Similar to previous years, this is the time where we have to prepare and submit individual income tax return form to IRB. For 2012, the last date to submit the individual income tax return form is on the 30th April 2013 for individual without business income. The date for individual with business income is on 30th June 2013.
Any delay is subjected to penalty as below;
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.
If you are not sure what are tax exemption, rates, reliefs and rebates, you can read here.
Which form to fill in?
| Forms | Applicable for | |
|---|---|---|
| Resident | B 2012 | Business, Employment and Other Income |
| BT 2012 | Business, Employment and Other Income (Knowledge Workers / Expert Workers) | |
| BE 2012 | Employment and Other Income | |
| Non Resident | M 2012 | Business, Employment and Other Income |
| MT 2012 | Business, Employment and Other Income (Knowledge Workers Workers) |
Kindly refer to this page for more information.
Taxable Income
Taxpayer is required to pay tax on all kind of earnings, including incomes from,
- Business or profession
- Employment
- Dividends
- Interest
- Discounts
- Rent
- Royalties
- Premiums
- Pensions
- Annuities
- Others
Tax Deduction
| No | Contribution |
|---|---|
| 1 | Gift of money to the Government, State Government or Local Authorities |
| 2 | Gift of money to Approved Institutions or Organisations (Amount is limited to 7% of aggregate income) |
| 3 | Gift of money or cost of contribution in kind for any Approved Sports Activity or Sports Body (Amount is limited to 7% of aggregate income) |
| 4 | Gift of money or cost of contribution in kind for any Approved Project of National Interest Approved by Ministry of Finance (Amount is limited to 7% of aggregate income) |
| 5 | Gift of artifacts, manuscripts or paintings |
| 6 | Gift of money for provision of Library Facilities or to Libraries |
| 7 | Gift of money or contribution in kind for the provision of facilities in Public Places for the benefit of disabled persons. |
| 8 | Gift of money or medical equipment to any healthcare facility approved by the Ministry of Health. |
| 9 | Gift of paintings to the National Art Gallery or any State Art Gallery. |
Tax Exemption
The followings are exempted from tax.
| 1 | Leave passage |
| 2 | Medical and dental benefit |
| 3 | Retirement gratuity |
| 4 | Gratuity paid out of public funds |
| 5 | Gratuity paid to a contract officer |
| 6 | Compensation for Loss of Employment |
| 7 | Pensions |
| 8 | Death gratuities |
| 9 | Scholarships |
| 10 | Income of an individual resident in Malaysia in respect of his appearances in cultural performances approved by the Minister |
| 11 | Interest from money deposited in a licensed bank or a finance company, development financial institution, Lembaga Tabung Haji, Malaysia Building Society Berhad and Borneo Housing Finance Berhad |
| 12 | Dividend from exempt accounts of companies, co-operative societies, unit trust approved by the Minister of Finance. |
| 13 | Royalty from publication of artistic works/recording discs/tapes, translation of books/literary works and publication of literary works/original paintings/musical compositions. |
| 14 | Income Remitted from Outside Malaysia |
| 15 | Fees or Honorarium for Expert Services |
| 16 | Income Derived from Research Findings |
Refer to this page for details explanation.
Income Tax Rate
| Chargeable Income | Calculations (RM) | Rate % | Tax(RM) |
|---|---|---|---|
| 0-2500 | On the First 2,500 | 0 | 0 |
| 2,501-5,000 | Next 2,500 | 1 | 25 |
| 5,001-10,000 | On the First 5,000
Next 5,000 |
3 |
25
150 |
| 10,001-20,000 | On the First 10,000
Next 10,000 |
3 | 175
300 |
| 20,001-35,000 | On the First 20,000
Next 15,000 |
7 |
475
1,050 |
| 35,001-50,000 | On the First 35,000
Next 15,000 |
12 |
1,525
1,800 |
| 50,001-70,000 | On the First 50,000
Next 20,000 |
19 |
3,325
3,800 |
| 70,001-100,000 | On the First 70,000
Next 30,000 |
24 |
7,125
7,200 |
| Exceeding 100,000 | On the First 100,000
Next RM |
26 |
14,325
….. |
Tax Relief
You are entitle for tax relief for the items in the table below.
| No. | Individual Relief Types | Amount (RM) |
|---|---|---|
| 1 | Self and Dependent | 9,000 |
| 2 | Medical expenses for parents | 5,000 (Limited) |
| 3 | Basic supporting equipment | 5,000 (Limited) |
| 4 | Disabled Individual | 6,000 |
| 5 | Education Fees (Individual) | 5,000 (Limited) |
| 6 | Medical expenses for serious diseases | 5,000 (Limited) |
| 7 | Complete medical examination | 5,00 (Limited) |
| 8 | Purchase of books, journals and magazines | 1,000 (Limited) |
| 9 | Purchase of personal computer | 3,000 (Limited) |
| 10 | Net saving in SSPN’s scheme | 3,000 (Limited) |
| 11 | Net saving in SSPN’s scheme (with effect from year assessment 2012 until year assessment 2017) | 6,000 (Limited) |
| 12 | Purchase of sport equipment for sport activities | 300 (Limited) |
| 13 | Subscription fees for broadband registered in the name of the individual | 500 (Limited) |
| 14 | Interest expended to finance purchase of residential property. Relief of up to RM10,000 a year for three consecutive years from the first year the interest is paid.Subject to the following conditions:(i) the taxpayer is a Malaysian citizen and a resident;
(ii) limited to one residential unit; (iii) the sale and purchase agreement is signed between 10th March 2009 and 31st December 2010; and (iv) the residential property is not rented out. Where: (a) 2 or more individuals are eligible to claim relief for the same property ; and (b) total interest expended by those individuals exceeds the allowable amount for that year , Each individual is allowed an amount of relief for each year based on the following formula: A x B / C where; A = total interest allowable in the relevant year; B = total interest expended by the relevant individual in the relevant year; C = total interest expended by all the individuals. |
10,000 (Limited) |
| 15 | Husband/Wife/Alimony Payments | 3,000 (Limited) |
| 16 | Disable Wife/Husband | 3,500 |
| 17 | Ordinary Child relief | 1,000 |
| 18 | Each unmarried child of 18 years and above who is receiving full-time education (“A-Level”, certificate, matriculation or preparatory courses). | 1,000 |
| 19 | Each unmarried child of 18 years and above that: (i) receiving further education in Malaysia in respect of an award of diploma or higher (excluding matriculation/preparatorycourses). (ii) receiving further education outside Malaysia in respect of an award of degree or its equivalent (including Master or Doctorate). (iii) the instruction and educational establishment shall be approved by the relevant government authority. |
4,000 |
| 20 | Disabled childAdditional exemption of RM4,000 disable child age 18 years old and above, not married and pursuing diplomas or above qualification in Malaysia @ bachelor degree or above outside Malaysia in program and in Higher Education Institute that is accredited by related Government authorities | 5,000 |
| 21 | Life insurance dan EPF | 6,000 (Limited) |
| 22 | 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 | 1,000 (Limited) |
| 23 | Deferred Annuity and Private Retirement Scheme (PRS) – with effect from year assessment 2012 until year assessment 2021 | 3,000 (Limited) |
| 24 | Insurance premium for education or medical benefit | 3,000 (Limited) |
Tax Rebate
- Income Tax Rebates For Resident Individual With Chargeable Income Less Than RM35,000 is RM400.00
- Zakat/Fitrah but subjected to the maximum of tax charged.
If you need more information kindly proceed to LHDN webpage.
Is it true if u declare ur income as biz income..ur tax bracket can be lowered down although if ur salary actually belongs to 26% taxable income?
If you are talking about individual income tax with sources of income from Business & Employment, they will fall under the same tax bracket.
Dear Sir,
Thanking you for such good infos. Im a new tax payer for this year June 2013. Im self-employed for online internet income about RM5k per month. What should i do to declare for my tax? Please guide me. Many thanks in advance.
angie,
Last week I manage to talk to IRB personal regarding internet income. IRB officer said that the income will be tax exempted if it derived from overseas & the server that you are using not in Malaysia.
Hi,
I would like to ask if i signed my S&P in year 2011 and started paying house loan in 2012 since it’s a second-hand house. Should I claim for the tax relief since it said interest paid for the 3 consecutive years? most of the comments just stated on year 2010 where this tax relief is first amended. Thanks for your advise..
Hi, if you signed S&P in 2011, you not entitle for tax relief.
Hi,
I would like to ask if company pay a fixed travel allowance of RM900 monthly, is it right that its exempted up to RM6,000? How about the balance of RM4,800? Thanks for your advise.
Hi, where do you RM6,000 exemption from? I think travel allowance is not taxable.
Hi,
I would like to understand further on tax deduction on Life insurance and EPF, should I just calculate
how much of epf deducted from may salary last year or otherwise. Kindly advise.
hi good morning i wanna ask regarding 5percent deduction for a tax year 2015..in malaysia
i want to know any information regarding that,,,,,,pls
thank u i wanna see the list as well,,,,,,,
Hi Good Evening,
May I ask if the Transport Allowance and the Parking Allowance are tax exempted? As my employer stated as part of income in EA form, how can I proceed with the tax exemption for these two during the tax declaration? Also, what is the limit for Parking Allowance per annum?
Regards,
CH
Hi, I think allowances are not taxable.
I would like to know whether treadmill consider sport equipment and qualified for tax relief of maximum RM 300?
Hi,
If a divorced husband has remarried again and still paying alimony fee to the ex-wife, further the present wife is filing the Form B separately. Whether he is entitle to relief of RM3,000.00 in his tax?
Thank you.
I want to use my PBB Flexi-house loan Statement of Account to support my claims for tax deductible (rental income) on interest paid. But the loan statement reflects the monthly instalment interest paid as $0. Hence I could not report any interest paid for income tax purpose.
1. Is there any bank in Malaysia that reflects the interest paid on each monthly instalment without deduct interest earned from money in my current account?
2. Without a loan statement that reflects the interest paid, is there any other way we can claim for tax deductible?
3. Is there any organisation or authority can I approach for help?
Appreciate any advice you can give.
I guess you better ask PBB regarding this matter. They should be able to provide this information.
Hi,
If one gets paid RM0.80/km for mileage. Will it be taxable income?
Hi there,
My scenario :
– Working in Malaysia for a US company
– Salary remitted monthly into my local account directly from US in RM.
Question :
– Do i need to declare local tax?
my company say it’s my responsibilty to find out about the local law pertaingn to income tax for obviuos reason, they dont want to get involved with the hassle as they are based in US.they will just pay me one lumpsum , including EPF employer portion as well. Whether i want to put into EPF is my choice. I am working in a regional office based in KL.
irene