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Rental income
How to calculate for rental income: http://www.hasil.gov.my/pdf/pdfam/PR4_2011.pdf

Definition of "computer" for RM 3k relief every 3 years starting 2013:


Previous versions
v1: http://forum.lowyat.net/topic/1840158
v2: https://forum.lowyat.net/topic/1903172

Useful documents
Tax for dividend and distribution


How to apply for e-filing PIN?

To make payment for insufficient deduction through PCB


How to fill tax relief for insurance policy?


Check for approved/registered institution on donation under Subseksyen 44(6) ACP 1967
URL: http://www.hasil.gov.my/goindex.php?kump=2...1&unit=8&sequ=1

This post has been edited by David83: Mar 24 2015, 01:40 PM

im a sole proprietor can I pay my tax under personal tax ? how do u guys calculate p.a. income and deduct everthings and rebate to pay by yourself with no hire accountant do for u

For personal without business income will fill in BE form. With business income then must use B form.

Just spend sometime goto near by LHDN ask for help.
They will able to offer some basic assistance.

If they ask u seek for professional assistance, then u gonna study business tax yourself or hope some Tax ppl can offer u free service.

I believe yours business is not high volume and complex. The fees should not be high.

about how much at market price for a small small 600ft salon only ... just family business only ...

bro, tax and accounting service not judge by the business space and type of business. It will depend how complex, turnover and the volume of the business. Even a making loss business may more expensive the profitable.

Some may charge RM500 and some maybe RM1000 just for tax submission. If no proper P/L recording, then they will need to do more job which mean higher cost.

I know that petrol/transport allowance is not taxable, how about standby allowance ?

If it's classified as BIK in EA form, then it's not taxable.

What do you mean by standby allowance. U govt doctor?
Basically taxable

Im sorry but what BIK means ?

Benefit in Kind - Section G of the EA form.

Thanks David, guess I have wait for my EA to be able to calculate the actual taxable amount.

Nope, not a Doc here. Just an x amount daily for standby eg.answer call after working hour.

This post has been edited by ShadowR1: Jan 9 2014, 11:54 PM

That's taxable income cos it's a fixed amount based on days "on standby"

Hi All, got something to ask for suggestion, example , i set up a sole partnership company, declare 20% tax per year company tax, n i write payslip to myself(do i still need declare my individual tax?) or company itself be enough

Just wondering, can govt. tax and sales tax that we are charged can deducted from our income tax?...

Personal income tax? BE category?

Yes...my personal income tax. BE

e.g.
Company sales 100k
Company pay salary to you (ownself) 20k
Expenses, etc. 30k
Net profit 50k - have to declare and taxable.

Your salary from another permanent job - 36k

When you declare tax with sole-prop, this is the amount to declare : 50k + (36k + 20k)
Then less whatever deductible or rebate for net to pay.

Why 20k is taxable ? Cause it is consider your salary (income).

If you don't get the 20k as salary, then your company profit is 50k + 20k = 70k. No where to run.

The other method is to declare false figures, i.e. false declaration or tax fraud. Well, you know the drill, it's not legal.
Source

Nope. Not possible.

ok if i declare both

EPF not Compulsory gua? i self employed leh, no need so many epf

Can we relief tax with foreign currency receipt? Eg: USD
And how to fill in the amount?

Which clause you think it can be fit?

I think he asking whether buying books in USD (example Amazon) can.

Yes. you get my point. Book from Amazon and digital magazine receipt all issued under USD, how to relief these?

Convert it to MYR.

David83

Can you add this to the front page

Source: http://www.hasil.gov.my/pdf/pdfam/Definition_of_computer.pdf

This post has been edited by ronnie: Jan 12 2014, 12:47 PM

I have seen the announcement many times in blogs etc. But I was curious why there is no letterhead one ? Also failed to google the LHDN link to such announcement. You have the link ?

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

Done!

David,

Why not you ask the moderator to pin this thread. Everyone of us also need to submit tax return and it is an important knowledge for all of us.

Instead of pin the topics such as AKPK Debts and Interbank fund transfer.

Hi there,

You may propose the idea to the Section moderator.

I got the stupid question here.

I recently get the penalty from LHDM for late submission. They send me the assessment forms and ask me to paid in 4 separate installments otherwise court action will be taken.

If I choice to ignore it, then what will happen? They won't take action for small amount right?

I didn't paid my car saman also nothing to me.

Maybe LHDM is different. Please share your view.

Why take the risk? If someone bad mood then you get charged 100% more for tax, worth it?

Last time that happened to me (non-declaration because not working a few years while studying) I just went to their office to rayu and all settled without paying anything. Rather than ignore...

1) The amount comes up to around RM800.00. Is the pain in the ass. I didn’t commit any crime, why penalise me so much to this crony’s government?

2) I also read it somewhere in the forum that someone go there to rayu his penalty but end up paying additional taxes because they checked back his/ her previous years records and found out additional discrepancies in his/her previous year tax return. That’s why I think twice first before going to LHDM.

3) Are you sure they can charge 100% penalty to us? I tot they have the guideline to follow. Cannot simply hentam one right?

No comment on the politics, but submitting late still has penalty. Its considered a form of tax evasion. Its not a crime, that's why no jail time.

Are there issues with the earlier years for you? If so then better just to pay up. Doesn't mean you won't be audited later though.

They have. Have you read it? I don't have the details, but when I first started paying income tax I read through the laws and regulations I recall basically any false/late declaration will be charged at 100% minimum.

Basically you are saying 'don't pay' as if they'll forget about it. This is LHDN not DBKL or whatever. They won't forget, and they can come after you any time unless you can leave the country. Go and settle, or go and rayu. Don't ignore.

Thanks for sharing.

By chance you worked for LHDM or government's Tax related Department?

i'm still checking to see if a Microsoft Surface Pro qualifies as an Ultrabook or tablet since it has about the same computing power as an Ultrabook, though the Microsoft Surface RT is confirmed as tablet.

No, if I working there sure people curse me one =)

why lhdn dont allow tablet for deduction?

coz the function same like computer...

if i already claim for computer in YA 2010...

how to count the 3 years? 2011,2012,2013

so can i claim the computer for YA 2013? or YA 2014?

is the BE form for 2013 already available??

not yet out..

maybe it got cancelled because from this year onward, we pay a LOT LOT of taxes in form of GST?

Hi all sifus,
Need some advice on rental income of property:
1. A condominium is registered under joint names of person A & person B;
2. The agent fees for introducing tenant can be deducted as expenses from the annual rental income, right?
3. Monthly maintenance fees paid to the JMB cannot be deducted from annual rental income, right?
4. Furniture + electrical items to furnished the condominium can be deducted from annual rental income, right?
5. Cukai pintu + Cukai tanah can be deducted from annual rental income, right?
6. Repair of hardware in the condominium during the rental tenure can be deducted from annual rental income, right?
7. If tenant run away and owners suffer losses such as unpaid bills, this can be deducted from annual rental income, right?
8. If by tenant request, owner did some renovation to upgrade the living conditions of the condominium such as replace old tiles with new tiles, replace old fans with new fans, these can be deducted from annual rental income, right?
9. Termite treatment during the rental period can be deducted from annual rental income, right?
10. For a landed property, if tenant request and owner has proceeded to install awning at car pouch during rental period, this can be deducted from rental income, right?
11. For a landed property (but not G&G), security fees paid by owner to the security services organized by the neighborhood, can be deducted from rental income, right?

Thanks in advance!

This post has been edited by XtraLeoGecko: Jan 18 2014, 10:29 PM

Due to mis-use of the terminology. Computer is a generic term and very ambiguos.

YA2013 can claim for Computer Tax Relief

So many wrongs, don't know where to begin.
Better do homework here

http://www.hasil.gov.my/pdf/pdfam/PR4_2011.pdf

can i claim for ipad?

The answer is very obvious that tablets including Ipads are not eligible.

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

FYI

hybrid tablet/ultrabook's still unknown able to claim for tax relief or not.
i've yet to get an answer for Microsoft Surface Pro, Sony Duo 13, etc.

IRB should categories based on the CPU used in the computer.
Mobile & Desktop CPU = Computer
Others = Non-computer

you assuming they're smart

but its quite true as form factor isn't always an indicator nowadays.

e.g. Asus Transformer is a tablet with keyboard like the Microsoft Surface RT, while the Microsoft Surface Pro & Sony Duo 13 and other tablet/ultrabook hybrids are quite powerful computers with i5/i7 heart with SSD

Hi all, I want to ask I started working in May 2012. At that time my salary <RM 2.5. At 2013 my salary already >RM3K. So now what should I do ? declare the 2013 ? first time tax here.

Hi All,

Just want to check have any 1 here able to deduct the amt from EA form under salary income? Eg EA state salary income is 100K.

Then you only fill 90K in BE form?
A few of my friend have do this, deduct 10K from EA as part of the expenses related to work(eg petrol/toll from home to office). and they also check and confirm with income tax officer on this matter, they no problem.

Any ideas?

Of course everyone will deduct, but there's specific categories and comes with proof. Petrol/toll can deduct if its allowances given by your company.

Yea i understand the company allowance.
But he deduct because he need to spend own pocket of money to come to work..so i dont think this is allow rite?

To my understanding no.

Most of us spend our own money to come to work, so if this is allowed sure we all want to claim. But cannot simply deduct, everything must be justified and according to various regulations.

Thanks KOHTT for the comprehensive info on taxes of rental income. Really appreciate!

2 years ago, the criteria to judge whether a tablet can claim under the computer relief is whether the tablet can make phone calls. If it can then it is a phone, if it can't then it is a computer.

iPad cannot make phone calls therefore it definitely qualified for computer relief. For now I am not sure whether this rule still applies

I have asked LHDN regarding 'pelepasan cukai' for computer.

LHDN reply to me and stated that I-Pad can be categorised as personal computer.

Ask the LHDN officer to provide B&W regarding this.

With the new guidelines, tablets are no longer eligible for claim as per attached letter in the Post #1

Please refer to LHDN website effective YA 2013

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

This post has been edited by penangmee: Jan 21 2014, 11:39 PM

Hi everyone, I've been researching this thing for income tax but still am unable to fully understand this. I started working a few years earlier and has an EA form provided by the company, so everything was so easy declaring my income tax online.

But now, I started a small business last year and seriously don't know where to start regarding my income tax. Could somebody explain to me the basics?

My situation is like this, my company has income and I get salary from it every month. Should I declare for company only or do I declare both for personal and company?

almost similar to post #17 at page 1 replied by cute_boboi?

guys, not sure if it is appropriate for me to ask here, but i have got some problem trying to register my income tax account through e-daftar

according to most of the guide, including the one in the official site, i'm supposed to be given an option to upload a soft copy version of my IC, like it was listed here


but for my case, there is no such option


anyone know the reason? did i miss a step?

if just salon business is very cheap only.should be less than 1k, can kau tim.

petrol allowance is not taxable but subject to a limit of 6,000 per annum, you may read the BIK from www.hasil.gov.my

personal income tax refering to those having an employment income, sole propriotership and partnership income. those having employment income only will be form BE, if having both the employment and business income will be form B, those working in iskandar area in johor under special tax rate will be form BT

Use the boring maklumbalas

Hi all, could you guys help me with a query?

I only worked for 4 months (March 2013-July 2013) with a monthly salary of RM 3100. Do I have to go through the whole income tax payment process?

This post has been edited by studyboy: Jan 26 2014, 06:35 PM

if you already have income tax refence no then you need to submit your tax return

Alright thanks for the reply!

Actually, I was just thinking. I only worked for 4 months and my income has not exceeded the minimum taxable annual amount. What do I submit then?

Refer to this thread post 15, 16, 35 and 45 https://forum.lowyat.net/topic/2171286/all

Few ppls commented that must declare but no need to pay.

This post has been edited by KOHTT: Jan 29 2014, 12:36 AM

Ah wonderful! Thanks for your reply! It certainly cleared up a lot of my confusion!

so i still need to declare even if i didn't work full year?

at year 2012, i work from march to december, obviously my annual income did not reach the point where i need to pay income tax, but still need to declare?

at e-filing website it still says TAHUN TAKSIRAN 2012 for e-BE form, means i still got chance to declare for year 2012? i thought it should be over deadline already since its now year 2014

and i still cannot declare income tax for year 2013? since there is no e-BE form for year 2013

if u have an income, then u need to declare.
taxable or not, that's another issue.

Hi all,

I am currently doing some consultation work and receive income from a Singapore company (I am based in Malaysia).

My question is, can I claim the Capital Allowance for my "business income" although I did not set up a company?

What are others deductible expenses? e.g. rental, petrol, internet, utilities, car insurance & road tax, car repair?

Many thanks for your help

Hi!
If husband/wife file income tax separately.. i believe husband can get a tax relief for wife (RM3K).

As for the wife, when she files her own income tax, can she also get the Rm3k tax relief for having a husband?

If separately there's no category for tax relief from having spouse. It used to be (think still is) RM8k, but only if file jointly.

You got it all wrong lah If it works like what you said, you get double tax relief.

If you assess separately, you don't get Spouse Tax Relief lah... assume you are single (though married) in the eyes of IRB. Only when you do COMIBINED ASSESSMENT, you can claim Spouse tax relief.

This post has been edited by ronnie: Feb 5 2014, 10:57 AM

Oh.. So, there's no spouse tax relief for separate assessment.. Thank you guys.. I appreciate it. (I'm so glad it is not there for separate assesment. Otherwise, I gonna feel lots of regrets for not filing the spouse tax relief for the past many year .. if it is there).

The e-BE form is automated... the Spouse Tax Relief field will be grayed out for Separate Assessment

Hi, can some sifu here explain to me what is the meaning for the answers? Thanks in advance

Question:- Do I need to declare profit from buying and selling shares as an income?

Answer:-
Whether the profit from buying and selling of shares is regarded as a taxable income would depend on the facts and circumstances of the case. If the transaction can be demonstrated as a realisation of a capital investment, it can then be regarded as a capital gain not subject to income tax. On the other hand, if the transaction is derived from an adventure in the nature of a trade, then the profit from buying and selling of shares would then be seen as a revenue gain subject to income tax.

Hi,

"MANFAAT YANG DIKECUALIKAN CUKAI" in section G EA form, if I have a fixed petrol allowance of RM6000 p.a and phone allowance of RM1,800 p.a, can these entire amount declare in section G (as my HR is not sure whether can put into this section)

If yes, do I need to provide supporting receipts? Thanks

Hi,

I would like to ask anybody face this problem before?
I never register for taxation before. Then I plan to declare this year for previous year 1, then today I want to register but I check it said I already got account. Got any help here?

Here is the message.

Nombor Cukai Pendapatan Bagi No. Kad Pengenalan Baru ************ Telah Didaftarkan Di Lembaga Hasil Dalam Negeri Malaysia.

Thanks

The subject matter is a public listed co or normal sdn bhd/bhd?

Phone allowance no
No need supporting receipts

Since oredy registered, just proceed

Your company HR needs to specify that amount in the EA form.