Basic Tax Info.What you should know to understand Malaysia Tax.
Personal Computer Deduction.
Did you know with effect from Year of Assessment 2007, a maximum deduction of RM3,000 is given to an individual in respect of purchasing a personal computer once in every 3 years.
Any tax due and payable but has not been paid by the taxpayer by the due date shall be increased by 10% and any balance remaining unpaid upon the expiration of 60 days from the due date shall be further increased by 5% of the balance unpaid.
Income from partnership has to be declared in the Partnership Income Tax Form (Form P). Each partner is required to declare their divisible income in their respective Income Tax Form
LHDNM electronic services such as e-Daftar, e-Filing, e-Filing for Tax Agent (TAeF), e-Bayaran, STAMPS and STD Calculator have been introduced to assist the taxpayers in settling their tax matters conveniently via electronic medium.
Income from outside Malaysia.
With effect from Year of Assessment 2004, income derived from outside Malaysia by a resident individual is exempted from tax.
All documents and records with regards to taxation are required to be kept for a period of 7 years from the date of the last Income Tax Form submitted to LHDNM.All records and books with regards to a business are required to be prepared either in Bahasa Malaysia or English for audit/investigation purposes by the LHDNM officers.
Income tax is a tax chargeable on individuals, companies, cooperatives and others who are in receipt of employment, business, dividend, rental, royalty, pension and other incomes
Type of Assessment.
The husband and wife who both have income can elect for a combined assessment to be assessed under either the husband or wife name
Under the Self Assessment System, tax return forms are issued to both husband and wife separately. Each is responsible to file his or her own income tax form
Aware about this?
With the implementation of the self assessment system for individual taxpayers in the year 2004, no more notices of assessment (Form J) will be issued to taxpayers. The Return Form submitted will be deemed as a notice of assessment.