Q : What is minimum income I must earn before I become a taxable person?
A : Any person whose income from all sources exceeds RM2,100 per month (after EPF deduction) is liable to tax and has to register with the Inland Revenue Board.
Q : If I have an employment income as well as rental income which Income Tax Return should I file?
A : Rental Income is not considered a business source. The Tax Return Form to be submitted by an individual taxpayer is
Form BE – non business income eg employment income, rental income , interest income, dividend income
Form B – business income
The due dates for submission are: – Form BE – 30 April Form B – 30 June
Form BE – 30 April
Form B – 30 June
Q : What are my responsibilities as an employer?
A : Every employer shall, for each year, shall furnish to the Director General a return in the prescribed form (Form E) not later than 31 March in the year immediately following the first-mentioned year containing:
(a) the number of employees employed in the first-mentioned year;
(b) the number of employees subject to deductions under the Income Tax (Deduction From Remuneration) Rules 1994 [PU(A) 507/1994] for the first-mentioned year;
(c) the number of new employees employed in the first-mentioned year;
(d) the number of employees who have resigned in the first-mentioned year;
(e) the number of employees who have resigned and left Malaysia in the first-mentioned year; and
(f) such other particulars as may be required by the Director General.
In addition to the above, every employer shall, for each year, prepare and render to his employee a statement of remuneration of that employee (Form EA) on or before the last day of February in the year immediately following the first-mentioned year containing the following information:
(a) the relevant particulars of the employee;
(b) the full amount of the gross income falling within Section 13 paid, payable or provided by or on behalf of the employer to that employee in respect of the employment;
(c) pension, annuity or periodical payment falling under Section (4)(e);
(d) total deductions under the Income Tax (Deduction From Remuneration) Rules 1994 paid to the Director General in the first-mentioned year;
(e) the compulsory contributions made by the employees to the Pensions Fund or Employees’ Provident Fund, or any approved fund pursuant to Section 150;
(f) details relating to the payment of arrears and others for the years prior to the first-mentioned year;
(g) tax exempt allowances, perquisites, gifts and benefits for the first-mentioned year; and
(h) such other particulars as may be required by the Director General.
Q : What are various indirect taxes in Malaysia?
A : Indirect Taxes
The Royal Customs and Excise Department has the responsibility to administer the indirect taxes in Malaysia. The various types of indirect taxes are:
· Custom duties
· Excise duty
· Sales tax
· Service tax
Custom duties are levied on goods imported in and exported from Malaysia. Custom duty refers to any import duty, surcharge or cess imposed by or under the Countervailing and Anti-Dumping Duties Act and includes any royalty payable in lieu of an export duty under any written law, or a contract, lease or agreement to which the Federal Government has consented.
Excise Duty is a form of taxation levied on locally manufactured goods of intoxicating liquors, tobacco products and by-products, petroleum and conversion of organic or non-organic materials into new products.
Sales Tax in Malaysia is a single stage ad valorem tax, imposed on taxable goods manufactured by any person or company in Malaysia. Sales tax is a consumer tax.
Service Tax is charged and levied in respect of any taxable service provided by any taxable person or service except for exported taxable service which means service provided to a entity in a country other than Malaysia. The rate is 5%.