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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9. Tax Return (For Individual Cases) - Resident status

 

Individual cases can generally divide into 3 types which they are:-

1. Resident without Business income (Form BE/e-BE)
2. Resident with Business income(Form B/e-B)
3. Non resident (Form M/e-M)

Resident status for individual is determined under sec 7 of ITA 1967:

(1) For the purposes of this Act, an individual is resident in Malaysia for the basis year for a particular year of assessment if-

(a) he is in Malaysia in that basis year for a period or periods amounting in all to one hundred and eighty-two days or more;

(b) he is in Malaysia in that basis year for a period of less than one hundred and eighty-two days and that period is linked by or to another period of one hundred and eighty-two or more consecutive days (hereinafter referred to in this paragraph as such period) throughout which he is in Malaysia in the basis year for the year of assessment immediately preceding that particular year of assessment or in that basis year for the year of assessment immediately following that particular year of assessment:

[Subs. Act 337:s.7]

Provided that any temporary absence from Malaysia-

(i) connected with his service in Malaysia and owing to service matters or attending conferences or seminars or study abroad;

(ii) owing to ill-health involving himself or a member of his immediate family; and

(iii) in respect of social visits not exceeding fourteen days in the aggregate,

shall be taken to form part of such period;

[Am. Act 241:s.6]

(c) he is in Malaysia in that basis year for a period or periods amounting in all to ninety days or more, having been with respect to each of any three of the basis years for the four years of assessment immediately preceding that particular year of assessment either-

(i) resident in Malaysia within the meaning of this Act for the basis year in question; or

(ii) in Malaysia for a period or periods amounting in all to ninety days or more in the basis year in question; or

(d) he is resident in Malaysia within the meaning of this Act for the basis year for the year of assessment following that particular year of assessment, having been so resident for each of the basis years for the three years of assessment immediately preceding that particular year of assessment.

(1A) For the purposes of subsection (1), an individual shall be deemed to be in Malaysia for a day if he is present in Malaysia for part or parts of that day and in ascertaining the period for which he is in Malaysia during any year, any day (within paragraphs 1(a) and (c)) for which he is in Malaysia shall be taken into account whether or not that day forms part of a continuous period of days during which he is in Malaysia.

Which means that :

[Sec7(1)(a)] – in Msia for 182 or ore days which need not be consecutive, deemed to be present for part or parts of that day.

~eg, = if you are arrived Msia in [1 Jan 2011 11.59PM] and leave by [2 Jan 2011 12.01AM] (total duration for ~2 mins), you are in Msia for 2 days.

[Sec7(1)(b)] – in Msia at [1Jan] or [31 Dec] for such year of assessment, and the period staying in Msia is over 182 consecutive days either previous(1 Jan) or following (31 Dec) period.

~eg1. = If you are leaving Msia on [1 Jan 2011], and you arrive before 4 July 2010 (>182 consecutive days), you are resident for YA 2010 & YA 2011

~eg2. =If you are arrived in Msia on [31 Dec 2011], and leave after 30 June 2012(>182 consecutive days), you are resident in Msia for YA2011 & 2012

[Sec7(1)(c)] – in Msia for >90 days, and was either resident or in Msia for 90 days or more in 3 out of 4 immediately preceding years.

~eg = you are in Msia for 90 days in [YA 2011, 2009, 2008,2007 ~ either 3 out of 4 yrs from 2007-2010] you are resident.

[Sec7(1)(d)] – you are resident in YA 2008,2009,2010, you are resident in [YA 2011] even you are not in Msia for year 2011

Further detail , please  refer to :[http://www.ectrustco.com/documents/contents/whitepapers/MalaysianTaxResidence.htm]

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This topic is useful while dealing with expatriate (Global Employment Services), and which you will read on their passport for a long period.

-          Do write down each date on [enter] & [leaving] date in Msia to Excel,

-          then arrange them accordingly,

-          counting base on date that you do written down