Taxable income for individuals, businesses

By LEE VOON SIONG

This is the second article in a series of four weekly articles to assist taxpayers in complying with their tax obligations.

ALL revenue income derived from a source within Malaysia are subject to tax unless specifically exempted. Foreign source income remitted into Malaysia are exempted from tax.

Employment income which must be reported in the employee's tax return include salary, wages, commission, bonus, gratuity, perquisite or allowances.
The classes of income that are subject to tax for an individual include the following:

Employment income

Employment income which must be reported in the employee's tax return includes the following:

# Salary, wages, commission, bonus, gratuity, perquisite or allowances (perquisite would include the following payments made by the employer on behalf of the employee: utility bills, income tax, children's education expenses, individual club membership, employee share option scheme and loan interest);

# Benefits-in-kind such as car, driver, corporate club membership, mobile phone, household furniture and appliances; and

# Value of living accommodation, servant and gardener.

Certain expenses are allowable against the employment income such as professional membership fees, and travelling and entertainment expenses. The onus is on the employee to prove to the Internal Revenue Board that the expenses were incurred for business purposes.

Employment income which is exempted from tax and need not be reported includes:

# Leave passages provided to the employee, his spouse and children up to a maximum of RM3,000 for one overseas trip and up to a maximum of three local trips per year;

# Retirement gratuities (on meeting certain conditions);

# Employees Provident Fund withdrawals; and

# Dental or medical treatment or child care benefit.

Dividend income

The tax treatment will be as follows:

Normal dividends: Dividends are received net of tax by individual shareholders. The gross amount of the dividend is declared in the tax return.

A Section 110 tax credit (27%) can be claimed against the income tax suffered on the dividend income. If a resident individual's marginal tax rate is lower than 27%, the excess tax credit can either be refunded or used to set off against the tax payable on other sources of income.

Tax exempt and foreign dividends: These dividends are exempted from income tax and need not be declared in the tax return.

Expenses which are deductible against the dividend income are:

# Commission or brokerage fee;

# Stamp duty on transfer of shares; and

# Interest on loan obtained to purchase the shares.

Interest income

Interest income received is subject to income tax and is required to be reported in the tax return. However, interest paid by a financial institution in Malaysia to a resident individual is not required to be reported in the individual's tax return as the withholding tax of 5% is treated as a final tax.

Rental income

Rental income is required to be reported in the tax return and is normally treated as an investment income.

Expenses which are allowable against the rental income are:

# Quit rent and assessment;

# Insurance premium on the property;

# Replacement costs on assets used in the property;

# Repairs and maintenance;

# Interest on loan obtained to purchase the property;

# Commission and agency fee;

# Advertisement for letting out of property.

Expenses incurred on advertisement, commission and legal fees for the first tenancy agreement are not allowed as these expenses are capital in nature.

Rental losses are not allowed to be utilised to set-off against other sources of income.

Business income

The taxable income of a business is determined after deduction of the following:

# All expenses and outgoings incurred wholly and exclusively in the production of the business income;

# Capital allowances; and

# Any unabsorbed business losses brought forward.

Expenses which are wholly and exclusively incurred in the production of the business income would include:

# Interest on loan used in the business;

# Rental in respect of any land or building occupied;

# Employee costs;

# Specific provision for doubtful debts/bad debts; and

# Repairs and maintenance.

Depreciation on fixed assets is not deductible.

However, capital allowances can be claimed provided the fixed assets are owned by the taxpayer and are in use for the business at the end of the basis period.

http://biz.thestar.com.my/news/story.asp?f...88&sec=business


Preparing personal income tax returns

Preparing personal income tax returns

By LEE VOON SIONG

WHO is required to submit a tax return? A person who is chargeable to tax is required to submit an income tax return to the Inland Revenue Board (IRB).

Chargeability to tax would depend on the amount of income reported and the reliefs and deductions claimed. For example, an employee who is single and earning RM27,000 annually would be chargeable to tax if his claim for relief is limited to self relief and Employees Provident Fund.

An individual who is filing his tax return for the first time will have to register a tax file with the IRB. He can do this by going to the nearest IRB office and bringing along his identity card/passport, Form EA and marriage certificate, if married.

How will you be taxed?

An individual is taxed on his chargeable income after deduction of personal reliefs. He will be taxed at scale rates starting from 0% (on the first RM2,500) to a maximum of 28% (on chargeable income exceeding RM250,000).

A non-resident individual will be taxed at a flat rate of 28% on his gross income without any relief.

Types of tax returns

Any taxpayer who has not been issued a tax return by March 31 must request for one from the IRB by April 14.

The income tax form must be completed and submitted to the IRB's Processing Unit in Pandan Indah, Kuala Lumpur. The types of income tax forms issued by the IRB are shown in the table.

Taxpayers who have previously submitted their tax returns via e-filing will no longer be issued tax returns.

Taxpayers who have received their tax returns but wish to submit their tax returns via e-filing can do so by logging in to the IRB's website (https://e.hasil.org.my) using the pin number printed on their income tax returns. An acknowledgment will be issued online automatically upon submission of the return.

For taxpayers who are filing their tax returns for the first time and wish to use the e-filing system, they can obtain their pin number as follows:

# Visit the nearest IRB office, or

# Call the IRB office and fax over a copy of their IC with their handphone number. The pin number will be sent via SMS.

Any person who fails to submit a return or notify the director general of his chargeability to tax will, on conviction, be liable to a fine of between RM200 and RM2,000 or imprisonment of up to six months or both.

How to settle tax liability?

Employees are subject to schedular tax deduction (STD) on their monthly remuneration based on an STD table. The STD will have to be remitted by the employer to the IRB by the 10th of the following month.

For taxpayers who received income other than employment income, the tax liability on that income will have to be settled by six bimonthly instalment payments starting from March the following year.

The IRB will issue a Notice of Instalment Payment (CP 500) stating the amount, due date and number of instalments.

Each instalment must be remitted to the IRB within 30 days from the due date. If the taxpayer is not agreeable to the instalment scheme, he can request for a variation by June 30.

Any balance of tax payable (i.e, total tax payable less STD and instalment payments) must be remitted to the IRB by April 30 (non-business cases) or June 30 (business cases).

Tax payments can be made:

# At the IRB payment counter in Jalan Duta, KL;

# By attaching the cheque to the tax return submitted; or

# Via selected commercial banks appointed by the IRB (the bank in slip must be retained as evidence of payment).

Penalties of up to 15% will be imposed for late payment.

http://biz.thestar.com.my/news/story.asp?f...26&sec=business



This post has been edited by jack2008: Mar 17 2008, 01:12 PM

I have several questions regarding this:

1) I've been getting conflicting answers on the Internet about this particular issue, can people double confirm it to be true? I am currently receiving a combination of US cheques and wire transfers remitted to me from the US via ad sales. Are these foreign-sourced income taxable?

2) Also, I am splitting the money half with my other partner in the sales - how exactly do I go about reporting it to the IRB?

1) as long as u can proved it's foreign source income, then it's income exempted when u remit it back to Msia. pls trust the article which publish in the newspaper.

2) partnership account is what u need to do.

Income receive outside scope of Malaysia is non taxable...
u can check under paragraph 21 schedule 6

2, partnership account?
i think appropriation accont better..
^^

This post has been edited by kuntaker: Mar 18 2008, 03:02 PM

would you say export business are all now exempted from income tax?

is it for individual only or it applies for business too?

Business 1 different le..if business 1 is consider under business income

for individual , Income derived from outside scope of Malaysia is non taxable,
example u work at Singapore but u bring back to Malaysia


i mean money come from outside lo ..

coooool....

Ah, thanks for the replies! That seemed to clear up doubts about the exemption.

I don't understand though what you guys meant by partnership account or appropriation account. Are these accounts in the banks or.. are they related to the IRB?

erm the partnership account or appropriation account is made by ur own partnership business..
u can see how much profit u gain from ur investment to the partnership ,
becoz partnership is non taxable thats y the income receive by individual will be taxable..^^

But my ad sales currently isn't a business of any kind. Should I start setting up a partnership first before declaring my income?

Refer to the above statement, if a person's only income is from investment from oversea, how should the person provide the prove of income to financial institution when come to loan application?

Any sifu can enlighten me

Thank you

This post has been edited by maxximus: Mar 20 2008, 02:08 AM

but u should know that partnership is not a great thing either ...
if ppl sue u, u lose until really pocket 0!
wat we call as unlimited liability...
this is a risky part..
thats y a lot of ppl willing to open sdn.bhd as there are limited liability..
or in other word , u lose only ur investment money to the company..

---

Added on March 20, 2008, 5:44 amactually , u no nid to prove de...
if im not wrong , when u do transaction into ur account from overseas , bank negara will know wan...
u think bank negara do ntg?
they hv all ur transaction under ur name wan le..
^^

why wanna take loan?

This post has been edited by kuntaker: Mar 20 2008, 05:44 AM

Sorry, I've 1 question regarding this dividend taxation. I've invested in mutual funds and they declared distribution during 2007. I chose to re-invest them and I received the tax voucher. There are several columns in the voucher there, which column is my taxed amount, and which column I should add into my form when filing my borang? THanksss.

p/s: I'd like to claim back my portion of taxed amount, as my tax bracket is small compare to 27/8% ..

This post has been edited by lifeless_creature: Mar 20 2008, 05:12 PM

If i'm working as a permanent staff in company A, yet i'm also a partner in company B, which tax form should i fill in?

And in terms of partnership, all profits gain from it will not be taxable? How about profit sharing? Do i add those figure into personal income tax?

profit sharing that u earn is taxable..

i think u check lhdn website n see on which form to fill..
^^

This slides I got might be interesting to read for:

P/S: I didn't prepare it. I received it via forwarded email.

In simple term, all profit and income are taxable, unless stated otherwise like capital appreciation is tax exmpted, FD interest income, bond interest payment etc.

thanks for the info. But normally when apply loan, bank will ask for your 3 months salary slips and EA....... when I told them I no longer working with my previous employer and also not working with any company so can't give them the salary slips, and also my investment is in oversea a/c and is tax exempted, and what I have is only my monthly a/c statement for my investment a/c, which is oversea, and they said will come back to me.... till now no news..... not sure why?

btw, I want to buy property mah

If it isn't a conventional business, then why need to declare? Pocket everything la!
Otherwise, if you think the Fed government is short of cash, go register a sole proprietary business and start declaring your income earned from ad sales.

I believe in B form, not BE.
You can state your other source of income (from company A)

When you have your own business, your profit share adds up into your income.
BUT....don't declare all your profits just yet.

You need to add in company expenses first:
1) Meal allowances (yes, even bfast, lunch, dinner, supper. keep all receipts. Even eating out with parents also. You can say its for "dinner with client")

2) Entertainment fees (karaoke, movies, disco, pubs, for "client")

3) Car allowances (petrol, parking, servicing. Car used for your business)

4) Insurance (for yourself, and business assets i.e. notebooks, servers etc)

5) Misc (miscellaneous charges incurred for your business)

Then what is remained after deducting from all the above expenses, will be your taxable income.

This way you enjoy spending first, then taxed on your remainder. Employees like myself gets my pay taxed first before i can use the remainder to spend. Thats the benefit of owning a business.

However, if your taxable business income is low, then it doesn't reflect well on your business, thus difficult to secure a business loan.

They have no idea how to valuate your income, which isn't consistent.

The best maybe is to create a sole prop business focusing on foreign investment and declare your income from the returns of such investments. At least when you have proper documented evidences, its easier for them to valuate your risk level.

Thanks for your info. It's much clearer now...

Hi experts out there, if you own a website that you charge ppl when they advertise at your website then this kind of income taxable mar? Let's said for example website like cari or lowyat. Any help? 10s.

All income are taxable unless stated otherwise. But if your total annual income doesn't exceed the taxable income then no tax, but still it is treated as your taxable income, just fall short of tax requirement.

ic, how much is "doesn't exceed the taxable income"?

what's the tax different if the web owned by me OR owned by a company i registered(and i pay portion of profit to patner)? 10s Cherroy, 10s.

Normal sole proprietorship or partnership company, all income/profit are belonged to individual one.

But for Sdn. Bhd case then it is different, sdn. bhd. income is company income, not related to individual. There is the distinct difference.

So if the website owned by you, all the profit made under your sole-proprietorship company or partnership company are classified as your income.

But for a sdn bhd one, all profit made is charged under corporate tax level and profit belonged to the company not individual. Unless company declare it as dividend to pay you as a shareholders then only you will be getting the money made.

I am not profession in tax or company tax system, please bare with me if anything wrong about the information.

This post has been edited by cherroy: Mar 27 2008, 04:47 PM

if after all calculated , still get nil at the end then no nid to pay tax lo

How to compute your income tax

FOR illustration purpose, appended below are the computations showing the tax position of a taxpayer under two scenarios, i.e, under separate and joint assessment:

1. For business and rental income, these income should be reported net of expenses wholly and exclusively incurred in the production of the said income.
Lee Voon Siong

2. If entertainment expenses are incurred with the company's business, a claim for deduction can be made.

However, details such as persons entertained, purpose, matters discussed and the receipts must be available to support the claim when requested.

The amount deductible is restricted to the amount of entertainment allowance received.

3. Taxable dividend is normally received by taxpayer net of tax but for tax reporting, gross dividend must be declared.

The original dividend voucher must be retained to support the tax credit claim. If a loan is used to purchase the shares, the loan interest can be deducted against the gross dividend income.

4. Only donations to approved institutions are allowable. The approval is normally indicated on the donation receipts, which must be kept for verification.

5. For EPF and life insurance claim, a husband and wife can claim up to a maximum of RM6,000 each if they are separately assessed.

Under a joint assessment, the maximum allowed is RM6,000.

6. If a husband and wife are separately assessed, they are allowed to claim up to a maximum of RM5,000 each on medical expenses incurred on their parents.

The maximum amount claimable is restricted to RM5,000 under a joint assessment.

7. A tax rebate is given if the taxpayer's chargeable income does not exceed RM35,000.

If the tax rebate exceeds the actual tax payable, the amount of tax rebate deductible is restricted to the actual tax charged.

8. From the above tax computations, it can be noted that the total tax payable is substantially lower under a separate assessment.

However, depending on their circumstances, married couples are advised to do their computations before deciding whether it is more beneficial to be separately or jointly assessed.

In view of the deadline April 30 for non-business cases and June 30 for business cases, taxpayers are advised to submit their tax returns early to avoid the last minute rush.

Penalties will be imposed for late submission of tax returns.

http://biz.thestar.com.my/news/story.asp?f...76&sec=business

this one is today Star paper 1 right?
saw at the bsn section there...
by LEE VOON SIONG

Any idea if there are tax enquiry counters in shopping malls yet?

I've seen one in Summit USJ ground floor, last sunday. Otherwise, just go to LHDN office in Kelana Jaya, Menara LG tower 1

This post has been edited by happy4ever: Apr 1 2008, 06:05 PM

Is income derived from foreign investment taxable?

Bro if I am not mistaken, refer to 1st post it is not taxable.

Ah, I see. Thanks, that helps a lot!

foreign income received from outside scope of Malaysia is non taxable le..
like u earn money in SG then bring to johor..
tak boleh kena tax under Malaysia..
but mayb tax under Sg

Does that means irrespective source of income?

suppose though..
but forex is dif thing..

if forex.. how about tax??.. different method or no tax?

Why is it different? It is also investment ma.

forex dif le..
i ask tax agent bfore , they say taxable wor..

Like that no meaning la. I want to make forex my main source of income.
How to avoid paying tax if like that?

I work as engineer in Malaysia. I'm Malaysian but my company is in UK and have no presence in Malaysia. No EPF or SOCSO. Do i need to pay tax?

how much the tax from forex...??

I've submitted a question under separate post related to tax on MLM income but didn't get much useful reply. Now I've seen this tread with all the tax experts and hope someone will help me.

Could someone enlighten me about tax submission for income derived from direct selling. Is it under business or individual? What are the deductibles? Thanks

I am not tax expert nor profession in it, but I think it should under individual taxable income.

Only you form a company to do the direct selling then it is under company. If it is individual then it belonged to individual. As simple as that.

Thanks for the quick reply. If under individual, could I deduct for fuel, makan, etc from the income derived since MLM do a lot of traveling, etc

can MLM categorised same level as insurance agent ? if yes then can waive those petrol etc

No, if it is under individual income, then no, as you have personal tax relief already.
But if you form company to do it then yes, gross profit (after deducted expenses) is taxable.

Here's a reply I got from LHDN this year (2008), but it did not mention on forex.

How about part-time incomes that are received in cheques? A portion of the incomes are for accommodation, meal allowance, and transportation apart from the main fee. Are they taxable since the allowances are received in a lump sum together?

Capital gain is tax exempted. So if you gain on forex by investment then it is considered capital gain.


All income are considered taxable unless stated otherwise or one can prove the allowances are essential to carry out your job then only can be waived.

No, unless you register a sole prop company.

---

Added on April 4, 2008, 3:53 pmThose are your income.

This post has been edited by 4Rings: Apr 4 2008, 03:53 PM

so if a person wiretransfer 1 million usd profit from forex trading into malaysia account bank.. he will not be tax for that??.. wow... seriously??i thought tax ppl want a slice of pie of it also...

This post has been edited by hitokiri_maniac: Apr 4 2008, 04:52 PM

Inland revenue board will query why the person wire-transfer you in the first place. Not as simple as that.

For capital gain, you need to keep properly your transaction documentation, slips, contract noted or any other documentation proof that show you are actually gain money through capital appreciation.

oo ic.. juz query only... i thought they will hold ur moneyy until they satisfy with ur answerrr...

may i ask, if company provide free parking lot for u to come to work by renting a parking lot from a hotel, should the company put the amount spent (may be 1200/yr) in employee EA form as part of their income n thus employee hav to pay tax for tht 1200/yr amount?

This fall into the category of Benefit in Kind which is taxable also. Even company provides a driver or car for you, it is considered as Benefit in Kind also.

Correct. If your company provides you:
1) Company house
2) Company car + Ah-mad
3) Gardener
4) Maids
5) covered handphone bills
6) streamyx at home
7) covered estimated tax
etc.

or income from house rental... all these need to declare in section C (B/BE form)

But, you know i know, this is M'sia. Tidak apa. M'sia Boleh... as long as you don't get audited by LHDN

For joint assessment for husband with non-working wife - need to submit only one or separate BE form?

In this case, the wife is not working but has an income tax file because she has previously worked before deciding to be a full time mother. So, need to fill only one BE form, or separate BE form?

This post has been edited by keith6668: Apr 10 2008, 12:55 AM

This is a reply to this board http://forum.lowyat.net/topic/653505/+40 since I was kinda scared looking at some of the replies here.
I am a tax professional and I need to stress that you guys should seek advice from a reputable source before making any decisions.

Here are some of the issues raised on this page alone.
1. Tax implication on Forex Income.
Capital Gains is exempted but don't be quick to classify just yet what is capital and what is revenue. Even an extreme example of capital gains such as a sale property could very easily be classified as revenue income if it meets certain simple criteria like the frequency of the sale and your intent prior to the purchase. Yes! Laws can be tricky

2. MLM , Insurance or other commission based income
The moment you are running such an operation, it immediately implies you are running a business. Whether you are registered sole-proprietor or not does not matter. You can claim pretty much any expense you can justifiably argue that that expense was essential to your 'business' and spending that $$ does bring about more revenue or without it means less revenue.

There were also other questions like Joint assessment, benefit in kind, etc I wont be able cover all of them here but I suggest if its individual income, download your copy of www.taxsaya.com It's FREE! use to to compute your taxes and plan some savings.

Feel free to discuss any taxes and finance issue on my blog at taxsingam.blogspot.com

This post has been edited by TaxSingam: Apr 10 2008, 09:05 AM

if ur wife not working , u can ask ur wife to elect for joint assesment with u..
BE form

Hi there,

can someone clear me that do employee share option scheme (ESOS) taxable because it already stated in my EA form.

if taxable, can i pay the tax maybe like an installment for 3 years coz the amount is quite high. let say the tax is 10k, can i pay 3k first for this year and the others for the following years. Can i apply for that?

thank you.

IRB normally gives us 6 installments in 6 months. This is what I am paying for the past few years.

I am sure that since the tax season is now here, everybody is frantically looking for their calculator and notepad trying to make sense of the BE Form.

Personally, language is an issue for me as some things don't translate well in Malay from English. Secondly, there is the issue of doubt whether I have done all I can to ensure I am not paying extra tax.

It's only days away to your last day for filing on 30th April 2008 , so don't miss your chance.

Download your free copy from

Regards,

TaxSingam

i guess you are taxable as you are working in Malaysia and also earning in malaysia.

One question..

i owned a company for 1 year ++ and it is a trading..
and it is only a part time business... business volume not big... so do i need to register under the LHDN and taxable?
please help..


This post has been edited by synex: Apr 16 2008, 09:32 AM

How do receive your payment (from and to) ?
How is the company operating here ?

i am using the so call free taxing system. And, i found out that, it is suck~~~

The variables was not reset as per what we key in. i strongly recommend you to call your develops to fix those bugs.

And please, use the word "BETA" as your system is suck Or, give us well-tested program however it is free, please.

and one more thing, hire some designer to redesign the interface. It is not good enough, like those pirated software only. Use professional color like grey/black/white if you do not have creative idea.

This post has been edited by g00glesYYl: Apr 16 2008, 09:01 PM

just wondering what kind of entertainment expenses can be tax exempted? If lets say i book a badminton court and i have the receipt can it be tax exempted?

Quoted from the 1st post:
"Certain expenses are allowable against the employment income such as professional membership fees, and travelling and entertainment expenses. The onus is on the employee to prove to the Internal Revenue Board that the expenses were incurred for business purposes. "

Quick e-refund by IRB

PETALING JAYA: Refunds by the Inland Revenue Board will automatically be banked into taxpayers' bank accounts under e-Refund.

IRB chief executive officer Datuk Hasmah Abdullah said that under e-Refund, those who use e-Filing to submit their tax returns, would be able to get their refunds within a month.

"We are now working on the specifications of the e-Refund software and looking at the security of this system so that it can work effectively in refunding the money.

"The new system will likely be implemented for 2008 returns," she told The Star.

Hasmah said this was among the reasons why IRB has been asking taxpayers to submit details of their bank account numbers in the tax returns.

A total of 874,814 taxpayers e-Filed their tax returns last year, compared with 186,343 in 2006.

Hasmah said that they were expecting more than a million taxpayers to e-File their returns this year, as e-Filing system had been made more user-friendly.

She said currently refund cheques are prepared and mailed to the taxpayer and the whole process may take five to six weeks, as the volume involved is large.

Taxpayers have expressed their unhappiness with the current refund system. Among the grouses were the delay in processing refunds, refund cheques in the mail getting lost and taxpayers' contribution not updated.

On the filing of the 2007 tax returns, Hasmah said most of the IRB branches nationwide would be operating from 8am to 10pm until the deadline on April 30.

"If there is a crowd, IRB will also extend its service time to even midnight," she added.

The e-Filing system, she said, was working well without any hitch.

She urged taxpayers to file their returns early and not wait till the very last minute.

For more information on e-Filing, visit www.hasil.org.my or call 1-300-88-3010.

URL: http://thestar.com.my/news/story.asp?file=...0996&sec=nation

My income for last year is RM28000.

Do i need to submit any tax form?

If thats your annual salary income then you will need to submit it as it's taxable. Only annual income below 20k is not taxable. Correct me if I'm wrong(I still very green in tax legal field). However if that income is inclusive your own business income, then it will be different story.

I submitted my wife's and mine Borang BE last month (March) by hand and today got 2 cheques from IRB

IRB personnel did asked me to do e-filling but i said no lah i want do old fashion way and them stamping received on my photostat copy. Looks like submitting earlier is better as we get our money back faster.

man, i only submitted the forms last week, guess it'll take a long time before i receive my refund.

too bad i dropped off my form before going to register my e-filing, i didn't know they have computers ready there for you to do your e-filing. i downloaded the form and filled them up, then took a day's leave just to go there and submit, i was in a rush to go outstation and thought dropping off my be form is the easiest way.

question
let say i just won 100k rm
im not married,just finished my studies,still stay with my parents
will that be considered taxable?if yes how many percent would it be from that 100k?
thanks

below 24000 per annum not required.

---

Added on April 18, 2008, 3:14 pmsounds efficient... which branch is that???

mine 2006 refund still din get yet...



This post has been edited by gunh: Apr 18 2008, 03:14 PM

Completed my e-filing yesterday and it is fast at LHDN office.

You said you've won rm100k, let's say from lottery. This is a winfall gain, it is not income hence not taxable.

I'm wondering on what's difference between:

Insurans nyawa dan KWSP (TERHAD 6,000)
Insurans pendidikan dan perubatan (TERHAD 3,000)

From my intepretation, it's going to be between LIFE insurance and MEDICAL insurance. If I'm having an investment-linked policy which includes a medial card, how? How about personal accident policy? Would it be able to be included in "tuntutan pelepasan"?

Thank you.

You're absolutely right, the distinction is life and medical insurance as both are different policy. However, alot of life insurance comes with investment linked plan which is stated by you, hence, only the premium on that portion is not allowed as a relief, only the life term portion is.

As for the medical insurance, you will have to purchase a medical insurance to enjoy that personal relief.

Personal accident is neither life nor medical so it does not qualify for a relief.

hi,

Thanks for the feedback, it would be helpful if you would let us know exactly what the problems are that you are facing.

Please let me know what sort of ideas you have and we can look at it for next year.

Regards
Trevor Keegan

We believe that we have done a pretty good job of delivering a FREE service to the community. If you have any issues with the software , please feel free to post them on the forum ( forum.taxsaya.com) and not resort to general statements which would not help the developers to iron out any issues that may persist.

As of the interface, the software was designed NOT to be intimidating with SERIOUS colours like black/white/grey. We want everyone to have a good experience with their tax. We have tried to make tax as fun, exciting and interactive as possible.

Again, we mean well to the public and if anyone wishes to highlight certain issues, please feel free to visit the forum at forum.taxsaya.com

This post has been edited by TaxSingam: Apr 20 2008, 08:34 PM

hhhmm... so in that case, if you're a sole proprietorship company, do you fill in borang B or borang BE (dengan punca pendapatan)?

Hi,

If you are Sole Proprietor then you will fill in the the Borang B (which is not due until the end of June).

Regards
Trevor Keegan
www.taxsaya.com
Malaysia's First FREE Multi-Lingual Tax Computation Software

tonight have to go LHDN to submit my form

Hi,

Why not try the e-Filing....then you do not have to go the LHDNM

Regards
Trevor Keegan
www.taxsaya.com
Malaysia's First FREE Multi-Lingual tax Computation Software

Regarding the efiling, do we need to submit the dividen voucher,ea form,insurance,accounts or any other documentation to them or no need?

how about the signature part, how do we sign on efiling ?

what programs or tools do we need? adobe reader,scanner to scan the document etc

You do not need to submit anything besides filling up the forms online. But you have to keep those related (like what you mentioned above) for 7 years from your submission.
i.e. if one fine day they decided to knock on your door, you'll need to provide those documents for their investigation.

Hi


If you have a refund case, then you are required to complete the HK-3 and take this along with the dividend vouchers to the IRB branch. If you are not getting a refund that you do not need to do this.

With regards to the other documents, these are things that you must keep. If you get yourself a copy of TAXSAYA, the paid version will identify the documents that you need to keep for Tax Audit purposes, and will prepare the necessary supporting documentation


This is done using the digital certificate, which replaces the manual filing. All you have to do is press the Tandatangan button on the last page of the e-Filing. Please also ensure that you print the e-Borang for your future reference.


If you are using e-Filing you just need a browser + your PIN Number.
I would suggest though that you download a FREE copy of TAXSAYA from www.taxsaya.com

Regards
Trevor Keegan
www.taxsaya.com
Malaysia's First FREE Multi-Lingual Tax Computation Software

Hey i wanna ask something.

There is a sudden dispute of income tax in the whole office due to our new Financial Manager. Most of the staff in the company, the company gives us company car and use. That includes petrol and other travelling claims.

Are these claims taxable ? and what about vehicle are they taxable as well. Cuz i've noticed that my EA form they included our vehicle and we have to pay tax for those as well ?

If those are taxable it's kind crap that we're getting nothing out of it but getting taxed in return ? Should it be fair if at least those claims taxable should entitle for EPF benifit as well ?



This post has been edited by MSA: Apr 29 2008, 02:51 PM

BENEFIT IN KIND

USE OF CAR
The use of a company car is deemed as a benefit in kind to you. Yes, unfortunately it is taxable and there is nothing much you can do about it. The alternative to this could be even more scarier. You could claim an allowance for the use if you own car. An allowance which is fixed and could be used to pay for the car itself. This FULL sum which is normally MUCH higher than your benefit in kind is taxable.

What you could do to avoid this is using a company car which is stored in the company's premise after working hours. In that instance, there is no PRIVATE use and thus the company would not be charging a Benefit in Kind on your EA Form.

Petrol & Traveling Claims
If they are CLAIMS ( ie. payments that are being reimbursed from actual receipts ), these claims are not taxable.
If your company pays you a fixed sum of allowance which you use to pay for your claims (receipts with you and not submitted to the office) then you could try to offset these amounts.
Please refer to the "traveling expense" under EXPENSE in TAXSAYA

This post has been edited by TaxSingam: Apr 29 2008, 04:14 PM

Good day,

The vehicle thing have caused everyone in my office so much controversy because in the past we put that taxable and it have been like that for 8 years All the sudden change of a new Finance Manager have caused quite some distress. But what about EPF. It's sorta weird that we have to tax our company car but we don't get EPF benefit

But anyway there's nothing much i can do about it cuz 2morrow is the last day

EPF law only covers wages and actual cash payments.

Sigh ... Next time i tell my boss ... I'll just put my car here when work finish