Tax Return Form B
/e-B
For individuals who are resident in Malaysia during the
assessment period, there are only 2 types of tax return filing form applied. Is
either
- Form Be/ e-Be (resident individual without business income) or ;
- Form B/ e-B (resident individual with business income).
Besides the tax return filling deadline for the Form B is
different from Form Be (Form B been due in 30 June instead of 30 April every
year), business income become the main fact to differentiate which type of tax
return filling form applied to you.
Business
income
As per discussed, income tax been imposed under Section
(Sec) 4 of Income Tax Act 1967 (ITA 1967). Whereby, business income been stated
under Sec 4(a) as per follow:-
4. Subject to this Act, the
income upon which tax is chargeable under this Act is income in respect of-
(a) gains or profits from a business, for whatever period of time
carried on;
Further on the statement above, definition of the word
“business” been defined under Sec 2 as per:-
"business" includes
profession, vocation and trade and every manufacture, adventure or concern in
the nature of trade, but excludes employment;
The word”profession” may perhaps confuse your judgment whether your
current situation is considered an inclusive part of “business income” under
Sec 4(a) or belonging to “employment income” under Sec4 (b). Which there might therefore some fact to be
considered, which they are:-
1.
Whether
a master-servant relationship (between employer and employee) appeared?
2.
Whether
an element of control (such as they required specific working hours)?
3.
Whether
the required element to performing task is prepared by the master of
delegation?
4.
Whether
element of risk (might probably incurred loss) from the task performed?
If the fact above excluded, your business are considered “employment
income” under Sec4 (b). Else, a more general tangible judgment might be
<whether you have a FORM EA for
the remuneration you received>.
Business and Trade
Although the word “business” have a wider scope from “trade”, but we
take the word “trade” been seen as synonymously with the word “business” to
avoid your confusion for the business scope definition herewith whereby the
word ”trade” is not defined in ITA 1967. Lets we look further for how “business
or trade” being defined by UK HM Revenue & Custom in topic 7. Badges of Trade
For the preparation of tax
return for individual with business income basically is not much different to
prepare tax return for individual without business income. Basically
the individual (Idv) tax return (With business income – Sec 4(a) – Filling of
Form B) timeline could be:-
Converted into time line
for tax return:-
Step 1. Reminder of
request info
Duration : About 2~3 months
before – Tax Return Filling
Subject : To get the information you may need to
prepare your Income Tax Computation (ITC)
For
Idv ITC, you would have no sketch of information you would get, but you could refer
the previous year ITC to expect how the Idv practice to control over
his/her/their financial habit. Individual will seldom change the financial
habit as companies do, just like how you like to having a cup of coffee while reading.
Basically the document you may get could categorize into:-
- Income related documents
- Rebate related documents
- Relief related documents
- Tax remitted related documents
[Please click on title for topic link]
E. Sample list of Information neededfor Individual Tax Computation
====================================================
Step 2. Checking
of Documentation
Duration : Once getting
related documents from client
Subject : Kindly reminded your client for any missing
information that you may need to prepare your Income Tax Computation (ITC)
You
may go through the previous ITC for such Idv to expect what the person may
normally claim each tax returns, do call up your client if you found any
unusual practice or missing documents from your client.
====================================================
Duration : ~6 weeks/ 45 days before tax return due date.
Subject : Preparing tax return computation which
could be accept/ agreed by your client.
Steps in preparing draft tax computation:
- Income computation– For business income, kindly refer to my previous discussion for corporate business income [Type3 - Business income generate unit - (common case)]
- Relieve computation
- Tax payable summary
All
others details may exactly same as individual without business income
==========================================
tep 4. Final approval of tax return
Duration
: About 2
week before – Tax Return Filling
Subject
: Finalize
submission
Check
immediate whether your letter and draft Form e-B have been signed correctly,
then
open the
PDF Form e-B directly from IRB web page to ensure on the information as Form
been agreed
====================================================
Step 5. Submission of tax return filling
Duration
: About 1
week before – Tax Return Filling ~the last filling date
Subject
: Submission
of Tax Return Filling
Do
submission, or pass it to authorize person for submission.
====================================================
Step 6. Bound Copy(or submitted record for client)
Duration
: Any time
after submission, no deadline limitation
Subject
: Send the
finalized Tax Return Form to your client for record keeping purpose
On
simple, only 4 items you may need to prepare :-
1. Cover letter
2. Confirmation submission of Form e-B
1. Cover letter
2. Confirmation submission of Form e-B
3. Final submitted copy of Form
e-B
4. The signed page(from your client) of Draft Form e-B
4. The signed page(from your client) of Draft Form e-B
For
Comprehensive, you may need :-
1. Bill
2. Duplicate of acknowledgment
============================
3. [hard cover for booklet/ binding cover]
4. Cover letter
5. Signed approval letter
1. Bill
2. Duplicate of acknowledgment
============================
3. [hard cover for booklet/ binding cover]
4. Cover letter
5. Signed approval letter
6.
Confirmation submission of Form e-B
7. Final
submitted copy of Form e-B
8. Signed Draft Form e-B
============================
8. Signed Draft Form e-B
============================
[Item
between double line (3-8) is binding to be a booklet]
