15 Tax Deductions You Should Know – e-Filing Guidance





Mar 22 2014
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The “Tax Season” is here, again. There have been some minor changes since our last article published in 2012. Our last article (read here) was based on old format of BE Form – a form for resident who does not carry on business in Malaysia. Since then, Inland Revenue Board of Malaysia has came out with a much simplified BE Form. Nevertheless, as usual, taxpayers (employed individuals) have until April 30 to file their tax returns.

 

As compared to our previous article, this article provides guidance for e-filing system. The mapping of items in this article is based on BE Form 2013. So, before you start logging into e-filing system it’s advisable to go to the following sites to print or save a copy:

Income-Tax - e-filing

Again, to prevent frustration of not being able to access e-filing system due to heavy internet traffic, it’s advisable not to wait till last minute to perform your duty as a good and obedient citizen (*grin*). But if you don’t mind a fine of between RM200 (min) to RM2,000 (max) or spend some time squatting in prison (not exceeding 6 months), then by all means ignore the submission.

 

And if you’re thinking of understating your income, it’s better not to submit at all because the fine for such offence is much more serious – fine of between RM1,000 to RM10,000 plus 200% of tax undercharged. No matter how you look at it, you can’t run away from a hungry and deep-in-debt government. Actually you should look forward to this tax season as this is perhaps the only time you can demand money from the government – excess in tax paid.

Income-Tax - Did Not Submit Income Statement

Since employers normally pay more in the employees’ monthly tax deduction to the government, (in most cases) government owes employees money. In fact, government should pay you the excess in tax paid plus “interest”, which you could otherwise earn if you put the money to work in a bank. That’s why it’s always a lose-lose situation for employees.

 

Unless you’re doing your own business, chances are you’re paying huge amount of hard earned money to the Inland Revenue Department, in this case Lembaga Hasil Dalam Negeri. As an employee, what you can do is to maximize whatever allowable items within the “Part F: Deductions” section when you file your tax return. The BE Form is quite similar to the e-filing interface upon login so it’s advisable to put those figures on the form before you enter it to the e-filing system.

 

After successfully login to e-filing, you will land on “e-BE Year of Assessment” page. Basically, there’re four (4) parts or pages in e-filing website namely:

  • { Page-1 } “Particulars of Individual”,
  • { Page-2 } “Statutory Income and Income of Preceding Years Not Declared”
  • { Page-3 } “Deduction / Rebate /Tax Deduction / Tax Relief”
  • { Page-4 } “Tax Summary”

 

Page-1 of e-filing (e-BE Year Assessment):

 

We’re not going into details about Part A (Particulars of Individual), Part C (Particulars of Husband / Wife), Part D (Other Particulars – contact and banking information) or Part E (Income of Preceding Years Not Declared) simply because those information do not change much unless you enjoy remarry, shifting home and changing banking accounts every year. Anyway, below is how e-filing looks like upon logging to the first screen.

Income-Tax-PartA-Particulars-1

Income-Tax-PartA-Particulars-2

When you’re in first page of e-filing, the only thing you may need to change is “Type of Assessment” – whether to choose “Joint with Spouse” or “Separate”. Obviously, if your spouse is not working, then you choose “joint” but if both are working, it’s more beneficial to declare separately. That would leave us with Part B and Part F. Take note that by now, you should have received your EA form from your company.

 

Page-2 of e-filing (e-BE Year Assessment):

 

The interesting part starts with “Part B: Statutory Income and Total Income” whereby you declare all your incomes. The item “B1 – income from employment” is the most important as this is your annual income, the main part which government uses to tax you monthly. You can get this figure from your EA form, which is your total income for the whole year of last year.

Income-Tax-PartB-Statutory-Income

If you invest in stock or shares, unit trust and paid dividends during the assessment period, then you’ve to declare it at item “B2 – income from dividends”. Click on the button “HK3” (another screen will appear) and fill in those information about your dividends earned in last year. Most don’t really care about this minor item but do you know that some of your dividends paid may be the amount after “Income Tax at 25%“?

Income-Tax-PartB-Statutory-Income-Dividend-Page

[ Click to Enlarge ] Income Tax e-filing – Dividends

This simply means the government already taxed the max of 25% on your gross dividend, and what you had gotten was a deducted net dividend. In short, you “must” claim back your money here, provided your tax bracket is lower than 25%. Although a new rule says all listed companies must pay your tax, some stubborn companies have yet to comply. But if all your dividend vouchers stated “Zero” in income tax column, you can ignore this part.

 

What if you invest in foreign stock market such as the U.S. New York Stock Exchange or Nasdaq? Do you need to pay tax from your overseas capital gains? This statement perhaps will clear the air –With effect from the year of assessment 2004, income derived from outside Malaysia and received in Malaysia by resident individual is exempted from tax.” In short, you don’t have to pay any tax due to double taxation treaties (*grin*).

Income-Tax - Income from Rentals

Next, if you earn income from rentals from houses, shophouses, land, plant, machines, furniture and your hamsters, you’ve to declare it in “B2 – income from rents”. Note that both “B2 – income from dividends” and “B2 – income from rents” are presented as a single item in 2013 BE Form (B2 – income from dividends and rents) though. Again, most people don’t declare this extra rentals income for obvious reason.

 

Who in their right mind would be so honest (or rather dumb) to pay extra to the government only to be used to buy radars that couldn’t detect UFOs (*tongue-in-cheek*), right? Well, as long as you don’t get caught I supposed rentals declaration is a debatable and could be hard to trace. Besides, you’re paying your property assessment to “dewan bandaraya” (city hall) every half-yearly already.

Income-Tax - Income from Part Time Jobs

Item B3 is concerning interest, royalties, part-time jobs and whatnot. Interest earned from FD (fixed deposit) or banking deposit is exempted. Royalties above certain amounts as a result from copyrights earning are taxable.The same goes to part-time lecturing, writing etc. But seriously, who would declare such part-time jobs’ income, right? As long as the figure is not “substantial” enough, this is a “blind-spot”.

 

Unless you’re one of government’s cronies and need to suck up to them, you normally don’t give away money, artefacts and your van Gogh paintings to the them. But still, if you’re charitable enough, you can declare any donations to “approved” institutions such as old-folk homes, foundations, associations, temples, churches, mosque and whatnot, in Part B item B5, of which you can get tax relief. The list of such institutions under Section 44(6) ITA 1967 can be found here.

Income-Tax - Less Donations Charity

Your total income will be calculated automatically in item B6. The amount of monthly tax deductions paid for the whole of last year should be appeared automatically in item B18 the moment you come to this second page of e-filing. The figure in item B18 should be the same as shown in your EA Form. If this figure does not appear in B18, then something is wrong with your monthly tax contribution.

 

Page-3 of e-filing (e-BE Year Assessment):

 

Part F is the most important part because it determines your taxable amount. This part equals to deductable expenses and you will be surprise on how much you had previously overpaid (to government), due to ignorance. As a starting point, every individual is given a RM9,000 default relief. Let’s go to each of them, shall we?

Income-Tax-PartF-Deductions-1Income-Tax-PartF-Deductions-2

  • F2 – Medical treatment, special needs and carer expenses for parents. The scope includes medical care and treatment provided by a nursing home and even dental treatment limited to tooth extraction, filling, scaling and cleaning. However, you can’t claim if your parents’ plan were to impress friends / relatives by crowning their tooth with gold though. The limit is RM5,000 so there’s huge room to spend.

DENTAL TREATMENT

  • F3 – Basic supporting equipment for disabled self, spouse, child or parents. Basic supporting equipment includes haemodialysis machine, wheel chair, artificial leg and hearing aids but exclude optical lenses and spectacles. Maximum claimable amount is RM5,000.

Tax Relief - Equipment for Disabled

  • F4 – Nobody likes this but if you’re a disabled individual, you are allowed an additional RM6,000 in personal relief.
  • F5 – Education Fees (self) – should you further your study for “any course of study” at Masters or Doctorate level, then you should declare this item for a deduction of up to RM5,000 max. Unfortunately this is not applicable for diploma, higher diploma or Bachelor degree, unless it’s for the purpose of acquiring “law, accounting, Islamic financing, technical, vocational, industrial, scientific or technological skills or qualifications.”

University Graduates

  • F6 – Medical expenses on serious diseases for self, spouse or child which include AIDS, cancer, Parkinson’s disease, leukaemia, heart attack, major burns and even hypertension. Maximum amount deductable is RM5,000.

Tax Relief - Serious Diseases

  • F7 – Complete medical examination for self, spouse or child. You should use up the RM500 limit on this item, example, yearly medical checkup or comprehensive blood-check from Pathlab or BP Healthcare. Take note that the total deduction for above F6 and F7 is limited to RM5,000. Thus, if you used up F7’s RM500, you can only claim RM4,500 for item F6 above.

Blood Test

  • F8 – Purchase of books/magazines/journals/similar publications (except newspapers and banned reading materials) for self, spouse or child – another splendid area where you should spend to the limit (if possible) of RM1,000. Some of the magazines you can consider includes investment, automobile, business, smartphone, finance related and whatnot. Also you can buy tons of books (either printed or electronic from Amazon or Apple Inc.’s (Nasdaq: AAPL, stock)  AppStore for yourself, spouse of kids. So, remember to insists on receipts the next time you buy these materials.

Magazines

  • F9 – Purchase of personal computer for individual (deduction allowed once in every 3 years, limited to RM3,000). Perhaps too many people realized that tablet such as iPad was not such a bad purchase after all as it was tax deductible. Unfortunately, IRD plugged the loophole and beginning Year Assessment 2013, tablets such as iPad is no longer qualified for such relief. The definition of computers are now confined to desktop computer, laptop, notebook and ultrabook (*sigh*). I supposed early bird catches the worm.

Tax Relief-Tablet Disqualified

  • F11 – Purchase of sports equipment for any sports activity, restricted to RM300. Sports equipment includes equipment with short lifespan such as golf balls and even shuttlecocks but excluding sports attire such as swimsuits and sports shoes. You may scream till foam at mouth – how the heck do you expect a person to swim without swimsuits or run without a pair of running shoes. Perhaps the government thougt it would be better to swim naked or running barefoot like a chicken (*grin*).

Badminton Lee Chong Wei

  • ** Broadband Tax Relief ** – Previously, you can claim tax relief on broadband usage be it land-line TM Streamyx or Wireless Internet broadband packages offered by Maxis, Celcom or DIGI – up to a maximum RM500. However this goodies was only applicable for year assessment 2010 to 2012. Hence, this item has been removed from e-filing and BE Form altogether – this popular tax relief is “GONE”.

Tax Relief-Broadband No More

  • F12 – Interest on housing loan – An amount limited to a maximum of RM10,000 is deductible for each basis year for a period of three consecutive years of assessment beginning from the date in which the interest is first expended. However the Sale and Purchase (S&P) Agreement must be executed between 10 March 2009 to 31 December 2010.

Housing Loan Interest Tax Relief

  • F13 – Payment of alimony – Divorce is quite common nowadays, so if you’ve been paying your former wife last year, remember to deduct on this item, up to RM3,000. It’s true you might have paid more than this amount but it’s better than none.

Tax Relief - Alimony Payment

  • F15 – If you have children, don’t forget to claim tax relief on this part. Of course if your kids have already married then ignore this lest you wish to test if IRD officers sleep on their job, just like how those bunch of radar operators missed the flight MH370. Maintenance of a child below the age of 18 is allowed a relief of RM1,000. Child of 18 years and above and studying (diploma or higher) gets additional RM6,000 relief each.

Children Tax Relief

  • F16 – Life insurance and provident fund, limited to RM6,000. You should not ignore this part due to the huge sum of tax relief allowed. This part consists of both (monthly) EPF contribution and life insurance premium paid. Some made the silly mistake thinking this is applicable to insurance premium only. They have forgotten about their EPF contribution so they totally ignored this cool RM6,000 tax relief. If you’re earning RM4,550 monthly, your annual EPF contribution would have already used up the RM6,000 tax relief alone.

Life Insurance EPF

  • F17 – Private Retirement Scheme – effective from year assessment 2012 to 2021, anyone contributes to private retirement scheme approved by the Securities Commission is entitled to a maximum RM3,000 in tax relief. This is similar to EPF contribution but primarily tailored for self-employed persons such as hawkers, plumbers etc. Of course, you can opt for this option on top of EPF contribution but why lock yourself when you can freely invest your own money?

Tax Relief - Private Retirement Scheme

  • F18 – Education and medical insurance. A relief not exceeding RM3,000 is available on insurance premiums paid in respect of education or medical benefits for an individual, husband, wife, or child. With the escalating medical expenses nowadays, most people would have some sort of medical plan already, such as the infamous 36-critical illnesses insurance coverage. Therefore, remember to include this for tax relief.

36 Critical Ilnesses Medical Insurance

 

The above 15 items are perhaps the most important deductions you should pay extra attention. Sure, not all deductions allowable in “Part F” are relevant to you but it’s always worthwhile to spend some time on this section. The objective is to pump a figure as huge as possible into item “F19 – Total Relief” (to be transferred to item B9 as per BE Form).

 

Page-4 of e-filing (e-BE Year Assessment):

 

The last part of e-filing – Tax Summary – is the most interesting part. It’s like those days when you’re waiting for your school examination’s results to be released. This page shows your total income, less total relief, less special RM2,000 relief and of course, the “Chargable Income”. This chargable income is used to calculate your actual tax chargable. Remember your overpaid dividends? This is where you get back your money.

Income-Tax-Tax-Summary-1Income-Tax-Tax-Summary-2

After you’ve creatively used up all the deductible reliefs to the max, the next thing to do is to keep track of your banking account as the government would be refunding tax paid in excess very soon. This is only a small part you can do to squeeze back money that government had taxed you. There are other ways to put more money into your own pocket. As long as your income doesn’t appears in your EA Form as income, you’re taking 100% of the money.

 

As a start, discuss with your boss if your take-home income can be arranged in such a way that non-taxable allowance be increased instead of basic salary. For example, up to RM2,400 travelling allowance is tax free. Meal allowance, parking allowance, childcare allowance are some allowances that you can toy around to reduce your income tax. Having said that, please keep all your receipts for at least 7-years. Happy Tax Season.

 

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Comments

[…] ** Update: We have an updated article published on 22-Mar-2014 in preparation for Year of Assessment 2013, titled 15 Tax Deductions You Should Know – e-Filing Guidance. […]

For assessment year of 2013, monthly of RM4000.or lower is tax exempted. Do I need to submit the income (RM4000.00 monthly )for assessment online as previously did?

Hello Choi Kok Seng,

If you had submitted it previous year, means you already have an income-tax file. Regardless whether you’re taxable or otherwise, you still need to declare it …

BTW, are you sure your RM4,000 monthly income is not taxable?

If you’re referring to Budget 2014, the 1%-3% tax reduction was meant to offset GST, which kicks in only 2015, not now …

Which means it starts from Year Assessment 2015 … so only when you declare your tax early 2016 would those with income RM4,000 not taxable …

Cheers …

Thanks for the comprehensive update. I will use your 15 ways guide to get tax exempt as much as possible. :) The more tax we pay, the more it will end up to certain ppl’s pocket.

Pay less is better! lulx..

Please contact me .My email is as aboved

Q1) In the year of 2013, my godmother (she took care of me since I was a baby) went through an operation at the private hospital and the bill was paid by me. Can this bill be claimed under F2?

Q2) After the operation, my godmother needs proper nursing care and I have placed her in a nursing home which monthly I have to pay for to the nursing home. Is this claimable?

Please advice.

Thank you

Hello Jennifer,

F2 is for parents only, not even mother-in-law or father-in-law qualifies for F2 …

However, as provided by S46(1)(c) Income Tax Act 1967, it does not “properly” define who the ‘parent’ is. In general, ‘parent’ could include foster parent of an adopted child …

You may wish to pay a visit or make a call to IRD for clarification on your situation …

Cheers …

Pls. send my income tax form for declaration of year 2013.

Hello..I would like to understand more why u said rental income is not easily detected by IRB? I checked with officer before, they also said we can choose not to declare it. But I dont get the logic behind. Mind to share more. Thanks!
But once I declared I should continue to declare it if not it will look weird if they compared the figures with last year right?

Hi, if i m eligible for interest on housing loan deduction, and the loan is under joint name – my wife and me and we both opt for ind tax declatation, would like to know whether can I declare the total interest under my name (as my tax blacket is higher) or it must divide by 2?

I always ignore dividend earned from unit trust. I thought that small amount doesn’t contribute much when I do my e-filing every year. Thank you very much for your article and it has helped me understand better.

For the B1 , if I got fixed allowance from my company and it showed on my EA form. Do I deduct my allowance from my total income before entering the value at B1. Example total income monthly RM 2000 + allowance RM200 = RM2200. 12 x 2200 = 26400. 12 x 200 = 2400. 26400 – 2400 = 24000. B1 I enter 24000.

Also for 2013 tax those that earn below RM8000 will get additional rm2000 deduction I heard? Mean I deduct it from my B1 ?

pengecualian cukai Max RM5,000.00:

Yuran pendidikan (sendiri) :

(i) peringkat selain Sarjana dan Doktor Falsafah – bidang undang-undang, perakaunan, kewangan islam,
teknikal, vokasional, industri, saintifik atau teknologi

(ii) peringkat Sarjana dan Doktor Falsafah – sebarang bidang atau kursus pengajian

Hi, are foreigners eligible for these deductions? Thank you.

Hello Stevenson Yip,

If the property is under a joint name (e.g. husband and wife), then each of the owners can claim up to 50% of the interest paid. If there are 3 names, then each of them has a 33% entitlement …

So, in this case, your entitlement is only 50% of RM10,000, which is RM5,000 …

Cheers …

Hello Ryan,

Take a look at your EA form … Non-taxable allowance will be shown at Category “G”, which says:

– Total Tax Exempt Allowances / Perquisites / Gifts / Benefits (in English)
– Jumlah Elaun / Perkuisit / Pemberian / Manfaat Yang Dikecualikan Cukai (in Bahasa)

If you allowances were stated in Category “B” of EA Form, those are “Taxable”, unfortunately …

That was the reason we wrote in this article, towards the end, for you to negotiate with your boss to “relocate” your taxable allowance into non-taxable allowance. They should know what to do :)

You’re right – special relief of RM2000 will be given to tax payers earning income of up to RM8000 per month (Aggregate income of up to RM96000 annually). This relief is only applicable for Year Assessment 2013. You’ll notice this “Special Relief” on the screen-shot in this article – take a closer look at the “Tax Summary” above.

Cheers …

Hello Mazli,

You are right. My description was actually targeted at “any course of study” …

Anyway, in order not to confuse others, I’ve made the necessary changes to that particular item …

Thanx for commenting …

Cheers …

Hello Senad,

The rate of tax depends on the individual’s resident status, which is determined by the duration of his stay in the country as stipulated under Section 7 of the Income Tax Act 1967.

Generally, an individual who is in Malaysia for at least “182 days” in a calendar year is regarded as a tax resident.

A resident individual is taxed on his chargeable income after deducting personal reliefs at a graduated rate from 0% to 26% with effect from the year of assessment 2010.

So, you’re entitled to personal reliefs described above …

Cheers …

Hi, do I need to declare the amount which my ex-husband pay for child care? I suppose he did declare for the alimony part. Thank you

thanks for the reply really appreciate it :)

I have a question

On the category B of my EA form
there is 3 section of my total income

aa) Gaji kasar, upah atau gaji cuti (termasuk gaji lebih masa)
bb) Fi (termasuk fi pengarah), komisen atau bonus
cc) Tip kasar, perkuisit penerimaan sagu hati atau elaun-elaun lain ( Perihal pembayaran………….)

Does it mean I add aa+bb+cc as my pendapatan berkanun pengajian “B1”?

F18 – Education and medical insurance. A relief not exceeding RM3,000 is available on insurance premiums paid in respect of education or medical benefits for an individual, husband, wife, or child.
Que: does it mean that we can claim medical and education insurance relief if we have purchase one for our kids?
Some said only self insurance? Thanks!

Hello Tan,

I assume there’re 2 parts to your query – childcare relief and alimony …

Note that both are separate items … F13 – alimony to former wife) … F15 – childcare relief

– F13 is quite straight forward, but note that voluntary alimony payment to a former wife under a “mutual agreement” but without any formal agreement does not qualify as a deduction.

– also, payment of alimony to former wife is not allowed in the case where the ex-husband claimed deduction for wife.

– F15 is about childcare relief … you (and your ex-husband) can choose (and agree) either “100% Eligibility” or “50% Eligibility” … that’s why there’s another 50% column in F15 item …

– in short, “50% Eligibility” applies where two or more individuals (not husband and wife living together eg. divorced parents and foster parents) are each entitled to claim a deduction for payments made in respect of the same child … the deduction allowed to each of those individuals is 50% of the allowable deduction.

Cheers …

Hello Ryan,

Yes, that’s correct …

Cheers …

Hello Ivy,

Based on IRD’s Explanatory Notes, it specifically mentions the following:

“A relief not exceeding RM3,000 is available on insurance premiums in respect of education or medical benefits for an individual, husband, wife, or child.”

So, yes, you can claim for your kids …

Cheers …

If my company has employee stocks options for their employees and I have exercised to sell them in year 2013, will this need to be declared as Taxable Income? However there is a figure (not quite sure how this is derived though) declared under EA form 2(f) Lain-lain (misalnya makanan dan pakaian).
Thanks in advance for advising.

Sorry, forgot to mention that the company is listed in NASDAQ.

I would like to ask if I do not have an ordinary income but I do have some shares in which has yielded dividends for me. I have noticed that they deducted 25% tax off the total of the dividend I should receive. Can I do anything to exempt the tax and get my money back?

Thank you

Previously my sister is a working woman but now she is a housewife and her husband work at Singapore but stay in Malaysia. So i just state zero income at her BE form due to no income, am i right?

If you could also share a bit on B-form for those with sole-prop legally registered businesses, it would be much appreciated!

Just some additional footnote I think you should include

F8 – Purchase of books/magazines/journals/similar publications
This includes Birthday and Christmas gifts in forms of approved reading materials. So if you have trouble maxing this, consider the choice of gifts the next time you shop for your nieces and nephews.

F17 – Private Retirement Scheme
PRS currently is one of the higher effective yield products in the market. Yes it’s like an EPF where you lock away your money, but hey, you save up on taxes. For people already in the upper ranges of the tax tier, this can mean 20-25% tax savings. Over the years until retirement (e.g. 25 years), that will means an effective yield of 1%. Add that to the yield from the unit trust which is like 5-8%, you will be much more secure in the later years of your life.

Further note. I think you removed the SSPN F10 for some reason. But I think it’s still a good option for those parents that want to max their tax savings, and build a healthy savings for their children’s education in the future. It’s better then parking money aside in a regular FD for the same purpose.

Regards,
Jason

Is item E on EA form, KWSP value key in for F16?

Is item G on EA form, for pelepasan seksyen 132 & 133?

F12 – Interest on housing loan

Let’s say my house is second hand and S&P dated April 2010, and i started to pay interest in May 2010, does that mean these are what i can claim:

Year 2010 – May – December 2010
Year 2011 – Jan – December 2011
Year 2012 – Jan – December 2012

And i cannot claim for 2013 interested on housing loan this year 2014 efiling? Hope someone can enlighten me..

Hi,
1) Regarding the non-taxable allowance up to RM2,400 travelling allowance is tax free. Our management noted on that but in our EA form Category “G”, is not stated. Usually they will issued letter stated on the allowance.

2)Where must we plot in the E-filling for the non taxable allowance?

Regards,

Ang

Maintenance of a child below the age of 18 is allowed a relief of RM1,000. Child of 18 years and above and studying (diploma or higher) gets additional RM6,000 relief each.

—– is it addictional RM6,000? or either RM1000 or Rm6000?

Can I claimed RM5,000 parent relief for parent’s medical fee incurred in Singapore ?

Hi, for sole proprietorship business, if the sales were performed in overseas (money TT back into Malaysia account), are the profits from such overseas sales taxable?

Thanks!

Hello Confused Lady,

The benefit/profit derived by an employee from the right to acquire shares in a company, as in the case of an ESOS, will be taxed in the year the right is exercised, assigned, released, or acquired and treated as income in the same year. That’s the bad news …

The good news – the above is only applicable if your shares purchases (in this case ESOS) is in respect of “local” Malaysian company …

If the company is listed in Nasdaq, it means you purchased the shares in a foreign parent company, hence any dividends or profits received in respect of those shares are considered foreign source income, which is exempted from tax …

Cheers …

Hello ttttteh90,

Assuming you’ve never pay tax before, hence no income tax file being opened, the only way you can get back your deducted 25% tax is to inform the IRD about it. But to do that, you must have an income tax file. Otherwise, the IRD will ask a simple question – if you don’t have income, where did you get money to buy shares?

Before you go to IRD, bring along your banking transaction and the stockbroking firm / investment bank stock purchase note …

So, you may want to see if it’s worthwhile to claim back your 25% taxed dividend, as compared to the tedious work in getting your income tax file in place (assuming you don’t have one) …

Some people would just ignore it if the amount was simply too small …

Cheers …

Hello mikkiee,

Yes, no income means government cannot tax you … So just put zero …

Cheers …

Hello razali,

Item E on EA form is amount for “Life Insurance” + “KWSP/EPF” …

As mentioned, if you’re earning RM4,550 monthly, your annual EPF contribution would have already used up the RM6,000 tax relief allowed … So most employee would fill this F16 to the max …

Cheers …

Hello sam,

According to IRD: Deductions are given for the interest incurred in each of the first three years of assessment commencing from the year in which interest is first payable …

Hence, your example is correct – only 2010, 2011, 2012 …

Cheers …

Hello Ang,

Your HR should put “ALL” non-taxable allowances in the Category-G, and “NOT” anywhere else …

If you read properly, Category-B in EA-Form is for “Income, Benefits and Living Accomodation (Excluding Tax Exempt Allowances etc”) …

If your “non-taxable” allowance is properly entered in Category-G, you don’t have to declare this in any part of the e-filing simply because your EA-Form Total Income would have exclude the Category-G’s amount …

Discuss with your HR to ascertain your non-taxable allowance and the best way to reflect this before you submit your e-filing … You may need to bring along your letter to IRD for best way to effect this …

Cheers …

Hello CH Tan,

It’s RM6,000 per child if meet the requirement … If not (for example, doing matriculation), then only RM1,000 …

Hope my explanation in the article above didn’t confuse you … What it simply means is, as parents you’ll get RM1,000 and additional RM6,000 in tax relief if you’ve 2 kids – below 18-years and above 18-years studying diploma & higher (conditions apply) …

Cheers …

Hello Lee,

The criterias are:

• 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 short, you are not eligible to claim that relief because that claim must be proved with a certified receipt by a medical practitioner registered under Malaysian Medical Council …

Cheers …

hi, I bought a laptop online and paid in MYR. The receipt was issued by the Singapore based company, can I put under tax relief? Thanks!

Of course you can, Tan … There’s no specific rule that restricts people from buying computer online or from another country …

However, this relief is only applicable if the computer is for personal usage … If it’s for business purpose, there’s “NO” deduction allowed …

If I were caught by IRD and they try to be funny saying the computer must be purchased in Malaysia, I’ll tell them I tried to get cheapest computer overseas in order to pay “more” tax to the government … I’m sure they would love me :)

Cheers …

For F3 (basic supporting equipments for the disabled), i learnt from LHDN folks that ones need to registered as OKU with government (i.e. has a valid OKU name-tag and has the OKU record with government), then only can claim, otherwise no claim is allowed.

Kindly advise if this is true?
because i have a valid wheelchair receipt but no entertained but LHDN. Thanks.

That’s correct CH, you have to register with Welfare Dept to obtain an OKU certificate … You should get an OKU card within 14-days … There’re other benefits for OKU besides tax exemptions …

Registration form is here: http://www.jkm.gov.my/images/stories/pdf/borangokuversi19.pdf

Here’s a list of other benefits: http://www.jkm.gov.my/images/stories/pdf/kemudahanOKU26112012-Isnin.pdf

Cheers …

Hi there , I have a doubt here. If let say I bought a house last yr 2013, do I still entitle to claim for the housing loan? If yes , how much could I claim? Can’t really understand it’s stated within 2009 -2010? Thanks

hi,i have doubt about the tax exempt income (pension). my aunt was a government servant and retired on jan 13 at aged 57.i had make a call to lhdn and officer directed me to select assessment no 4, wife doesn’t have “punca pendapatan” for ya 2014. However, i just remember she still have some small amount part time income.. in this case can her husband still eligible for the relief of rm3000? Apparently e filing had been submitted.. and im so worry for any penalty incurred future

Hello lamjacq,

The Sale and Purchase (S&P) Agreement “MUST” be executed between 10 March 2009 to 31 December 2010.

Since you said you bought it last year (2013), I suppose you can’t backdate your S&P agreement to between 2009-2010, can you? So, you can’t claim anything …

Cheers …

Hello Shanice,

Type of Assessment:

Option “4” reads – if the individual is married with a spouse who has no income / no source of income or has income which is tax exempt.

I suppose your aunt’s part-time job doesn’t produce hundreds of thousands of dollars in income … I won’t sweat a bit if I were you …

As I mentioned, it’s a blind-spot, so ignore it as if it never happen, though IRD may scream till foam at mouth about what I suggest …

Cheers …

Bro, need some advice.

Just say we create a company just to invest in share markets or equities, do we need to pay tax for whatever we earn?

Thanks. I have been asking around about this and getting many different answers. Thanks ya..

Hi,

I have read that ” Premium on new annuity scheme or additional premium paid on existing annuity scheme commencing payment from 01/01/2010 (amount exceeding RM1,000 can be claimed together with life insurance premium) – deleted from year assessment 2012 until year assessment 2021″
And my question is,
I have bought an additional new life premium insurance year 2013. And, including my K.w.s.p and life insurance, both are already total up to rm 6000. May I know for the new additional life insurance where I supposed to add in for the additional RM1,000 in the e-filing column?

Hi,

Need to check if Mother funeral expensive can we put under parent medical claim

tq

Hello, I am a foreigner living in Malaysia and I’m doing the e-filing for the first time. My husband is my dependant and he does not have any income for 2013.
When I fill the form, on page 3 the row” Husband / Wife / Payment of alimony to former wife” is already filled in grey with 3,000.
Is that correct? I’m still married so this is not alimony. Do I have to delete this?
I am filing the tax return as “diri sendiri; pasangan tiada punca pendapatan”.
Thank you!

if my wife is not living with me here in Malaysia, do I declare myself as single? what about my son above 18 and going to university in Canada, can I get the 6000 relief?
Also in the e-filing all the blocks for reliefs cannot be filled they are all grey, and also the summary at the end of the filing shows all zeros. ??

Hello.

I’m a legal tay payer. However, I never look as submitting forms is important every year because to what I understand, since my payslip had deducted the amount of tax to the govt. it should be fine. Like what is there to declare if I did not owe government anything? So I was totally wrong about it and misunderstood. I even misunderstood the EPF and tax part. I do not want to put the blame to my HR/Admins though I’ve asked some several people that they do have responsible to at least explain the importance of submitting tax forms every year when my salary had reach the certain tax amount.

Now after I acknowledged the importance I am actually gathering all my EA forms and other documents to file to the tax. I had checked with Hasil and my Tax No. also existed, and just registered to e-filing. So my questions is that according to my pay I should have start submitting my tax forms since 2009 but I did not do that. If I plan to do it and submit it now, will I go to jail? Please advice.

Hi there, my employee delay my EA form, I keep requesting for it but I just got their promises. What should I do?Thanks.

Can I actually read F2 as medical treatment and special needs for myself and then carer expenses for parents?

Hello Lin,

You should be asking for your EA form from your employer starting in Feb every year … If they refuse to give you a copy, seek advice from IRD itself, make an official complain if you must … Bring along all your payslip to prove that you had paid monthly tax …

Cheers …

Hell Unintended Lost One,

Stay cool and relax … Nobody is going to jail here … When was the last time you read that someone was thrown into jail for not paying tax at all, let alone not declaring it despite paying tax monthly, as in your case?

Your mistake is so minor that IRD official would probably fell off chair laughing if you ask about the possibility of getting jailed …

Just play dumb and tell the IRD officers you were ignorant about the need to declare your yearly income tax … You didn’t try to evade taxes as you paid on time every month, right?

IRD is not interested in sending you to prison … They just want your tax money … All the governments want tax money, and not spending more money feeding you in prison … So, just stay cool and pay IRD a visit to rectify the minor issue …

Cheers …

Hello kampunginvestor,

Obviously you need to pay taxes simply because your intention was purely “trading” instead of “investing” …

IRD will probably tell you that you’re no different from doing business – buying and selling in short period of time with intention to make profit … That’s different from capital gain through long-term investing …

If your business plan is exempted from paying taxes, then all stock-broking firms or investment banks would not have to pay any taxes at all, literally speaking …

Cheers …

Hello Wong LM,

It doesn’t matter which one comes first, as long as it doesn’t exceed the RM5,000 limit …

Cheers …

Hello Lim,

You can only see “Premium on new annuity scheme or additional premium paid on existing annuity scheme …” option for Year Assessment 2010 and 2011 …

With effect from Year Assessment 2012 onwards, tax relief on deferred annuity premium is “combined” with the relief of contribution to private retirement scheme that is approved by Securities Commission …

So, you enter your amount in “F17” … Hope this helps …

Cheers …

Hello Ang,

No, you can’t claim anything for funeral … But if you’re staying in Pakatan Rakyat states, you could get funeral “assistance” … Go contact them …

Cheers …

Hello Kuri,

Yes, “alimony” is applicable for divorced couple … So, it’s not for you since you’re happily married …

Cheers …

Hello lucky cogito,

Conditions on eligibility to elect for joint assessment:
(i) the husband and the wife were living together in the basis
year for a year of assessment and did not in that basis year
cease to live together;

So, in your case, you cannot select joint assessment …

Yes, you can still claim for your son’s RM6,000 relief …

Cheers …

Great article. I’d like to point out a couple of typo errors though.

Paragraph #1:
Since then, Inland Revenue Board of Malaysia has *came* out with a much simplified BE Form. (Correction: has come out)

F8 – Purchase of books/magazines/journals/similar publications:
So, remember to *insists* on receipts the next time you buy these materials. (Correction: to insist on)

F11 – Purchase of sports equipment for any sports activity:
Perhaps the government *thougt* it would be better to swim naked or running barefoot like a chicken. (Correction: thought)

Some suggestion:

F2 – Medical treatment, special needs and carer expenses for parents.
The scope includes medical care and treatment provided by a nursing home and even dental treatment limited to tooth extraction, filling, scaling and cleaning. ***However, you can’t claim if you plan to impress babes by crowning your tooth with gold though.*** The limit is RM5,000 so there’s huge room to spend.

This section is applicable only to the taxpayer’s parents, but you made it sound like the taxpayer can claim it on himself, which can be misleading for inexperienced readers.

Is acupuncture tax exempted under traditional medicine?

Unfortunately I have forgotten to file one of the tax relief which is F18 – Education and medical insurance. I used E-Filing and have already submitted. How can I correct this and what is the right procedure to go about putting this back into my submission.

Thank you.

That means our own medical expenses (e.g. Clinic visits) are claimable under F2? Did I read you correct?

Hi, I am Singapore PR and been contributing tax in Singapore since few years back. Apparently, I have 2 shop houses in Malaysia with rental income (still under bank installment)+ 1 residential housing (own stay & under bank installment). Should I still require to contribute tax in Malaysia every year? If yes, how to proceed?

Hi ,

I need clarification for the following points;

1) Interest on housing loan – The agreement was signed in September 2009 and start to pay my 1st installment from last year Nov and say the property value is RM 351K, how the calculation works?

2) Dividends – Assume i have investment with Public Mutual – thru EPF withdrawal, do i need to declare it too? when where can i get the information’s?

Thanks !

I am a full time worker, giving tuition on part time basis.

I would like to know whether I should declare the income of my part time teaching or not…cos it makes my taxable income TOUCH another band of chargeable income if declare.

It’s not that much, but also not that little. However, the tuition centre owner had already submit the list of teachers’ name to the IRB and all the Part time teacher are given the return form indicating the income earned.

I am really contemplating whether to declare or not…as some of the above said once declare you have to declare otherwise the figure looks weird.

Appreciate your advice on this.

Thanx Lyo … have made the necessary clarification … it’s only for parents as per my earlier reply to Jennifer …

Hello sos,

Tax exempt medical benefits are extended to include traditional medicine and maternity expenses. Traditional medicine means Malay, Chinese and Indian Traditional Medicine given by a medical practitioner registered with bodies which are certified or registered in accordance with the rules governing traditional medicine as laid down by the Ministry of Health.

Examples: Malay traditional massage, ayurvedic or acupuncture.

Complimentary medicine and homeopathy such as aromatherapy, reflexology, spa and Thai traditional massage are not included in this exemption.

Cheers …

Hello Lee,

Unfortunately you can’t retrieve your file and do any correction(s) once submitted …

Hence, you’ve to clarify your situation to IRD officer and fill up a form for the amendments / modifications …

Cheers …

Hello Wong LM,

My apology … didn’t notice your “myself” in your earlier query … F2 is purely for parents only, as per my earlier clarification to Jennifer … Sorry again for the confusion …

Cheers …

Hello Kong,

Non-residents are liable to pay tax on Malaysian-sourced income. Rental income is taxed at a flat rate of 26%.

However, you still can subtract other expenses such as property management fee, agency fee to secure tenants, handy bills, other repairs etc, from your total annual rental income …

Cheers …

what if the TM practitioner works for a body/organisation, and i am not sure if the practitioner himself is certified /registered? The body/organisation may be registered.

With regards to claim back tax on unit trusts, can the taxpayer make a claim if he/she is the jointholder but not the 1st holder of the trust?

I am under going chronic illness treatment in traditional & complementary medicine under
Federation of Complementary & Natural Medical Associations, Malaysia (FCNMAM)approved and registered by Ministry of Health Malaysia. Is this tax deductible under treatment?

How about chiropractic treatment ? Is’t tax deductible as well under “F2” ??

Why Employment Income inserted cannot be saved by E-Filing system? After press “Next” button, the total income become “Zero” amount for e-BE.
I look forward your reply.
Hope you can help within few hours left before it close.
Thank you

Do you have a comprehensive list eligible for F6. Does chiropractic treatment for self claimable under this section ??

Hello Lim, Dixon,

The list from IRD doesn’t specifically mention “chiropractic”, so should we conclude that we can’t claim it at all?

It depends whether you want to go strictly by the rule of books …

Well, there’re tons of serious illness out there not spelled out in IRD’s list … But that doesn’t mean we can’t include it as tax relief … I always believe that as long as we’re not making up story and it is indeed a serious illness, we should go ahead and claim it …

I believe medical cards do cover chiropractic … And if they cover it, that is enough for me to justify the seriousness, and I’ll go ahead to claim it … But that’s me …

One of the problems with Malaysians is they’ve this critical illness – “Public Obedience” … They dare not claim something if it’s not in the book … But IRD doesn’t specifically said you can’t claim anything not in their list, did they?

Should we make a “U-Turn” if there’s no sign board that says so?

Authorities may say you can’t make a U-Turn since there’s no signboard that allows it … But we can always argue that since there’s no sign-board that says U-Turn is “NOT” allowed, it also means U-Turn is allowed :)

Hope you get the juice … For me I’ll claim first, and argue or negotiate later … Not a big deal …

Cheers …

Hi,
I made a 300.00 monthly claim for non-taxable allowances and it appears in the EA form Category-G for 3600.00 thus not included in the taxable income column. Is this “illegal” ? What should I do about this ?

Hello, i think that i saw you visited my weblog so i came to go back the want?.I
am trying to find issues to enhance my web site!I assume its ok to
use a few of your ideas!!

Hye!

I would like to know if purchase electronic dictionary, can I claim it under book relief??

Thank you.

Hello Arshad,

Actually electronic dictionary, such as AppleTree, is deductible under “Computer Purchase” and not book relief … Surprise huh?

Cheers …

I’m not that much of a internet reader to be honest but your blogs really
nice, keep it up! I’ll go ahead and bookmark your website
to come back in the future. Many thanks

Hi
my physical stay in Malaysia is 190 days, but i will get salary for 170 days.
actually i got my employment pass after i arrive here, and my salary get start after that.
so actual stay is 190 days and salary is for 170 days.
so can i claim other deduction same as resident or i need to pay 26% tax like non resident.

Hi,
i understand there is a special relief of RM 2,000 for taxpayer earning less than RM 8,000 a mth for 2013 only. Does the relief applies to employee only or also applies to self-employed person. If it applies to self employed, does the RM 8,000 threshold applies to gross income received or net income after all owner expenses.

Would appreciate your comment. tq

Hi,
if the sales reported in the form (sole proprietor) is more than what had earned, and only realize after few years. What to do? or any penalty for this issue?

I’ve missed submitting my forms from 2010-2012 and recently received a letter asking me to pay approximately RM1300. I was informed by a friend that I could have submitted them this year when I submitted my 2013’s taxes but it was too late (I received the letter a month after). I’m thinking of submitting them next year together with 2014’s. Will I get into trouble if I wait till then and will I be denied exit at the airport customs when I leave for my holidays next week? If it’s going to cause me trouble, then I would rather submit them ASAP (early next week) but I don’t think I can pay up the whole amount they’ve asked me of me (my ex-employers made the monthly deductions). Can I pay by installment or reduce the amount by half, at least?

hi

if i have maxed out my EPF at 6k and still have a life insurance policy can i claim it under the 3 k for retirment scheme and annuity F17

regards

m

Hello,

I am working in Malaysia from June 6, 2014 on Employment Pass. I have heard about the 182 days stay in Malaysia to be a resident in order to get tax benefits. Whether the 182 days should be a consecutive? Some of my friends said that I can travel 14 days our of country out of that 182 days and if I go out of the country more than 14 days they will deduct 26% of tax?

Can you please share some information regarding this so that it will be helpful for me.

Thanks,
Ramkumar K

Can i put Tax Relief of RM 5K under education fee if I took PMP (project management professional) course & examination on my own?

Hi there,
Thank you for such a detailed article. It is very informative. Under B2, you said that rental income is taxable but hard to detact. If I buy a property under Guaranteed Rental Returns for 6 years, will it be traceable? I ask this because both the developer and I would have signed a lease agreement. The thing is, the rental income is not enough to cover the loan instalment so in effect there is negative income until and unless I paid the loan in full.

Thank you.

Hello,good day.
For f15,Child of 18 years and above and studying (diploma or higher) gets additional RM6,000 relief each.
Husband and i are working parents. The question is whether each of us can claim the rm6000 relief or just need to divided into 2?

Thank you.

Jenny

Hi,
Thanks for sharing this information, really helpful.
Wanted to check whether Non-Malaysian individuals with physical disability can claim for Tax Rebate?

If yes, what is the process to obtain PWD certificate.
What i learned OKU card is limited for Malaysian Citizen only.

Appreciate your response.

Regards
Amit

Hi,

Just want to check how to compute the tax if just I started working here last August 2014.

Thanks.

Good day.

I am a single mom with an OKU teenage son who is receiving government aid via his school since 2012. Do I have to declare this aid when I file my yearly e-Be? If it has to be declared, can I submit it in my e-BE for year 2014 for the previous 2 years that I have missed? Thank you.

CONFUSED MOM

Dear Author of Financetwitter,

That is a very very helpful article.
I have one inquiry, I have a son diagnosed with Autism and I have OKU (Orang Kurang Upaya) card obtained from Jabatan Kabajikan Masyarakat.

Am I entitled to tax relief? I do send him to weekly Occupational Therapy and Speech Therapy, thus can the cost of this therapy be included in tax relief and under which section?

Looking forward to your feedback, thanks.

Dear Financetwiiter,

G’day.

I entered an employment contract since June 2014 with a Bermuda company (previous months with Malaysian companies) with no specification of workplace as i might need to travel overseas to perform work. There is no EA form issued by the Company. The Company remitted my salary to my Malaysia bank account monthly or twice a month. Shall i declare the income?

Many thanks!

Confused employee

Hi, you mentioned F18 is deductable for individual n spouse ‘s education & medical benefits. To include deduction for spouse only can happen if BE is jointly filed right?

Also, i used to file my own BE online. Now that i am a full time housewife since 2014, i will change to file jointly with husband under his BE 2014. Do i still need to submit my own BE form for 2014 as it is already made available online?

TIA for your kind advice.

Hi, for F18, if i have a single insurance plan which includes Life, Critical Illness and Medical Card. Yearly the insurance company will send statement indicating premiums paid for Life and Medical. (Didnt state what amount for CI though, but usually Life and Ci shares the same premium, no?) . Which premium can be claimed under F18? Thanks

Hello MK Chong,

F18 = Medical Insurance … F16 = Life Insurance

Both are different category of insurance. However, some creative insurance include life + medical value meal package without clear line …

In this case, maximise your F18 with insurance premium regardless because your plan doesn’t itemise / differentiate anyway …

Meanwhile maximize your F16 with your KWSP/EPF contribution since it can be easily maxed as well …

Cheers …

Hello Amy Lee CY,

You mentioned you’re a full time housewife since 2014, so I assumed it’s since 1-Jan-2014.

Yes, you still have to submit your own BE Form for 2014, regardless if you’ve started becoming a full time housewife on 1-Jan-2014 or some months thereafter.

Assuming you’re a full time housewife since 1-Jan-2014, the only changes you need to make is the part “Type of Assessment” (Part A above this article) …

Cheers …

Hello Outsider,

Yes, you still have to declare your income for 2014, simply because your previous months employment was with another Malaysian companies …

Also, you actually receive your salary from a “Malaysian Bank”, so it’s considered income nevertheless …

Cheers …

Hello Rossi,

Yes, your tax relief is at the Part F15 (Disabled Child Relief) …

Another relief is the Part F3 (Basic Supporting Equipment for Disabled Child) …

CHeers …

Hello Winnie,

No, you don’t have to declare it because it’s a special government aid, not income derived from the aid …

Remember to claim your relieves though – your tax relief is at the Part F15 (Disabled Child Relief) …

Another relief is the Part F3 (Basic Supporting Equipment for Disabled Child) …

Cheers …

Hello Olegna,

– Open a file with the IRB / LHDN
– Get the EA Form from your Human Resource Department
– Declare your income (as per above article) using e-filing

Cheers …

Hello Amit,

Everyone needs to pay taxes – citizen or otherwise – as long as they receive income in the country. Is is determined by the duration of your stay in the country as stipulated under Section 7 of the Income Tax Act 1967.

Generally, an individual who is in Malaysia for at least “182 days” in a calendar year is regarded as a tax resident.

A resident individual is taxed on his chargeable income after deducting personal reliefs at a graduated rate from 0% to 26% with effect from the year of assessment 2010.

So, you’re entitled to personal / disability reliefs described above, if you are a tax resident …

However, PWD is for Malaysian citizens or for PR of the country before 1957 …

Cheers …

Hi Financetwitter,

Do i need to declare my income received from foreign company? The salary was remitted via TT from outside Malaysia.

Thanks!

Thanks. This article is very good for beginners

Hi Financetwitter,

I received my EA form from my latest employment which started in May 2014. Should I just state my annual salary from the EA form or must I add my previous pay which was actually quite low and not taxable before?

Hi,
1.For category G, i just have to deduct it directly in B1?
2. Tax deduction for interest on housing loan – if i signed the S&P in 2014, not eligible right?
3. How do i file the tax for prior years?
Thanks.

Hi Financetwitter,

About the “B2 – income from dividends”.
On the example, RM500 is the amount of dividend you have received Or it was the estimation of gross dividend before 25% tax? And RM 375 was the net dividend shown on your bank statement.

25% is fixed for all investment schemes?

Thanks

Hi,

For the travel allowance, it is not indicated on section G of our EA form but it is indicated on our monthly payslips. Can we use our payslips as proof of the travel allowance provided to us and deduct it from the total income that we have in our EA?

Thank you in advance.

Hi Financetwitter,

Appreciate your comment.

In my latest EA Form (appeared in Total Deduction part), there is an item called CP 38 Deductions which my employer had deducted my salary (as instructed by LHDN) for the mistake I made in my previous BE form (2013).

My query is Do I include the amount (CP 38 Deductions) in my current BE form 2014? If yes, where should I include that amount in the BE Form 2014?

Thanks.

Hi Financetwitter :

You have been really useful. Appreciate it !! 1) Can I claim a rebate for books, medicines or computer bought outside Malaysia?

Thanks

Also , If I have moved from One job to another in the year 2014. Keeping in mind I am an expat and I was working for a company till june 2014 and moved over to another in July. Do i need to submit 2 EA forms? My previous employer did not give me an EA form as I did not exit the country for Visa change. Do i need an EA form from both employers?

Hi Financetwitter,
I am 55 years old.I’m a normal worker that do odd jobs from house to house,[example plumbing,]without any employer.The income is roughly not more than rm1800 a month.How do I declare to the LHDN that I earn this less without any proof or Ea form?Will the LHDN believe me?
Thank you.

Dear Author of Financetwitter,

I am expat working in KL , appreciate if you can advise for below

F16 – Life insurance and provident fund

Can I claim life insurance premium paid for my dependent wife outside malaysia ?

F12 – Interest on housing loan

can I claim intrest paid on housing loan outside malaysia ?

F7 – Complete medical examination for self, spouse or child.

Can I claim for medical examination if its already covered by my company medical insurance plan ?

Thanks
Patrick

can we claim the concultation/chropratic fee from a chropractic as parent medical treatment ,
got receipts

Dear Author of Financetwitter,

I’m 27 years old. I’m working now but I didn’t entitled to submit Form BE as my annual income is quite low. I’m still pursuing degree, is that possible my parent can claim the tax relief of RM6,000?

Can I claim a rebate for books, medicines or computer bought outside Malaysia?

(this question has been raised before but i cannot find the answer)

Thanks

Can I claim a tax rebate for computer bought outside Malaysia?

(this question has been raised before but i cannot find the answer)

Thanks

Hey there! Thanks for your informative article.

I have the same question as one of readers above:

Under B2, you said that rental income is taxable but hard to detact. If I buy a property under Guaranteed Rental Returns for 6 years, will it be traceable? I ask this because both the developer and I would have signed a lease agreement. The thing is, the rental income is not enough to cover the loan instalment so in effect there is negative income until and unless I paid the loan in full.
Thank you.

Hi Financetwitter, firstly, good job on the article as well as taking time to reply to people. I have a question, I was employed until 2011 and paid my taxes until I resigned in 2012 to pursue my studies and was unemployed through 2012-2015. I didn’t file during that time because I was under the impression that if we didnt get an EA form, we didn’t have to file. However, just in case, I just filed for 2014 as 0. Do I need to go back and do the same for 2012, 2013? Hope you can advise. Thanks!

Hi there,

I’m resident of Malaysia. however I was recruited as a freelance consultant with a Singapore-based company. I have no specification of workplace as i often travel around the SEA regions. There is no EA form issued by the Company as well since I’m not engaged as full-time employee. The Company remitted my salary to my Malaysia bank account wherever there’s a payment. Shall i declare the income that i made? Also i have plans to buy a house & Car in Malaysia. Is it mandated to declare the income that earned overseas? thru my research, the info from KPMG website stated clearly that salary that earned from working abroad is not taxable. can you advise pls?

Salary earned from working abroad

Is salary earned from working abroad taxed in Malaysia? If so, how?

The salary earned from working abroad would not be taxable unless the income received is incidental to the Malaysian employment.45

Thank you so much on taking time to write about tax, and I’ve learn a lot from your page! I have accidentally hand in a wrong (didn’t manage to run away from taxes i.e medical issues, laptop, books) can I resubmit the form? Cause I realize I need to pay an additional of rm2k++ but I have all the receipts with me. Will the tax department come after me or check on me for resubmission? Your advice is kindly appreciated. Thanks!

Hi, I’m currently disabled and got the PWD card due to health problems so am working part time for oversea online recruitment company. Do I still need to fill in my income tax form if i earned $100 for 2014? If yes then what shall I state in the Jenis Penggajian column?

Thanks.

hi,
i had a fixed transport allowance every months. Can i deduct it from my annual salary for my efiling?

Tq

As a divorced woman, I ex husband is not allowed to claim deductions on me any longer so how can I prevent him from doing this?

I am in process of divorce. Since it is my wife’s fault because she cheated on me, I don’t think it is her business how I claim for deductions. Can I still claim deductions on her?

Hello Kidiaq,

Believe your query had been answered above. Nevertheless, here goes …

Whether your fixed transport allowance is deductible or otherwise depends on where your company put it.

Take a look at your EA form … Non-taxable allowance will be shown at Category “G”, which says:

– Total Tax Exempt Allowances / Perquisites / Gifts / Benefits (in English)
– Jumlah Elaun / Perkuisit / Pemberian / Manfaat Yang Dikecualikan Cukai (in Bahasa)

If you allowances were stated in Category “B” of EA Form, those are “Taxable”, unfortunately …

That was the reason we wrote in this article, towards the end, for you to negotiate with your boss to “relocate” your taxable allowance into non-taxable allowance. They should know what to do :)

Cheers …

This article is really helpful!

Still I have a question – Where in the BE Form can I put in the figure of EA Form “Jumlah Elaun / Perkuisit / Pemberian / Manfaat Yang Dikecualikan Cukai”?

Thanks!

Hi,

regarding the income for rental,

repair and maintenance is deduct-able any maximum limit of it ?
example rental income one year is 2000, can repair and maintenance also 2000 ? then no tax is charge

tq in advance
Alex

hi,

what if the B18 section already have an amount value but not similar to the one in the ea form? do we need to change it? thank you!

Hi Sir,

is the MATERNITY EXPENSE ( CEASEREAN) FOR SPOUSE is claim able in BE-2015? if yes, which PART i should fill??
Thx in advance,,,,

Hello Raeter,

Nope, Cesarean expenses are not claimable. Otherwise, everyone would go to private hospital for this and claim. However, you should claim it from your insurance company if such coverage is included.

Cheers …

Hello Sir,

Purchase of Sports Equipment
May I know is there any tax relief for Rhythmic Gymnastics equipment like ball, ribbons, clubs & hulla hoop?est

Best regards,
Wendy Chong

Hello Wendy,

Sports equipment claimable includes equipment with “short lifespan” e.g. golf balls and shuttlecocks but excluding sports attire, e.g. swimsuits and sports shoes.

Cheers …

Hi Sir,

Medical and Education Insurance

For expatriate in Malaysia, is medical and education insurance purchased in overseas also given tax relief?

Best regards
Yap

Hello Yap,

Medical and education insurance must be purchased in Malaysia, not overseas.

Cheers …

Does a senior citizen age 69 no longer running business but with rental income still require to pay tax and file B form ? Any exemption possible ?

Hi Sir,

To ask bought handphone can claim capital allowance for sole proprietorship?

Thanks

My son has a part time job earning approx RM1000 a month.Last year September he and a friend registered a partnership company but it was not fully operational till this January 2016,still not making profit as whatever frofit goes into paying debts incurred eg electrician charges etc. So far he hasnt submitted any B form or BE (not sure which).Can he only start submitting for both assessment for 2017 ? Please advise.

Hi Sir,

If we are paying any public provident fund on yearly or monthly basis in india country bank. Can we include this under Life insurance and provident fund coloumn because we are paying with the monthly salary only while doing E-filing.

If we didn’t go under medical checkup and we are outpatient when not feeling for one day, can we submit these bills under medical treatment.

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