Dear All,
May I ask where do you guys declare Dividend Income which is 1 tier ?

2 tier dividend we declare in HK3 with Sec 110 tax deduction. But how about single tier dividend which cannot claim tax refund ?

So, there is still no place to put in the 1 tier dividend income.

Thanks

Don't think employer can do that. But if they insist not to give you the EA forms, you can do your own rough calculation. You have your payslip right ? Get the info from there. If payslip all gone, and really don't want to settle the outstanding with the employer, just use basic salary - epf - socso - PCB and work backward. Get the rough calculation and use the amount to submit

Since LHDN submission is online, just hope they don't request your hard copy EA...If you scared, declare slightly more tax so you are safe.

1. Go to LHDN and apply. Very easy only

2-3. What is your monthly gross pay, including commission ? The threshold to pay income tax is somewhere RM2700 or RM2800 (or was it RM2900 ? Not too sure). If your monthly salary is below that, just declare RM2500 or RM2600 per month x 7. Then calculate your EPF deduction and rough STD amount. You dont need to pay tax for this amount. But if your salary is more than that, then you have to roughly calculate backward.

4. Tax is based on yearly basis. So, doesn't matter it is 12 or 7 months. Your tax is calculated based on the income for the 12 months

So, if your pay is less than the threshold (2700 or 2800 or 2900 not sure, but someone here can confirm with this figure), then not a problem. Just declare less than that and you don't need to pay tax

If your pay is more than the threshold, then you have to decide. 1 is to take a chance and declare based on your own estimate how much you earn, or 2. clear the company outstanding and get the EA form

You don't have friends in HR ? Ask their help to take a photo and whasapp you lah

RM2.5k is below the threshold. But your commission has to be added to calculate tax, so yes your income is taxable

But your company should have deducted your PCB monthly tax deduction. If you have income only from employment, then the PCB should be enough.

Now the problem is how to calculate and submit your tax without the details in EA form.

Maybe your wait for other people to comment....

Salary RM15k
Dividend RM5k (franked --> RM6.6k)
UT RM5k (franked ?)
Total income RM26.6k --> no tax payable

On top of that, because your dividend is franked (2 tier system), you are eligible to claim the tax paid from LHDN as refund. For RM5k nett dividend, you can claim back ~RM1.6k from LHDN

Many company has already switch to 1 tier system. And from 2014 onwards, all company dividend will be 1 tier system. Ie. you cannot claim back the tax paid for 1 tier system

So, for 2014 onwards, you only declare salary RM15k (or other actual amount). Tax on dividend paid by the company is burnt

This post has been edited by EddyLB: Aug 11 2013, 04:41 PM

Wouldn't mind at all !

In general it looks like it. But if we go deeper into this 1 tier dividend, we will also find out that those whose tax bracket is below 25% will lose out. Those who are in the 26% will save 1% tax.

So there is a difference in tax advantage on this 1 tier dividend. It favours the rich who are in the 26% tax bracket