Hi guys..
I have this questions:

I have just embarked on a sole proprietor business in Malaysia. I have a few questions which I hope some of the experts out there can help to answer:
1) What are the tax forms that I would need to fill up next year?
2) What are the type of deductions that I can use as my business expenditure? Can I use:
i) Housing loan - I'm using my current house as the business premise
ii) Car loan - I'm using my current car as my business mode of transport (to deliver the goods). What if the car i already bought earlier?
iii) Parking tickets, petrol and tolls - I incur all these costs when i deliver the goods
iv) Entertainment - Once in a while, I will have to take my clients out for dinner.
v) Any other things that's considered as business expenditure? (Electricity, water bill)?



This post has been edited by izdyharz: Jul 10 2011, 02:49 AM

Pls anybody.. help~

u may check this out: http://forum.lowyat.net/topic/371316

1)Form B, u have to register with IRB and show your business license, IC et

2)
(i) Not allowed
(ii) Not allowed
(iii) allowed
(iv) not sure about sole proprietor, if sdn bhd treatment is 50% allowable
(v) Electricity, water bill, telephone bill etc

1) Form B to be submitted before 30th June each year.
2i) If the house if not under your business name then no. However if you may issue rental paid to yourself. So in your form B you may have net rental income which can deduct against your quit rent and assessment bills.
ii) Only if your the car is under your business name. It'd be treated as Capital Allowance (Hire Purchase) if it's under your business name.
III) All those travelling related expenses are de ductible depending on the nature of your business. Eg, transport companies would be subjected to high portion of deduction.
iv) To play safe, deduct only 50% for any entertainment expenses.
v) Preferably to take in portion of those bills under your business expenditure. These things are quite subject to argument should you need to confront to tax officers..

(Diclaimer : Advices are just based on personal experience. Not a tax agent btw)

Hmm I called LHDN just now item ii) she said that if my business nature requires a car for example if im running
delivery company or something, then it can be treated as capital allowance. Since im doing IT consulting as freelance and
I told her that i need a car for me for transportion purposes and i cant do my business without a car she still say
cannot. I might be eligible only for petrol, and tolls.

Parking and tolls claims - write down your client name on the receipts and if possible the invoice number and date for future reference.

Petrol, water & electricity - i would suggest u only to take 50% of this expenses as your business expenses, as you could also use this for your personal use also.

Entertainment if possible write down your customer name also on the receipts.

Get this book :
Richard Thornton - 100 Ways to Save Tax in Malaysia for Small Businesses

For your case logically speaking your car loan should be entitled under CA. Since you are an IT Consulting, perhaps you can use your deskop/laptop to serve under your capital allowance, if you've taken your computer relief under personal relief..

Is it possible if put my car maintenance service, and also tyres that i just changed because those tyres no longer safe to use as expenses?

1) Form B to be submitted before 30 June 2012. (Make sure you have your tax reference number. It will be the same assuming you have a tax file with IRB)
2) i) Housing loan - This will be a deduction if you have purchased the property between 2009 and 2010.
ii) Can possibly claim capital allowance but would have to less 25% for personal use. Also, the qualifying expenditure would be up to RM150,000 but if the vehicle is above RM150,000 then the qualifying expenditure is RM50,000. This is based on the instalments paid todate, not the full purchase price.
iii) These are allowable
iv) Only 50% unless you give them gifts with your logo on it.
v) Only if you have a fix business premise, otherwise I doubt you will be able to apportion the costs yourself.

Please bear in mind that if IRB finds that the claims are not reasonable, it will be added back and there is a penalty of 45% above it.

Hope this is of help to you.

Usually for expenses that u use for personal and business, u need to apportion it.

1) Form B
2)
i) For house office, interest should be deductible but not the whole amount since it is ridiculous that you use the whole house as office. use some rationale to apportion the interest expense. Or else use the Rental Income method as suggested, then deduct the interest expense in the calculation. The rental should reflect the current market price
ii) As long as the car is used for business, capital allowance can be claimed. It is not necessary that the car is registered under the name of the business. you have bought the car prior to the business operation, determining the car cost is an issue
iii) all allowable
iv) it is advisable to claim 50% only and record down all the details of the expense
v) deduct certain portion of it only or include it inside the rental charges

for item i) and v) you need to use some rationale to determine the amount, it should be reasonable

Hi expert, for

iii) is it credit card bill accepted or need to get bill from petrol station it self

same

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Added on February 28, 2012, 4:26 pmi) Housing loan - I'm using my current house as the business premise - ADD BACK 30% INTEREST EXPENSES
ii) Car loan - I'm using my current car as my business mode of transport (to deliver the goods). What if the car i already bought earlier? - IT IS BEST TO LEAVE THIS ONE OUT
iii) Parking tickets, petrol and tolls - I incur all these costs when i deliver the goods - ADD BACK 1/3
iv) Entertainment - Once in a while, I will have to take my clients out for dinner. - ADD BACK 100%
v) Any other things that's considered as business expenditure? (Electricity, water bill)? - ADD BACK 1/3

I SUGGEST YOU TO WORRY LESS ON ALL ABOVE MENTIONED EXCEPT (I), (III) & (V)...
KEEP NOTE ON DIRECT COST...

This post has been edited by scottlwt: Feb 28 2012, 04:26 PM

Just wondering, I don't have to care about all these if I'm hiring an creative accountant to help me, right? He should know all these, right?

My accountant charges me RM300+ a year for my business tax return service. I just leave it to him to do everything. No headache.

Ur accountant teach u how to save tax or not?

True. I paid RM650 for the tax accountant service each year. This fee also can be used as company expenses. Tak pening kepala.

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Added on September 27, 2012, 9:50 pmin my case, YES!

This post has been edited by Stamp: Sep 27 2012, 09:50 PM

I call few accountant, either they are very conservative in taxation or not really clear about the "right" of tax payer.

Any suggestion from your accountant advice?