your money is not dirived from malaysia so not subjected to witholding tax.

There's been a debate on similar issue between me, my colleagues and my lecturer. The situation: I blog, and I earn money from Google Ads and other advertiser. Are those income taxable? This is pretty similar to your work at home and a US company pays you in USD.

After some time arguing, we come up with a conclusion. When you work at home, it is an income derived here in malaysia, BUT paid by a foreigner. So, that doesn't means that your income is derived from outside malaysia. If your income is derived here in malaysia, that income should be taxable. But we have yet to ask any officer from the IRB to confirm this, cos so far my income online + my current salary would not hit the range where I can be taxed.

Thank you Gemini !

Wow if everyone also submit claims but did not provide receipt, sure got some people purposely put 'higher amount' to get more

Since we can claim up to RM8k p.a , why people so reluctant to pay tax ? I think this only affect those who pay tax > RM8k right ?

Yes. I do know of people who full claim reliefs such as books and medical expenses for parents, when the actual receipt isn't that amount. They dare to do that cos when you do submission, you don't have to submit those receipt. It's self assessment after all. Anyway, they are at risk. The IRB will once in a blue moon, send you a love letter, asking you to present them those receipts for their reference. If you fail to show those receipt, you have to pay penalty and more tax in respect of the fake relief claims.

The RM8,000 personal relief is automatic for EVERY tax payer.

This post has been edited by GeminiGeek: Dec 28 2008, 02:41 PM

Receipts must be kept in order for a duration of 7 years maximum. you shall need to show the receipts when you are audited by LHDN. Take note that should you claim now and later when audited you are unable to show the receipts, you can be 'charged' as falsifying your statement and can be charged in court. not to mention that you'll need to repay the balance tax which you tried to runaway from...

8k is RELIEF not REBATE

Guys; if I buy book from Amazon.com and ship to Malaysia; can I claim for books also?

This post has been edited by KVReninem: Dec 28 2008, 08:42 PM

Yes. Make sure you keep the receipts.

books, magazines etc are all ok

Thanks again bro

Appreciate your explanation, it help me a lot ! I understand much better now

I am tax payer but sometimes I might not taxable for 1~2 months ( if I don't do overtime). If let say my total tax per year is ONLY RM1000, I still can claim up to RM8000 provided got receipt under personal relief ?

I think you don't get the message in the earlier post.

RM8000 personal relief is automatic.

Just like you earn 30K last year then straight away you deduct out the RM8,000, mean your taxable income is 22K, so any tax is calculated based on (xxK annual income - Rm8,000)

22K x y% = tax you need to pay.

u got it wrong dude.. 8000 relief is minus off from your taxable income eg 3k per month = 36,0000 income p.a

Relief: 36,000- 8000 = 28000 taxable income

For those taxable income below 35,000 ( i think) there is a rebate of 350.

This post has been edited by bafukie: Dec 29 2008, 10:24 AM

Lol sorry I think Im confused a bit

If I earn 30k, and it auto deduct relief Rm8k meaning taxable income is 22k

I not sure why need to pay the tax when declare. I thought all the tax already deducted from my salary monthly

Well, we have to differentiate between reliefs and rebates. Reliefs in a way reduces your taxable income, and as for rebates, it reduces your tax payable. That's the different.

As for monthly tax deduction, usually stated as PCB (Potongan Cukai Bulanan) or STD (Schedular Tax Deduction), it depends on your current marriage status and also how many kids you have, then your employer deduct it accordingly. They have the deduction table and they just follow there. As far as I know from the deduction table, deduction starts if your monthly salary is RM2,500 and above. You can refer the table here. However, i think there will be 2008 ammendment due to rate changes starting YA2008. You can refer the table here. PCB deduction table doesn't take into account of any other reliefs, other than your EPF contribution, self relief, wife relief and children reliefs.

The big question, how do we claim the other reliefs that we can claim, like insurance, books, medical expenses, etc? At the end of a year, your employer will give you a form called Borang EA. This form is a summary of your gross taxable income, your EPF contribution and your PCB paid. When the IRB opened their e-filing website, login to your own form and fill it. When it comes to the reliefs part, just key in the amount that you want to claim (books, insurance, etc), and the e-filing system will automatically compute your tax. Then you will know whether your monthly deduction is enough to cover your tax payable for that year or not. If not enough, you can use maybank2u to pay, and if overpaid, just wait for refund from the IRB.

Yes, auto deduct 8k personal relief. There are other relief available as well. Insurance/EPF, Books/magazines, Laptop/Personal Computer, Medical fees for parents etc etc. U can try google for pricewaterhousecoopers. They have the latest edition 2008/2009 tax info.

hi can i use my credit card to pay my tax to IRB..?

can't bro...

well explained..

if anyone needs to calculate their income tax..feel free to download a simple spreadsheet calculator i made..then u can see how much you are taxable n how much u can expect to get back ur PBC... cheers..

can anyone enlighten me?

My friend mother, working as secretary in a law firm. What they do, they didn't fill out for rebate, or even request for refund of excessment.

what they did is, when the time is come, those accumulated money in IRB + interest ( not sure how much ) they will use it for buying a property.

Anyone know about this?

I'm working in a normal company and hiring a maid. Can I still declare this and get rebate for the maid/servant?