Eh, i thought will be next yr's BE right?

No, for BE2015 onward. BE2014 still using old rate which you will submit before April 2015.

Hi everyone.
The new tax implementations can be confusing because some are implemented in assessment year 2015, some in 2016.
A complete table of the new income tax rates can be found here :
http://loanstreet.com.my/learning-centre/b...t-2015-reviewed
Hope this helps!

The YA2015 table only benefits the RICH by making them pay less taxes...

You mean the rich who are still earning =) those who no longer earning but rich no benefit. Benefit those who earning more.

ya... the rental income can be deduct against any direct expenses for the period that you received income

if my income is between rm2501 - rm5000
do i need to declare my income tax? the rate is 0% so i do not need to pay any tax?

if the case what it mean if my income is more than rm30667 p.a need to pay tax?

For the whole year, ur income only between 2501-5000?
monthly salary 208.42-416.67???!!!!
Or do u mean monthly salary between 2501-5000?
Anyhow, no matter how much ur salary, I would recommend you declare income tax..

sorry for confusion, is monthly.

i know i need to declare tax, but earlier this year i go to lhdn office to ask for my income less then rm2500 need to declare or not . he say no need.

for this year my income will be above rm2500 p.m. or rm30667 p.a., so i a bit curious for next year income tax do i need to pay or not.
i refer this link say the rate is 0%

http://www.hasil.gov.my/goindex.php?kump=5...it=5000&sequ=11

After adding up bonus, you probably need to pay tax. Even if there's no bonus, you must make sure you don't need to pay tax. You need to calculate yourself and see whether you tax is 0 or more. if it is RM0, you can choose whether to submit or just ignore it...

The best way to calculate is by filing in the real tax form, which is to fill up the e-filing form. If it comes out to be RM0, it's better if you just continue and click the submit button..

normally the company will issue the EA form for us on the end of the year right?

from there they calculate for me this year income when next year come i just summit my income tax form?

Do your company deduct PCB from your salary?
FRom what I understand from IRB, even your salary doesn't exceed certain $$ to declare tax, you still need to file income tax.
IRB said that they intend to refund such money and their account can't close

Normally company will issue your Form EA before March 2015 (for 2014 total salary) and you'll submit your 2014 income tax return before April 2015.

hi, if my gross salary Rm36k to 40k, and i have side income unofficially payslip, like freelance and part time job. how i apply for income tax? tq..

http://www.hasil.gov.my/goindex.php?lgv=2&chg=1

There is a list of allowable expenses, not everything can be deducted out from your rental income. I remember there was a write up in the newspaper about this some time back. Will post here if I can find it.

But generally we deduct assessment, quit rent, repairs, insurance, etc. If not mistaken, the cost incurred to secure the tenant cannot be deducted, i.e. advertising, agent commission, etc.

Dividend should not be counted.
Same as EPF. We are entitled to RM6k EPF relief. The relief is based only from your fresh contribution. Not inclusive of the EPF dividend.

apparently the SSPN tax receipt adds the divident in the calculation. probably because i get the relief for the additional funds placed in SSPN account? i could afterall withdraw the divident from the account too? i still have no 100% clear reply. got a sort of canned reply from LHDN. will check with SSPN also.

Once when I didn't deposit the max of RM3K (before the RM6K came into force), PTPTN sent me a tax cert confirming that my dividend were eligible for tax deduction. So pls call PTPTN for re-confirmation.

http://www.nst.com.my/red/which-expenses-t...income-1.199281

ALLOWABLE: There is no ‘standard list’ of deductible expenses but there are common expenses that can be deducted
The biggest grouse that a property owner has come tax submission season will be the amount of taxes that he has to pay on his property rental income. He will then naturally start to rummage through all the property expenses he had incurred to determine what is tax-deductible and what is not.

In situations of doubt, I have known of property owners turning to other property owners asking, “Do you claim such-and-such expenses in your income tax return?“ Well, my sincere hope is that the person he is asking has a good understanding of the tax laws, otherwise it will be a case of the blind leading the blind and both will end up having to face unnecessary tax penalties when it comes to a tax audit.

This article hopes to shed some light on how to determine the tax-deductibility of those expenses.

I have often been asked if there is list of standard expenses that a taxpayer can deduct against the rental income from letting of his investment properties. Quite honestly, there is no ‘‘standard‘ list of allowable tax deductions as the expenses that a taxpayer incurs may be unique to his/her own situation.

Therefore, the taxpayer will have to fall back on the letter of the law to determine if an expense is tax-deductible against rental income. Essentially, the law states that an expense wholly and exclusively incurred in the production of income under subsection 33(1) of the Income Tax Act (ITA) 1967 and which is not prohibited under subsection 39(1) of the ITA, is allowed as a deduction from rental income. What this means in laymen‘s terms is, any expenses that you incur for the year to generate the rental income would generally be tax-deductible. This also means that no private or personal expenses are allowable as a deduction.

Common deductible expenses

Aside from the ‘standard‘ list of tax-deductible expenses that a lot of property owners is asking for, what I can provide you here is a list of common expenses that generally may be claimed as a deduction against rental income:

• Advertising for tenants
• Assessment
• Insurance (e.g. fire, burglary)
• Interest on loan(s) to finance the purchase of the property being rented out
• Legal expenses (renewal of tenancy agreement, recovery of rental arrears)
• Maintenance/service charges
• Pest control
• Property agent fees/commission
• Quit rent
• Rental collection fee
• Repairs and maintenance
• Replacement of rental assets

It is important to note that the expenses are deductible in the year they were incurred, even though you have not made any payment for them during the year.

Having said that, do ensure that your obligations as a landlord towards the expenses which are to be borne by you, are clearly spelt out in the tenancy agreement to avoid any disputes by the Inland Revenue Board (IRB) against your claims for the said expenses.

Non-allowable expenses

Having touched on the tax-deductible expenses, it is also important to know what expenses are not allowable. Typically, initial expenses are not allowed to be deducted from income of letting of real property assessed under paragraph 4(a) or paragraph 4(d) of the ITA since those expenses are incurred to create a source of rental income and not incurred in the production of rental income. Examples of such expenses include:

• Costs of obtaining the first tenant for the property, such as:
° Advertisement;
° Introducer’s commission;
° Legal fees incurred for the preparation of tenancy agreement;
• Other expenses incurred prior to the property being rented out; or
• Renovation and improvement costs.

In the case of expenses incurred prior to the property being rented out, particularly relating to annual property expenses such as quit rent, assessment or insurance costs, then the proportion of the expenses in respect of the period before the property is rented out is not deductible and have to be adjusted accordingly.

However, a distinction (although in many situations, a difficult one) has to be drawn between what expense is deemed to be ‘repairs and maintenance‘ (which is tax-deductible) and what is ‘renovation or improvement‘ (which is NOT tax-deductible). Typically, an expense is deemed to be ’repairs and maintenance‘ if it is incurred on ordinary repair to maintain or restore the real property in its existing state. It will not materially add to the property‘s value nor substantially prolong its useful life, but merely to keep it in good and efficient operating condition.

In the case of ‘renovation or improvement‘, the reverse would then apply, i.e. the expense incurred would:
• materially add to the property’s value;
• substantially prolong its useful life;
• adapt the property to a new or different use; or
• enhance the property’s income-generating ability.

What happens during the period when the property is not rented out?

As explained above, expenses incurred prior to the property being first rented out, are not allowable in calculating the adjusted income from the letting of that property. However, if the property which was previously rented out is left temporarily unoccupied while you are looking for the next tenant, the expenses incurred during the period of non-occupancy will still qualify for deduction. This is on the condition that the property is being consistently kept in a tenantable state and is ready to be let out at any time.

How long then, can a property be ‘temporarily‘ left vacant and yet the property expenses qualify for a tax deduction?

The IRB’s Public Ruling 4/2011 further explains under what circumstances where the expenses incurred for the period the property is temporarily not rented out will be allowable. The circumstances are:
• repair or renovation of the building;
• absence of tenants for a period of two years after termination of tenancy;
• legal injunction or other official sanction; or
• other circumstances beyond the control of the person who lets out the real property.

Under the above circumstances, the expenses for the period the property is not let out are allowable, provided that the property is maintained in good condition and is ready to be let out.
Of course, having explained the concept of tax-deductibility of expenses against rental income, one must never forget or ignore the underlying basis for claiming for a tax deduction, i.e. the need to keep proper records and documentation relating to the claim for those expenses. When it comes to a tax audit, the IRB‘s basis of allowing you a tax deduction for the expenses claimed would all be about the availability of evidence.

Read more: Which expenses to deduct from rental income? - RED - New Straits Times http://www.nst.com.my/red/which-expenses-t...1#ixzz2qrDugMR1

Hi there, I want to ask the income tax relief receipt must be original or photostat copy enough already. Thank you very much.

Original