answers looks like an obvious NO to me

GST is a type of 'Consumption Tax' whereas "Income Tax' is a tax on 'Income'.

The bad thing about income tax is that it does not encourage savings. As long as you make a certain amount of income, you have to pay a certain amount of tax, regardless of whether you spend them or not.

Consumption Tax, on the other hand, encourages savings in a way that you only pay the tax when you spend. If you do not spend, then you are not taxed. We already have some consumption tax in Malaysia, eg. hotels, high-end restaurants, parking, gambling, etc. You pay mainly 5% tax when you use these services. If you don't use, then you don't pay. It's fair, right ?

The good thing about consumption tax is based on the fact that the rich usually spend more, then they are taxed more, compared to the poor.

In countries that has GST, the income tax rate will have to be low to balance it out. You cannot have a high tax on income and then tax again when people spend, that will be bad for the people.

No doubt, it is a fair system.

But for some folks that earn below 30K - 40K or so under current system (which bulk of Malaysian are in), he/she is totally in disadvatange scenario in the GST structure. They lose out a lot if GST when it is set up.

This post has been edited by cherroy: Apr 6 2009, 02:31 PM

hmm, let me try..

1. By right, when you claim for mileage claim, you will have more money, therefore it should be under income, therefore chargeable.. LHDN however allows exemption for petrol card,petrol allowance and also travel allowance as of the moment. Therefore, if it is stated in your EA form/payslip as travel allowance, it is exempted, which means you do not have to declare it under 'taxable income'. If it is stated as "outstation allowance" or "mileage claims", i would suggest changing it to "mileage reimbursements" or "travel allowance" which does not subject it to taxable income. Be sure to check where is it stated in you EA Form - under taxable or non-taxable income.

2. The salary should be = monthly salary x 11 months + any overtime + allowance.

3. EA Form serves as a summary statement for your income. Your company should declare what is the income they had paid you and normally they would identify whether the income should fall into taxable or not. EA Form is the best reference to fill in your tax / e-filing.

4. For year 2008, rebate for taxable income below RM35K is rm350, starting next year it may be increased to rm400.

5. Yes, however the bills should be under company name and not your own name.

6. Yes can be claimed for the portion where you paid. be sure to identify if it is medical insurance or life as they are exempted under different sub-clause.

7. Hehe this is subjective. I would think this is still considered a PC therefore you should just claim. Later it will be a matter of explaining to the officer should you get audited. but be sure that the list does make up a unit PC.

I hope the above is correct. Anyone can feel free to correct me if anything wrong.

Yes you are right. It also depends on how low the government will lower the income tax rates. They need to find a good balance between Income Tax rate and the GST rate.

It should be the amount of saving for that year minus any withdrawals of that year..so basically the answer is no, i guess..

if yr monthly salary exceed 2500 and above that u are required to start paying PCB which it will be deducted from yr salaries.

of course, it doesn't means that yr individual tax job is over. u still need to tax computation on yr own by filling up the details on the b or be form which is due end of this mth.

u will know the result of the net balance which is either tax payble or tax refund after filling up the form.

it's quite fun on filling up the form by yr self. if u have many source of incomes even involved complicated biz. then u better get someone familiar with the tax filing or tax agent to help u.

I have a question on the tax deductibility of insurance premiums. I have a whole life insurance plan for which I pay a total premium of about $2,500 a year but I recently received a statement from my insurer that only about $791.00 can be claimed as a tax deductible expense. What's up with that?

I fill up my e-filling and it seem like I still have to pay around RM200+

I wonder why

Btw, do I really need to submit my income for 2006 and 2007 ? So far till now I not submit yet ....

Anyone did not submit for previous year ?

I think I am being ignorance here ..been working for 4 years every year received EA form from company, started last october my payslip got PCB deduction. I have yet to register with LHDN. Basically i am total zero knowledge in this tax kind of things.

can somebody enlighten me on what should i do, i have read alot of info in this forum but still blur.

am i required to do filing at the end of this month?

If your payslip got PCB deduction, im sure your employer have register tax file number for you with LHDN. Ask from your employer if they receive your Borang BE. If not, go to the nearest LHDN office and ask for e-filing pin code, then register yourself and e-filing account. Submitting your tax using e-filing is very easy.

It is best that you check with your insurance agent. Your insurance may comprise life and other types of insurance. Only life, medical and educational insurances are entitled to relief.

i was told by my HR that PCB deduction is using IC number and they dont open any tax account. So basically you'll have to check with LHDN for your account number.

Oh is it? Cos based on what happened to my sis and bro, both of them one day just happen to receive their Borang BE when their employer starts to deduct PCB from their salary. And they didn't even register in the LHDN office, so I thought your employer are the one who registered a tax number for you and you will be getting your own Borang BE when you're salary got deducted PCB.

Well, I guess for those who didnt get their BE, but they got their salary deducted PCB, I think it's time for them to get their e-filing pin in the nearest LHDN office. 3 more weeks before the last day of tax filing. Better be quick rather than last minute, no?

yes. check with your insurance agent. by right, every year, around April (the time where everyone need to pay tax), your insurance company should send you insurance statement for tax relief. from there, you'll be able to check out the exact amount for tax exemption.

only life, medical and education policy are tax exempted (still you need to check it out, some life/medical are only entitled for 60% relief if you claim under medical and 100% if you claim under life policy). in short, just check out the form, it'll tell u everything.

yeah i guess the LHDN are the ones so eager to open up ur tax account

so have to check with LHDN for ur account number.

Can I say all malaysia insurance company or product we bought is tax deductable?

I earn direct online advertising income from advertisers in USA.
I also earn "pay per click" income from domain parking.
Do I need to declare this income in my Income Tax Returns?
I read somewhere that "income accruing from outside Malaysia and received in Malaysia" is exempted from tax.

There are 2 school of thoughts as far as taxability of such incomes is concerned. I am of the opinion that these income are not taxable. However, if you do a google on this subject, you will find that there are people who say that they are taxable.

My reasons are explained in my blog www.mytaxation.blogspot.com. Look under the posting "Is income from Google Adsense Taxable ?"

You are entitled to rely on whichever opinion you think is right.

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Added on April 11, 2009, 10:08 pmNot all Malaysian insurance products are tax deductible.

The Income Tax Act provides that only insurance premiums paid on life insurance, medical and education insurance are tax deductible.

It does not even say that the insurance companies must be Malaysian companies. Therefore, even insurance premiums paid to foreign insurance companies are deductible, as long as they are for insurance policies mentioned above.

This post has been edited by gtchye: Apr 11 2009, 10:08 PM

Example ING Insurance, Where the company buy insurance for the staff.? tax deductible.???