whatever....

at least we have identified a user who is not giving any constructive comment but want to find others' mistake

This post has been edited by nothingz: May 10 2009, 05:22 PM

the problems here is the big A/D or small (a)/(d). nothingz juz use a layman's term to explain. no need so complicated. sometimes simple explaination ppl will understand more easily.

nevermind, just accept the fact that

'some kind of people does not want to lend a helpful hand but want to criticize people's work'

what u mentioned juz now normally is direct expenses.
for Investment Holding Company there's still got some expenses allow for deduction up to 25% of "permitted expenses". for yr info permitted expenses is under section 60F / 60H

Click on this website guys and girls out there.

http://forum.lowyat.net/topic/622245/+3520

Successful trader at garage sales making alot of profit by selling gundam. Do you think he is taxable? I don't think he have a shop, register under SSM or Business License to do it and he escape from tax. There is a heat argument over there. check it out and give comment

ya, i know. the 25% of those admin expenses or 5% of gross income whichever is lower. that would cause her to

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Added on May 10, 2009, 5:38 pmactually if you are running the trading business for profit, then you should apply a business licence, just RM60/year. report tax or not, that's another matter.

if you feel that he is running away from income tax, feel free to report him at LHDN website & you may share the rewards

This post has been edited by nothingz: May 10 2009, 05:38 PM

avoid yes evade no

you are referring to Investment Holding Company, the correct Section is Section 60F and Section 60FA. Don't everytime rely on the templates.

Section 60H is for closed end fund.

IBA is applicable to manufacturing factory/warehouse only. generally, the expenses incurred can be charged on either side, both is tax deductible provided the factory/warehouse is being used(means not vacant). it is better to have a rental agreement and the rental charge should be a fair value/market rate to avoid any transfer pricing discrepancy

[/quote]


But the problem is if i rent out the factory to my related company than can i get IBA since my related is used as a factory/warehouse??if not wat allowance is give for tax deductible for a leasehold building...cause the factory is bought under related co name...

i cannot really understand your situation, please state in Company A & B. which company is the owner and which of them wants to claim expenses/IBA

Sorry...if A is the owner and rent to B the R.Co..as a warehouse so A can claim the IBA for it ??

And if just 50 % of the place i for warehouse and bal is as office and staff welfare except IBA for warehouse wat other allowance can it get...

your question is very wide, inclusive quite a number of rules + whether the factory was built was your own/purchased from third party.

you better consult your Group's Tax Agent for prefessional advice because in the end, they will be the one who will compute your Company's Tax Computation

One question regarding the Computer Tax Relief.

Can I claim for 2 netbooks purchased together under the same invoice ?

i think it is up to value not up to how many you purchase right? like for books, the government allowed up to rm1000 rebate...correct me i am wrong

This post has been edited by omniknight86: May 20 2009, 02:06 PM

Computers are different from books. Rarely you would buy RM1000 book.

But computer you can get one at RM3000 easily.

still i think it set up limit in terms of value not in terms of number of pc u buy

I need some expertise here, hope some tax experts could help me.

Understand that IRB now allows tax exemption for car/housing/educational loan interest subsidies up to a max of RM300,000.

Our company is giving RM1000 loan interest subsidies to certain class of employees, regardless of the loan amount the employee is having. Is that the correct way?

Despite whether it is correct or not, is that RM1000 exempted from the monthly PCB?
If it's not subjected to PCB, does the employee have to fill up the form TP1?
But I couldn't find any row in the Form TP1 mentioning "faedah pinjaman", where should I fill it in then?

I just want to safeguard myself and have the confirmation from the employees that they would like to claim for the exemptions. Who knows few months later they know they underpaid their taxes and they want us to deduct PCB from it again. Worse, I have one employee telling me he would like his PCB to be deducted from the loan interest subsidies given, and the other one telling me he would like to have the exemption.

IRB is kind of ambiguous over the loan interest subisides treatment. I've called a few officers, one telling that RM1000 is still subject to monthly PCB, one telling me otherwise. And I've received letter from IRB, stating that "Majikan diberi pilihan untuk membuat pelarasan ke atas saraan dengan mengambil kira elaun, perkuisit, pemberian dan manfaat yang dikecualikan cukai seperti yang diumumkan dalam Bajet 2009". Since the employer is given the choice of adjusting it, I would presume that the employer has the right to not do any adjustment to the loan interest subsidies treatment. But to help employees reduce their taxes, we are kind of "forced" to adjust it or else the employees will be blaming us that they have to pay more taxes.

Thank you in advance.

i previously overpaid my income tax due to the deductions I got and I haven't gotten any letter or cheque from IRB, what can i do? If say I still dont receive in next 1-2 months, the next time i pay income tax, can i underpay to cover back what IRB owe to me?

It is not advisable for us to underpay the taxes while we have refund with the IRB.
What you can do is to call IRB to check if you have really overpaid the taxes. If the amount is substantial, request them to send you the cheque.

do not underpay the tax as it can be considered evading tax and you may be penalized. The proper way would be to write in to LHDN branch where u are registered and ask for the refund. Just write in formally asking for their attention on the refund and do not use harsh words (dealing with government).

LHDN went through my account and had noticed that i wrongly declared one of my exemptions, they will notify you about the discrepancy..lucky me i was not penalized or anything, just that i had to repay the adjusted amount after they deduct the exemption i filed..