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

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cherroy
post Jan 24 2018, 09:47 AM

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QUOTE(Pain4UrsinZ @ Jan 23 2018, 08:18 PM)
I bought a handphone last year from 11street, i got the softcopy of receipt, the name in the receipt is not my actually but nick name. can i still use the receipt for income tax?
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The answer is no.
Invoice must be as same as your name.
cherroy
post Jan 29 2018, 05:14 PM

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QUOTE(LovelyPotato @ Jan 25 2018, 04:59 PM)
Do I have to keep the receipt or tax invoice for the tax relief? Or both works? Or both the same thing? lol

I can only find the tax invoice for my Unifi and the payment history only gives reference number with the amount, there's no receipt given.
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Preferably both.

The tax invoice got show there was payment made on previous month, so it may still sufficient to prove you did subscribe the internet and paid for it.

Tax relief - you bought/paid something which is allowed under the tax relief category.
cherroy
post Jan 30 2018, 10:59 AM

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QUOTE(gooni3 @ Jan 30 2018, 09:21 AM)
But it's capital gains? If we make money from local stock market we're still not taxable right? Since it's capital gains.. Although it's income received in Malaysia
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There is no straight answer.

Generally investment gain is treated as capital gain, typically people buy and hold then sell stock in the market.
Capital gain is non-taxable in Malaysia, except for property that RPGT rule applied.

But if a person or company is trading professionally, daily, aka trading in stock market become a main source of income generator, then it may be treated as trading gain, instead of capital gain.
Making a living through trading is a taxable income, aka it becomes a trading entity.

Summary
Trading - taxable
Capital gain - non taxable.


cherroy
post Feb 8 2018, 09:45 AM

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QUOTE(jiaen0509 @ Feb 8 2018, 12:17 AM)
will the payment received on Jan,2018 consider as 2017 income(as the Jan,2018 paid is for Dec,2017 one)
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It depends what kind of payment
1. For businesses - you follow the invoice date, not payment.
2. For director fee, bonus, commission, you follow the payment date, disregard it was for whatever year.

QUOTE(coca^cola @ Feb 8 2018, 07:46 AM)
I bought two set of breastpump and cost me less than rm1000. Can I have tax relief for both set? Thank you in advance.
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As long as it is within the limit of RM1k.
And only can claim once every 2 years.

Edited, you are not eligible, as your profile is "male". laugh.gif



QUOTE(ms749 @ Feb 8 2018, 09:35 AM)
So 3 years of not opening e-filing means lost of opportunity to claim some of the paid taxes right? But nothing that will make me have to pay more? Like penalty for example.
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Yes.
Highly some penalty may incur as you have fail to submit the e-filling annually.

Suggest to sort out the situation by engaging them.

This post has been edited by cherroy: Feb 8 2018, 09:58 AM
cherroy
post Feb 26 2018, 11:24 AM

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QUOTE(jordin.spark @ Feb 26 2018, 11:03 AM)
Recently, I have received a letter from LHDN to audit my receipt from 2015 to 2016.
The problem is some of my receipts have been faded, cant see the amount already.
Did you have similar problem or not?
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Those thermal paper receipt tend to fade over the time especially low quality one.

That's why it is advisable to have a photocopy. Photocopy/laser print won't have this problem generally.
Nowadays, many people also snap picture as backup copy, as camera is easily available via smart phone.

For faded thermal paper, it may possible to reveal back the printing by applying slight heat via hair blower, but it may need a delicate process as if excessive heat applied, it may turn the thermal paper become whole back, instead of just reveal the printing.
cherroy
post Feb 27 2018, 09:42 AM

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QUOTE(zymenthz @ Feb 27 2018, 02:42 AM)
Hi sifus,
I started my durian business(selling at the roadside) last year and plan to declare for income tax this year. However I didn't register a company since I was working alone and I heard from some other people say that you need receipts or invoice to prove that you have actually earned the money. What if I don't have any receipts ? Do I still go to declare for my income ? Btw I have never worked before as I just graduated from school.
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Yes, you need to register a business/company with SSM to do any business.

You need a simple book keeping to calculate how much you have earn each day/month/year for company accounting submission every year.
Just record every proceed you receive in the book, preferable issue an invoice/receipt (hand writing also can by, using those simple receipt from bookstores) and when there is any surplus/profit made, bank into company account in bank.

Your purchase/sale record, receipt and bank statement will be your documentations for tax filing purposes.

cherroy
post Mar 2 2018, 10:11 AM

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QUOTE(firee818 @ Mar 1 2018, 04:22 PM)
Hi, if a deceased person transferred his cash (written in the will) to a company, will this income subject to corporation tax? I mean does the company need to pay income tax for this type of income?

Thank you for answering the question.
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No.
The money injected to the company will be treated as either as capital or a loan to company.

A capital injection is not a profit to a company.

Taxation is based on profit/income made.

cherroy
post Mar 2 2018, 10:16 AM

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QUOTE(Amanda85 @ Mar 2 2018, 08:17 AM)
sorry for noob question. but is donation for oversea charitable foundation tax deducible?
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No, every charity donation that one wants to claim as relief must ensure the beneficiary applied for Lhdn tax exemption.

There is a list of approved charity organisation in the Lhdn website that has tax exemption.
cherroy
post Mar 2 2018, 02:53 PM

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QUOTE(OptimusStar @ Mar 2 2018, 12:56 PM)
Guys, the Unifi bill is under different name but the payment is done by me using the credit card. If i have the payment receipt showing my card number is this enough?
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No.
Every bill that one wants to claim the relief, it must be have the person name.


cherroy
post Mar 5 2018, 10:14 AM

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QUOTE(HMMaster @ Mar 4 2018, 11:31 PM)
Yes... the telco got provide statement for prepaid.

btw, for broadband subscription, do we need to include the gst amount?
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There is no mention that GST has to be excluded, if not mistaken.
Edited (unless the entity is GST registered, whereby the GST has been claimed as input tax) which is another story.
But if the entity is GST registered, means the invoice is put under company expenses, which is not eligible for individual tax relief already.

The tax relief claim is always based on the amount your paid for in the invoice.

This post has been edited by cherroy: Mar 5 2018, 10:16 AM
cherroy
post Mar 8 2018, 10:28 AM

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QUOTE(yhzell @ Mar 8 2018, 10:13 AM)
Hi Tax sifu, do I still need to pay CP500 (I was self employ till Apr 2017 and employed from May 2017 onwards) for year assessment 2018 coz I already have PCB deduction from May 2017 onwards.
Thanks in advance.
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You need to inform Lhdn about ceasing of self employ status.

You can't simply ignore CP500 just simply because your have PCB deduction.
As CP500 and PCB can co-exist for some individual situation, example being employed and yet have rental income or business side income etc.
cherroy
post Mar 9 2018, 03:04 PM

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QUOTE(stephankaan @ Mar 9 2018, 02:52 PM)
but LHDN use the term "langganan internet/internet subscription"...doesn't specifically say broadband..

i read some other forums saying can claim...
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Ordinary HP (voice + data) plan /= Internet subscription.
cherroy
post Mar 9 2018, 05:44 PM

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QUOTE(jiaen0509 @ Mar 9 2018, 05:00 PM)
So the phone bill that come with Call + Internet can claim?
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Call amount cannot be claimed.
cherroy
post Mar 11 2018, 11:35 AM

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QUOTE(december88 @ Mar 10 2018, 02:08 PM)
I saw a few unifi bills out there where internet, voice and hypptv are itemised. How should one proceed if his/her unifi bill just shows "Residential High Speed Internet". My subscription is VIP10. I also know you can only claim relief under the internet portion of unifi. Any advise?
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Since the relief mentioned is only for internet subscription, only internet portion should be claimed.

Hyyptv is TV content subscription, not internet, though it is using internet as medium of transfer.


cherroy
post Mar 12 2018, 02:51 PM

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QUOTE(aspartame @ Mar 12 2018, 10:47 AM)
Ok..what if previous year above minimum amount and so filed tax return but no tax payable but this year rental income drop to below minimum account ( also no tax payable)...still need to file? will IRB ask why last year file but this year no file????
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QUOTE(David83 @ Mar 12 2018, 10:51 AM)
If you had file since previous years, it's better to file even though your taxable income doesn't meet the min amount subjected to tax.
Unless you have enter retirement age.
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Once start filing, it is a must to file every year, disregard one is getting an income below the threshold or not earning at all.

For retirement, one still need to inform them about retirement, and want to stop the annual filing.
cherroy
post Mar 13 2018, 03:27 PM

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QUOTE(greenmacha @ Mar 13 2018, 03:18 PM)
Dear all,
Will be filing ITR for the first time. Sole income is from my partnership business (online shop). Appreciate some advice.

1. I received the Borang P in my letterbox. Do I need to mail this completed hardcopy Borang P or can I do it the e-filing way?

2. How do I get the Borang Nyata Cukai Pendapatan? Wait for it to be sent to me or collect at LHDN office? Or no need to fill in hardcopy, just do it online when doing e-filing?

3. I saw this section in LHDN website. Does it mean I cannot claim for advertising expense incurred to promote my online shop by having advertisements in FB and IG? What if I have already paid for the advertisements using funds from my business bank account and filed the amounts as expenses in my general ledger?
[attachmentid=9654132]
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1) Generally, almost all form can be done via e-filing, just need username/pin

2) Tax submission is tax payer responsibility, can just do it online via e-filing. If not receiving hardcopy, can request, but nowadays more and more Form are not sent via hardcopy. Whether Borang P just have hardcopy or not, that I don't know/familiar with.

3) If said advertising is not tax deductible, just add back to your profit figure as taxable figure.
It doesn't affect your account nor general ledger.
Your accounting profit remains the same as
Profit = Revenue received from customer - cost - all expenses.

But when come to tax computation,
Taxable profit = Profit + add back whatever non tax deductible expenses/items.
cherroy
post Mar 16 2018, 05:38 PM

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QUOTE(jiaen0509 @ Mar 16 2018, 05:29 PM)
Lifestyle:
(i) Purchase of books journals, magazines, printed newspaper and other similar publications (except banned reading materials) for self, spouse or child;
(ii) Purchase of a personal computer, smartphone or tablet for self, spouse or child;
(iii) Purchase of sports equipment for any sports activity as defined under the Sports Development Act 1997 (excluding motorized two-wheel bicycles) and gym memberships for self, spouse or child; and
(iv) Payment of monthly bill for internet subscription

Digi Postpaid(Not Broadband) can use on this situation? The Digi bill did not come with Internet, Phone section cry.gif
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The answer is pretty clear, aka no.
cherroy
post Mar 20 2018, 05:50 PM

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QUOTE(zeese @ Mar 20 2018, 05:36 PM)
YES.. This is for 2016 income and you must file it NOW, before the deadlines...  The deadline is still long.. cant remember when exactly.. But as I mentioned, for 30K, probably no tax to be paid.. To be safe, better you fill up the e-filing form, even if tax amount is 0.
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Now people is filing for 2017 income, not 2016...
2016 income already way pass the dateline... laugh.gif

The dateline for e-filing is the same every year, 30 April but most of the time it is extended to 15 May.

Less than 34K pa. (including BIK or any other taxable income), generally there is no tax incur.
But if one has a tax file before (aka filed before), one needs to continue to file in every year, even income is zero or below the threshold taxable amount.


cherroy
post Mar 21 2018, 09:37 AM

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QUOTE(ADUAN @ Mar 20 2018, 05:54 PM)
At any rate, since I have not done filing before, should I still file for my 2016 income? Or just start at my 2017 income? Will I be penalized/fined for late submission if I file for 2016?
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From 2015, only those above 34K income are required to register for filing.

So, if previous year, you have no file before and income never above 34K pa, then don't need to file.
cherroy
post Mar 21 2018, 09:56 AM

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QUOTE(xDragonZ @ Mar 21 2018, 09:47 AM)
Still the same rules as last time right? Online earning made from outside but we in Malaysia still have to pay LHDN
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You are tax resident of Malaysia, and stay in Malaysia to do online trading.
Those earning is considered "derived" in Malaysia, hence it is taxable.

It is no different with a company export a product from Malaysia, they trade with overseas partner with overseas platform.
They received in USD and remit back the proceed, they are still subjected to corporate tax.

The word is "derived", not about where you sell.

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