Due Date to Submit Income Tax Return Form

The due date for the submission of return form is as follows :

BE Form, for individuals without business source, the due date is on or before 30th April every year.

B Form, for individuals with business source, the due date is on or before 30th June every year.

M Form, for a non-resident individual without business source, the due date is on or before 30th April every year.

M Form, for a non-resident individual with business source, the due date is on or before 30th Jun every year.

P Form, for partnership, the due date is on or before 30th June every year.

CP500 Installment Scheme

If a taxpayer has income other than employment such as business, rental and royalties, he is required to make 6 bi-monthly installment payments, commencing from the month of March. The installment dates will be prescribed in the notice of the installments to be paid (CP 500). The amount of each
installment will be estimated by IRBM. Taxpayers who do not receive the CP 500 by end of February each year, may check at the branch where their file
was located or call customer service centre at 1-300-88-3010.

Tax payers who receive the directive can apply for the installments to be revised by filling the CP502 Form. The application should be made not later than 30th June for the relevant year.

A comparison must be made between the total of the installments paid and actual amount of tax payable, excluding tax attributed to employment income, if any. If the installments are insufficient, the shortfall must be paid when submitting the ITRF in the year following the year of assessment. If the
total installments paid are more than the actual tax payable, the tax payer may claim a refund of the overpayment on submitting the ITRF.

Income Subject to STD (PCB)

Remuneration subject to STD relates to gains or profits from employment under paragraph 13(1)(a), (d) & (e) of the Income Tax Act (ITA) 1967 and excludes benefits in kind under paragraph 13(1)(b) and value of living accommodation under paragraph 13(1)(c) ITA 1967.
The following are types of remuneration which are subject to STD :

Salary, Wages, Commission, Tips, Director's Remuneration, Employee's Share Option Scheme, Overtime, Allowances, Bonus/Incentive, Gratuity, compensation and Perquisite.

Am I taxable? 

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

If your income from employment has been deducted through Schedular Tax Deduction (STD), your income tax file will be registered automatically without you having to make an application.  

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  

Non-receipt of Income Tax Return Form

The Return Form for a resident individual with no business income will be issued and posted to all taxpayers every year through the process of 'General Issue'.  

If you do not receive the form, you can obtain it from :  

a. The nearest IRBM Branch, or
b. Information Processing Department, Pandan Indah, Kuala Lumpur, or
c. Download from IRBM’s website.  

Please note that a photocopy of the form is not accepted for submission.  

You are encouraged to use our e-filing facility if you do not receive a Return Form. Please contact any IRBM branch or our Customer Service Centre at 1-300-88-3010, for further enquiries on e-Filing.  

Chargeability of Income Tax for Foreigners

  
If you are a foreigner employed in this country you must give notice of your chargeability to the Non-Resident Branch or the nearest IRBM branch within 2 months of your arrival in Malaysia.  

Customer Service Centre

  

Scope of Taxation

  
An individual who is resident in Malaysia is taxable on all income accruing in or derived from Malaysia and on income received from outside Malaysia.
The scope of taxation of an individual depends on his resident status.  

However, with effect from the year of assessment 2004, income received in Malaysia from outside Malaysia is exempted from tax. Hence, an individual, either or non-resident, is taxable only on income accruing in or derived from Malaysia.

Who can do your taxes?

 How do you identify a tax professional and what can he do for you?
I often advise tax payer not to attempt to “DIY” their tax affairs but to consult tax advisers. But who is qualified to act as a tax agent, tax consultant, and so on?

Question:

I have been told that for someone to do a tax return on behalf of another person, he/she needs to be qualified under Section 153(3) of the Income Tax Act 1967. If I want to employ a tax accountant to do my return, how can I check whether he/she is qualified? Can I obtain a list of qualified tax accountants?

Answer:

You are right: Only qualified persons are authorised to act on behalf of other persons for the purposes of the Income Tax Act.

Who is an approved tax agent?

An approved tax agent is a professional accountant or person who is approved by the Minister of Finance. He must convince the Minister of Finance that hehas sufficient practical experience in taxation. The approval process entails an application (furnishing all the requisite details regarding professional qualifications, education background and professional experience) and an interview to establish technical competence.

Having been approved, the tax agent will be obliged to keep abreast of current development in taxation through continual professional education (CPE). Chalking up the prescribed minimum CPE hours is essential for continued approved tax agent status.

Note that despite the requirement for approval by the Minister of Finance, professional lawyers are not hampered or precluded from acting in their lawful practice for their clients in tax matters. In other words, professional lawyers need not be approved by the Minister of Finance to act
on behalf of clients in tax matters.

What can the approved tax agent do?

Only an approved tax agent is authorised to act on behalf of other persons.

What can he do?

First of all, “act on behalf” of any person connotes representation of another person. Thus, an approved tax agent may perform the following functions:

• File clients’ annual tax returns (duly signed by the taxpayer client);
• Communicate with the tax authorities on tax matters relating to his clients.
• The communication may be written or oral. Hence, a tax agent may visit the Inland Revenue Board office on behalf of his client; and He is authorised to represent a client in tax appeal proceedings in the specialist tax court (Special Commissioners of Income Tax). In this regard, it is worth noting that the appointment of the tax agent should be evidenced in writing and communicated to the Inland Revenue Board (IRB) office.

Checking the status of the tax agent

To verify the status of any person purporting to be an approved tax agent, you may visit the IRB’s website. Go to “Tax Information”, “List of Tax Agents” and select the relevant state.

Pre arrival procedures

An expatriate who requires a work visa must apply for their visa before
taking up an employment in Malaysia.

Employment visas

An expatriate taking up employment in Malaysia must apply for an employment pass before commencing employment. A local sponsor, who is usually the employing company in Malaysia, is required to support the application.
If the expatriate’s spouse and children also relocate to Malaysia, they will require a dependent’s pass.

Tax year

The tax year or year of assessment (YA) for individual tax runs from 1st January to 31st December. Malaysia adopts a current year basis of assessment.
This means that income for the calendar year 2010 is taxable in the YA 2010.

Tax returns and compliance

An employee has to file an income tax return by 30 April each year. There are schedular tax deductions (STD, i.e. pay-as-you-earn scheme) to be made by the employer for remuneration paid to an employee.
The employer is required to file a leavers form with the tax authorities no later than 1 month from the employee’s expected date of departure. For tax clearance purposes, the employer is required to withhold monies due to the employee from the date of notification of departure from Malaysia.

Tags: Expatriate, working, malaysia

Who Wins In A Tax Audit

1) Taxpayer should be able to handle and manage tax audits themselves. Taxpayers may consider engaging tax professionals who specialize in handling tax audits to assist on specific technical matters

2) Be ready to answer questions and provide the necessary information when requested by the IRB

3) Be polite and professional in dealing with the IRB officials

4) Do not underestimate the IRB officials as they are professionals with the relevant knowledge, training and experience

5) Finalise the tax audit within a short time and narrow down the list of issues to be dealt with to resolve the matter quickly

Tags: Taxation, Audit, IRB