Malaysian tax eFiling demystified
Yes, it’s that time of the year where you have to dig out all the documents and submit your income tax. If you are still single and filling in as a individual then you won’t have to worry too much, as most of the information you’ll need is on the EA form. So let’s get some of the terms and lingo explained.
What is tax ?
Tax is term as a fee charged (“levied”) by a government on a product, income, or activity. If tax is levied directly on personal or corporate income, then it is a direct tax.
All individuals are liable to pay tax on income accrued in, derived from or remitted to Malaysia. Sources of income which can be taxed includes gains and profits from trade, profession and business, salaries, remunerations, gains and profits from an employment, dividends, interests or discounts, rents, royalties or premiums, pensions, annuities or other periodic payments and other gains or profits of an income nature not mentioned above.
Taxable income is arrived at after adjusting for expenses incurred wholly and exclusively in the production of the income.
The rate of tax depends on the resident status of the individual which is determined by the duration of his stay in the country (as stipulated under Section 7 in the Income Tax Act 1967). A resident individual is taxed on his chargeable income at graduated rates from 2% to 30% after the deduction of tax relief.
Are you a taxable resident ?
An individual is considered as tax resident if he/she meets any of the following conditions,
-in Malaysia for at least 182 days in a calendar year;
-in Malaysia for a period of less than 182 days during tghe year but that period is linked to a period of physical presence of 182 or more “consecutive” days in the following or preceding year. Temporary absence from Malaysia for certain specified reasons during the shorter or longer period are counted as part of the consecutive days, provided that the individual is in Malaysia before and after each temporary absence;
-in Malaysia for 90 days or more during the year and, in any 3 of the 4 immediately preceding years, he/she was in Malaysia for at least 90 days or was resident in Malaysia;
-resident for the year immediately following that year and for each of the 3 immediately preceding years.
Rate of tax
Rate of tax 2010
Field of interest when filling in e-BE:
Penggajian (Employment) = Look at the EA form and look for “Jumlah”
Derma dan Hadiah = Any donation to charity organizations, make sure you have the receipt.
Ansuran / PCB yang telah dibayar untuk pendapatan tahun 2010 – SENDIRI dan SUAMI / ISTERI bagi taksiran bersama = Look at the EA form and look for “Potongan Cukai Berjadual (PCB) Tahun Semasa yang dibayar kepada LHDNM”
Pembelian buku/majalah/jurnal/penerbitan (selain surat khabar atau bahan bacaan terlarang) untuk diri sendiri, suami / isteri
atau anak = Any purchases of books, journals, magazines, make sure you have the receipt.
Pembelian komputer peribadi untuk individu = Relief for purchase of personal computer (Once every 3 years)
Pembelian peralatan sukan untuk aktiviti sukan mengikut Akta Pembangunan Sukan 1997 = Gym membership and personal training session costs do not qualify for tax relief since they are not sports equipment!
Yuran langganan perkhidmatan internet jalur lebar = Subscription to broadband, but MUST be register under your name
Faedah pinjaman perumahan = The sale and purchase agreement has been executed within 10/03/09 – 31/12/10
Insurans nyawa dan KWSP = Refer to the yearly statement from the insurance company as they have different percentage for life and medical
Insurans pendidikan dan perubatan = Refer to the yearly statement from the insurance company as they have different percentage for life and medical
Taxpayer is required to keep the following documents for 7 years:
1. EA/EC Form
2. Original dividend vouchers
3. Insurance premium receipts
4. Books purchase receipts
5. Medical receipts
6. Donation receipts
7. Zakat receipts
8. Children`s birth certificates
9. Marriage certificate
10. Other supporting documents
11. Working sheets (if any)
Failure to keep records
Any person who without reasonable excuse shall be guilty of an offence and shall, on conviction, be liable to a fine of not less than three hundred ringgit and not more than ten thousand ringgit or to imprisonment for a term not exceeding one year or to both.
eBE- Individuals without business source, the due date is on or before 30th April every year.
e-Filing [LINK]
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About
I'm Loy and welcome to my blog. I'm an IT engineer which spend a lot time tinkering with technology, while away from work I enjoy capturing the moments and enjoying God's greatest gift - Appetite. Hope you find the information here useful or entertaining. Feel free to feedback about my blogs or give a shoutout. -
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