Malaysia Income Tax Guide 2016

We are getting to the deep end of income tax season and there is virtually no time to procrastinate filing. Here is a complete guide to help you get it right from start to end.

[UPDATE] We have a newer version of this article, complete with all the new changes for 2017 right here!

Whenever the tax season rolls around (that’s 1st March to 30th April), there is inevitably a sense of worry amongst the public because there are many financial, technical and even legal considerations to be taken into account when filing in at Lembaga Hasil Dalam Negeri (LHDN or Hasil) or online.

This guide was written for the January - December 2015 tax year, but we will be sure to update this whenever the Government decides to make any changes throughout 2016. Remember that you file in March/April 2016 for the 2015 calendar year of income and expenses. And without further ado, we present the Income Tax Guide 2016 (for assessment year 2015)!

Malaysia Personal Income Tax Rates

Two key things to remember:

  1. Tax rates are Progressive, so you only pay the higher rate on the amount above the rate (i.e. you will never have less “net income after tax” by earning more!).

  2. Tax rates are on Chargeable Income, not salary or total income. Chargeable income is calculated after tax exemptions and tax reliefs (more below).

First off, we start with the table for personal income tax rates in Malaysia for the Assessment Year 2015, so everyone would be able to cross-check the tax bracket and the amount of tax needed to pay.

How Much Do I Have To Earn Before Filing

For most residents of Malaysia, the key figure to take note of is about “RM34,001 per year (after EPF deductions)” which is inclusive of all benefits, allowances, bonuses, overtime and commissions.

If you’re earning anywhere below that figure, then there’s no need for you to open up a file for tax to be deducted from your income (while the con is that you’re probably not earning as much as you’d like, the pro is that there’s less hassle from a tax perspective!).

However, if you do earn above that, you need to have a tax file opened with your income tax automatically deducted from your income (welcome to the world of big money!).

Some extra notes about income tax that you may find interesting:

1) For non-residents of Malaysia (people who have been living in the country for less than 182 days per year), the tax rate has been set at 25% on all the income that has been earned in Malaysia regardless of your citizenship or nationality. However, there are some exceptions to the matter. Certain professions such as public entertainers (15%) as well as those who receive payments for services in connection with the use of property or installation, payments for technical advice and rent (10%) are taxed differently.

2) You may still be overpaying or underpaying on your tax, even if you are a salaried worker or civil servant under a Potongan Cukai Bulanan (PCB), a Monthly/Schedular Tax Deduction (MTD) system or if you are self-employed/own your own business.

What is Chargeable Income in Malaysia?

As mentioned before, the tax rates above are effected on a person’s Chargeable Income (rather than salary or total income, in fact, the amount of the chargeable income is usually much lower). Now I’m sure many of you first-timers may be wondering what your “Chargeable Income” is.

You take the following equation and apply where necessary:

Chargeable Income = Taxable income – Tax exemptions – Tax Reliefs

Check out the example below for a general idea:

You are earning a RM40,000 salary, you have a RM2,000 local bank interest income as well as RM13,000 from property rental income a year. That should bring your chargeable income to RM55,000 correct? Nope, that’s not the way to go about it. Even without taking into account the many tax reliefs available, every taxpayer gets the standard RM9,000 individual tax relief as well as a maximum relief of RM6,000 for EPF contributions. The government has also given an additional special relief of RM2,000 for tax payers earning an aggregate income of up to RM96,000 annually for the 2015 assessment year only.

That means your EPF contribution is calculated at 11% of RM40,000, i.e. RM4,400. Also, while “interest” is taxable income (more on this below), all local bank interest income is tax exempted (lucky us!).

Therefore, your Chargeable Income (by applying the aforementioned formula) will actually be: RM55,000 – RM2,000 – (RM 9,000 + RM4,400) = RM39,600. There you have it! A much lower figure than you initially thought it would be!

Taxable Income in Malaysia

Taxable income actually refers to the “base upon which an income tax system imposes tax”. In general, the Lembaga Hasil Dalam Negeri (LHDN) organisation includes all kinds of earnings which the Malaysian taxpayers have to pay for, but which is reduced by expenses and other deductions. Some of them include the following:

1. General Taxable Income

a) Business or Profession

b) Employment

c) Dividends

d) Interest (except bank deposit interest)

e) Discounts

f) Rent

g) Royalties

h) Premiums

i) Pensions

j) Annuities

k) Others

2. Perquisites

Perquisites are taxable benefits that can be converted to cash and are given to an employee from his/her employer.

Examples of which include:

1) Bill Claims

If your employer pays your utility, mobile phone, income tax, road tax or car insurance tax bills for you, then the amounts paid are considered to be perquisites and are taxable. Example: John’s company pays his RM100 mobile phone bill. Then the amount of RM100 is a perquisite and is taxable

2) Company Credit Card

If your employer provides you with a credit card to make purchases on behalf of the company, but you use that card instead for personal use, then any retail purchases you make including the annual fee of the credit card are considered to be perquisites and are taxable. Example: Tom uses the company credit card which has an annual fee of RM200, to purchase a flat screen TV worth RM5000 for his home. Then the amount of RM5200 is a perquisite and is taxable.

3) Loan from Company

If your employer provides you with a interest free loan and the source of funds for the loan is derived from extra company funds, then the loan is considered to be a perquisite and is taxable.

Example: Leonard’s boss grants him an interest free loan of RM6000 using extra company funds. Then the amount of RM6000 is a perquisite and is taxable.

Or if your employer provides you with a loan with funds taken from a third party source such as a bank etc. Then the difference in interest paid by the employee and the employer is considered to be a perquisite and is taxable.

Example: Keith’s boss gives him a loan with 4% interest using company funds taken from a local bank. The bank in turn, charged the company 8% interest for the initial loan. If the company paid a total of RM900 of interest payments to the bank while Keith paid a total of RM460 in interest payments to the company. Then the amount of RM900 - RM460 = RM440 is considered to be a perquisite and is taxable.

Or if your employer agrees to waive a loan in exchange for services performed, then the loan amount is a perquisite and is taxable.

Example: Eddie’s boss gives him a study loan of RM30,000 and agrees to waive the loan if he stays and works with the company for a minimum of 36 months. If Eddie successfully completes this agreement and the loan is waived, then the amount of RM30,000 is considered a perquisite and is taxable.

4) Sponsored Club Membership

If your employer provides you with an individual club membership (not corporate), then the cost of the membership is considered to be a perquisite and is taxable.

Example: Bruce is provided with an individual country club membership by his company. The annual fees of the membership are RM400. Then the amount of RM400 is a perquisite and is taxable.

5) Sponsored Child Tuition Fees

If your employer pays for your child’s tuition fees, then the amount paid is considered to be a perquisite and is taxable.

Example: Shawn’s company pays for the school fees of his son, Ross. The annual school fees amount to a total of RM10,000. Then the amount of RM10,000 is a perquisite and is taxable.

6) Company Insurance Premiums

If your employer pays for an insurance premium that covers yourself and your immediate family. Then the annual amount of premium paid is considered to be a perquisite and is taxable.

Example: Richard’s company pays for an insurance package that covers himself and his wife and five children. The annual amount of premium paid is RM900. Then the amount of RM900 is a perquisite and is taxable.

7) Personal Driver, Guard or Maid

If your employer allows reimbursements on the salary of personal drivers, guards or maids, then the amount that is reimbursed is considered to be a perquisite and is taxable.

Example: Colin’s company allows him to reimburse 40% of the cost to hire his personal driver, Carlo. Carlo’s annual salary is RM25,000. Then the amount of RM10,000 is a perquisite and is taxable.

8) Special Staff Discounts

If your employer grants special staff discounts for certain products with monetary value such as cars, furniture, electronics etc. Then the amount of discount given is considered to be a perquisite and is taxable.

Example: Nathan’s company, BMW, grants him a special employee discount of 15% if he chooses to buy a BMW. If Nathan buys a BMW worth RM250,000 but only pays RM212,500 due to the 15% discount. Then the discount amount of RM37,500 is considered to be a perquisite and is taxable.

9) Gift Vouchers

If your employer gives you gift vouchers with monetary value during festive seasons such as Chinese New Year or Hari Raya. Then the monetary value of such gift vouchers is considered to be a perquisite and is taxable. Example: Donald’s company awarded him a RM100 Tesco voucher during Chinese New Year. He subsequently used that voucher to pick up groceries for his family. The amount of RM100 is considered to be a perquisite and is taxable.

3. Benefits in Kind (BIK)

Benefits in Kind (BIK) are taxable benefits that cannot be converted to cash and are given to an employee from his/her employer. Since Benefits in Kind do not have a direct monetary value, there are two ways to determine the value of a BIK, the formula method or the prescribed value method. Examples of Benefits in Kind include company provided automobiles, lodging and household furnishing & electronics.

Formula Method:

Value of asset/Life span of asset = Annual Value of Benefit

Prescribed Value Method:

Assigns a predetermined value from a list sorted by classification of asset.

Example: Company Automobile

If your employer provides you with an automobile to use on the job and privately, then the asset is considered to a benefit in kind and is taxable by the formula method. Any petrol costs and toll bridge costs which are subsidized by the employer are included in the total taxable amount as well.

Example: Christopher’s company provides him with a car worth RM81,000 to use to get to work and travel around in his spare time. He passes by 1 toll bridge on his way to work which charges RM1.50. Any toll payments he makes are subsidised by his employer. In addition, his petrol costs are subsidized by his employer as well. In 2015, he made a total of RM1,800 in toll payments and RM3,000 in petrol payments. For cars, the prescribed average lifespan is set at a fixed 8 years.

Formula Method: 81,000/8 X 80% (20% abatement represents the value of the car when returned to the employer) = RM8,100 + RM1,800 (toll payments) +RM3,000 (petrol payments) = RM12,900

Prescribed Value Method:

Under the prescibed value method, since the value of the car falls between RM75,001 and RM100,000, then the amount taxable is RM3,600. In addition, his petrol costs are also set at a predetermined RM1,200.

Total Cost:

RM3,600 + RM1,200 + RM1,800 (toll payments) = RM6,600

Tax Exemptions on Income in Malaysia

Tax exemptions in Malaysia come in many forms, and can be defined as “a personal allowance or specific monetary exemption which may be claimed by an individual to reduce taxable income”. Generally speaking, it means they are income items which can be from (we refrain from using the word deductions here, because tax reliefs are also ‘deducted’ from your taxable income) the individual’s paycheck. Below you will find a full list of those items for you to get a general idea:

1) Leave Passage

2) Medical and dental benefit

3) Retirement gratuity

4) Gratuity paid out of public funds

5) Gratuity paid to a contract officer

6) Compensation for loss of employment

7) Pensions

8) Death gratuities

9) Scholarships

10) Cultural performances

11) Interest

12) Dividend

13) Royalty

14) Income Remitted from Outside Malaysia

15) Fees or Honorarium for Expert Services

16) Income Derived from Research Findings

17) Company Special Service Awards

18) Travelling Allowances

19) Benefits in Kind Exemptions

What Are Tax Reliefs?

What about a tax relief? It is defined as “an amount that can be deducted from a person’s annual income to reduce the amount on which tax is paid”.

To describe it in a more clear and concise manner, it is actually a way for you to lessen your chargeable income.

Let’s say you took home a gross monthly paycheck of RM3,000 from your company in 2015 and if there were no tax exemptions or reliefs, your chargeable income will remain the same at RM36,000. Given the annual income of RM36,000 your tax for the year would have been up to the 10% bracket.

Now say the Government decides that all Residents of Malaysia should get a personal tax relief of up to RM9,000 per year and the additional RM2,000 for assesment year 2015 as previously mentioned. Your chargeable income will now be RM25,000 (RM36,000-RM9,000 – RM2,000) which means that your tax would be up to the 5% bracket.

These are the following reliefs available for Malaysian Residents:

Tax Deductions vs Tax Reliefs

Most of the time people get confused between Tax Deductions and Tax Reliefs, and its easy to see why. They are for the most part the same thing, as they both allow you to reduce your Chargeable Income (that is, before you even start looking at tax rate tables). In fact most people worldwide use both terms interchangeably, and LHDN goes one step further and classifies Tax Deductions as a reduction in your Chargeable Income as a result of Gifts or Donations.

As a rule of thumb, you can deduct up to 7% of your aggregate income for gifts to charities and institutions which are approved by the government (not all charities are approved, so be sure to find out before you donate away!), unless you are giving to a few selected government-related bodies, where there is less restrictions on the amount deductible from your income.

For example, if you earned RM60,000 this year, and donated RM5,000 to an approved charity, you may deduct RM4,200 (ie. max 7% of RM60,000) off your chargeable income, in addition to all those reliefs above.

What are the Tax Rebates in Malaysia for 2015?

Some people will be having the question of how is a tax rebate different from a tax relief? A tax relief is a reduction in your chargeable income (ie. before you calculate tax) whereas a tax rebate is a reduction in your tax expense after you have calculated your tax for the year.

Tax rebates (or also known as “tax refunds” but done automatically rather than actually refunded to you). Simply put, there are income tax rebates for Malaysian taxpaying citizens who are having a chargeable income of less than RM35,000 which is RM400. There is also an additional RM400 rebate for married couples who have a chargeable income of less than RM35,000 per year and are eligible for the RM3,000 wife / husband / alimony relief.

To give a quick calculation example for tax rebates:

Taxable Income: Salary of RM45,000 a year

Chargeable Income: RM45,000 – (RM9,000 +RM2,000) - RM4,950 EPF relief = RM29,050

Tax calculated using Income Tax Tables (without including any further rebates): RM602.50

Tax Payable: RM602.50 - RM400 rebate = RM202.50

In the above example, you were eligible for the RM400 tax rebate because your Chargeable Income was less than RM35,000 (it was RM29,050 in that example).

Another type of tax rebate, but which is only applicable for Muslim citizens, is the zakat / fitrah. Zakat is a compulsory payment for charity and considered to be compulsory as it is one of the five pillars in Islam. It can be calculated via the Muslim taxpayer’s acquired wealth or income.

Zakat Fitrah, on the other hand, can be considered to be a small, compulsory levy that is imposed upon Muslim taxpayers only. It used to be calculated in the olden days using a pack of rice grains (one pack is equivalent to approximately 2.7 kg) but in the modern days, it is calculated based on the equivalent price of this pack rice grains. You can read all about Zakat and the various types that exists in our guide Zakat in Islam.

So… What is the Cut-off Point to Pay Tax in 2016 (for Year 2015)?

Although the minimum threshold for filing tax is as per above; just because you have to file; doesn’t mean you will have to pay any tax. The minimum threshold for which you will need to pay tax has increased in 2015 to RM40,449.44 . How did we get to that figure?

Chargeable Income

Your Chargeable Income = Your taxable income - (Standard RM9,000 individual tax relief – Additional RM2,000 tax relief for aggregate income below RM96,000+ 11% EPF Contribution of your salary)

which means

Your Chargeable Income = RM40,449.44 – (RM9,000+ RM2,000 + RM4,494.44) = RM25,000 Based on the tax rate table above, RM25,000 would be taxed RM150 on the first RM20,000 and RM250 on the remaining RM5,000 which brings it up to about RM400 in tax.

RM400 Rebate

After taking into account the RM400 rebate for those with a chargeable income of RM35,000 or less, you’ll be paying

RM400 - RM400 = RM0 (no tax, yay!)

PCB / MTD System: Has Your Employer Paid Too Much Tax for You?

First off, “PCB / MTD” are actually acronyms for “Potongan Cukai Bulanan / Monthly Tax Deductions”.

How this works is that your employer will automatically deduct a certain amount from your salary every month to pay for tax on your behalf, going towards paying your tax for the year. This type of deduction is different from the basic Employees Provident Fund (EPF) and Social Security Organisation (SOCSO) monthly deductions.

Therefore, one can sum up that the MTD is calculated from one’s gross salary minus the EPF deductions of up to RM6,000 per year. If you were to take a closer look at the sum of the total MTD for the year, you will realise that the figure will be very close to your actual tax expense for the year, but given that your company has no idea of your additional reliefs other than being married or having children (such as Books, Sporting equipment etc.), they are very likely to have been overpaying for you.

Unless you believe you have no additional reliefs such as those listed; you might want to calculate to see if you are overpaying.

Final Reminder

The 2015 tax assessment year follows the calendar year, so it is effective from 1st January 2015 to 31st December 2015.

Taxpayers can start submitting their income tax return forms for the year of assessment 2015 through e-filing as well. The due date for the submission of return forms are as follows:

1) Employers (Form E) is 31 March 16

2) Residents and non-residents with non-business income (Form BE and M) is 30 April 16

3) Residents and non-residents with business income (Form B and M) is 30 June 16

4) Partnerships (Form P) is 30 June 16

Finally, do take note that you must keep records for 7 years from the date of filing so don’t throw away any receipts or evidence of tax reliefs, keep them in a file sorted by tax year.

Questions?

Got a tax question? Ask us in the comments section below - we’d be more than happy to assist you where we can!

Image Source: Image 3 from Personal Finance

0 comments

Agree or disagree with this post? Questions? You also have your word!

  • Lee

    Hi, is dividends paid by equity taxable or tax exempted? I saw it appears in both taxable income and tax exemption section. Appreciate that you could clear my doubt, thanks in advance.

    Reply
    • RinggitPlus

      Hi Lee,

      Tax dividends are taxable, however there are exemptions as follows (as sourced from LHDN website):

      1. Dividends received from exempt accounts of companies.
      2. Dividends received from co-operative societies.
      3. Dividends received from a unit trust approved by the Minister of Finance such as Amanah Saham Bumiputra.
      4. Dividends received from a unit trust approved by the Minister of Finance where 90% or more of the investment is in government securities.

      Thanks

      Reply
    • nurfa

      great article guys (and ladies too). hopefully you all will write one for individuals with business income. it will be helpful.

      Reply
      • RinggitPlus

        Hey Nurfa,

        Thank you, we will take your suggestion into consideration.

        Reply
      • pauldoc

        Wonderful article. Got a quick question. I invested some money interest free to a corporate company. In return I get certain % in the company revenue on a yearly basis. Is this taxable? The revenue sharing I get back fr the company is like "repayment" for the amount of money i invested.

        Reply
        • RinggitPlus

          Hi Pauldoc,

          Thank you for your question, however we are not allowed to provide you with any type of consultation.

          Would recommend you stop by your LHDN branch to clarify if the income is taxable.

          Thank you

          Reply
        • Diane

          Hi i'm paying life insurance of rm3000 per year. My EPF contribution is more than rm6k.
          Can i deduct my payment under medical insurance

          Reply
        • KS

          Hi,
          Would like to ask if I have a purchase of computer invoiced year 2014, can I submit it in any year within the 3 years for the relief?
          Thank you.

          Reply
          • Reply
            • RinggitPlus

              Yes, KS. You can as long as you haven't submitted for an earlier purchase less than three years before

              Reply
            • Shan

              Hi, what about single-tier dividends (whether interim or final)? Does it go under the HK-6 form? I'm not sure which category it falls under in the HK-6. Is it Pendapatan Lain-Lain? And what is Pendapatan Seksyen 4A referring to? Sorry, still very unclear and new to income tax matters. My dividend statement indicates zero tax. But does that mean I personally don't have to pay a tax on my divided? Or does it mean the company that paid my dividend has already been taxed for it? Thank you in advance.

              Reply
              • RinggitPlus

                Hi Shan,

                Thank you for your question, however we are not allowed to provide consultation of that sort.

                Would be best if you could visit a LHDN branch and clarify with them to ensure no mistakes are made.

                Thanks again

                Reply
              • janice

                hi,

                I heard from an accountant saying if we declare more and pay more for tax, it will help us to apply loan easier. as the financial institutions are looking at tax deducted in our payslip.
                is it true?


                thanks

                Reply
                • RinggitPlus

                  Hi Janice,


                  Paying tax follows your income bracket. We doubt there is any truth to banks basing your approval solely on tax amount being deducted.

                  However we are not able to quantify how each financial institution assesses and approves all loans, as they use various methods.

                  Thank you.

                  Reply
                • Wendy Kok

                  Hi may i know do u have an article related to Filinh tax for freelancer? As freelancer want to apply home loan, how should they do to proof that they able to get their home loan approved? Thanks!

                  Reply
                  • RinggitPlus

                    Hi Wendy,

                    You may use our guide for filing taxes, however if you require further details for freelancer and how to quantify your earnings, it would be best to check with LHDN to avoid any problems later on.

                    As far as home loan approvals, you would have to check with the relevant financial institution on how they assess freelance income. Along with that, will you be able to provide them with the necessary documentation.

                    Thank you

                    Reply
                  • Ria

                    Hello ringgitplus.

                    I am an expatriate, arrived in Malaysia on August 2, 2015 making me 150 days by December 31, 2015.
                    I have a few questions:

                    1. I have a contract for 2 years commencing August 2, 2015 to August 2, 2017. I made a social visit last Feb in my homeland for 10 days.
                    In my understanding if I will link the 150 days from last year to my stay for here for year 2016 (assuming I will not consume the remaining 4 days for social visit), I will be tax resident for both years 2015 and 2016 , correct? If yes, should I be filing tax return this April? How will I get the overpayment of tax for 2015 if I will be considered tax resident for that year?

                    Thanks.

                    Reply
                    • RinggitPlus

                      Hi Ria,

                      We are not allowed to provide such consultations, it would be best to stop by an LHDN branch to make your relevant inquiries.

                      Thank you

                      Reply
                    • Wing

                      May I know if medical treatment expenses for parents is inclusive of parent-in-law? Is physiotherapy expenses part of medical treatment?

                      Thank you very much.

                      Reply
                      • RinggitPlus

                        Hi Wing,

                        According to LHDN website here is how the medical expense is defined:

                        Medical treatment, special needs and carer expenses incurred on parents is limited to RM5,000. Paragraph 46(1)(c)

                        Medical expenses which qualify for deduction include:

                        (i) medical care and treatment provided by a nursing home; and
                        (ii)dental treatment limited to tooth extraction, filling, scaling and
                        cleaning but excluding cosmetic dental treatment expenses such
                        as teeth restoration and replacement involving crowning, root
                        canal and dentures.

                        Such claim must be evidenced by a medical practitioner registered
                        with Malaysian Medical Council certifying that the medical condition
                        of parents require medical treatment or special needs or carer.

                        Parents shall be individuals resident in Malaysia.
                        The medical treatment and care services are provided in Malaysia.
                        In the case of carer, a written certification or receipt from, or work permit
                        of, the carer.

                        “carer” shall not include that individual, his wife or her husband or the
                        child of the individual.

                        As far as parents in-law are concerned, it is not claimable. However it would be advised to clarify with LHDN should you have any doubt.

                        Thank you

                        Reply
                      • mohd naquib bin mat rozai

                        tax

                        Reply
                        • RinggitPlus

                          Hey Mohd,

                          Hope the tax guide was useful to you.

                          Did you have a question for us regarding tax?

                          Thanks

                          Reply
                        • Hor

                          Do I need to get an agent or qualify accountants to submit my tax return for my enterprise company ?
                          Or I can do it online myself ?

                          Reply
                        • chew

                          Hi , I would like to ask that if I made my payment online for cp500 , but I found that I made mistake on tahun taksiran and code taksiran after payment, is there any penalti or they will send back the payment?

                          Reply
                          • RinggitPlus

                            Hi Chew,

                            You would need to head down to an LHDN branch and inform of the mistake and rectify it with the payment with the updated/ correct details.

                            Thank you.

                            Reply
                          • Yen

                            Hi just want to clarify a few items:-
                            1. Is the gst imposed on my life insurance deductible? Eg my premium is RM3K and the gst is RM180, do i deduct 3180 or just 3000?
                            2. I am freelance sales agent. Can i get deductions for bills for entertaining my clients?
                            3. How about my dental bills? deductible?
                            Thanks in advance.

                            Reply
                            • RinggitPlus

                              Hi Yen,

                              1. The deductible figure for your life insurance should be the premium.
                              2. As we are unfamiliar with the nature of your business, some of these claims are able to be put under expenses.
                              3. Dental is not stated under tax deductibles.

                              However, we strongly recommend you stop by an LHDN branch and clarify all your doubts to ensure you do not have any mistakes when filling.

                              Your responsibility as stated in the LHDN website is to engage chartered accountants or licensed tax agents in preparing business accounts for individuals with business income:

                              http://www.hasil.gov.my/pdf/pdfam/3_BROCHURE_2016.pdf?CSRF_TOKEN=1feceaa51632de716e4486e55310c724cad34888

                              Thank you

                              Reply
                            • Aaran

                              Hi, need some help please. I'm a foreigner about the start work in Malaysia. The main objective of this question is to find out what difference it will make if I start working in July or September 2016.

                              1. If I start working in Malaysia on the 1st September 2016, when will I gain resident tax status? 182 days from that date? Or does the 182 days start again from the 1st January 2017?

                              2. If I gain resident tax status in 2017, will i be able to claim back the extra tax I paid in 2016 as a non-resident?

                              3. If I start working on the 1st July 2016, I will qualify for resident tax status before
                              31st December 2016. Can I claim the extra tax I paid in 2016 as a non-resident back?

                              Reply
                              • RinggitPlus

                                Hi Aaran,

                                We are not able to advice you based on such type of consultations.

                                You could get a professional taxation agent to look into your scenario or visit an LHDN branch in Malaysia and clarify all your doubts to ensure you have everything in order.

                                Thanks

                                Reply
                              • Sandeep

                                Hi, for the tax relief, can I submit bills from India for my parent's medical expenses and my insurance policies?

                                Reply
                                • RinggitPlus

                                  Hi Sandeep,

                                  The claims for your parents medical cannot be claimed if they are from India.

                                  The quotation below is from the LHDN website:

                                  "Such claim must be evidenced by a medical practitioner registered
                                  with Malaysian Medical Council certifying that the medical condition
                                  of parents require medical treatment or special needs or carer.

                                  Parents shall be individuals resident in Malaysia.

                                  The medical treatment and care services are provided in Malaysia.
                                  In the case of carer, a written certification or receipt from, or work permit
                                  of, the carer"

                                  The link to the webpage is as follows: http://www.hasil.gov.my/pdf/pdfam/BE2011_Guidebook_2.pdf

                                  If you need any further clarification, it would be advisable to stop by an LHDN branch and obtain the necessary consultation.

                                  Thank you.

                                  Reply
                                • wilingteong

                                  Hi may i know , if i working at SG and i got paid Non-resident income tax at singapore. that how to i calculate the income ? i need to deduta the income tax i paid to singapore govement ? thanks

                                  Reply
                                  • RinggitPlus

                                    Hi wilingteong,

                                    You would have to pay income tax if you earn your salary in Malaysia.

                                    To further clarify we recommend you stop by an LHDN branch to ensure you are not further taxable.

                                    Thanks.

                                    Reply
                                  • Dora

                                    Is the HK3 form still applicable? I can't find it on the website? thank you very much - great help!

                                    Reply
                                    • RinggitPlus

                                      Hi Dora,

                                      The HK3 form is no longer available as of this year since Malaysia has now fully converted from the imputation system to a single-tier system.

                                      Thanks.

                                      Reply
                                    • gen

                                      Hi,
                                      Would like to ask if I have a purchase of computer, how can I proceed with the claim?
                                      Thank you.

                                      Reply
                                      • RinggitPlus

                                        Hi Gen,

                                        You just have to fill in the value of the computer you purchased last year, under the tax deductible portion of the income tax form.

                                        Thanks.

                                        Reply
                                      • Alvin

                                        Hi RP,

                                        My income currently is RM 7000 and after deduction is RM5841.90.

                                        Now i have an increment of RM 500 which sums to RM 7500.

                                        But after deduction, my admin told me i would get back roughly the same as previous, which means my increment is like no increment at all.

                                        Is this calculation correct?

                                        (Married with 1 children and spouse working)

                                        Thanks in advance.

                                        Alvin

                                        Reply
                                        • RinggitPlus

                                          Hi Alvin,

                                          For a salary of RM7,500 with all the standard contribution of SOCSO, 8% EPF deduction and tax based on a salary of RM90,000 a year, you should be getting a net salary of approximately RM6063.

                                          Feel free to clarify this with your HR department if the figures do not tally.

                                          Thanks.

                                          Reply
                                        • Cheriyan Thomas

                                          Hi.
                                          Am a expat working in malaysia.
                                          I came in this month of June 2016.
                                          My last employment in malaysia was in year 2013-14.
                                          At my last employment in malaysia 26% tax was deducted flat because of non resident status.
                                          My question is will tax be deducted at 26% even during this current employment.
                                          Or could it be considered I have stayed more than 182 days at my last employment and just be taxes at the normal rate.

                                          Thanks.
                                          Cheriyan Thomas.

                                          Reply
                                          • RinggitPlus

                                            Hi Cheriyan,

                                            That is a rather complex issue concerning your time away and returning to the workforce. Unfortunately, we are not allowed to provide consultation on areas such as this.

                                            It would be advisable to swing by an LHDN branch and get full clarification from them on how the tax will be applied to a situation such as yours.

                                            Thank you.

                                            Reply
                                          • May

                                            Hi there,

                                            If my partnership company has a bank account under partnership name, and the bank offers SME biz interest for a certain amount maintained in the account. So, I would like to know in computing the partnership taxation, is the interest from bank taxable? Or is it exempted since the interest income is except bank deposit interest? I m afraid the exemption of bank deposit interest is only applicable to individual. However, partners are charged each as individual. Should I charged under Sec 4 (c) because from what I understand, partnership acc business source is sec4(a). I am just confused.

                                            Hope to get some clarification from you.

                                            Reply
                                            • RinggitPlus

                                              Hi May,

                                              Technically it is the partnership who earns the income and not the individual, therefore the income should be taxable. Upon accruing total profit, then do you divide them back to the partners.

                                              However, we do suggest you run by an LHDN branch to clarify all your doubts with them before your submission.

                                              Thanks.

                                              Reply
                                            • aileen

                                              My company is partnership and not gst registered company.for those gst input receive l put into gst expenses.can l check with u that for gst expenses need to add back into profit for that year before submit our personal tax?l just know depreciation need add back.

                                              Reply
                                              • RinggitPlus

                                                Hi Aileen,

                                                We apologise, as we are unable to provide consultation such as that on accounting matters.

                                                It would be best to hire a professional auditor to do your taxes and profits.

                                                Or if you prefer, drop by an LHDN branch and clarify on your GST issues.

                                                Thank you.

                                                Reply
                                              • Jay

                                                Hello,

                                                If I were to start a blog hosted in the US and make money off advertisement such as AdSense or commissions from affiliate networks/companies, is that income taxable in Malaysia? I'm thinking of starting a blog and am concerned about the legalities.

                                                Thank you :)

                                                Reply
                                              • Nita

                                                Hi. ..
                                                It is very informative.

                                                I am freelancer IT Consultancy and I use form B to submit tax. But I dont register my business with SSM. Is this legal? Can I hire employee and deduct his salary as my expense?

                                                Reply
                                                • RinggitPlus

                                                  Hi Nita,

                                                  Yes, it's legal to do what you're doing, but since you're not registered, you're legally not a business. Which means you can't hire employees and deduct his salary as your expenses.

                                                  Reply
                                                • Queenie Lo

                                                  Hi Ringgit Plus,

                                                  We've just registered a representative office in Malaysia (Headquarters in Hong Kong). We've hired a local (Malaysian) staff to work in the rep. office. His salary would be paid from Hong Kong by making remittance every month to his personal Malaysia bank account. Since his income is remitted from outside Malaysia, is his salary considered 'taxable income'? In another word, does he needs to pay income tax?

                                                  Reply
                                                  • RinggitPlus

                                                    Hi Queenie,

                                                    Since the office is in Malaysia, and the work being done is in Malaysia, his salary is indeed taxable under Malaysian law

                                                    Reply
                                                  • Tong

                                                    Hi. I'm working as a part-timer. Monthly salary is RM2500. No EPF deduction, no other benefits from company.Do I need to declare tax?

                                                    Reply
                                                    • RinggitPlus

                                                      Hi Tong,

                                                      Yes, you do. So long as you earn money, you have to file your income tax.
                                                      Whether or not you need to pay though, depends on how much you earn.
                                                      And you don't earn enough to have to pay any tax.

                                                      Reply
                                                    • Mehwish fayyaz

                                                      Hi Ringgit Plus,
                                                      Thanks for such a nice write up,
                                                      I am on employmeant visa since one year.should I consider my self as resident tax payer and can claim all the tax reliefs as resident.I just want to clear some points.can u plz tell me whether monthly pregnancy medical expenses can b considered as medical expenses which can b deducted from taxable income.
                                                      Thanks

                                                      Reply
                                                      • RinggitPlus

                                                        Hi Mehwish,
                                                        Glad you find the article helpful. To answer your questions, you'll be considered a tax resident if you have lived and employed in Malaysia for 182 days of the calendar year. Pregnancy medical expenses is not considered as part of medical and dental benefit, thus it is not eligible for tax exemption.

                                                        Reply
                                                      • James Mike Ng

                                                        I bought a laptop in FY2013 and claimed the IT relief of RM3,000 for the same year when I submitted my tax assessment in April 2014. If I were to buy a new lap-top in FY2016, would I be eligible to claim the IT relief of RM3,000 for the same year (FY2016), bearing in mind the 3 year period?

                                                        Appreciate if you could revert to clarify.

                                                        Regards.

                                                        Reply
                                                        • RinggitPlus

                                                          Hi James,

                                                          Since your purchase was made three years after your last IT relief claim, this time you should be eligible. Hope this helps!

                                                          Reply
                                                        • Ankdeep

                                                          Can Insurance rebate of RM 6000 be taken on insurance purchased in foreign countries ?

                                                          Reply
                                                          • RinggitPlus

                                                            Hi Ankdeep,

                                                            Our research doesn't say whether it matters where the insurance was purchased, so it look like it should be okay. But we recommend visiting your nearest LHDN branch to be absolutely sure.

                                                            Reply
                                                          • Amar Jauhari Abang

                                                            A Singaporean owns a property in Malaysia. Is she subjected to any tax in Malaysia? Thanks

                                                            Reply
                                                            • RinggitPlus

                                                              Hi Amar,

                                                              Yes, there are 2 taxes every owner of Malaysian property has to pay.
                                                              That's the property tax which payable to local authorities in two instalments annually, on or before February 28 or 29 (for the period of January to June), and on or before August 31 (for the period of July to December).
                                                              And annual quit rent or cukai tanah, which we wrote about here: https://ringgitplus.com/en/blog/Home-Loans/What-is-Cukai-Tanah-Quit-Rent.html

                                                              Reply
                                                            • Angie

                                                              Hi,
                                                              As a foreigner, is there any tax reliefs or rebates? How to reduce my tax since my monthly PCB charges is 28% per month.

                                                              Reply
                                                              • Mehwish fayyaz

                                                                Hi ringgit plus, can u plz answer me some of the question. I got my employment visa in Jan 2015 and then in Feb 2015 I started work on salary of Rm 5000. But I did not get registered and dont get my tax number till now.now I want to get registered and want to file the tax return for year 2015. Also I want to settle my tax dues for the whole year 2015. Can u plz tell me whether there will b any penalty for not filing my tax return and not paying my tax dues for the year 2015. If yes then how much they will charge.and now how can I get my tax number.as I did not get registered yet.plz also tell me that what kind of penalty they will charge.i will b very thankful to u.

                                                                Reply
                                                                • RinggitPlus

                                                                  Hi Mehwish,

                                                                  It's already quite late for you to file the taxes for 2016. The penalties for that is you have to pay a 10% increment on the tax payable for late filing and additional 5% on the remainder if the payment is not made after 60 days from the final date (which was 31st April of this year). http://www.hasilnet.org.my/penalty-late-income-tax-payment/

                                                                  Getting your tax number is quite easy. You can go to the nearest branch of the Malaysian Inland Revenue Board (LHDN or Lembaga Hasil Dalam Negeri) or register online via e-Daftar: http://ekl.hasil.gov.my/

                                                                  Reply
                                                                • Dipendra Kumar Ray

                                                                  Hi,
                                                                  Recently i offered job in malaysia with 5075 per month. Can you help me to advice how much net salary i will get after all deduction made. My employer said its 3654, is this true?

                                                                  Reply
                                                                  • RinggitPlus

                                                                    Hi Dipendra,

                                                                    That depends on what sort of deductibles you have imposed on your payslip. There are many perks, benefits, or other things employers can deduct a portion of your salary for. You have to check with your HR department to know for sure and make sure everything looks good. We hope this helps!

                                                                    Reply
                                                                  • Smita

                                                                    hi, we are a company in Malaysia and want to buy a car. Would want to know if 100 % payment for car or hire purchase of car is better from the tax point of view . Urgent, thanks in advance

                                                                    Reply
                                                                    • YOENG CN

                                                                      hi, i am a sales personnel in car line. For every one car sold, i get paid rm800. In order to promote sales, most sales personnel give discount to customer at their own expense. If my income for the month is rm8000, but on average rm300 per car discount given, my net income is only rm5000.
                                                                      i approach income tax dept on whether can i deduct the rm300 per car from my EA form reported income total, the answer was no. Their arguement was my income is rm800 for every car sold, discount given to customer should be at my own expense and is not claimable.
                                                                      Is that true?

                                                                      Reply
                                                                      • RinggitPlus

                                                                        Hi YOENG,

                                                                        You've answered the question yourself, sort of. When you say "give discount at your own expense", that's what that means. You are taking the hit for that expense on your own, personally. That expenditure is not tied to the company you work for, and therefore, you cannot deduct it from your income total.

                                                                        Reply
                                                                      • Nornisa


                                                                        Hi, please help me , is it Fixed deposit interest is taxable if the statutory business income is 0?

                                                                        Reply
                                                                        • RinggitPlus

                                                                          Hi Nornisa,

                                                                          All local bank interest income is tax exempted, so you don't need to worry about that. Hope this helps!

                                                                          Reply
                                                                        • sarath

                                                                          Please confirm whether EPF contribution by the EMPLOYER for Foreign Staff is taxable income..? either at the time of paying to Government or at the time of Refund of EPF while going back to home country...

                                                                          Reply
                                                                          • RinggitPlus

                                                                            Hi sarath

                                                                            According to the KWSP website, EPF contributions are tax deductible up to a maximum amount of RM6,000.00, subject to periodic amendments by the government (inclusive of exemption for life insurance premium).
                                                                            You are exempted from paying income tax for monies withdrawn under the EPF savings withdrawal schemes. Returns on the EPF investment are also tax exempted.

                                                                            Reply
                                                                          • Jade

                                                                            Hi,
                                                                            Will I be eligible for tax relief for an on-line computer purchase through Dell Australia which is bill in AUD?

                                                                            Reply
                                                                            • RinggitPlus

                                                                              Hi Jade

                                                                              Yes, you're eligible. Just make sure you have the receipt

                                                                              Reply
                                                                            • Keith

                                                                              Is there a possibilities of income tax deduction of 180+ for a salary earner of 3000 with epf deduction of 330?
                                                                              Im just so curious on how the MTD works.
                                                                              Thanks in advance

                                                                              Reply
                                                                            • Teh Boon Beng

                                                                              Hi , RinggitPlus

                                                                              If this year i spent around 4,000 on my parents medical and can i claim . i see the chart that we can deduct RM5,000 for our parents . If yes for my case the total bill is RM4,000 it this mean i claim at this amount . Thanks....

                                                                              Reply
                                                                              • RinggitPlus

                                                                                Hi Teh Boon Beng,

                                                                                Yup, you can. Just make sure you have the receipt. We hope this helps!

                                                                                Reply
                                                                              • Kenny Low

                                                                                Do i still need to pay tax if I close down my sole proprietor business?

                                                                                Reply
                                                                                • RinggitPlus

                                                                                  Hi Kenny,

                                                                                  If you're still earning income from something, you need to pay the income tax. If you don't, then no. We hope this helps!

                                                                                  Reply
                                                                                • Nab

                                                                                  Hi, may i ask, Im a student in Ireland receiving scholarship of Euro900 per month from a Malaysian government related scholarship body for my monthly expenses including rent and groceries. Is this scholarship money taxable?

                                                                                  Reply
                                                                                • JC

                                                                                  Hi,

                                                                                  May I know if I were to build my own PC (meaning I buy parts separately and put them together into one instead of buying a desktop or laptop from a retailer) am I still eligible for the tax relief?

                                                                                  Thanks in advance.

                                                                                  Reply
                                                                                  • RinggitPlus

                                                                                    Hi JC

                                                                                    This is a good question and we can't find official documentation that mentions computer parts. "Computer accessories" are mentioned as excluded from tax deduction, however.
                                                                                    You can try to contact them directly via 03-83138888 for confirmation on your specific situation. We hope this helps!

                                                                                    Reply
                                                                                  • Han

                                                                                    hello ringgit plus,

                                                                                    im a tax residents in singapore, do i still need to pay tax to malaysia government?

                                                                                    Reply
                                                                                    • RinggitPlus

                                                                                      Hi Han,

                                                                                      You only have to pay tax in Malaysia if you earn income in Malaysia. If during your period of employment, your stay is not more than 182 days in a year, then you are a non-resident. As a non-resident, you will be taxed at a flat rate of 26% (will reduce to 25% for the assessment year 2015 onward) and you will not enjoy any tax incentives.

                                                                                      We recommend you contact LHDN directly (03-83138888) if you're still unclear or visit an LHDN branch nearby. Hope this helps!

                                                                                      Reply
                                                                                    • Rehna Muhammad

                                                                                      Hi Rehna muhammad.... i need a clear picture of my staff who is german expatriate who is working in malaysia since year 2014. He been paying pcb tax accordinly each month but overlook on the e-filing for 2014 & 2015. Does he able to do it asap for both years now ??

                                                                                      Reply
                                                                                    • Patch

                                                                                      Hi, I like to ask that for deductions from rental income, are unofficial receipts from say Indonesian contractors valid?

                                                                                      Reply
                                                                                      • RinggitPlus

                                                                                        Hi Chinellato

                                                                                        We're not sure of the answer to this one, but we recommend contacting your nearest LHDN branch for clarification.
                                                                                        Hope this helps!

                                                                                        Reply
                                                                                      • Chinellato giampaolo

                                                                                        Good Morning I start to work in Malaysia from January 2017 as Employer and I need to pay the tax and EPF from my self .... How I calcolate how much I need to pay ? The tax in Malaysia should be pay monthly or yearly ? Can You tell me also the ways for payment? Sorry for much question but I want to have all clear before coming over ...thanks You in advance

                                                                                        Reply
                                                                                        • RinggitPlus

                                                                                          Hi Chinellato,

                                                                                          You can start by reading up here http://www.hasilnet.org.my/ or visiting your nearest LHDN branch for more hands-on help and direct assistance.
                                                                                          Hope this helps!

                                                                                          Reply
                                                                                        • Grace Chang

                                                                                          If we are conducting online business, is the income taxable? If yes, under which section in the Borang BE that we need to declare that?

                                                                                          Reply
                                                                                        • CH

                                                                                          Hi

                                                                                          Just would like to know how is the tax exemption for the computer purchased claim every 3 years work?

                                                                                          For example, I purchase a laptop on Dec 2014 and claim on 2015 under 2014 taxation year, is it i eligible for next claim again on 2017 if i purchased a new computer in 2017?

                                                                                          Reply
                                                                                          • RinggitPlus

                                                                                            Yup!

                                                                                            Reply
                                                                                          • Nara

                                                                                            For Forex traders who wire transfer earnings from overseas country, are they taxable?

                                                                                            Reply
                                                                                            • RinggitPlus

                                                                                              Hi Nara,

                                                                                              We're not sure if forex earnings are technically counted as income this way. You can contact your nearest LHDN branch for clarification.
                                                                                              We hope this helps!

                                                                                              Reply
                                                                                            • Farah

                                                                                              I'm a bit confused that you put royalties as part of tax exemptions 'cause I read somewhere that you still need to pay 10% if your total royalties exceed RM20k per year.

                                                                                              So, just to be clear, am I exempted for income tax if I sell my books oversea (eg: in amazon) but received the check for my royalties payment here? And do I still have to declare my tax if the total doesn't exceed RM20k?

                                                                                              Reply
                                                                                              • RinggitPlus

                                                                                                Hi Farah,

                                                                                                Perhaps the way we phrased it in the article was a bit ambiguous.
                                                                                                The list was part of taxable income, not a list of things exempted from tax.
                                                                                                So yes, royalties are taxable.

                                                                                                Reply
                                                                                              • Jack

                                                                                                Hi, I am filing the income tax for the first time. So if I bought a laptop at 2 years ago, can I take that purchase as my tax relief?

                                                                                                And I am a real estate negotiator, my income is fully based on commission and allowance. I will be filling the Form B and I am wondering if petrol expenses can be treated as tax relief since my job nature is to travel a lot to show customers the houses and it is a basic cost for me to earn my income.

                                                                                                At the same time, I am taking a real estate course in a private institution to prepare me for the exams by BOVAEA Malaysia as a progress for me to obtain an estate agent license. Can the fees of the course be taken as tax relief under education?

                                                                                                Appreciate if RinggitPlus can help me out, thanks a lot! :D

                                                                                                Reply
                                                                                                • RinggitPlus

                                                                                                  Hi Jack,

                                                                                                  You have a lot of questions there. Let's address them one by one.

                                                                                                  1) Yes, your laptop can be used as tax relief. Just remember to show your receipt
                                                                                                  2 & 3) These questions are quite involved and our information may not be enough to help you. We recommend visiting your nearest LHDN branch to get the answers to these.

                                                                                                  Hope this helps!

                                                                                                  Reply
                                                                                                • Jern

                                                                                                  Hello,

                                                                                                  I would like to ask if I am registered as a Sole Proprietor, the income also consider as personal income and the income will be tax as personal income tax or corporate tax? Am I still entitle with tax relief?

                                                                                                  I hire employee as well. Can I deduct the EPF and Socso expenses?

                                                                                                  Reply
                                                                                                  • RinggitPlus

                                                                                                    Hi Jern,

                                                                                                    Your question is a bit too involved for us to answer sufficiently. We recommend you visiting your nearest LDHN branch to get the information you need.
                                                                                                    We hope this helps!

                                                                                                    Reply
                                                                                                  • Sim Kean Hong

                                                                                                    Hi there,

                                                                                                    For the income generated from PV FiT to TNB since June 2016, is the income is taxable?
                                                                                                    Thanks.

                                                                                                    Reply
                                                                                                    • RinggitPlus

                                                                                                      Hi Sim Kean Hong

                                                                                                      That question is a bit too involved for us to answer sufficiently. We recommend visiting your nearest LHDN branch to get the information you need.
                                                                                                      We hope this helps!

                                                                                                      Reply
                                                                                                    • Ling

                                                                                                      I am Malaysian, Singapore PR. I stay in Malaysia less than 3 weeks per year. I bought property in Malaysia by cash. Do I need to pay income tax?

                                                                                                      Reply
                                                                                                      • RinggitPlus

                                                                                                        Hi Ling,

                                                                                                        Our research tells us if you earn income from the rental of that property while you're not a permanent resident, you'll be taxed a flat rate of 25%.
                                                                                                        We recommend contacted your nearest LHDN branch for more information.

                                                                                                        Hope this helps!

                                                                                                        Reply
                                                                                                      • Lim

                                                                                                        Hi
                                                                                                        So I'm about to buy a laptop and I want to relieve off my income tax so when should buy so it is included in my tax relief?
                                                                                                        Should I buy it in Jan 2017 or I can buy it now?

                                                                                                        Reply
                                                                                                        • Kana

                                                                                                          Hi, can health supplements of my parents be categorized under medical expenses?
                                                                                                          And what about the body checkup fees? Does it consider as medical expenses?

                                                                                                          Reply
                                                                                                          • Eddie

                                                                                                            Hey RinggitPlus,

                                                                                                            Good job on the article! It's very concise and straight to the point.

                                                                                                            Moving on to my questions:
                                                                                                            1) I started working in April 2015 with an initial salary of RM3,200. Therefore, by logic my annual income for 2015 should be RM28,800 (April - December 2015). My chargeable income (following the calculation above) is RM28,800 - RM9,000 - RM2,000 - (11% EPF contribution) = RM14,632. Since the figure is less than the minimum RM34,000 required to file my taxes, does that mean for 2015 I don't need to file my taxes at all? Otherwise, how much is the penalty imposed on me?

                                                                                                            2) Is overtime considered a part of taxable income as well?

                                                                                                            3) In April 2016, I got a salary increment, hence my salary is now RM3,456. Which of the below annual salary calculation is correct then?
                                                                                                            i) (RM3,200 x 3) + ( RM3,456 x 9) = RM40,704 (The first 3 months my salary is RM3,200 before increment)
                                                                                                            ii) RM3,456 x 3 = RM41,472

                                                                                                            4) Your calculation for chargeable income does not take into account insurance premium paid annually. Should I add that together with my EPF contribution (max. RM6,000) when calculating chargeable income?

                                                                                                            I apologise for the multitude of questions though; this is my first time doing taxes and I'm not quite sure how to do it.

                                                                                                            I do hope you revert back as soon as possible (After all I spend 30 minutes writing these questions with a tablet though 😊)

                                                                                                            Thanks!!!

                                                                                                            Reply
                                                                                                            • Robin Liew

                                                                                                              Hi,
                                                                                                              May I know if a person is an employee and at the same time is self-employed (generating part time income) -- efeectively having to submit both a B and BE form. Does this normally happen and if so, may i know how income taxes are calculated???

                                                                                                              Regards,
                                                                                                              Robin

                                                                                                              Reply
                                                                                                              • RinggitPlus

                                                                                                                You do need to file separately if you have both sources of income coming in. It should work the same, with some exception on employee benefits that you can't give to yourself.
                                                                                                                For further clarification and information on this, we recommend contacting your nearest LHDN branch.
                                                                                                                Hope this helps!

                                                                                                                Reply
                                                                                                              • dr rafiq

                                                                                                                Hann Liew,
                                                                                                                Am from india and working in malaysia since last 2003, i have been paying Income Tax regularly from begining as i am govenment employee in MOH. Last year LHDN cut CP38 app 8700 , upon inquiry they gave me the statement. That shows that you have balance tax to pay to lHDN for the year 2004, 2005 and some 2007. before this i never been informed about, suddenly came out in 2016.
                                                                                                                We need to keep record of 7 years, before this , in case like this notice is coming in 2016, than what to do?
                                                                                                                dr rafiq

                                                                                                                Reply
                                                                                                                • JC

                                                                                                                  Hi Riggit Plus, I'm a university student studying in finance. I would like to learn more about the tax treatment for EPF for extra knowledge.
                                                                                                                  I borrow some taxation book from the university and friends but there are still somethings i cant figure out.
                                                                                                                  If one person retired and received an amount from EPF? What is the tax treatment for that amount?

                                                                                                                  Reply
                                                                                                                  • Michelle Nam

                                                                                                                    Hi, is uniform provided by employer taxable to employee or under BIK?

                                                                                                                    Reply
                                                                                                                    • Jem

                                                                                                                      Hi,

                                                                                                                      I accepted the voluntary seperation scheme (VSS) and my last day of service was 31st December 2015. My previous company paid my compensation in 2016 and meanwhile I started my own sole proprietor company offering consultancy service. I have been engaged with my client since January 2016. How am I going to declare my income for year 2016? For year 2015, I have already filed the tax return.

                                                                                                                      Reply
                                                                                                                      • Jem

                                                                                                                        Hi,

                                                                                                                        I accepted my company voluntarily seperation scheme last year and they paid my compensation in the year of 2016. Meanwhile starting from January, I have been doing freelance job under my sole proprietor company. How am I going to file for tax for year 2016 as I have compensation from my ex company and my business as a sole proprietor.

                                                                                                                        Reply
                                                                                                                        • RinggitPlus

                                                                                                                          Hi Jem,

                                                                                                                          Both are included as forms of income and you should pay tax on both of them accordingly. For a more detailed explanation on how to get this done, we recommend you contact your nearest LHDN branch.
                                                                                                                          We hope this helps!

                                                                                                                          Reply
                                                                                                                        • Erik Vu

                                                                                                                          Hi,
                                                                                                                          I'm a foreigner. I arrived to Malaysia since 1-Dec-2016 and have contract to work for the company in Malaysia from 1-Dec-2016 to 15-Jul-2017. The company said that i have to pay personal income tax on non-resident rate during the time (7.5 months) and then the tax deducted in 2017 (1/1/2017 to 15/7/2017) will be refunded while the tax deducted in Dec-2016 will not be refund. I have 3 questions:

                                                                                                                          - In my knowledge, my first tax year is from 1-Dec-2016 to 15-Jul-2017 (when i come back to my home country) => all the tax deducted must be refunded, including the tax deducted in Dec-2016, right?

                                                                                                                          - In my opinion, I should only be taxed at non-resident rate in Dec-2016 then in 2017 i should be treated as resident => no deduction monthly salary in 2017, right? (my income less than 9000 RM)

                                                                                                                          - When is the latest deadline for tax refund? As I have 1 friend in same case with me, he come back to home country in Jul-2016 but not yet refunded till now (Dec - 2016)

                                                                                                                          Please give me the reference for each of your advises (Law, Circular, Decree...)

                                                                                                                          Thanks alot

                                                                                                                          Reply
                                                                                                                          • RinggitPlus

                                                                                                                            Hi Erik,

                                                                                                                            It sounds like there's a lot going on with your current situation. While we do try our best to help, for cases that are as involved as yours, we recommend communicating directly with your nearest LHDN branch to find more precise information.
                                                                                                                            We hope this helps!

                                                                                                                            Reply
                                                                                                                          • Max

                                                                                                                            Hi

                                                                                                                            I earning 8600 RM per month and this is basic salar. No EPF or any other deductions. Wife not working and a kid.
                                                                                                                            I want to understand whether there will be any EPF rebate given to me or not and also what all rebates that I will eligible for?
                                                                                                                            Thanks in advance!!!

                                                                                                                            Reply
                                                                                                                            • RinggitPlus

                                                                                                                              Hi Max,

                                                                                                                              EPF contributions are tax deductible up to a maximum amount of RM6,000.00. As for your other rebates, we won't know unless we're aware of what you've been spending on for the past financial year.
                                                                                                                              If you want more detailed answers, you can contact your nearest LHDN branch.
                                                                                                                              Hope this helps

                                                                                                                              Reply
                                                                                                                            • jt

                                                                                                                              Hi Ringgit Plus,

                                                                                                                              I filed for Tax Relief for purchase of personal computer for year assessment in 2013 and now intend to purchase another personal computer either within this week or in early 2017.

                                                                                                                              I understand that the Prime Minister had announced some changes in the tax relief during 2016 Budget. I need yr advise whether the tax relief for personal computer remains the same ie at RM3000 irrespective of my purchase date?

                                                                                                                              Another question is that if I purchase it in 2017, does this mean that I could only file for tax relief during year assessment 2017 in 2018?

                                                                                                                              Reply
                                                                                                                              • CuriousTaxPayer

                                                                                                                                Hi, I'm remotely working (contract part-time) from Malaysia, for a company based overseas, so they don't have an "employer income tax number" in Malaysia. So can I leave the "Employer income tax number" in Borang BE blank when declaring my annual income?

                                                                                                                                Reply
                                                                                                                                • RinggitPlus

                                                                                                                                  This question is a bit too involved for us to answer adequately.
                                                                                                                                  We recommend you find out more about this from your nearest LHDN branch.
                                                                                                                                  We hope this helps!

                                                                                                                                  Reply
                                                                                                                                • Winnie

                                                                                                                                  Hi, is there any tax relief for unemployed spouse/ spouse without income more than 12 month?

                                                                                                                                  Reply
                                                                                                                                • Nora

                                                                                                                                  Hi there,
                                                                                                                                  I have been unemployed since January 2016. Do I still need to declare/submit the BE form for 2016? If yes, does that mean I am still legible for rebates or any claims such as zakat? Thanks.

                                                                                                                                  Reply
                                                                                                                                  • fiza

                                                                                                                                    Hi there,
                                                                                                                                    Director allowance is taxable or not to company?
                                                                                                                                    Does the director personally have to pay for tax for the director allowances?

                                                                                                                                    Reply
                                                                                                                                    • ng

                                                                                                                                      Hi,
                                                                                                                                      I registered sole proprietor on Jul'15 & business commence on Sept'15. Shall i submit the business income from Sept'15 to Dec'16 on year 2017.
                                                                                                                                      I submitted my employment income on year 2015 only. If not allow, will it be penalty ?
                                                                                                                                      Can remain my current income tax no to fill in Form B ?
                                                                                                                                      Thanks.

                                                                                                                                      Reply
                                                                                                                                      • RinggitPlus

                                                                                                                                        Hi Ng,

                                                                                                                                        We can't answer this question right since some of your concerns are a bit unclear.
                                                                                                                                        In any case, we recommend contacting your nearest LHDN branch for a better assessment of your needs.
                                                                                                                                        We hope this helps

                                                                                                                                        Reply
                                                                                                                                      • alex

                                                                                                                                        hi ,how should i pay my tax on rental if i collect $1500/m and my monthly installment is $1300?Thanks

                                                                                                                                        Reply
                                                                                                                                        • RinggitPlus

                                                                                                                                          Hi,

                                                                                                                                          You should pay according to how much income you've earned from rental, without taking into account any expenses.
                                                                                                                                          If you'd like a clearer answer or would prefer to go more in-depth, we recommend visiting your nearest LHDN branch with your inquiries.
                                                                                                                                          We hope this helps.

                                                                                                                                          Reply
                                                                                                                                        • Daljit.

                                                                                                                                          Hi,

                                                                                                                                          Would like to know if monthly housing and relocation allowances are taxable.

                                                                                                                                          Thanks.

                                                                                                                                          Reply
                                                                                                                                          • RinggitPlus

                                                                                                                                            Hi Daljit,

                                                                                                                                            Those are taxable and come under perks and benefits.

                                                                                                                                            Reply
                                                                                                                                          • Marwan El Gaddafi

                                                                                                                                            Hello there,

                                                                                                                                            I live in Canada and I want to send a hand watch (less than 500 gram) to my friend in Kuala Lumpur, so I wonder if he has to pay a tax or something else, when he receives it, and how much?

                                                                                                                                            best regards,

                                                                                                                                            Reply
                                                                                                                                          • Kirthika

                                                                                                                                            Hi, I am an expat working in Malaysia. Can I claim the LIC life insurance premiums paid for my husband in India

                                                                                                                                            Reply
                                                                                                                                            • RinggitPlus

                                                                                                                                              Hi Kirthika,

                                                                                                                                              This particular problem is a bit out of our depth, unfortunately.
                                                                                                                                              We recommend visiting your nearest LHDN branch and asking them about this. They should have better information on how to deal with your issue.
                                                                                                                                              We hope this helps!

                                                                                                                                              Reply
                                                                                                                                            • Jacelyn

                                                                                                                                              Hi,

                                                                                                                                              I am a sole proprietor. I just bought a car and ipad for business use. How do I claim these under my upcoming income tax?

                                                                                                                                              Appreciate if you can shed some lights.

                                                                                                                                              Reply
                                                                                                                                            • sandhya

                                                                                                                                              I have a doubt, lets assume the annual salary is RM 240000 and have deductions for RM 9000 (standard for individual or family) and RM 2000 (2 children education), in this case will the chargable income be 240000-9000-2000 and you pay tax on the balance of 229000 using the table mentioned at the top?. The reason am asking is because of the last example you had given on Cutoff point for tax where it mentions minimum threshold for which you will need to pay tax has increased in 2015 to RM40,449.44. So based on the example citied will i be required to pay tax based on slabs for 229000 or the chargable income will be calculated as 229000-40449 and tax will be paid on the amount of RM 188000. Please clarify.

                                                                                                                                              Reply
                                                                                                                                              • RinggitPlus

                                                                                                                                                Hi Sandhya.

                                                                                                                                                When you asked, "..in this case will the chargeable income be 240000-9000-2000 and you pay tax on the balance of 229000 using the table mentioned at the top?" the answer is yes.
                                                                                                                                                The threshold being increased has no effect on you at all since you're earning an order of magnitude more than RM50,000. So you should disregard the threshold increase and pay tax based on the calculation above.
                                                                                                                                                We hope this helps

                                                                                                                                                Reply
                                                                                                                                              • MOUSTAFA

                                                                                                                                                Hi sir!
                                                                                                                                                I am an international employee in an organization. What I learnt was that the due date for submitting the tax file is from 1st March till 30 April. My problem is that my current visa expires on 25th of March and I need the income filing to be settled two months at least before that date so that I can submit my application for visa renewal. Is there any way out from that situation?
                                                                                                                                                Thank you

                                                                                                                                                Reply
                                                                                                                                                • RinggitPlus

                                                                                                                                                  Hi Moustafa,

                                                                                                                                                  You can actually file your taxes before 1st March, as long as you do it before the deadline which is 30th April.
                                                                                                                                                  File them early and you won't have a problem. Do contact your nearest LHDN branch for more information of course.
                                                                                                                                                  We hope this helps!

                                                                                                                                                  Reply
                                                                                                                                                • Hu

                                                                                                                                                  Hi

                                                                                                                                                  Lets say if I sell products on e-commerce website and makes more than RM5/mth (RM60k p.a.), but do not register online business with SSM. Am I fall under Personal/Individual or Business/Company tax category? Also, since I'm doing it all by my own (no partner), can I contribute to my EPF and use it as tax reduction?

                                                                                                                                                  Thanks.

                                                                                                                                                  Reply
                                                                                                                                                • GORI SHANKER KHADELWAL

                                                                                                                                                  HI RINGGIPLUS
                                                                                                                                                  Please advise if interest accrued income on deposits with local banks is exempt for NON-RESIDENT ( MM2H status, spent less than 182 days in a year in Malaysia, INTEREST ON DEPOSITS UNDER GOVT LIEN for MM2H). From your site it is clear that for RESIDENT this interest income is exempt. Also is there any limit on the amount of deposit or interest income.
                                                                                                                                                  THANKS

                                                                                                                                                  Reply
                                                                                                                                                  • RinggitPlus

                                                                                                                                                    Hi,

                                                                                                                                                    According to this attachment from hasil.gov: http://lampiran.hasil.gov.my/pdf/pdfam/RISALAH_R6_BI_15.pdf
                                                                                                                                                    Non-resident individuals are not liable to be taxed for receiving interests from banks. So you're in the clear.
                                                                                                                                                    If you need further clarification however, we recommend you contact your nearest LHDN branch.
                                                                                                                                                    We hope this helps!

                                                                                                                                                    Reply
                                                                                                                                                  • Zack

                                                                                                                                                    Hi, my income tax statement is lost, can I use my EPF statement to calculate my SALARY?

                                                                                                                                                    Reply
                                                                                                                                                    • RinggitPlus

                                                                                                                                                      Hi Zack,

                                                                                                                                                      We're not sure what you're asking here.. If you need help knowing your full salary, you can always request your payslip from your employer.
                                                                                                                                                      We hope this helps!

                                                                                                                                                      Reply
                                                                                                                                                    • S Qureshi

                                                                                                                                                      Thanks for the great information given in this article
                                                                                                                                                      If I get a contract from a hospital for giving my consultant services as an independent provider and work 3 weeks off and 3 weeks on (not as a full salaried person) would it be tax exempt or bracketed a different way
                                                                                                                                                      I am USA national and the hospital in Malaysia wants my services as a consultant

                                                                                                                                                      Reply
                                                                                                                                                      • RinggitPlus

                                                                                                                                                        Hi S Qureshi, thank you for your question.

                                                                                                                                                        Even if you are not a Malaysian citizen, if you have a total of more than 60 days employment in the tax year, and if you are resident in the country for more than 182 days, then you are liable to pay income tax.
                                                                                                                                                        For more detailed information on how to do so, we recommend visiting your nearest LHDN branch.
                                                                                                                                                        We hope this helps!

                                                                                                                                                        Reply
                                                                                                                                                      • LAWRENCE HING

                                                                                                                                                        HI,
                                                                                                                                                        MY SALARY IS RM3000 PER MONTH

                                                                                                                                                        LIFE INSURANCE RM250 PER MONTH
                                                                                                                                                        HOUSE RENTAL RM910 PER MONTH
                                                                                                                                                        CAR LOAN RM813 PER MONTH
                                                                                                                                                        TOTAL EXPENSES ABOVE IS RM 1973 PER MONTH

                                                                                                                                                        DO I HAVE TO PAY FOR THE INCOME TAX?
                                                                                                                                                        I SAW THE ARTICLE SAID ABOUT THE RM400 REBATES FOR SALARY BELOW 35K..SO I SHOULD'T PAY ANY TAX RIGHT?

                                                                                                                                                        Reply
                                                                                                                                                      • Rachel

                                                                                                                                                        Hi,

                                                                                                                                                        I'm a sales & marketing consultant receiving income from Singapore company for business activities in South East Asia countries but home based Malaysia. Am i taxable (how many percent) and how shall i do tax declaration? Do i need to register with SSM for such ? at the moment i receive income as freelancer / individual

                                                                                                                                                        Reply
                                                                                                                                                        • RinggitPlus

                                                                                                                                                          Hi Rachel,

                                                                                                                                                          If you do not receive the income in Malaysia, and it is not derived from a source in Malaysia, you are not subject to taxes on the income in Malaysia.
                                                                                                                                                          Malaysia taxes both residents and nonresidents only on income derived from a Malaysian source or received in Malaysia.
                                                                                                                                                          For further information on this matter, you can contact your nearest LHDN branch.
                                                                                                                                                          We hope this helps!

                                                                                                                                                          Reply
                                                                                                                                                        • Mark

                                                                                                                                                          Hi there, I'm Mark.
                                                                                                                                                          I would like your help. I have my own online business but does not have any profit. Do I have to submit the income tax form?

                                                                                                                                                          Reply
                                                                                                                                                        • connie teh

                                                                                                                                                          HI,My company is SdnBhd,we has employer sub cond. have our company to filling
                                                                                                                                                          income tax ?

                                                                                                                                                          Reply
                                                                                                                                                        • Yin

                                                                                                                                                          Hi, my employer deducts a portion from my salary for income tax payment. But I am entitled for tax deductions. How do I go about getting what my employer paid in extra?

                                                                                                                                                          Reply
                                                                                                                                                          • RinggitPlus

                                                                                                                                                            Hi Yin,

                                                                                                                                                            Once you file your income tax and fill in your forms (including the ones that ask for details of your deductibles), the tax dept will reimburse you accordingly.
                                                                                                                                                            For a more detailed explanation of this, we recommend you visit or contact your nearest LHDN branch.
                                                                                                                                                            Hope this helps!

                                                                                                                                                            Reply
                                                                                                                                                          • tya

                                                                                                                                                            hi , i would like to know if i should file the tax since my monthly salary is MYR 2500 and after the epf/socso deduction i only getting paid around 2200 . on december i got paid for performance bonus amount 3600. would appreciate if you could clarify this to me . Thank you .

                                                                                                                                                            Reply
                                                                                                                                                          • eric

                                                                                                                                                            Hi,
                                                                                                                                                            Any new article for Income Tax guide FY2016 this year(2017)?

                                                                                                                                                            Reply
                                                                                                                                                            • RinggitPlus

                                                                                                                                                              Hi Eric,

                                                                                                                                                              Thanks for reaching out to us! Our 2017 Income Tax articles will be released in April, stay tuned!

                                                                                                                                                              Reply
                                                                                                                                                            • Jen

                                                                                                                                                              Hi

                                                                                                                                                              Am I correct that as a MM2H resident if I have less than RM30,667 income per year (All from rental income) I do not need to submit a tax return?

                                                                                                                                                              Thanks

                                                                                                                                                              Reply
                                                                                                                                                              • RinggitPlus

                                                                                                                                                                Hi Jen,

                                                                                                                                                                Yup that's correct. Keep in mind however, that we are in no way tax experts, though we do try our best.
                                                                                                                                                                If you want further clarification or any more questions, we recommend visiting your nearest LHDN branch.
                                                                                                                                                                Hope this helps!

                                                                                                                                                                Reply
                                                                                                                                                              • Jen

                                                                                                                                                                Hi
                                                                                                                                                                Not sure if you got my previous post
                                                                                                                                                                am I correct that as a MM2H resident if my income(all from property rental) is below RM30,664 I do not have to submit a tax return?
                                                                                                                                                                thank you

                                                                                                                                                                Reply
                                                                                                                                                                • RinggitPlus

                                                                                                                                                                  Hi Jen!

                                                                                                                                                                  Thanks for your inquiry! Please be advised that the article is referring to the income tax figures and deductibles to Malaysian citizens only. Since we're not sure of you're residency status, we can't rightfully answer your question for fear of misinformation.

                                                                                                                                                                  Perhaps it's better to direct your question to the nearest inland Revenue Board Malaysia, or email them at lhdn@hasil.gov.my.

                                                                                                                                                                  Hope this helps!

                                                                                                                                                                  Reply
                                                                                                                                                                • Ben

                                                                                                                                                                  I have a Malaysian colleague who was employed by a neighbouring country for some contract work in Malaysia and he is being paid offshore, not in Malaysia. Is he taxable in Malaysia?

                                                                                                                                                                  Reply
                                                                                                                                                                  • RinggitPlus

                                                                                                                                                                    Hi Ben,

                                                                                                                                                                    Thanks for your inquiry! We're not sure how to advise you best as we don't have the full information on your colleague's situation, but it would be best to get advise directly from the Inland Board Revenue Malaysia (lhdn@hasil.gov.my) so that your colleague can have the most correct and swift answer to help him sort out his income tax.

                                                                                                                                                                    Hope it'll all turn out okay!

                                                                                                                                                                    Reply
                                                                                                                                                                  • FT

                                                                                                                                                                    I'm a Malaysian working in Malaysia. If I received a sum of money from my employer a Singaporean privately to help ease my financial burden and not from the company fund and the money remitted to my Malaysia bank account from Singapore. Is the money is taxable?

                                                                                                                                                                    Reply
                                                                                                                                                                    • RinggitPlus

                                                                                                                                                                      Hi FT,

                                                                                                                                                                      Thanks for your inquiry! Well it sounds like a monetary gift from your employer, which is not included in the General Taxable Income list as per the article above.

                                                                                                                                                                      We don't see why that would be taxable if it's intended as a gift, but if it's disbursed under the company name, you might want to get that checked with the Inland Revenue Board Malaysia.

                                                                                                                                                                      Hope this helps!

                                                                                                                                                                      Reply
                                                                                                                                                                    • PY

                                                                                                                                                                      Hi,

                                                                                                                                                                      I would like to know if I have a freelance job which supposed to receive payment due in 2016, but I only receive the actual payment in Jan 2017 in lump sum. Should I report the income in my 2016 BE form based on accrual basis or report it in 2017 where actual payment received.

                                                                                                                                                                      Thanks

                                                                                                                                                                      Reply
                                                                                                                                                                      • RinggitPlus

                                                                                                                                                                        Hi PY!

                                                                                                                                                                        Thanks for your inquiry! We're inclined to say that you should follow the date when you received the actual income as only that's the date it's reflected in your statement.

                                                                                                                                                                        But do check with the Income Revenue Board Malaysia for further clarification. You can never be too cautious!

                                                                                                                                                                        Reply
                                                                                                                                                                      • Adrian

                                                                                                                                                                        Hi, Can i check whether the interest earned in Fixed Deposits are taxable ? For example, if the interest earned is more than $100,000 ?

                                                                                                                                                                        Thanks

                                                                                                                                                                        Reply
                                                                                                                                                                        • RinggitPlus

                                                                                                                                                                          Hi Adrian,

                                                                                                                                                                          From what we understand, interests earned from fixed deposit accounts that exceeds RM100,000 are exempted only when it's deposited in certain banks (cited from http://ehasil.blogspot.my/2009/02/tax-exemptions-for-individuals.html).

                                                                                                                                                                          Since we're not sure which bank your fixed deposit account is under, we advise you to check with the Inland Revenue Board Malaysia directly for further clarification.

                                                                                                                                                                          Hope this helps!

                                                                                                                                                                          Reply
                                                                                                                                                                        • Doreen

                                                                                                                                                                          Hi,
                                                                                                                                                                          I am a housewife and a non resident Malaysian. My only rental income from Malaysia is less than RM30,000. Do I still need to pay for 25% income tax?

                                                                                                                                                                          Reply
                                                                                                                                                                        • Ng

                                                                                                                                                                          Hi,

                                                                                                                                                                          I have a regular job and got side income from agriculture estate. I not sure is it true that some of agriculture considered taxed during sold raw material.
                                                                                                                                                                          May I know such extra income from agriculture estate such as oil palm need to declare and is it taxable?

                                                                                                                                                                          Reply
                                                                                                                                                                          • RinggitPlus

                                                                                                                                                                            Hi Ng,

                                                                                                                                                                            Thanks for your inquiry! We apologize as we don't really have the answer to your inquiry.

                                                                                                                                                                            Perhaps it's better to get the Inland Revenue Board Malaysia's consultation on this matter?

                                                                                                                                                                            Hope it'll all work out well for you!

                                                                                                                                                                            Reply
                                                                                                                                                                          • Za Morad

                                                                                                                                                                            Hi, I am Malaysian Self-Publisher. I plan to sell ebooks where ALL sales of the ebooks go to a health organisation. Can you please advise on my tax status?

                                                                                                                                                                            Reply
                                                                                                                                                                            • RinggitPlus

                                                                                                                                                                              Hi Za,

                                                                                                                                                                              Your question leaves out some key details... Is the health organisation your own? Are you getting paid indirectly somehow?
                                                                                                                                                                              If these details are a bit tricky to communicate, we recommend spending some time at your nearest LHDN branch. They will be able to provide you with better and more informed instructions as far as income tax in concerned.
                                                                                                                                                                              We hope this helps!

                                                                                                                                                                              Reply
                                                                                                                                                                            • Angela

                                                                                                                                                                              Hi RinggitPlus,

                                                                                                                                                                              I have a question. My husband is an expat working in KL hired July 2016, tax is being deducted as a non resident as he is not yet staying for more than 182 days for 2016, so tax deduction per month is around 25-28% which is fine.

                                                                                                                                                                              My husband tendered his resignation this Feb 28, 2017 and still have 1 month notice, end date with company is March 31, 2017. So until Feb salary he is still being deducted with his tax which is fine.

                                                                                                                                                                              My question is now their HR came back saying he still need to pay the tax for January 2016-June2016...which is absurd since my husband is not yet working in KL and not even with their company during those months? According to them its the law. I just want to confirm if they are telling the truth? As I cannot find it in the website.

                                                                                                                                                                              Reply
                                                                                                                                                                              • RinggitPlus

                                                                                                                                                                                Hi Angela,

                                                                                                                                                                                Your husband clearly does not need to pay any income tax for January 2016 to June 2016 if he did not earn any income with the company for that period. You do not have to entertain their requests for payment of things you don't owe them.
                                                                                                                                                                                But for safety, we recommend bringing as much relevant paperwork that pertains to your situation as possible to your nearest LHDN branch to clear things up. They should agree with you that you don't need to pay and can further advise you on the actions to take going forward.
                                                                                                                                                                                Hope this helps!

                                                                                                                                                                                Reply
                                                                                                                                                                              • Chuan

                                                                                                                                                                                Hi,

                                                                                                                                                                                Assuming my tertiary education will takes 3 years to complete, and i have paid my lump sum fee in YA2015 (in advance), can i pro-rated my education fee in YA2016 and 2017?

                                                                                                                                                                                Reply
                                                                                                                                                                                • RinggitPlus

                                                                                                                                                                                  Hi Chuan,

                                                                                                                                                                                  We're not quite sure if it's possible to do so for tax purposes. If you want further clarification on this, we recommend visiting your nearest LHDN branch instead.
                                                                                                                                                                                  Hope this helps!

                                                                                                                                                                                  Reply
                                                                                                                                                                                • SC

                                                                                                                                                                                  Hi RP,
                                                                                                                                                                                  I am a admin staff and received RM3600 transportation allowance from employer in Y2016. Basically this allowance is Travelling allowance or petrol allowance for travelling from home to place of work and from place of work to home. May I know this allowance is exempted?

                                                                                                                                                                                  Reply
                                                                                                                                                                                  • RinggitPlus

                                                                                                                                                                                    Hi SC,

                                                                                                                                                                                    These fall under company perks and benefits, and are actuall NOT exempted from tax.
                                                                                                                                                                                    For further clarification, contact your nearest LHDN branch.
                                                                                                                                                                                    Hope this helps!

                                                                                                                                                                                    Reply
                                                                                                                                                                                  • Carol

                                                                                                                                                                                    Hi there,
                                                                                                                                                                                    The figures to be submitted for income tax YA 2016 is to be inclusive of GST or exclusive of GST? For example, if I want claim on purchase of computer, do I state RM2000 (before GST) or RM2120 (after GST) ? Thanks

                                                                                                                                                                                    Reply
                                                                                                                                                                                    • RinggitPlus

                                                                                                                                                                                      Hi Carol,

                                                                                                                                                                                      Your expenses should include GST as well when filling out your income tax form.
                                                                                                                                                                                      For more information on this, we recommend you contact your nearest LHDN branch.
                                                                                                                                                                                      Hope this helps!

                                                                                                                                                                                      Reply
                                                                                                                                                                                    • King

                                                                                                                                                                                      Hi, RinggitPlus
                                                                                                                                                                                      I have just got a job and have been working for few months now, my salary is below RM3K , can I still have to open up a income tax account? I have search and enquire but they told me to not to open an account because my salary is below the required amount.
                                                                                                                                                                                      Because my company tells me to do so, they told me just to "Declare". That is why I am confused.

                                                                                                                                                                                      Reply
                                                                                                                                                                                      • RinggitPlus

                                                                                                                                                                                        Hi King,

                                                                                                                                                                                        For the amount you're earning, you don't yet need to pay income tax. But technically speaking, you have to file or declare your income tax even if you haven't earned enough to actually be paying tax on your income.
                                                                                                                                                                                        It's a bit confusing, but our simple infographic should help clear things up: https://ringgitplus.com/en/blog/Personal-Finance-News/Last-Minute-Income-Tax-Tips-for-2016.html
                                                                                                                                                                                        If you still need further clarification, we recommend contacting your nearest LHDN branch.
                                                                                                                                                                                        Hope this helps!

                                                                                                                                                                                        Reply
                                                                                                                                                                                      • Angeline

                                                                                                                                                                                        Hi if I have fixed deposit more than 100k in bank then will the interest considered as income? Thanks.

                                                                                                                                                                                        Reply
                                                                                                                                                                                        • RinggitPlus

                                                                                                                                                                                          Hi Angeline,

                                                                                                                                                                                          Interests earned from fixed deposit accounts that exceeds RM100,000 are exempted only when it's deposited in certain banks (cited from http://ehasil.blogspot.my/2009/02/tax-exemptions-for-individuals.html).
                                                                                                                                                                                          Since we're not sure which bank your fixed deposit account is under, we advise you to check with the Inland Revenue Board Malaysia directly for further clarification.
                                                                                                                                                                                          Hope this helps!

                                                                                                                                                                                          Reply
                                                                                                                                                                                        • Angeline

                                                                                                                                                                                          Hi There,

                                                                                                                                                                                          Can my husband claim for tax relief under self medical expenses for long term medications that he purchased for local pharmacies? He had a heart attack 3 years ago.

                                                                                                                                                                                          Thanks.

                                                                                                                                                                                          Reply
                                                                                                                                                                                          • RinggitPlus

                                                                                                                                                                                            Yes, he should be able to claim those expenses under medical expenses for serious diseases.
                                                                                                                                                                                            We recommend however that you confirm this by contacting your nearest LHDN branch. They'll be more than happy and prepared to clarify this matter with you.
                                                                                                                                                                                            Hope this helps!

                                                                                                                                                                                            Reply
                                                                                                                                                                                          • Alex

                                                                                                                                                                                            Hi..
                                                                                                                                                                                            If I am buying monthly medication for my parents from normal pharmacy in the shopping mall.. is the expenses eligible for tax deduction?
                                                                                                                                                                                            Thanks!

                                                                                                                                                                                            Reply
                                                                                                                                                                                            • RinggitPlus

                                                                                                                                                                                              Hi Alex,

                                                                                                                                                                                              Medical expenses for parents are tax deductible up to RM5000.
                                                                                                                                                                                              We recommend you contact your nearest LHDN of course for better clarification on this matter.
                                                                                                                                                                                              Thanks for your question, hope this helps!

                                                                                                                                                                                              Reply
                                                                                                                                                                                            • Jimmy chan

                                                                                                                                                                                              under F17 "Skim persaraan swasta dan anuiti tertangguh (deferred annuity) " . I am retired and if i made a monthly payment to KWSP (Under Caruman Pilihan sendiri) . Is this amount tax rebatable? Thank you.

                                                                                                                                                                                              Reply
                                                                                                                                                                                              • Alvin

                                                                                                                                                                                                Hello,

                                                                                                                                                                                                Scenarios :
                                                                                                                                                                                                1) Having an apartment which S & P dated 2003. Any tax relief for this ?
                                                                                                                                                                                                2) Same apartment as no.1 above which loan settled since maybe bout 5-8 years back. Tax relief eligible ?
                                                                                                                                                                                                3) On loan for my current property which S & P dated 2013. This obviously no relief I believe.

                                                                                                                                                                                                Doubtful on no.1 & no.2..... Thanks !

                                                                                                                                                                                                Reply
                                                                                                                                                                                                • Rikki 78

                                                                                                                                                                                                  Hi,
                                                                                                                                                                                                  Pls enlighten us on this seemingly "grey areas".Rm5000 rebates is allowed for educational courses up to tertiary level( besides degrees ,doctorates & Ph)
                                                                                                                                                                                                  Are courses (e.g. first aid,fire fighting,etc) done in local training academys /instituitions equivalent to tertiary levels?Is there a time frame (days,months or years) to be undertaken(training period) for these courses to qualify as rebates?The BE guidebook on this topic is not as plain as read and one can get opposite interpretation. Which section of the Income Tax book explains clearly the time frame? According to a friend of mine,this is one of the criteria mentioned by the Income tax officer. Pls help.
                                                                                                                                                                                                  Thanks

                                                                                                                                                                                                  Reply
                                                                                                                                                                                                  • RinggitPlus

                                                                                                                                                                                                    Hi Rikki,

                                                                                                                                                                                                    Your questions is a bit more involved than we can sufficiently answer. We recommend contacting your nearest LHDN branch if you really want proper clarification on this matter.
                                                                                                                                                                                                    Hope this helps!

                                                                                                                                                                                                    Reply
                                                                                                                                                                                                  • Ken

                                                                                                                                                                                                    Hi,
                                                                                                                                                                                                    Just wanna to confirm the total income that i need to declare tax was my basic salary + commission / bonus?

                                                                                                                                                                                                    e.g My annual income = 80,000 + commission / bonus = 50,000, so i need to declare total 120,000?

                                                                                                                                                                                                    But my company already pay PCB as total 120,000

                                                                                                                                                                                                    Thx

                                                                                                                                                                                                    Reply
                                                                                                                                                                                                    • RinggitPlus

                                                                                                                                                                                                      Hi Ken,

                                                                                                                                                                                                      If your company has already done your monthly deductions (PCB) for you, then that's fine if you're okay with that.
                                                                                                                                                                                                      But if you want you reliefs, you still need to file your taxes yourself.
                                                                                                                                                                                                      Hope this helps!

                                                                                                                                                                                                      (by the way: 80,000 + 50,000 is 130,000!)

                                                                                                                                                                                                      Reply
                                                                                                                                                                                                    • LS

                                                                                                                                                                                                      Hi,

                                                                                                                                                                                                      My spouse is working and earning overseas. Does this qualify as tax exempted income? Do I file my income tax under the assessment type "Self; whose spouse has no income/no source of income/has tax exempted income"

                                                                                                                                                                                                      Reply
                                                                                                                                                                                                      • RinggitPlus

                                                                                                                                                                                                        If the money is earned overseas then yes. However, we still do recommend you contact your nearest LHDN branch to find out more information and ask for further clarification.
                                                                                                                                                                                                        Hope this helps!

                                                                                                                                                                                                        Reply
                                                                                                                                                                                                      • Kelly

                                                                                                                                                                                                        May i know you mentioned Tax Exemptions on Income in Malaysia for travelling allowance is what meaning? If my travelling allowance included in my EA form do i need to submit tax?

                                                                                                                                                                                                        Reply
                                                                                                                                                                                                        • RinggitPlus

                                                                                                                                                                                                          It means you don't have to pay tax on your travel allowances.
                                                                                                                                                                                                          So no need to include it in your calculations :)

                                                                                                                                                                                                          Reply
                                                                                                                                                                                                        • James L

                                                                                                                                                                                                          Hello,

                                                                                                                                                                                                          Are profits/interest received from Money Game tax deductible?

                                                                                                                                                                                                          Thank you.

                                                                                                                                                                                                          Reply
                                                                                                                                                                                                          • LS

                                                                                                                                                                                                            Hi. Which assessment type should I select if my spouse is working overseas and earning income overseas? Separate or am I eligible to claim under spouse earning tax exempted income?

                                                                                                                                                                                                            Reply
                                                                                                                                                                                                            • RinggitPlus

                                                                                                                                                                                                              You're eligible for both so you can choose either one. It might be cheaper to file separately since only one of you earns a taxable income.
                                                                                                                                                                                                              We recommend contacting your nearest LHDN branch for any follow-up questions or if you want to know more.
                                                                                                                                                                                                              Hope this helps!

                                                                                                                                                                                                              Reply
                                                                                                                                                                                                            • John

                                                                                                                                                                                                              If I only have rental income, is my submission dealine 30 April or 30 June?

                                                                                                                                                                                                              Reply
                                                                                                                                                                                                              • RinggitPlus

                                                                                                                                                                                                                It should be 30th April. 30th June is for businesses only (which is when you receive income under a company name)

                                                                                                                                                                                                                Reply
                                                                                                                                                                                                              • Gyan

                                                                                                                                                                                                                Hi I had applied my Tax Refund and its almost 30 days over, How can we check the status of My Refund ,Please share any Website details or Direct Number ,Because i have tried all the numbers available in Website,Unfortunately its always Busy from 8AM T0 5pm.

                                                                                                                                                                                                                Reply
                                                                                                                                                                                                                • RinggitPlus

                                                                                                                                                                                                                  Hi Gyan,

                                                                                                                                                                                                                  Unfortunately, we do not have any direct line to LHDN. If their lines keep getting busy, we suggest you make a personal visit to your nearest branch to clear up matters.
                                                                                                                                                                                                                  Good luck and we hope this helps!

                                                                                                                                                                                                                  Reply
                                                                                                                                                                                                                • Jamie

                                                                                                                                                                                                                  i paid registration fees, text books, computer fees, music fees, insurance, reading fees, uniform and concert fees for my kid for pre-school enrollment. total RM1300 in lump sum, can i claim the tax rebate under "Purchase of Books"?

                                                                                                                                                                                                                  Reply
                                                                                                                                                                                                                  • RinggitPlus

                                                                                                                                                                                                                    Hi Jamie,

                                                                                                                                                                                                                    You should only claim the actual purchase of books under "Purchase of Books". Doing otherwise is considered tax fraud.
                                                                                                                                                                                                                    Hope this helps!

                                                                                                                                                                                                                    Reply
                                                                                                                                                                                                                  • Matuka

                                                                                                                                                                                                                    Hi, hope you will be able to help with this question. Is EPF savings subject to further tax at withdrawal?

                                                                                                                                                                                                                    Reply
                                                                                                                                                                                                                  • Jason

                                                                                                                                                                                                                    I'd like to clarify - is a fixed mobile phone allowance considered perquisite? In your article, you said only if the company pays the bills on behalf of the employee that the amount is considered a perquisite, but does not describe whether a fixed allowance purported for mobile phone is also caught under the same category. Thanks.

                                                                                                                                                                                                                    Reply
                                                                                                                                                                                                                    • Paul

                                                                                                                                                                                                                      hallo,
                                                                                                                                                                                                                      I am a British citicen working as an inspector (for an agency) for one year in a malaysian company. Can I pay my own tax or is it mandatory that the agency withholds the tax from my monthly salary??

                                                                                                                                                                                                                      Reply
                                                                                                                                                                                                                      • Jasmine

                                                                                                                                                                                                                        Hi,

                                                                                                                                                                                                                        I am Malaysia, but got married and staying outside of Malaysia currently. At the same time, I am working for an American company who pays me in USD from US. I am planning to have my salary remit to my account in Malaysia instead of where I am, am I eligible to be exempted from the tax?

                                                                                                                                                                                                                        Thank you!

                                                                                                                                                                                                                        Reply
                                                                                                                                                                                                                        • RinggitPlus

                                                                                                                                                                                                                          Hi Jasmine,

                                                                                                                                                                                                                          If you made your money overseas, you won't be liable to pay Malaysian income tax. However, do check about the tax laws where you live now. As you might be taxed on their rules.
                                                                                                                                                                                                                          For further clarification or if you want more details on this, we recommend contacting LHDN directly.
                                                                                                                                                                                                                          Hope this helps!

                                                                                                                                                                                                                          Reply
                                                                                                                                                                                                                        • Tan

                                                                                                                                                                                                                          I assumed this articles is written for Tax Assessment Year 2016. Weird that I don't see the Special Relief of RM2000 in e-Form, when the total income is less than RM 96000?

                                                                                                                                                                                                                          Reply
                                                                                                                                                                                                                          • RinggitPlus

                                                                                                                                                                                                                            Hi Tan,

                                                                                                                                                                                                                            We're sorry, but it seems you're mistaken. This is an older article for Tax Assessment Year 2015.

                                                                                                                                                                                                                            Reply
                                                                                                                                                                                                                          • unicorngal

                                                                                                                                                                                                                            hi, i am a malaysian. would like to enquire regarding tax relief for parents medical expenses. if parents a admitted to hospital but it was covered by insurance, are we still allow to claim tax relief for that particular hospital admission? Thanks.

                                                                                                                                                                                                                            Reply
                                                                                                                                                                                                                            • RinggitPlus

                                                                                                                                                                                                                              Hi unicorngal,

                                                                                                                                                                                                                              This one is a bit tricky. On the one hand, you can claim for insurance premiums paid, but on the other hand, as long as you have receipts of medical expenses you should be able to claim them.
                                                                                                                                                                                                                              We think the best way to sort this out is to contact your nearest LHDN branch to find out.
                                                                                                                                                                                                                              Hope this helps!

                                                                                                                                                                                                                              Reply
                                                                                                                                                                                                                            • Retiree

                                                                                                                                                                                                                              HI,
                                                                                                                                                                                                                              I am now retired but still working part time as a freelance salesperson earning commission upon my sales collection. I do not contribute any PCB thus do not have the EA statement. Do I still submit my income under the same e-BE form?
                                                                                                                                                                                                                              Hope you can enlighten me. Thanks

                                                                                                                                                                                                                              Reply
                                                                                                                                                                                                                              • RinggitPlus

                                                                                                                                                                                                                                Hello Retiree,

                                                                                                                                                                                                                                You do have to submit your income but the form should be Form B instead of e-BE.
                                                                                                                                                                                                                                We recommend you contact or visit your nearest LHDN branch for further clarification on this.
                                                                                                                                                                                                                                Hope this helps!

                                                                                                                                                                                                                                Reply
                                                                                                                                                                                                                              • Andrew

                                                                                                                                                                                                                                I'm a Malaysian designer - living in Malaysia. I upload designs to a website based in the US and earn royalties for every sale that I make via that website. The IRS already withholds the standard 30% of my monthly earnings. Do I still need to declare the balance of 70% in my income tax? Can you point me to any official online/offline reference?

                                                                                                                                                                                                                                Reply
                                                                                                                                                                                                                              • Shirlyn

                                                                                                                                                                                                                                Hi RinggitPlus,

                                                                                                                                                                                                                                I have a question on partner's epf contributed by partnership business. I understand that the epf expenses on partners is non-deductible expenses for the business and should be add back to derive the provisional income. Is the partner has to include both gross salary and epf (employer portion) as his total income? Thanks in advance!

                                                                                                                                                                                                                                Reply
                                                                                                                                                                                                                                • Belle

                                                                                                                                                                                                                                  Hi,

                                                                                                                                                                                                                                  If I am late to submit my income tax return for 2015 (just realized when I am about to submit my income tax return for 2016 as I didn't click submit after all the filling) but there is an overpayment of tax which I am expecting a refund for 2015.
                                                                                                                                                                                                                                  Will there be any penalties imposed and how do IRB calculate the penalties since I do not have any tax payable to IRB?
                                                                                                                                                                                                                                  Thanks

                                                                                                                                                                                                                                  Reply
                                                                                                                                                                                                                                  • RinggitPlus

                                                                                                                                                                                                                                    Hi Belle,

                                                                                                                                                                                                                                    How would there be an overpayment if you didn't submit your taxes for 2015? If you mean there was overpayment via your monthly deductions then you weren't late in submitting your taxes, your monthlies already took care of that.
                                                                                                                                                                                                                                    For further clarification, we recommend contacting your nearest LHDN branch.
                                                                                                                                                                                                                                    Hope this helps!

                                                                                                                                                                                                                                    Reply
                                                                                                                                                                                                                                  • Richard

                                                                                                                                                                                                                                    Hi,

                                                                                                                                                                                                                                    I understand that assessment, quit rent and fire insurance premiums are allowed as an expense to rental income. What about condominium maintenance and sinking fund charges?

                                                                                                                                                                                                                                    Thank you.

                                                                                                                                                                                                                                    Reply
                                                                                                                                                                                                                                    • RinggitPlus

                                                                                                                                                                                                                                      Hi Richard,

                                                                                                                                                                                                                                      Any expenses incurred exclusively and directly towards the production of rental income can be declared as expenses.
                                                                                                                                                                                                                                      Since maintenance is an expense you pay regardless of whether or not you have a tenant, that might not count as a deductible expense. The same might be the case for sinking funds.
                                                                                                                                                                                                                                      However, if you want to be absolutely sure, we recommend contacting your nearest LHDN branch for clarification.
                                                                                                                                                                                                                                      Hope this helps

                                                                                                                                                                                                                                      Reply
                                                                                                                                                                                                                                    • KASTURI BAI GUNALAN

                                                                                                                                                                                                                                      Hai, we are allocated a sum of RM1,000.00 health care benefits yearly to claim. This benefits includes specs,gym,spa and also other medical claim. And this benefits was recorded under "EA Form -B.1 (b) komisen & bonus". Means it is a taxable amount?

                                                                                                                                                                                                                                      Reply
                                                                                                                                                                                                                                      • RinggitPlus

                                                                                                                                                                                                                                        Hi Kasturi,

                                                                                                                                                                                                                                        Yup. Benefits and perks count as part of taxable income.

                                                                                                                                                                                                                                        Reply
                                                                                                                                                                                                                                      • KW

                                                                                                                                                                                                                                        Hi, I would like to ask about medical insurance relief. I got a medical insurance which paid only 2 mths (RM300/mth) premium in 2016 and 10mths premium paid in 2017. If I claim in 2017, then my medical relief will be 22mths x RM300/mth= RM6600.00. SO, what can I do? Thank you.

                                                                                                                                                                                                                                        Reply
                                                                                                                                                                                                                                        • RinggitPlus

                                                                                                                                                                                                                                          Hi KW,

                                                                                                                                                                                                                                          Taxes are calculated on an annual basis, which means if you're claiming in 2017, it can only be for things that you earn or paid for in 2016.
                                                                                                                                                                                                                                          If you're still unsure about this, we recommend contacting your nearest LHDN branch.
                                                                                                                                                                                                                                          Hope this helps!

                                                                                                                                                                                                                                          Reply
                                                                                                                                                                                                                                        • mom

                                                                                                                                                                                                                                          hi my income basic salary is 11000 in addition to 1000 allowance for accommodation, is the 1000 also going to be taxable.?? and how much remain after tax deduction??? thanx

                                                                                                                                                                                                                                          Reply
                                                                                                                                                                                                                                        • Siew Ling

                                                                                                                                                                                                                                          Hi,
                                                                                                                                                                                                                                          Please help to advise, i've rent out a house with the rent amount lesser than the loan amout (e.g rented out at RM1.5k with monthly payment to bank RM2k). Do i still need to declare that to income tax since i'm not earning anything? The rental are legal as we get it stamped at land office. Appreciate your kind advise on this. THank.

                                                                                                                                                                                                                                          Reply
                                                                                                                                                                                                                                          • RinggitPlus

                                                                                                                                                                                                                                            Hi Siew Ling,

                                                                                                                                                                                                                                            Since you didn't earn any income (you lost money), the losses you incurred can be carried forward to next year's assessment.
                                                                                                                                                                                                                                            For further clarification on how this works, we recommend you contact your nearest LHDN branch.
                                                                                                                                                                                                                                            Hope this helps!

                                                                                                                                                                                                                                            Reply
                                                                                                                                                                                                                                          • Zoe

                                                                                                                                                                                                                                            If we have paid for membership fees/license fees i.e. Chartered Accountants. Is that tax deductable? Kindly advise Thanks.

                                                                                                                                                                                                                                            Reply
                                                                                                                                                                                                                                            • RinggitPlus

                                                                                                                                                                                                                                              Hi Zoe,

                                                                                                                                                                                                                                              We're not quite sure on this one.
                                                                                                                                                                                                                                              Try contacting your nearest LHDN to find out.
                                                                                                                                                                                                                                              Hope this helps

                                                                                                                                                                                                                                              Reply
                                                                                                                                                                                                                                            • Logeswary

                                                                                                                                                                                                                                              Hi,

                                                                                                                                                                                                                                              If the company has declared director remuneration for Director A in the Financial Statement but due to tight cash flow the director was not paid the amount. The amount has been accrued as per company perspective as liability . My question here ,if the director did not take the money , does he still entitle to declare it as income & submit BE or should as zero income.Thank

                                                                                                                                                                                                                                              Regards
                                                                                                                                                                                                                                              Logeswary

                                                                                                                                                                                                                                              Reply
                                                                                                                                                                                                                                              • Mugilan Parimalam

                                                                                                                                                                                                                                                Thank you Ringgit Plus for this awesome write up. I use go through everytime I file my taxes. Good job! :-)

                                                                                                                                                                                                                                                Reply
                                                                                                                                                                                                                                                • "RM25,000 would be taxed RM150 on the first RM20,000 and RM250 on the remaining RM5,000 which brings it up to about RM400 in tax." how do u calculate this number?

                                                                                                                                                                                                                                                  Reply
                                                                                                                                                                                                                                                  • RinggitPlus

                                                                                                                                                                                                                                                    Hi,

                                                                                                                                                                                                                                                    The tax is calculated as follows for RM25,000:

                                                                                                                                                                                                                                                    First RM5,000 has no tax.
                                                                                                                                                                                                                                                    = RM5,000 x 0%
                                                                                                                                                                                                                                                    = RM 0

                                                                                                                                                                                                                                                    RM5,001 to RM20,000 is taxed at 1%
                                                                                                                                                                                                                                                    = RM15,000 x 1%
                                                                                                                                                                                                                                                    = RM150

                                                                                                                                                                                                                                                    RM20,000 to RM25,000 is taxed at 5%
                                                                                                                                                                                                                                                    = RM5,000 x 5%
                                                                                                                                                                                                                                                    = RM250

                                                                                                                                                                                                                                                    Total tax incurred = RM150 + RM250 = RM400

                                                                                                                                                                                                                                                    Thank you

                                                                                                                                                                                                                                                    Reply
                                                                                                                                                                                                                                                  • Yee sc

                                                                                                                                                                                                                                                    Hi for sales exec exempte car allowance wthout receipts is rm6k
                                                                                                                                                                                                                                                    My car/ travell allowance is rm1k x12 mth= 12k
                                                                                                                                                                                                                                                    If my travel expences bellow more than 12k then my full 12k annual car/ travel allowance be exempted ?
                                                                                                                                                                                                                                                    - road tax
                                                                                                                                                                                                                                                    -car insurance
                                                                                                                                                                                                                                                    - car maintanance
                                                                                                                                                                                                                                                    - petrol
                                                                                                                                                                                                                                                    -hitel
                                                                                                                                                                                                                                                    -flight/ transport fare
                                                                                                                                                                                                                                                    -passport

                                                                                                                                                                                                                                                    -parking
                                                                                                                                                                                                                                                    -tol
                                                                                                                                                                                                                                                    -car instalments ?
                                                                                                                                                                                                                                                    -any other exempted travel expenses?
                                                                                                                                                                                                                                                    _entertainment ?


                                                                                                                                                                                                                                                    -

                                                                                                                                                                                                                                                    Reply
                                                                                                                                                                                                                                                    • RinggitPlus

                                                                                                                                                                                                                                                      Hi Yee,

                                                                                                                                                                                                                                                      We are not at liberty to provide you with tax advice such as that. Do check with your closest LHDN branch to be clear.

                                                                                                                                                                                                                                                      Thanks

                                                                                                                                                                                                                                                      Reply
                                                                                                                                                                                                                                                    • Tax payer

                                                                                                                                                                                                                                                      If my mothe is fully taking care of my stroked father, am I eligible to claim tax relief for the parent special needs & care column?

                                                                                                                                                                                                                                                      Reply
                                                                                                                                                                                                                                                    • Joe

                                                                                                                                                                                                                                                      Hi there,

                                                                                                                                                                                                                                                      I'm not sure how I declare my rental income combine with my fixed salary.
                                                                                                                                                                                                                                                      1)Which part in the form should I put in my rental income?
                                                                                                                                                                                                                                                      2)Where do I indicate the allowable tax deduction such as interest, etc.? as I couldn't find any part of the form for this.. Mm..

                                                                                                                                                                                                                                                      Can't find it anywhere on the net on how to fill all this up in the form, hope you are able to assist on this..


                                                                                                                                                                                                                                                      BR, Joe

                                                                                                                                                                                                                                                      Reply
                                                                                                                                                                                                                                                      • RinggitPlus

                                                                                                                                                                                                                                                        Hi Joe,

                                                                                                                                                                                                                                                        Here is the link that you may see how the computation is worked out:

                                                                                                                                                                                                                                                        http://www.hasil.gov.my/pdf/pdfam/8_BROCHURE_2016.pdf

                                                                                                                                                                                                                                                        Upon doing your calculations, you then fill it into the respective categories.

                                                                                                                                                                                                                                                        Should you still find yourself confused, it would be strongly advised to stop by a LHDN branch to clarify.

                                                                                                                                                                                                                                                        Thank you

                                                                                                                                                                                                                                                        Reply
                                                                                                                                                                                                                                                      • Shan

                                                                                                                                                                                                                                                        apologies for the triple post ... accident with my browser :(

                                                                                                                                                                                                                                                        Reply
                                                                                                                                                                                                                                                        • Ming

                                                                                                                                                                                                                                                          Hi Ringgit Plus !

                                                                                                                                                                                                                                                          Thanks for taking the time producing such informative article for the readers !

                                                                                                                                                                                                                                                          If you could consider doing an article for tax and income relief for non residents

                                                                                                                                                                                                                                                          Reply
                                                                                                                                                                                                                                                          • RinggitPlus

                                                                                                                                                                                                                                                            Thanks! We are definitely considering writing more in depth articles on other aspects of income tax very soon. Follow us for updates!

                                                                                                                                                                                                                                                            Reply
                                                                                                                                                                                                                                                          • Alvin Chong

                                                                                                                                                                                                                                                            May i ask, are interest earned in fixed deposits taxable? Thank you.

                                                                                                                                                                                                                                                            Reply
                                                                                                                                                                                                                                                            • MS

                                                                                                                                                                                                                                                              Hi, what happens once you retire from employment? Do you still have to file tax forms?

                                                                                                                                                                                                                                                              Reply
                                                                                                                                                                                                                                                            • Ping

                                                                                                                                                                                                                                                              Hello, can i apply for tax relief if i buy a laptop oversea?

                                                                                                                                                                                                                                                              Reply
                                                                                                                                                                                                                                                              • RinggitPlus

                                                                                                                                                                                                                                                                Yes, you're eligible. Just make sure you have the receipt

                                                                                                                                                                                                                                                                Reply
                                                                                                                                                                                                                                                              • Allen

                                                                                                                                                                                                                                                                Hi

                                                                                                                                                                                                                                                                Just checking on the computer claim. I was told that as long as it has a processing chip we can claim. Does this include for purchases of iPhone 7/smartphones which has processing chip?

                                                                                                                                                                                                                                                                Reply
                                                                                                                                                                                                                                                                • RinggitPlus

                                                                                                                                                                                                                                                                  Hi Allen,

                                                                                                                                                                                                                                                                  Unfortunately, you were told wrong. Beginning Year Assessment 2013, tablets such as iPads, Android tablets or other similar devices no longer qualify as personal computer.
                                                                                                                                                                                                                                                                  The definition of computers now is strictly confined to desktop computers and laptops. (Ref: http://lampiran.hasil.gov.my/pdf/pdfam/Definisi_komputer.pdf )

                                                                                                                                                                                                                                                                  Hope this helps!

                                                                                                                                                                                                                                                                  Reply
                                                                                                                                                                                                                                                                • Pinky

                                                                                                                                                                                                                                                                  Hi,

                                                                                                                                                                                                                                                                  I am a non-residents of Malaysia who came to work in July, 2016. How much % of tax do I need to pay? Will the 182 days be calculated from July or will it be calculated only from Jan, 2017?

                                                                                                                                                                                                                                                                  Thanks

                                                                                                                                                                                                                                                                  Reply