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    Income Tax Planning

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    Fatihaaroslan
    The document discusses various aspects of income tax in Malaysia including: 1) Types of income that are taxable including employment income, business income, dividends, interest, rents, and more. 2) Record keeping requirements for taxpayers including keeping documents like pay slips, receipts, and certificates for 7 years. 3) Key aspects of the self-assessment system where taxpayers pay estimated taxes throughout the year and file a return to self-assess their taxes owed.

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    Income Tax Planning

    Uploaded by

    Fatihaaroslan
    23 views4 pages
    The document discusses various aspects of income tax in Malaysia including: 1) Types of income that are taxable including employment income, business income, dividends, interest, rents, and more. 2) Record keeping requirements for taxpayers including keeping documents like pay slips, receipts, and certificates for 7 years. 3) Key aspects of the self-assessment system where taxpayers pay estimated taxes throughout the year and file a return to self-assess their taxes owed.

    Original Title

    INCOME TAX PLANNING

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    The document discusses various aspects of income tax in Malaysia including: 1) Types of income that are taxable including employment income, business income, dividends, interest, rents, and more. 2) Record keeping requirements for taxpayers including keeping documents like pay slips, receipts, and certificates for 7 years. 3) Key aspects of the self-assessment system where taxpayers pay estimated taxes throughout the year and file a return to self-assess their taxes owed.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    23 views4 pages

    Income Tax Planning

    Uploaded by

    Fatihaaroslan
    The document discusses various aspects of income tax in Malaysia including: 1) Types of income that are taxable including employment income, business income, dividends, interest, rents, and more. 2) Record keeping requirements for taxpayers including keeping documents like pay slips, receipts, and certificates for 7 years. 3) Key aspects of the self-assessment system where taxpayers pay estimated taxes throughout the year and file a return to self-assess their taxes owed.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    of 4

    Type of Income

    In general, a taxpayer is required to pay tax on all kind of earnings, including incomes from:

    Business or Profession
    Employment
    Dividends
    Interest
    Discounts
    Rent
    Royalties
    Premiums
    Pensions
    Annuities
    Others

    Record Keeping

    Taxpayer is required to keep the following documents for 7 years:

    EA/EC Form

    Original dividend vouchers

    Insurance premium receipts

    Books purchase receipts

    Medical receipts

    Donation receipts

    Zakat receipts

    Children`s birth certificates

    Marriage certificate

    Other supporting documents

    Working sheets (if any)

    The calculation of the 7 year period begins from the end of the year in which the ITRF
    (income tax return form) is filed.

    Self Assessment System (SAS)

    Tax administration under SAS is based on the concept Pay, Self Assess and File

    Pay : Monthly salary deductions are made for individuals having employment income, or
    through instalments for individuals having business income.

    Self Assess : Taxpayers compute their own taxes.


    Tax Chargeability
    .
    Am I taxable?

    An individual who earns an annual employment income of RM25,501 (after EPF deduction)
    has to register a tax file.

    With effect year 2010 an individual who earns an annual employment income of RM26,501
    (after EPF deduction) has to register a tax file.

    With effect year 2013 an individual who earns an annual employment income of RM30,667
    (after EPF deduction) has to register a tax file.

    Nevertheless, with effect year 2015 an individual who earns an annual employment income
    of RM34,000 (after EPF deduction) has to register a tax file.

    If the employee is eligible for STD(schedular tax deduction) deduction, he is advised to


    register an income tax file before STD is implemented.

    What should I do if my income is taxable?

    Application to register an income tax reference number can be made at the nearest IRBM
    branch.

    Documents Required For Registration

    A copy of the latest Salary Statement (EA/EC Form) or latest Salary Slip
    A copy of Identification card (IC) / police IC / army IC / international passport
    A copy of marriage certificate (if applicable)
    You can also register an Income Tax reference number via e-Daftar

    Assessment Year 2018-2019

    Chargeable Income Calculations (RM) Rate % Tax(RM)

    0 - 5,000 On the First 5,000  0 0

    On the First 5,000  0


    5,001 - 20,000 Next 15,000  1  150

    On the First 20,000 150


    20,001 - 35,000 Next 15,000  3 450

    On the First 35,000  600


    35,001 - 50,000 Next 15,000  8 1,200

    On the First 50,000  1,800


    50,001 - 70,000 Next 20,000  14 2,800

    On the First 70,000  4,600


    70,001 - 100,000 Next 30,000  21 6,300

    On the First 100,000  10,900


    100,001 - 250,000 Next 150,000 24 36,000

    On the First 250,000  46,900


    250,001 - 400,000  Next 150,000  24.5 36,750

    On the First 400,000  83,650


    400,001 - 600,000  Next 200,000  25 50,000 

    On the First 600,000  133,650


    600,001 - 1,000,000  Next 400,000  26 104,00

    On the First 1,000,000  237,650


    Exceeding 1,000,000 Next ringgit 28 ..........

    Tax Rebate
    . 
    Income Tax Rebates For Resident Individual With Chargeable Income Less Than RM35,000

    Year Of Year Of
    Assessment Assessment
    2001 - 2008 2009
    No. Tax Rebate  Onwards 

    (RM)  (RM)

    a Separate Assessment - -
    Wife 350 400
    Husband 350 400

    b Combined Assessment - -
    Wife 350 400
    Husband 350 400

    Total 700 800

    b Assessment Where Husband Or Wife Does Not - -


    Has Any Total Income 350 400
    Wife 350 400
    Husband

    Total 700 800

    Other Tax Rebates

    No. Tax Rebate (RM)

    a Zakat/Fitrah Subject to the maximum of tax charged

    b Fees/Levy on Foreign Subject to the maximum of tax charged


    Workers ( deleted from year
    assessment 2011 )

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