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 Income Tax Issues v4, Scope: e-BE and eB only

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rapple
post Feb 11 2020, 11:08 PM

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QUOTE(plsp88 @ Feb 11 2020, 09:53 PM)
Hi sifu, I was SG before, then changed to OG (burit gatal) now I regret because too troublesome for me. Is there any way I can changed back to SG? I heard ppl said to me once OG whole life is OG even if ur business closed.. Is that true? Tqvvm~
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They will automatically switch you back to SG when your business income is ZERO.

No such thing as what you have heard.

Once you have no business income but only employment income please file your tax before 30 Apr to avoid any fine from them.

And what is so troublesome?
rapple
post Feb 17 2020, 10:26 AM

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QUOTE(plsp88 @ Feb 17 2020, 09:49 AM)
Thanks Sifu. What is troublesome for me is, my intention is to save tax, but i also chicken out if LHDN want to audit me, i already been audited twice within 6 months (year 2016&2017 but thats is before my "business" start, so wasn't that bad).
I only use my rental apartment for address and its not really an "office", my staff is my mom and wife (heard it doesn't work out if question by HASIL) and i only agak2 my expenses without bookkeeping, was hoping nothing happen but I guess new government really need fund raising, so after I got the 2nd audit letter from HASIL which is only 3 months after my 1st audit, i chicken out..

But I also thinking, if i close my business now after the audit, will it make it more suspicious for HASIL?
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Once you register for a business. Immediately CTOS will pick up this information already. LHDN surely know about this. The only thing LHDN doesn't know is whether you have any sales in this business or not.

As long as your mom & wife declare the income you pay them, then it will be a genuine expenses for your business.

Sole prop doesn't offer much tax saving benefits compare to a limited liability company (Sdn Bhd). And because sole prop it's a business, all your business related expenses can be claim as expenses and if there's fixed assets then you get to claim capital allowance also.

Accounting fees + tax computation isn't that expensive for a year. If you need help, do pm me.

This post has been edited by rapple: Feb 17 2020, 10:29 AM
rapple
post Feb 20 2020, 02:45 PM

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QUOTE(Duckies @ Feb 20 2020, 11:28 AM)
When can fill in the e-filling for 2019 ya?
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Every year 1st of March.
rapple
post Feb 20 2020, 03:25 PM

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QUOTE(rae0724 @ Feb 20 2020, 02:50 PM)
hi all sifu here. i am confused how i should fill in the form, and which form i should fill in.
so i have a full time job under a company until April, and then do freelance/self-employed (register sole proprietor) until Dec.
Which form I should fill in? not sure where to start now. ><
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Form B for business income.

Remember to get EA form from your previous employer.

If you know how to do the account and tax computation then you can just fill in Form B by yourself. If need help, do PM for further info.
rapple
post Feb 20 2020, 06:40 PM

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QUOTE(rae0724 @ Feb 20 2020, 06:38 PM)
so i need to fill in both form right?
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Just form B.
rapple
post Feb 24 2020, 11:14 AM

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QUOTE(rae0724 @ Feb 24 2020, 10:19 AM)
I realised that my both number is same.
SGxxxxx
OG0xxxxxx

the xxxxx should be my number
Not sure which 1 is correct
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Yes the only difference is the alphabet. The number will remain the same.

OG if you have business income and SG only employment income.

OG = e-B
SG = e-BE

Filed either one only.

This post has been edited by rapple: Feb 24 2020, 11:15 AM
rapple
post Mar 1 2020, 01:05 AM

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QUOTE(GrumpyNooby @ Mar 1 2020, 12:27 AM)
Anybody filing for GE ILP?

Please help on how you guys file for MEDICAL/LIFE:

LIFE -> RM V
MEDICAL -> RM W
MEDICAL/LIFE -> RM X
OTHERS -> RM Y
TOTAL -> RM (V+W+X+Y)

Explanation for MEDICAL/LIFE in the GE annual statement:
Life or rider insurance with Major Illness Cover. Only 60% of premiums paid are eligible for tax relief as medical policy. However, 100% of premiums paid are eligible for tax relief as life policy
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60% medical or
100% life


rapple
post Mar 1 2020, 11:38 AM

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QUOTE(zeese @ Mar 1 2020, 11:24 AM)
Hi guys. Everyone know own life insurance can get tax relief, but  if I pay life insurance for my children,  can I get a tax relief for it too?
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Life insurance for children is not eligible

Only medical and education for children is eligible
rapple
post Mar 1 2020, 03:32 PM

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QUOTE(spreeeee @ Mar 1 2020, 01:29 PM)
spouse is partimer, she received form CP58 statement from employer.. earning less than 18k/yr..

so, for myself who submitting e-be, should declare what kind of tax?
-berasingan / diri sendiri / etc?
also, does my spouse needs to do any submission too?
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Your spouse form b

Whether combined or separate assessment depends on your tax bracket.
rapple
post Mar 2 2020, 10:02 AM

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QUOTE(jian5481 @ Mar 2 2020, 09:20 AM)
Thanks! While waiting, I was also searching around HASIL's website. Found the document for it.

http://lampiran1.hasil.gov.my/pdf/pdfam/PR_12_2018.pdf

So, to my previous question, is there any form to fill in, or do I put in the final amount after deductions in e-BE?

Next would be:

8.2(b)  Interest on loan

Interest paid on loan taken to finance the purchase of real property
which is rented out.

Assuming I'm renting my apartment at RM1000, repayment is RM2000. Interest charged per month is above RM1000, where the rest will be into principle. So that would mean I should be declaring zero income from rental, right?
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Loan interest to refer back to yearly bank loan statement.

rapple
post Mar 4 2020, 09:32 AM

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QUOTE(BacktoBasics @ Mar 4 2020, 09:29 AM)
thats the thing.

I dont think it is accidental mistake but intentional mistake.

like i told you, they will award bonus & increments based on your BASIC which is 3k as per offer letter,however, the basic as per payslip is 3,675.

so there is a lost for me there already.
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Allowance is taxable unless every petrol and tol receipts you submit back to the company then only it becomes not taxable as this becomes reimbursements to you.

Usually allowance is paid to reduce the company epf and socso contribution for employees.

This post has been edited by rapple: Mar 4 2020, 09:33 AM
rapple
post Mar 4 2020, 09:41 AM

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QUOTE(BacktoBasics @ Mar 4 2020, 09:36 AM)
yes agreed.

but shouldnt the company allow the 500 out of 600 per month (Max RM6k per year) to be non-taxable allowance since it is stated it is for car allowance?

since they are also using my BASIC RM 3k as a basis for bonus and increments?
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Car, meal, travelling or etc allowance is just a term to not pay you epf and socso on this portion.

Company already deducted your allowance as their expenses.. how can this be tax exempted on your side.

Unless is a REIMBURSEMENT only.
rapple
post Mar 4 2020, 09:56 AM

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QUOTE(yklooi @ Mar 4 2020, 09:47 AM)
as you had mentioned that the 3675 on payslip has the correct EPF % .
thus your company is paying EPF for your  Car Allowance: 600 + Road Tax: 75

you mentioned you will lose out bcos your bonus and increment starts from 3000 calculation
if your increment is 10%, you will get 300 instead of 367.50
you lose out 67.50 per year.
BUT
What is the extra you get in your EPF by your employer per year, when they pay EPF on your Car Allowance: 600 + Road Tax: 75?
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Is irrelevant whether the company uses the basic as the yardstick for increment/bonus or his total pay.. This is up to the management level to decide.

Increment / bonus is not mandatory.

QUOTE(BacktoBasics @ Mar 4 2020, 09:51 AM)
Yes, i just thought it the car allowance will be non-taxable because my friend who has RM 500 car allowance, his EA form shows RM 6k under Section F as non-taxable allowance.
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Did you ask your friend, whether he submitted any claim to the company?

It's either your friend did submit travelling claim or the HR is just incompetent.


rapple
post Mar 4 2020, 10:07 AM

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QUOTE(BacktoBasics @ Mar 4 2020, 10:00 AM)
I thought all the while the basis used must be basic salary, thats what all the people say right, 1 month of my salary as bonus, or 10% of my basic salary as increment.

I thought the company doing some fishy shxt.

not sure about the second question though. i neeed to ask.
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They can give increment in RMxxx or by %. It's not carve in stone.

Most Company will use this term "ALLOWANCE" so that the company pay less EPF & Socso.

i.e. Company pay 1.2k as basic and 1k allowance = total 2.2k but company only pay EPF 13% on 1.2k while the 1k is not entitled.
rapple
post Mar 4 2020, 03:55 PM

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QUOTE(ronnie @ Mar 4 2020, 10:51 AM)
Yes but what can you do about it.

Complaint to epf and ruin the relationship with your employer.

There is too many employer doing the exact same thing.
rapple
post Mar 7 2020, 03:57 PM

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QUOTE(Jesse0916 @ Mar 7 2020, 12:55 PM)
Just a sharing from my tax knowledge/ experience here.

Car/ Traveling allowance is NOT liable for EPF Contribution.
Screen shot below for your reference (Source: EPF website)


user posted image

For expense/ allowance related to traveling for business purpose, is subject for tax exemption. As long as you can justify the "car allowance" is for business purpose, you can get the exemption.

Screen shot below is the note from LHDN.
user posted image

Hope this is clarified your question.
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At company tax level deducted his car allowance as company expenses.

At personal tax level then it become tax exempted.

Are you sure about this?

A fixed allowance to an employee which they can spent not just on petrol and tol but also many personal expenses.

Unless the travelling expenses is attach with receipts.
rapple
post Mar 11 2020, 08:21 AM

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QUOTE(zulhizainL902S @ Mar 11 2020, 07:00 AM)
Hi, for those who already recvd the refund, care to share if u click your 2020 e-lejar does it show Bayaran Balik status as per pic below? Tq

user posted image
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Refund is not updated in e-lejar.


rapple
post Mar 11 2020, 10:21 AM

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QUOTE(boo82 @ Mar 11 2020, 09:54 AM)
Hi Sifus,

Can anyone confirm this?
Is the PCB tax based on gross income or income after EPF deductions?

Why i am asking is, if we are lowering down from 11% to 7%, then means we have to pay more PCB ?
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Yes, calculations of PCB is inclusive of EPF deductions.

Usually the difference is not much.

Note: If your EPF contribution a year is more than 4k even with lesser contribution, then your PCB will not have any changes.

This post has been edited by rapple: Mar 11 2020, 10:27 AM
rapple
post Mar 25 2020, 07:15 PM

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QUOTE(MUM @ Mar 25 2020, 06:28 PM)
when is the usual 'should" be submission date line for boring B ?
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30 Jun extended 2 months - 31 Aug
rapple
post May 7 2020, 02:57 PM

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QUOTE(MrB9 @ May 7 2020, 02:00 PM)
Hi sifus/ pros,

Can I know if I can tax relief my wife's medical insurance?
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You only can claim if your are the Policy Owner.

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