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 Personal relief Income tax, legally, reduce income tax

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cute_boboi
post Feb 25 2008, 11:03 AM

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QUOTE(ngclee @ Feb 10 2008, 01:15 PM)
Personal salary RM2.5k per month subject to income tax?
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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.



cute_boboi
post Feb 26 2008, 04:11 PM

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QUOTE(vin_ann @ Feb 25 2008, 09:45 PM)
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.
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I thought is random audit. I was audited once several yrs ago tongue.gif 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 tongue.gif No problem so far, I pay my tax... and other ppl pay tax to subsidised my car petrol/toll/etc.

cute_boboi
post Mar 4 2008, 11:37 AM

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QUOTE(rollinpark @ Mar 3 2008, 11:24 PM)
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.
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I think medical & life insurance for parents = no.

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

cute_boboi
post Mar 4 2008, 06:50 PM

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QUOTE(USJprince @ Mar 4 2008, 01:47 PM)
I give my donation to WWF (save the planet). RM250 quarterly.
All these deductible from tax. Why not right?
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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 pm
QUOTE(livingmonolith @ Mar 4 2008, 02:47 PM)
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.
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last 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.) tongue.gif

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
cute_boboi
post Mar 5 2008, 03:46 PM

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QUOTE(m o m o @ Mar 4 2008, 09:44 PM)
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...
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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 tongue.gif 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 pm
QUOTE(goolie @ Mar 5 2008, 09:49 AM)
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??
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An 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

» Click to show Spoiler - click again to hide... «


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.
wink.gif

This post has been edited by cute_boboi: Mar 5 2008, 04:22 PM
cute_boboi
post Mar 6 2008, 10:33 AM

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QUOTE(g00glesYYl @ Mar 5 2008, 08:19 PM)
My salary slip have the column for "monthly tax contribution". Wat this mean?
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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.

cute_boboi
post Mar 6 2008, 07:15 PM

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QUOTE(SKY 1809 @ Mar 6 2008, 05:20 PM)
You have 2 sources of incomes :-

1) from fixed employment, allows set off personal allowances ( very limited )
2) Business incomes - derived from  unit trusts, insurance, financial planning etc

For (2) You need to submit with a simple profit & loss statement together with a balance sheet ( can ask any tax agent to do for you. )

Then you can claims expenses relevant to these incomes such car expenses, cap allowance, insurance,interest, office exp, HP bills, electricity etc ( relate to the production of unit trusts business ).

without te accounts ,  income tax dept may tax you as other source without deducting the expenses.

More works to do but you could end up paying less tax with proper tax planning.
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Yes, with business income, you can reduce the tax. Please take note some deductions/depreciation must be pro-rated or split over X no. of yrs (called amortised ?)

cute_boboi
post Mar 7 2008, 11:47 AM

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QUOTE(g00glesYYl @ Mar 6 2008, 10:34 PM)
thr are some amt thr. Only having it this month.

that mean, i need to declare tax this years?
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Officially, if your are working (paid salary+EPF) in 2007, your need to declare 2007 income in 2008.

Income in 2008 (with your PCB) is to declare in year 2009.


Added on March 7, 2008, 11:56 am
QUOTE(arsenal @ Mar 7 2008, 01:43 AM)
I need to ask sifu a few questions....i paid tax almost 1k last year and now i need to claim it..
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I'm not sifu, not qualified accountant/tax consultant. Just based on my knowledge. So... no guarantee, ok ? tongue.gif

QUOTE(arsenal @ Mar 7 2008, 01:43 AM)
(i) I wear hearing aids...is that classify under orang kurang upaya ??the hearing aids have been paid quite some time ago by my dad.
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Yes, hearing aid for you, can claim under Section D3 (2007 BE Form)
"Peralatan sokongan asas untuk kegunaan sendiri, suami / isteri,
anak atau ibu bapa yang kurang upaya
"

Peralatan sokongan asas = basic support device/object

However, the receipt must be dated 2007 (to submit this year) and either no name, or under your name. Parents also can. But not uncle/auntie/grand-father/god-father/etc.

QUOTE(arsenal @ Mar 7 2008, 01:43 AM)
(ii) The total income minus epf first rite? and then only deduct the rebate??correct?
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Yes. Income minus EPF minus bla bla bla... then calculate the taxable amount. Then use the taxable amount minus rebate, minus PCB paid, etc. = Voila! Cukai kena dibayar (underpaid) atau cukai dibayar balik (overpaid)

I think they use a common term (pls correct if wrong)
Reduction(Pelepasan): Deduct from main income calculation
Rebate(Rebat): Deduct from taxable amount calculation

i.e. rebate = better tongue.gif

QUOTE(arsenal @ Mar 7 2008, 01:43 AM)
(iii) i bought 2 laptops last year..one is 3k plus and another one is 2k plus...should i put the 3k plus laptop to get more claim?

Thanks...
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Of course la wink.gif common sense what. But I'm not sure whether it is limited to certain "approved" PC outlets or not hmm.gif


Added on March 7, 2008, 12:02 pm
QUOTE(g00glesYYl @ Mar 7 2008, 09:15 AM)
When is the deadline of tax declaration this years?
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http://www.hasil.org.my/cP/upload/Form/Nya...orangBE2007.pdf
BE 2007
Latest submission date: 30th Apr 2008

http://www.hasil.org.my/cP/upload/Form/Nyata/BorangB2007.pdf
B 2007
Latest submission date: 30th Jun 2008

smile.gif


This post has been edited by cute_boboi: Mar 7 2008, 12:02 PM
cute_boboi
post Mar 7 2008, 07:19 PM

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QUOTE(livingmonolith @ Mar 7 2008, 02:27 PM)
Ok, thanks for the info, really helped me a lot.

Regarding the insurance,

I received a letter from my insurance company on my premium amount, as below:

1) Life = RM1,331.60
2) Medical = RM455.90
3) Disability = RM42.50
Total = RM1,830.00

So in this case do I put RM1,331 (1) in D12 and RM498 (2 & 3) in D13, or RM1,374 (1 & 3) in D12 and RM455 (2) in D13?

Do we need to attach the insurance company's letter together with BE form when submitting?

Thanks again...
*
(1 + 3) in D12
(2) in D13

Why ? Life and disability = under "insurans nyawa", i.e. covers your life

Correct me if I'm wrong.

Nowadays, just submit BE form only. But keep all the proper receipts/calculation/etc attached and file properly yourself for at least 7 years to be on the safe side.

cute_boboi
post Mar 24 2008, 05:44 PM

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QUOTE(rollinpark @ Mar 12 2008, 11:25 PM)
Hi,
For receipt from hospital, to claim tax under perubatan ibu bapa the receipt is written the parent's name which is the patient. Can it be claimed in this manner? Anyone has any experience on this. Thanks.
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Yes, you can claim perubatan ibu bapa, as long as the receipt has either one of your parents name. However, for GP/clinic receipts, I'm not sure. But should be able to claim it, but this can easily lead to fraud as you know what our local clinics can do...

Computer = RM3000, once every 3 yrs.

cute_boboi
post Apr 9 2008, 06:20 PM

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QUOTE(amyho3 @ Apr 9 2008, 03:12 PM)
Dear all,

This is my first time filling up BE-Form. Wanna check with you all whether can I claim a deduction on personal computer if the receipt is not under my name?

Hope can get soonest reply.

Thanks!
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The answer is NO. If you get caught/audited, you can be fined for false declaration or evading tax.

My opinion is not worth it to take that risk.

cute_boboi
post Mar 27 2009, 02:42 PM

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QUOTE(truth_seeker_09 @ Mar 19 2009, 02:08 PM)
about the sports equipment deduction. Can i know what can equipment does it refer? If i buy sport shoes, badminton racket/shuttle. Does this consider?
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Refer post #87 here .

cute_boboi
post Mar 31 2009, 07:57 PM

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patricktoh,

laugh.gif Now you know earning 10k/mth gross, but actually 7k+ net only doh.gif (after PCB and EPF)
cute_boboi
post Apr 2 2009, 12:25 PM

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QUOTE(snowcrash @ Apr 1 2009, 10:34 PM)
How does donation to charity work in Msia? If I donate 1K,  does it mean I don't have to pay 1K worth of taxes? If not, how much is excluded per K of donation?
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I think maximum donation allow to deduct (not rebate) is RM6k/year only.


Added on April 2, 2009, 12:26 pm
QUOTE(patricktoh @ Apr 2 2009, 06:40 AM)
Unhealthy scene in M'sia is that we have about 10 millions empoyees but only 1.1 million (11%) of them "qualified" to pay income tax!!!

My suggestion is reduce tax bracket by 5% then introduce 5% goods sales tax (GST). So that less people including foreign workers could evade tax.
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GST is good. It is fair to everyone. You spend/buy, you pay. I thought it was supposed to implement in MY in 2008 ??


This post has been edited by cute_boboi: Apr 2 2009, 12:26 PM
cute_boboi
post Apr 2 2009, 03:09 PM

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QUOTE(cherroy @ Apr 2 2009, 01:00 PM)
GST is good if you look at this side.

But if GST is implemented, I can guarantee inflation will be skyrocketing, which in the end of the day, it is the poor one suffer the most.

At current structure, lower income group doesn't pay the tax and rich one pay more. But if GST is implemented and reduce the personal income tax, it becomes poor and rich one also need to pay tax (even though only you buy more then pay more, but poor one origin doesn't need to pay, has to pay now).

The GST implementation has been suspended indefinitely until gov decide later, primary reason, it will cause a shock inflation effect as mentioned.
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Poor ? I see those low cost house/flat... mostly has astro and drive non-local Proton/Perodua cars hmm.gif


cute_boboi
post Apr 16 2009, 10:08 AM

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QUOTE(ronnie @ Apr 15 2009, 10:42 PM)
Sports equipment is the newest item which you can claim as tax relief for YA2008.

Racquet, Shuttlecocks, Golf ball, ping-pong ball, ..... are claimable.
Basically without that item the sport will not happen.

Sport Shoes, Sports Attire, Swimsuits cannot claim sad.gif
Why it cannot be claim ?
- You can run bare foot
- You can swim naked whistling.gif
*
How about the cost to re-string racquet like badminton, squash, tennis, etc. ? hmm.gif
cute_boboi
post Apr 24 2009, 03:21 PM

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QUOTE
I bought a comprehensive insurance policy (life + medical + investment) and the insurer is unable to split the premium payment into life insurance and medical insurance. Can I treat this totally as a medical premium as I have already disclosed RM6,000 for my life insurance premium and EPF deduction?

In the event that the amount cannot be segregated, the amount is to be disclosed either as life or medical insurance premiums based on the description stated in the insurance premium receipt.
From ACCA

Part 1: Easy guide to tax filing

Part 2: More tips
cute_boboi
post Apr 28 2009, 03:17 PM

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Calculating tax is not just basic salary x 12.
Must include other income like 13/14 mth bonus, year end bonus, special bonus, incentives, KPI, allowance, etc.
Refer back your payslip and total it up. If not tally, please ask the finance dept to clarify.

cute_boboi
post Apr 30 2009, 01:27 PM

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I think golf sets are included. Same equipments included such as racquets (badminton, squash), all types of balls brows.gif (golf, badminton, squash, ping pong, basketball, guli/marbles?)

Specifically not included are sports-clothings and sports shoes. So, golf shoes can or not ?

cute_boboi
post May 5 2009, 04:44 PM

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If gym can claim, I also want to claim health-spa tongue.gif Health -> Sport also whistling.gif

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