Sports equipment relief can be claimed for year of assessment 2008. But the IRB has yet to come out with a public ruling on what kinda equipment is illegible for claims, but i'm assuming it excludes sport shoes.

For computer relief, you can only claim once every 3 years. Notebook included.

Electronic publication can be claimed, as long as it is not newspaper, or illegal publication (im assuming stuff like playboy). Can refer here (part D8)
http://www.hasil.gov.my/cP/upload/Form/Nyata/NotaB2007.pdf

As for insurance claim, it's better claim based on annual statement given by your insurance company, rather than receipt, cos sometime you're paying a premium of RM500 a month (say), but a portion of it could go to medical, or educational, not only life...

Tax rebates increased from RM350 to RM400 for YA2008, and also 1% cut on their rates for the medium income bracket. I bet our government's revenue would drop considerably due to this.

Actually you don have to submit the receipt. Just declare all the reliefs claims in your form. You will eventually get your tax refund if you submit it via e-filing.

However, sometime they might want to check the receipt for all the claims you made. But this usually happens if you full claim medical or books relief. If you give them all the relevant receipt, and pass all their audit checks, then you can get your refund in no time.

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.

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

Yes. Make sure you keep the receipts.

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.

Actually that is not rebate or anything that can be claimed. That is Benefit in Kind (BIK), where your employer provides you with servant/gardener/driver. This BIK which should be declared and is taxable.

Declaring this BIK won't reduce your tax. It will increase your tax.

Actually you only file your tax once you have registered as a taxpayer. If it happens that year you are not taxable but you are registered as a taxpayer, YOU MUST FILE YOUR TAX RETURN.

If your income is not taxable, and you don't have a tax file number, it's not necessary for you to go register a tax file number and file your tax return. Waste your time, AND waste IRB's time.

How do you know if you have a tax file number? If you're an employee, check with your HR. If you're doing your own business, be sure to register yourself as a taxpayer.

Should be. As far as I know, the G didn't say that it was only for a year.

Expats working in malaysia, who does not fulfill the tax residence condition is taxable at a flat rate of 28%. They do not have any personal relief to claim. But then they have to work for at least 3 months to be taxable (if im not mistaken).

Usually February like that...

You cannot put low salary and exclude the allowance. You have to put exactly as what your Borang EA states (as given by your employer), unless the Borang EA states income exempted...

As I know, allowance is included in EA form. LHDN usually request for EA form only during audit, and receipts if you did claim reliefs. Just declare based on the EA form, then you're OK. So, make sure you don't miss out anything that you can see in your EA form. Also don't forget the accrued payment part (bayaran tertunggak) as in the form. http://www.hasil.org.my/cP/upload/Form/Lain/Borang%20EA.pdf

If you're not a registered taxpayer, then you should be ok, unless you plan to buy any substantial asset. If you're scared, then go register now and declare your 2008 income before the dateline April/June 2009. Don't bother declaring your 2007 income cos you may get penalty for late submission. Advice from my senior: If you're not planning to buy any assets (house, car) in the near future, and you're not taxable, don't bother declaring it.

However, from what I know, the LHDN is more peculiar on those self-employed people. To be on the safe side, it's recommended to declare your income since day 1 you started your business.

Nope. Go to the nearest LHDN office and get form from there. Or, print yourself. make sure you do print single side using laser printer. E-filing pin can also be obtained in their office, but then they have yet to open the BE e-filing server for YA2008.

This post has been edited by GeminiGeek: Jan 16 2009, 06:58 PM

This year's Borang E 2008, a declaration for Employer is a lot more in details where all employees name, tax no, PCB deducted and their taxable income is recorded and filed to the IRB.

So for those who have been not filing their BE, for year 2008 and onwards, i don't think u can run away...

It's either 30k a year employee, or 2.5k a month employee. So, it simply means if you (as employer) help your employee to deduct PCB for any particular month in 2008, you have to fill his/her name.

You can refer the form here:
http://www.hasil.gov.my/cP/upload/Form/Nya...%20E%202008.pdf

1) By right, you should receive BE 2007 last year, if your employer have been deducting PCB/STD from your monthly salary. For your employer to start deducting your salary for Income Tax, you're earning at least RM2,500 a month, for a person who's single. If you happen to be not taxable for that year, but you are previously taxable, you still have to fill your form and declare your income. Once you're registered with the LHDN, you have the obligation to submit and declare your income.

2/3) If you're too lazy to go to the office, go do submission via e-filing. They have just opened their B/BE 2008 e-filing server. If you're a first time user, do a first time login and key in the pin you have in the form you received and register yourself an e-filing account. Filling the online form is pretty self explanatory. Just fill it accordingly based on your EA form.

This post has been edited by GeminiGeek: Feb 5 2009, 05:54 PM

J'Daniel, have you received your Form BE2008? The pin is in there too. If you're using e-filing for BE2007 last year, you don't have to request for pin anymore...

No. there's no telephone bill and internet subscription relief.

HOWEVER, if your employer pays for your telephone bill and internet subscription, it is subject to exemption. I still can't confirm whether is exemption is on full allowance given or based on the bills paid for (where the balance is still taxable).

1. BE is for tax residents without business income. B is for tax residents WITH business income. M is for non-residents with income in malaysia. P is for partnerships. E is for employers. For your case, I think BE or B is relevant to you.

2. To roughly calculate your tax:
3,500 x 12 = 42,000.
Less personal relief 8,000 and EPF contribution (11%) 4,620 = 29,380 chargeable income
Tax on first 20,000 = 475
Tax on next 9,380 @ 7% = 656.60
Total = 1131.60
Less rebate 350 = 781.60

So, you have to pay around 781.60 of tax for that whole year. Calculation might be a little off cos I don't know your exact EPF contribution, and that is excluding any other reliefs that can be claimed.

3. Relief claim is based on receipt date. That means if you bought a computer in 2008, you can claim the computer when filing BE2008. You cannot claim it when filing BE2009 cos your receipt date is 2008.

4. Yes, personal relief 8,000 is automatic. And to claim overpaid tax, just make sure you submit your Borang BE via e-filing and wait for the tax refund cheque. It's even faster if you keyed in your bank account number when doing the e-filing.

a) Yes. However, since your home is also your office, you have to apportion such utilities expenses to "personal usage" and "business usage". To do this, perhaps you may want to seek help from Tax Agents. Personal usage are not tax deductible.

b) Yes. If you can list out which airfare/accomodation is related to which sales/client.

Remember, the rule of IRB is really simple. If the expenses is wholly and exclusively for generation of income, that expenses is deductible. So that means that if your bought air ticket to your to-be-client office, BUT you somehow fail to secure a contract from them, that airfare is not tax deductible.

If you need more help, I suppose you should approach a tax agent to assist you. I believe spending the money to the professionals is worth it, especially this kinda tax stuff.

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Added on March 9, 2009, 5:23 pmLHDN will send cheque to you quite fast if your tax record is clean. e-filing makes refunds even faster. If you keyed in your account number to the e-filing system, the refund will directly credited to your bank account.

Receipt for paying your tax and submitting your tax form is 2 different thing. After submitting your e-filing tax form, there should be a confirmation on your Jumlah Cukai Kena Bayar thing. That confirmation should be printed and kept for your own record. Print the e-BE as well, if you want, for your own record. As for tax payment, if you're using maybank2u, make sure you print the receipt. if you're using the e-bayaran thing, make sure you print the receipt after payment. I think banks need both income tax form submission confirmation AND the receipt for paying tax.

This post has been edited by GeminiGeek: Mar 9 2009, 05:23 PM