9.1.1 Step 1. Reminder of request info

Basically the document you may get could categorize into:-

1. Income related documents
2. Rebate related documents
3. Relief related documents
4. Tax remitted related documents

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From

A. Income related documents, what you will get may be:-

1)      Sec4(b) – Gain or profits from an employment;

~Document you would get ~ [Form EA] ~

A person could have more then 1 employment during the YA or at the same while, which you may get more then 1 EA form for some Idv.

Details related reading sources, you can refer: PR No. 2/2004 Benefits-In-Kind & each addemdum

<Note: Different employment should be segregate into different sources of statutory income, thus, cost to employment such as “ACCA subscription” for an accountant can only be deductible for the accountant employment income but not to others consultant (eg. legal consultant) gross income.>

2)      Sec4(c) – Dividend, interest or discount;

~ [Dividend vouchers], [Bank statements], [Debenture tax vouchers], [Mutual interest distribution] & etc~

Basically you would can categorize them into 3 segment which they are:-

(a)    Taxable dividend income

(b)   Exempted dividend income received from Malaysia

(c)    Single-Tier Dividend – Non Taxable

Since segment (b) & (c) is only for disclosure purpose which may not reflect on your ITC, you can simplified them into 2 category become:-

(a)    Taxable dividend income

(b)   Exempted  income

Takes all refundable dividend voucher (which charged 25% tax for Sec 110) into category (a), where others into (b) or (c)

3)      Sec4(d) – rents, royalties or premium;

~[Rental received statement], [-quit rent receipt], [-Assessment receipt], [-service charge receipt],                [-insurance receipt], [-BANK INTEREST STATEMENT for loan to properties] & etc~

Rental income is the most common income for most of the Idv, which direct expenses is deductible for gross rental into adjustable income.

<Note: rental for >4 units is no more business income take effect on YA2010 after the new rulings    [PR 4/2011] published. For detail please refer to the mentioned PR>

4)      Sec4(e) - pensions, annuities or other periodical payments not falling under any of the foregoing paragraphs;

Pensions represent contractual or voluntary payments made to Idv who has retired or ceased to hold an office or employment.

Pensions – Pensions derived from Malaysia and paid to a person on reaching the age of 55 years/compulsory age of retirement or if the retirement is due to ill-health, are tax exempt if paid out from an approved fund, scheme or society. Where a person is paid more than one pension, only the higher or highest pension is exempt from tax. Other pensions have to be reported.

Amount of pension to be taxed is as per the annual pension statement.

Example :				RM
Public service pension (approved fund)				35,000
Political pension				55,000
Total				90,000
Amount of taxable pension				35,000

Annuities – These are sums of money received in accordance with a will or investment of money or contract entitling the annuitant to a series of payments, whether or not received regularly or for a limited period only.

Periodical payments – These refer to recurring payments received at fixed times.

Or further you can refer to: [http://www.lawyerment.com.my/library/doc/empl/pns/]

< Sorry to say that I have no actual experience to deal on such section yet, if you do have exp, I’m very please that you can share you knowledge with me. Thanks very much in advance.>

5)      Sec4(f) gains or profits not falling under any of the foregoing paragraphs.

~As title~Other income such as payments received for part-time/occasional broadcasting, lecturing, writing and so forth.

Different between relieve and rebate:

Relief: Approval deduction to CHARGEABLE INCOME,

For example, Relief of RM9,000 for an individual in respect of himself and his dependent relatives could reduce chargeable income by RM9,000, if your highest Idv tax rate is 7%, the relief effect will only saving you RM 630 (RM9,000 x 7%).

Rebate: Direct deduction on TAX PAYABLE

For example, Rebate given to taxpayer which chargeable income not exceeding RM35,000 is RM 400 since YA2009, your tax payable is RM 500, you need only pay for RM 100 (RM 500 - RM400) after the rebate.

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From

B. Rebate related documents what you will get may be:-

-          C8 - Gift of money tot he Government, State Government, local authorities

-          C8A - Gift of money to approved institutions or organizations

-          C9 - Gift of money or cost of contribution & kind for any approved sports activity or sports body

-          C10 - Gift of money or cost of contribution in kind for any project of national interest approved by the Minister of Finance

-          C11 - Gift of artefacts, manuscripts or paintings

-          C12 - Gift of money for the provision of library facilities or to libraries

-          C13 - Gift of money or contribution in kind for the provision of facilities in public places for the benefit of disabled persons

-          C14 - Gift of money or medical equipment to any healthcare facility approved by the Ministry of Health

-          C15 - Gift of paintings to the National Art Gallery or any state art gallery

Above items is extracted from [Form BE guidebook], there is nothing better explanation then the form itself to reduce tax payable directly by what you can pay to replace the tax payable amount .

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From

C. Relief related documents what you will get may be:-

~Receipts for:- [Medical expenses], [Supporting equipment for disabled], [Life Insurance premiums], [Insurance premiums for education or medical benefits], [Further study at post graduate level payments], [Purchase of books/magazines], [Purchase of computers], [Purchase of sports equipment], [Broadband subscription fees] & etc~

Spending habit may be different from each Idv, to judge whether it is allowable relief, please refer to [Form BE guidebook].

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From

D. Tax remited related documents what you will get may be:-

~ [receipt from IRB]/ [bank in statement]

You may refer to CP500 for such YA for the above statement.

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