ａｎｙｍｏｒｅ．　

Dear All,
I need your advice on the following cases:--

Case A:
If a Malaysian company offers me a one year contract to work in China. (But the Malaysian company does not own any thing in China, but my service is 'offered" by the Malaysian Company to a China Client )
Let's say my monthly pay are paid in Malaysia, but for the working, nearly the whole year I reside in the oversea (China).
Will I have to pay tax to Malaysia , or I have to pay tax to China, OR better still , I do not need to pay tax at all?

Case B:-
If an Europe-based Company pays me to work for one year in China ( for that Euro company subsidiary in China), and the pay is credited to my Malaysian bank account:--
Will I have to pay tax in China, or Malaysia , or No need at all?

Many thanks for the possible help.