ermmm it depends on how u judge for the tax payment, for myself i will see it as monthly income tax paid. I earn in Jan, i paid in Jan. but if you Earn in Jan but prefer to paid in Dec. it all depends on which point of view you are from.

there is a reason why IRB change to current year basis in year 2000. cash flow is part of your well manage business as well.

besides, i have seen improvement in IRB refund. they act faster than previous year. I do agree with you regarding IRB should improve their refund method.

for a person who earn Rm2k avg a month, every1 who are has an income should submit tax return, but no worries if you didnt apply for tax file number becoz i dont think IRB will be interested in these group of ppl too hehe.

This post has been edited by klthor: Feb 26 2013, 01:32 PM

not all expenses u can deduct. eg. petrol, salary, etc.

best way is still hold under your names unless you are paying more than 20% tax.

1st question, have to apply or submit tax return before this?

if yes, please do the e-filing.

if no,
in theory, everyone who has income should submit their tax return.
in practice, dont need la.... wait until u have to pay tax la =.=

ok, because property investment nature a bit diff, the tax computation is diff from normal trading company. salary will falls under indirect expenses and at most u can only claim 25%, let say rental = Rm1k, staff salary = Rm1k, only 250 can be deducted. meaning any other admin fees = 25%. but theres another catch here, if i remember correctly, max u can deduct for indirect expenses is 5% of your rental income so forming a company just to receive rental income isnt a smart way for me, at least i think. UNLESS, you are doing business like Mid valley, One Utama where u manage and provide alot of additional services, then u can consider for it. because it consider as business where everything is near to 100% deduction, eg. salary etc etc.

and for 20% or above tax rate, u need to do some calculation. SME tax @ fixed 20% for 1st 500k only, whereby personal tax = scale. so u really need to calculate nicely. 100k @ SME will be 20k tax, whereby 100k on person is around 14k if i remember the schedule propery -.-

besides, forming a Sdn Bhd include more cost instead of saving. example audit fee, company sec fee, filing fee, etc etc which can easily cost u over 3k a year. theres a new type of company named Limited Liability Partnership which is the same as Sdn Bhd, just that they dun need auditors, comp sec. sorry i cant give more info on LLP as i didnt come accross these type of companies yet.

holding more than 5 is longer consider as business income the last time i read their public ruling which is in early 2012. need to double confirm with LHDN or any other tax agent.

for Net rental meaning u can deduct those direct expenses like quit rent and assessment, repair and upkeep, term loan interest, maintenance fee if im not mistaken, and advertising to rent out your property (but not for the 1st time if im not mistaken).

yes but limited to current year losses only.

Public Ruling No. 1/2005 page 4 number 8.




http://www.hasil.gov.my/pdf/pdfam/PR1_2005.pdf

This post has been edited by klthor: Nov 4 2013, 12:49 PM

B form if you have business income and employment income.

as per cherroy said, it doesnt matter who pays you or where they pay you or where you receive the money... what important is where you earn it... do check with your singapore Company, do they deduct your salary for SG income tax? if yes, then you might not need to pay tax or pay less here back in malaysia.

Borang E? employer need to submit borang e with their employee name ic annual salary.

2014 filing ? normally we use YA2014 which need to file in 2015 and YA2013 will be in year 2014

i havent check the IRB website, but normally budget 2014 is for YA2014 meaning the filing in 2015 ~.~

SME tax rate is flat 20% (up to 500k profit) compare to individual schedule up to 26%.

eg. 100k profit for SME = 20k
100k profit for enterprise = 14k ish~~

and for your info, changing into sdn bhd is never gonna save you anything. with accounting, audit, tax agent, and company sec fee judging from your turnover rate can easily hit 5k~10k + - sdn bhd is when u wanna expand, not when u wanna save cost or tax planning.

osim chair can claim tax relief ? thats something new to me, do let me know if u found out the answer