OK. this thread is not for the faint at heart.

This thread serves the purpose to help those with an annual income exceeding RM70,000 or businessess where you can't alter your profit or loss

the question:

How do I reduce my income tax?

Of course, some of my ways would be:

1. Increase expenditure
2. Buy lots of assetts - vehicles h&p, building s&p, etc
3. Pay high salary to "family employees"
4. pay zakat
5. computer - rm 3,500 insta-rebate (sadly, every 3 yrs only)

any of you got any more ideas? i do hope LYN hs some real accountants / editors who can share their thoughts on how to reduce the taxes without breaking any law

hehehe...have lotsa children....each children will get u rm1000 deduction...

it depends on whether ur a fixed income earner or running a business...if ur doing business, then there are more ways of tax avoidance...if ur under employment, just make sure to:

-make sure ur EPF+life insurance is rm6k and do not exceed
-educational insurance/medical insurance around rm3k
-buy shares, in which u can use the sec 110 setoff to deduct ur tax payable...

buy vehicle can deduct mei? The 3.5k for computer is not a rebate ler. Its a deduction only.

Books are deductible... make sure you keep the receipt

the hire & purchase agreement is tax-deductible (since you pay the setem cukai / hasil there already)


that's only RM500.00 and i've maxed that out with newspapers & mag subscriptions

3. Pay high salary to "family employees"

I would say is the best one.....
put all sort of expenses into their "salary package"
vacation, transportation, meal allowance....etc...tat could mean a lot...
even go shopping also can claim....

buying educational books can help, bring the recipt. I thought there was one article in the newspaper about it. Tried LHDN website?

educational books or even comic books are considered under the rm500 rebate for books, which i have maxed out since early of the year

that leaves about rm 9,500+ to pay the govt

Here's a list of personal relief which might help you :

This only apply to resident individuals. These relief are not available to you if you're not an resident individual.

Section 46
a) Personal relief : RM8000
b) (i) Medical expense for parents : RM5000(max)
(ii) Medical expense for taxpayer(you), spouse and children in respect of serious diseases : RM5000(max)*
c) Basic supporting equipment(i.e. wheelchairs, crutches for disabled taxpayers, spouse or child) : RM 5000
d) Disabled tax payer(Hopefully you don't make yourself one) : RM6000
e) Fees for education in law, accounting, technological, vocational or industrial fields scientific and ICT : RM5000(max)
f) Expense on a complete medical examination : RM500(max)*
g) Purchase of books : RM700

*Total of (f) and (b)(ii) should not exceed RM5000

Section 47
a) Wife/Husband relief(Only for combined assesment) : RM3000
b) Alimony payment(only males can claim) : RM 3000
c) Disabled person(only for combined assesment) : RM 3500

Section 48
This section covers reliefs related to your child/children

a) Normal relief : RM1000 per child
b) Disabled child : RM5000 per disabled child
c) 1) For child studying in overseas(degree level and above) : RM4000
2) For child studying in local institution(Diploma level and above) : RM4000
d) Disabled child satisfying criteria (C) above : RM9000

Section 49
a) EPF & Life insurance premium : RM6000
b) Medical and education premium : RM 3000
c) Purchase of an insurance policy utilising his credit in his EPF account : RM1000

There you go...Please keep in mind once you reduce your chargeable income till NIL, you can't claim any relief anymore...Any questions, please ask.

This post has been edited by mxxuang: Nov 22 2006, 11:42 PM

this list is available right out of the income tax booklet

however, all that you had stated must be attached with a valid receipt and supporting documents,

unfortunately, i am very healthy

and no, i am not going agains the law. dun main2 dgn income tax woooo... they know everything

i am thinking of "smart" ways that seems to be illegal, but is actually within the governing laws

i know smart accountants and auditors know them. however, when i asked them for advice, they'd cahrge me rm 2,500 for their professional fee, which i am very reluctant to and defeats the main purpose to increase my profit

Well, they are accountants, of course they'll try to make money out of you Anyways in case you're caught cheating on your taxes, the one who advices you on how to cheat your taxes can be caught too. So you don't see many accountants giving you free advices.

If you're a self-employed businessman with your own business you there are more ways you can reduce your taxes as you can claim many of your personal expenses as business deductions. But if you're just a regular 'makan-gaji' worker, there's nothing much you can do, except get married, and have lots of children...

Actually I doubt the IRB would ever knock on your house door asking you to produce the receipts. They rather go after the big guns tax evaders and(of course) ask some duit kopi from them.

This post has been edited by mxxuang: Nov 23 2006, 12:28 AM

There are desk audits for Self-Employed (BE Category) & external audits for Businesses (B & P)...No, tax officers won't take any money on the spot nor accept any other offerings... ...heck, they even bring the Hasil brand mineral water to maintain independence...

The best way to reduce tax for self-employed is still thru dividends....this is especially the case for company director's and important personnel within the company who earn 5 figure monthly salary....anyway, just remember, having a higher level of annual income would allow u to purchase more property/assets without triggering an investigation.

Perfectly legal way to reduce your income. Appoint your wife, children and relatives to be non-voting directors of your company. They get pay and they do not have to work. They only have to attend meeting/party every now and then.

Dreamer

computer is rebate RM500 every 5 years

r u seeking tax planning for individual or company?

For company, if the paidup capital is less than RM2.5million, the first Rm500k is taxable @ 20%, so for small company u r advisable to limit up the paidup capital.

U can appoint ur family members as directors as well by paying them directors fees,
hence the EPF rate can be increase from 11% to 19%.

Ur company can frank/issue dividend to directors by using retained earnings, distribution in specie as well. Hence ,the profit of ur company can be spread over to other directors who will be taxed at individual rate. By franking dividend, u have to make sure that there is enough S108 dividend credit in ur company account,else there'll be S106 penalty .

By paying dividend, the recipient can claim S110 set off (rebate at tax payable) @ 28% ,hence the possibility of getting tax refund is high if ur tax paybale rate or marginal rate is lower than 28%

there's more to go...

exactly my plan (see tactic no 3)

is there any minimum age for a director? should the process go through lawyer and be made public thru newspaper?

moar. moar

(somehow, i sense that you are an auditor lurking inLYN forum )

Lucifah,

1) There is a difference. A director can still be working for someone else. Let say your son is working for company XYZ now. You can appoint your son to be director of your company while he is working for company XYZ. He cannot be a worker for both your company and XYZ company at the same time.

2) Unless you are a bumi, if your paid-up capital is 250K or higher, you have to give 30% of your company to a bumi. NEP applies.

3) What you need is a good accountant.

Dreamer

LOL>.

tell u how la

donate to the charity

and claim it from income tax...and the charity gv u how many percents back its legally yes

Is it any limitation to the types of book? Only limit to education type book? or any book will do? For example those personal finance book can?
Thanks

Make sure the "family employees" tax rate is lower than that of your co.

1 often used technique. Time your holidays during some conference/seminar related to your business. Fly first class, stay in the most expensive hotel money can get you ( all this as stated in the invoice. Where you eventually stay or exchange your 1st class tkt to economy class for 2 pax, well,... ...

Charge it all to the Co...all expenses paid holiday!

Is it we only be taxed when our annual income exceeds RM70k? I mean personal income tax here, as a normal employee.

If my annual income is RM70k, then the insurance premium is tax deductible, so, will I be taxed anymore?

. WTF...u r saying u never pay tax b4?? It's difficult to say how much income only taxable bcoz of the deductible expenses and rebate. As a guideline, its above RM2.5k p.m or RM30k p.a. But at RM70k p.a u definitely need to pay tax. No wonder our tax coffer is not full.

Singh Kalan,

I just start work less than 1 year, and my income is not even 2k per month, so I don't think I need to pay tax. However, I wish to learn more about this income tax stuff....

So, if my income deduct all the tax deductible expenses, exceeds RM30k p.a., then I need to pay tax, right?

How about the allowance and claims that I get? Will they be included as my income, or just my salary is counted?

I'm newbie in working life...so trying to learn and learn....

Not necessarily. In fact ur income minus all the deductible, if more than RM2.5k is taxable already (1%) and up.

For allowance, some companies file it some don't. Dont know the reason. Like my case, my allowance r almost same like my basic salary, but my company didn't file it, so no need to pay tax lo.

Is it any limitation to the types of book? Only limit to education type book? or any book will do? For example those personal finance book can?

So computer is rebate RM500 every 5 years or 3.5K every 3 yrs? Confused

Let say i buy computer this year (2006), but can i only claim it on 2nd (2007) or 3rd year (2008)?

Thanks

Before this year announced budget, it is a RM500 rebate in 5 years means that you only can claim once in every 5 years and one off straight away get Rm500 rebate for that year and can't claim after another 5 years. But this has changed next year, it become a RM3500 relief, not rebate for every 3 year.

LOL..
Normally it wont be a problem at all if you dont pay tax and understate your annual income... But having said so, you also must make sure that you dont go around and start buying assets... thats inviting problems...

Normally you will get over it but once you start to purchase assets like car n house, LHDN will open your file and do a rough estimate on your monthly expenses. If it doesnt work out or when they think its impossible, they will come n nab you... and when they nab you, they do make u pay big time...

so basically if u tell te government i earn less than this amount but buy assets round this amount
the government will create a nice headlines on the news with u in it?

exactly. i believe lhdn has had a data mining system in since last year...

This post has been edited by Xer0: Nov 23 2006, 08:54 PM

fear IRB

it's more frightening than all along's combined. they have every details of your money and holds every transaction in every commercial bank in malaysia

Computer definately is a rebate. Which rebates includes 3 of them - zakat(full amount), chargeable income<RM35k per annum and computer.



Jinyee

how does the charity relief works?

Buying lots of asset like property or car might work but u r playing with fire...LHDN might ask u back where the heck you get the $$$ to buy those stuffs? oh yeah since you got that much $$$ maybe i should increase the tax of urs hehe

But then if u got reasonable reason then might accepted or works

Under Individual Assessment

If your annual income is 70k annually,

70k - 6k ( EPF 11%) - 8k (personal relieft) - 3k (insurance premium) = 53k (chargeable income)
Hence, u have to pay TAX RM1,525(on First 35k) and RM2340 ( remaining 18k @ 13%)


Actually by using those info u provided isnt enough.

U can claim other relief as well in order to reduce your chargeable income.
FOr example,
Wife relief (RM3k) ,
Disable wife(Rm3k),
Disable tax payer (RM6k),
Medical Expenses for parents (RM5k),
Medical examination expenses>serious disease for taxpayer, spouse, and children with receipts (rm5k),
Supporting equipment for disable taxpayer,spouse,children or parents (RM5k),
Child relief , >18yrs old studying in local/overseas U/college (RM4k),
disable child (RM5k),
disable child studying in local/overseas Uni/college (rm9k),
EPF or approved fund n life insurance premium (RM6K),
Premium on EPF annuity scheme (RM1k),
Education fees paid by taxpayer for his own improvement(RM5k),
purchase of books,journals,magazines, or other similar publications for the use of taxpayer,spouse or children (RM700),

FOR 2005-2006 PErsonal COmputer rebate is RM500 every 5 yrs,
FOR 2007 RM3000 every 3 years

Other rebates including Wife(joint assessment RM350), zakat n fitrah RM350

In order to reduce your chargeable income,u can claim reliefs as above in order to reduce your chargeable income.

Besides, u can set off your tax payable amount by S110 set off (DIVIDEND INCOME@28%), S 132 bilateral relieft, S133 unilateral relieft, income tax paid under self-assessment- monthly,bi-monthly

As a results, the possilibility of getting REFUND is quite high.

What he meant is buying more FIxed asset under company's name,
hence can claim annual n initial allowance (capital allowance) to set off aggregate income

btw ihave heard that getting allowance from the company does cause u to be income tax taxable...
is this correct?


This post has been edited by medicontherun: Nov 24 2006, 12:42 AM

the cost of ownership / maintenance is still higher than the deduction you get. that also we've not brought in the time / effort involved.

my boss always says that for those who're too lazy to estimate the income tax, the ammount u're gonna pay is around 1 month of ur salary.

anyone know if profit for selling share in oversea is taxable or not?

btw, some info here is outdated. Books deduction is RM1000, and computer is deduction, and no more rebate. according to this year budget announcement.

u are totally correct. that is why company like to give elaun. for company, company can escape from epf for u, but as an employee rugi la....1 side kena tax, 1 side boss no epf on it..

So if u are SMART. talk to boss...tell boss to convert the elaun to EPF, which is increase your epf rate. This way, government wil not be able to get your money.

But how much is your salary, if only have few thousand permonth, dont waste time think how to save money, think how to earn more better. Because few thousand salary only need to pay few hundred dollar tax...so give pak lah lah....

actually those taxable allowance are called BENEFIT IN KIND, eg: accomodation,cars,handphone,drivers,maid n etc.. under section 13 (1).

company can deduct expenses for those allowances that are provided to u, meanwhile u are only taxable on fixed amount basis. In short, which means if your company offer a domestic servant for u, they'll pay the servant's salary for u every months, til end of the year, you are taxable RM4800/annum for it,which meant u are still liable to tax on those benefit. Let's say your taxable rate is 20%, Rm4800 @20% = RM960, and Rm960/12= RM80 , so it's equal to something as you are hiring a servant for RM80/month
Actually both side gain benefit as well

For example, House(fully furnished) Rm3360/annum .gardener RM3600/annum, leave passage 3 locals or 1 local n 1 overseas restricted to RM3000/annum, CARS(including petrol) that your company provided to u are taxable base on BIK schedules (too long to elaborate) if u wanna know the rate PM me

any1 got company tax problem?

This post has been edited by xcrue: Nov 25 2006, 10:48 PM

Hiya, I am about to work in a months time and have been wondering about tax. I got a couple of questions to ask which I will be highlighting in bold in the following quote.


Just another question in mind. How much life insurance does one actually buy? Anyway to calculate like say 10%of gross salary or something like that?

guys.. wat is the requirement that have to pay for tax?? for example.. an employee..

I think most ppl who earn around RM2.5-3k will start to pay income tax. They got a formula for you to calculate one. Once your average monthly income exceed the minimum amount required to pay, then you must pay lor. Simple as that. No shortcut.

Here a table to sumarise all:

Salary (p.m) - Chargeable Income - Tax Payable
2,000 - 15,360 - 0.00
2,200 - 17,696 - 55.88
2,400 - 20,032 - 127.24
2,600 - 22,368 - 290.76
2,800 - 24,704 - 454.28
3,000 - 27,040 - 617.80
3,200 - 29,376 - 781.32
3,400 - 31,712 - 944.84
3,600 - 34,048 - 1,108.36
3,800 - 36,384 - 1,704.92
4,000 - 38,720 - 2,008.60

Salary based on 12 months pay + 1 month Bonus
Deductible on Self Relief and EPF contribution only
Only those with Chargeable Income of at least RM15,834 may be taxable.

IMPORTANT: The table should be used as reference only. Do not submit your tax return based solely on this figure.

This post has been edited by Singh_Kalan: Nov 27 2006, 09:52 AM

how true is this? for non listed company, do we need to give 30% for bumi in equity?

1) Yes, it is true. Check with your accountant. The rule is in the book. The question is whether it is enforced or not, I have NO idea.

2) Make sure your paid up capital is less than 250K.

Dreamer

well, i know some company is 100% owns by chinese with P/U RM1M...unlisted...
when u said enforce or not, wat u mean? there is no such rule imposed on non listed company in general..the rule in the book?> wat book?

if the company pays epf to its ppl.. that money is not taxable right?
i mean gov wont tax ur epf money.. will they tax the company for giving u the money?

no... EPF is not taxable if under Approved fund.
Ur employer can even deduct up to 19% EPF against biz income

Good1
This is the summary after deduct only personal relief of RM8000.
<Rm35k chargeable income got Rm350 rebate as well.

Ts1,

1) Is it a private limited company??

2) I talked with accountant and there is such a rule and some times the government choose not to enforce this rule. This is Malaysia.

3) It might be officially 4 to 5 companies that split the 1 million paid up capital.

Dreamer

If loss making Co sure not enforce onelah but if highly profitable sure kena give 30%.

If everyone is trying to reduce their income tax, then the government will have no choice but to increase the tax. If everyone pays their tax, still pointless, because the money is always used for wrong purpose, corruption, etc, if only corruption is not around . . .

i realli unaware of it..if there is a link or acts i can read...more convincing..company acts dun know got or not

will ask company secretary if free

Include EPF contribution deduction also.

TIPS of the DAY:-
If your chargeable income is around RM35k, buy more books or get a computer to make sure its below that amount in order to get a RM350 rebate.
Deduction:-
Books - Rm1000 max
Comp - RM3000 max (once in 3 year only)

Can anyone clarify about how this NEP is implemented?

I mean, the 30% equity comprises of what, and how, actually?



This post has been edited by ThanatosSwiftfire: Dec 1 2006, 06:26 PM

Please start a new thread. This is OT. I know I am guilty of that too.

Dreamer

any book also can ah? i read somewhere onli self improvement book onli consider for such relief. it mean if it directly can improve ur service then its apply. if it indirectly related to our job, then cant apply. they give example if an engineer buy accounting book, then cannot get that relief la. neway is it relief or rebate?

ok..what's the different between relief and rebate.im not in the working force.still studying.but this thread is interesting.sorry if the question seems dumb

haha...study too much of Advance taxation leh...
anyways, the above is what im wish to mention lol... part of it...

a company secretary will do the job...

if free, go and buy Chong Kwai Fatt Malaysian taxation books lol mainly for individual and some company tax...

there got mention all the tax... law... and some taxation planning ...

advance taxation is for company...

relief deduce from gross income. rebate deduce from tax chargeable to get the final number. correct me if wrong. i'm newbie too

HAHA.. i gonna crazy with it..

how much annual income is eligible for tax?

nicely put. you're correct.

BTW you can easily verify this by looking at your tax form. See at which stages of the tax calculation they use the terms 'relief' and 'rebate'.

Personal salary RM2.5k per month subject to income tax?

If that's what I think the question is, then yes.

2.5 equates 30k per annum. just keep quiet and the LHDN won't bugger you

For makan gaji ppl so hard to run away from income tax, my wife bonus 10k, income tax makan 3k... habis

IINM, any amount you earn, even 1k/mth, you need to fill up the BE form and declare to LHDN, although no tax, just for their filing purpose, and it may be useful for you to apply loans, etc.

no no no ...
you are wrong.

every1 of us will be tax audit once for every 5 years. tht's the IRB target. so do keep ur receipts and whatever supporting documents up to 7 years.

at the movement, dividend can be reduce tax, but in the coming next 5 years, dividend will not able to help us to reduce tax via S110 tax credit.

as now is the transision period for the Single tier tax dividend.

Should be auditors instead of editors.


Land and building is not allowed for capital allowance or expenditure claimed.

Pa

1 noob question here,

my current salary is less than 2.5k but if i add my allowances and bonus, my annual income will definitely more than 30k. will i get tax for that?

Any books as long as you have receipt with the correct codes... so buy books from Borders, MPH or Kino...

That and to avoid a kena denda... my friend doesn't have to pay tax but didn't submit his borang then kena denda

Yup unless you manipulate... to get a reduction, you can buy medical equipment etc... example walking canes and wheel chair. Keep the receipts and resell the equipment... or you could buy insurance

I thought is random audit. I was audited once several yrs ago They brought out my whole file, and I brought my own photostated file.

She checked and compare, I answer and explain. Lucky she was satisfied No problem so far, I pay my tax... and other ppl pay tax to subsidised my car petrol/toll/etc.

One quick question. If I buy medical and life insurance for parent, can it be considered as medical expense for parents and deductible from tax? Thanks.

I think medical & life insurance for parents = no.

Parents medical support like doctor fees, buy medicine, tongkat, wheelchair, etc. = yes.

I give my donation to WWF (save the planet). RM250 quarterly.
All these deductible from tax. Why not right?

really a newbie here on taxation.

i'm just wondering, beginning of last year, i'm earning more than 30k per annum, however the company accountant does all the taxation on behalf of the employees, so i have no idea how much have i paid for tax. is this common? officially, last year is the first year i'm being taxed, so i've no idea if i'll receive any notifications on how much i have paid.

also, let's say i paid 3k for my tax last year, am i able to claim deductions if i buy books and computer from last year? or do i keep the receipts and claim at the end of this year?

thanks in advance, i've not come across any topics that can help on taxation, something that has been bugging me for quite some time.

You should receive an EA form from your company. That will show how much tax you paid last year. Taxation is calculated from January to December every year so your receipts should be within that year too.

Donation deductible must be under the "Seksyen 44(6), ACP 1967", which is normally stated in your donation receipt. You MUST have the receipt.

http://www.hasil.org.my/melayu/bm_NO2_1_1D.asp

---

Added on March 4, 2008, 7:02 pmlast yr = 2007, which is declare in this year (2008)

Your company must provide you EA Form, which states (important points):
1) Total income + Bonus + claims + incentive = "Penggajian", as long as it is stated in EA form
2) Total Income Tax deducted = PCB (Potongan Cukai Berjadual)
3) Total EPF paid by employee (not employer)

In BE Form (Individual Income tax without share dividend)
1) = falls under section (C1)
2) = falls under section (F2) - deduction
3) = falls under section (D12) - deduction on employee contribution only

http://www.hasil.org.my/cP/upload/Form/Nya...orangBE2007.pdf

books = section (D8) - deduction
computer = section (D8A) - deduction

Submit it as per the receipt date. i.e. this year 2008, you must declare all income/receipts dated 2007. There are exceptions though, but let's not confuse you.

Clear ? Any questions ?

---

Added on March 4, 2008, 7:09 pm
A tip to share with all, some might already know it:

If you buy those all-in-one life insurance (PA + medical + 36 illness + cr@p + etc.)

Take note on the itemised sub amounts.

e.g. total annual premium = rm1000
Life Insurance = rm700 (Under section D12 + employee EPF)
Medical Insurance = rm300 (Under section D13)

Also take note the max 6k and 3k for D12 and D13.


This post has been edited by cute_boboi: Mar 4 2008, 07:09 PM

Public counters for e-filing tax returns

KUALA LUMPUR: More than 100 public counters will be opened nationwide for members of the public to e-file their tax returns before April 30.

The public counters will be stationed at shopping complexes and workplaces.

After the launch of Service to the Taxpayer Month, Inland Revenue Board (IRB) chief executive officer Datuk Hasmah Abdullah said customer service personnel would assist taxpayers in e-filing their 2007 tax returns.

"Employers with a substantial workforce can also request the IRB station our officers for a few hours to help their employees," she said.

If taxpayers have problems filing their returns, they could also use tax agents. From this year onwards, tax agents will use their passwords to file tax returns for their clients, she said.

"In the past, each individual had his own password," she said, adding that individuals could also use any computer terminal when filing their returns.

Hasmah encouraged taxpayers to electronically file their returns because if there were any refunds to be made, e-file returns could be processed faster.

"It will take about three months to process those who file manually, but those who e-file may get it processed within a month," she said.

Last year, IRB processed 392,457 cases of refunds amounting to RM5.3 bil.

Hasmah said that 874,800 individuals electronically filed their tax returns last year.

"We are hoping that more than a million will e-file their returns this year as more people are familiar with (the process)," she said

URL: http://thestar.com.my/news/story.asp?file=...4612&sec=nation

hello sifus...

hope you guys can help me out here, tax filing return very soon, kencing in my pants d...

anyway, i am self-employed (with a registered enterprise, no sdn bhd)...my question is, should i file a personal return or company?or both oso must? very confused...

any tax agents that can help me? or any sifu here within a reasonable fee? those interested pls PM me...

thanks...

Counters to help public e-File tax returns

KUALA LUMPUR: More than 100 public counters will be opened nationwide to the public to e-File their tax returns before the end of April 30.

The public counters will be stationed at shopping complexes and employees' workplaces.

After the launch of Service to the Taxpayer Month, Inland Revenue Board's (IRB) chief executive officer Datuk Hasmah Abdullah said customer service personnel would assist taxpayers e-File their 2007 tax returns.

"Employers with a substantial workforce can also request the IRB to station our officers at their premises for a few hours to help their employees."

If taxpayers are having problems in filing their returns, she added that they could also use tax agents to e-File their returns. From this year, tax agents will use their passwords to file the tax returns for their clients.

"In the past, each individual had his own password."

Now, she said individuals could also use any computer terminal when filing their returns.

Hasmah encouraged taxpayers to e-File their returns because if there were any refunds to be made, e-File returns would be electronically processed faster.

"It will take about three months to process those who file manually, but those who e-File may get it processed within a month."

URL: http://thestar.com.my/news/story.asp?file=...6930&sec=nation

People know to reduce income tax but do ppl know on how to avoid income tax to be highly chargeable?? is there any method to do that??

personally think that 1 person do more than 1 job is a good way to avoid but make sure that the highest salary for each job should not be greater than 2.5k..

is it the good way to avoid it esp when go oversea like working at spore??

For your own sole-proprietor company, have to use B form and not BE form.
http://www.hasil.org.my/cP/upload/Form/Nyata/BorangB2007.pdf

BORANG BE 2007
PEMASTAUTIN YANG TIDAK MENJALANKAN PERNIAGAAN

BORANG B 2007
PEMASTAUTIN YANG MENJALANKAN PERNIAGAAN

I am not a tax agent and I'm not in finance/accounting. Just doing a favour to everyone. You can get a copy of all the forms here.
http://www.hasil.org.my/melayu/bm_NO5_1.asp

---

Added on March 5, 2008, 3:52 pmAn advise from my friend, a certified CPA who has worked in Australia, UK and KL for many years.

For those under employment only and no other job, no need to evade tax. There is no way you can escape, as IRB can trace easily through your EPF monthly contribution table. Or they can check through your company contribution, account. Worse, they audit you individually.

To "reduce" tax, you must setup own business.

Singapore has its own taxation system, max at 20% IINM. There is an agreement between MY-SG to avoid double taxation.

---

Added on March 5, 2008, 4:18 pm

Just to share:

http://www.kwsp.gov.my/index.php?hdl=bin&rp=65



http://www.kwsp.gov.my/index.php?ch=p2empl...&ac=439&lang=en

The third schedule shows the amount of monthly EPF contribution from Employer / Employee
e.g. if you are earning basic rm2500 per month, contribution will be:
employer = rm300
employee = rm275
total = rm575

assuming flat rm575 x 12 mths = rm6900

IRB can easily check in EA form = 275 x 12 = rm3300
or
check directly with KWSP / EPF = rm6900
or
check with your company accountant
or
check with Bank Negara Malaysia.

So, basically no escape if you have EPF contribution.



Another e.g. they found out your monthly EPF is rm1150
By refering to the 3rd schedule:
employer = 600.00
employee = 550.00
total = 1150.00

means your basic salary is :
"From 4,980.01 to 5,000.00"

How to escape if you are under employment ?? except some claims/incentive which is not included in EA form or EPF contribution, etc.


This post has been edited by cute_boboi: Mar 5 2008, 04:22 PM

My salary slip have the column for "monthly tax contribution". Wat this mean?

If there is an amount there, it means PCB (Potongan Cukai Berjadual). They have a table to calculate the value, I can't find it yet.

This is to help you to pay tax on a monthly (12x) basis, rather than a lump sump once a year, which may be a burden to some people.

That is why it is important for you to submit the B/BE/etc. forms, and based on the calculation, if there are extra, you can withdraw it out. If insufficient, you just top up a bit only, not big sum of money.

Juz wan to check wif all the Tax Gurus here...

How do you file your tax claim if you have a part-time job (without epf deduction) besides your normal day job??