Buy and sell goods, like hardware or whatever, is considered a trading, and income/profit made is a taxable income.

But if buy and sell a house/investment, and make profit from it, is considered as capital gain, and capital gain is not a taxable income. But rental made through the house is a taxable income.

if just receive a comm like rm3k for a yr must also declare? how will they know/check?

Thank you sir for the clarification.

Aug to December >RM32000, that means i will need to pay PCB for that period right.

And just saw on my Jan payslip, there is a deduction for tax, so i think HR got it covered. But still i'll need to pay upcoming April if i understand everything right.

Yes.

How they know or check?
The company pay you the commission have many trace of it, either from bank account transfer, cash payment voucher, accounting paper work, or even by testimonial, or just phone to the company, did your company pay xyz 3k commission at 20xx year? and many more.

Ok, does that means verbally, or rather as long as they have statement of someone you deal with, are accepted as proof in audit?

Like this example

"I withdraw money from my bank, buy a speaker @ RM10 from XYZ shop(issue receipt). Then I sell it to consumer @ RM15 with cash term, yielding RM5 profit(no receipt given). RM15 was deposited back into the bank"

So a verbal/written testimonial from the consumer were able to track the profit?

To declare tax or not for u "grey income", u have to determine the numbers (value) of the properties u may purchase in future and plan in advance.

Some income may be untraceable by IRB. If u don't declare that income, IRB may not know that u have that income. Thus, they will not suspect your income at the moment.

However, if u use this income to buy properties, then they may suspect your income. This let to tax audit.

If u want to be good citizen, then no one can stop u to declare all sorts of income including "grey income". U have to pay more tax and "contribute" to the country.

The problem arises in the inefficiency of the IRB.
It is proven that many people in this country are evading tax.
If u are legal SALARY earners, then u are listed at the bottom of the "tax hierachy(TM)", u can't evade any tax, u have to pay all the salary tax.

On the other hand, they are those businessmen/people in our country are evading tax.
Why?
It is due to the bad management of the IRB.
We have good tax laws but the enforcement is very bad.
If u want to do business in our country, then here is a right place u have chosen.
Many rich businessmen had been migrated to oversea, but their biz still in Malaysia.
U can see many folks drive their fancy car on the road and live in big bungalows.
Are u jealous?

U want to declare or not for all sorts of income including u "grey income" is really your choice!
Of course u have to take the risk for not declaring it!
No risk no money!

This post has been edited by Nepo: Jan 28 2012, 09:14 AM

^Ok, nice info!
Now I start to understand why my father did asked me to file my tax asap I started work so that I can buy house easier.

in my payslip theres an amount written as MEAL ALLOWANCE, it is not taxable right?

Allowances, incentive, or whatever are counted into your gross income, unless there is income tax ruling stated otherwise that stated it is tax exempted,
if not any form of income you get, even non-cash like car given by company for you to drive/travel are considered as Benefit in kind (BIK), which also contributed into your gross taxable income.

Thanks for the reply cherroy, just curious cos i saw this statement .

when can i start to fill the e-filling?
I just got my EA form today. This gonna be my first time to fill it. I know I will need to pay it

1st March 2012 I think.

Ends by 30 April 2012.

Alright!
Tq bro

e-filling will be easier to fill than manual.

Btw, thanks for all the info up there. So the bottomline is :

Any kind of cash, or non-cash you get are taxable income, unless there's tax ruling stating TAX-EXEMPTED.

*I remember reading somewhere people won cash prize, and there's a clause (tax-exempted).

Isn't the profit from the sale of property subjected to RPGT?

Yes, if not more than 5 years, at current RPGT rules.

Thanks.

in my company EA form, there isn't allowance stated in the form, only basic gross salary + bonus. So do I need to declare the allowance by myself as well?


Can I assume RPGT rules apply on residence properties??? and sometimes I could find there are ppl who could buy and sell the house property within short frame like 1 or 2 months without paying for RPGT...how they do that?

Company EA should include all.
This is company mistake already and company can be fined if LHDN found out wrongly submitted the PCB and EA.
PCB is counted towards gross salary including allowances, so if the EA doesn't include the allowance, it cannot match with PCB deduction amount.

Faster Submit it and get my extra PCB back