Individual

Individual
Tax Chargeability
Tax Credit Balance
Individual

Your Responsibility

Citizen Responsibilities

Each person who is obligated to burden is needed to pronounce his pay to IRBM. The citizen is liable for:-

Acquiring and sending Income Tax Return Form (ITRF):

The citizen needs to submit by means of e-Filing or manual structure that has been properly finished at the latest;

I . Inhabitant Individual and Does Not Carry On Business: 30 April consistently
ii. Inhabitant Individual and Carry On Business: 30 June consistently

to address underneath:

Inland Revenue Board of Malaysia
Charge Information and Record Management Division
Charge Operation Department
Karung Berkunci 00222
43650 Bandar Baru Bangi
Selangor Darul Ehsan

Proclaiming pay and asserting costs.

Figuring annual duty payable.

Saving records for review purposes.

Paying the personal assessment payable.

Record Keeping

Citizen is needed to save the accompanying archives for a long time:

  • EA/EC Form
  • Unique profit vouchers
  • Protection premium receipts
  • Books buy receipts
  • Clinical receipts
  • Gift receipts
  • Zakat receipts
  • Kids’ introduction to the world testaments
  • Marriage testament
  • Other supporting archives
  • Working sheets (if any)

The estimation of the long term time frame starts from the year’s end wherein the ITRF is documented.

Self Assessment System (SAS)

Charge organization under SAS depends on the idea Pay, Self Assess and File

Pay : Monthly compensation derivations are made for people having work pay, or through portions for people having business pay.

Self Assess : Taxpayers figure their own duties.

Record : The ITRF is submitted to the IRBM along with the installment for the equilibrium of the annual duty payable to meet any deficit in the regularly scheduled installments or a case for reimbursement assuming that there is an excessive charge.

Tax Chargeability

Is it true that I’m taxable?

  • A person with an annual employment income of RM25,501 (after EPF deduction) is required to file a tax return.
  • Individuals earning an annual employment income of RM26,501 (after EPF deduction) must file a tax return starting in 2010.
  • Individuals earning an annual employment income of RM30,667 (after EPF deduction) must file a tax return starting in 2013.
  • Nonetheless, beginning in 2015, everyone with an annual job income of RM34,000 (after EPF deduction) must file a tax return.

If the employee qualifies for the STD deduction, he should file an income tax return before the STD is applied.

What should I do if I have taxable income?

The local IRBM branch can help you register for an income tax reference number.

Required Documents for Registration

  • A copy of the most recent Salary Statement (EA/EC Form) or Salary Slip 
  • A copy of your identification card (IC) / police identification card / army identification card / international passport
  • A copy of the marriage certificate (if applicable)

You can also use e-Daftar to register for an Income Tax Reference Number.

Foreigners are subject to income tax.

  • If you are a foreigner working in Malaysia, you must notify the Non-Resident Branch or the nearest IRBM branch of your chargeability within two months of your arrival.

Taxation’s Scope

  • All money earned in or derived from Malaysia, as well as income received from outside Malaysia, is taxable to a Malaysian resident. The breadth of an individual’s taxation is determined by his residency status.

Tax Credit Balance

What Is A Credit Balance And What Does It Mean?

When payments such as payroll tax deductions, monthly instalment payments, or income tax payments exceed a taxpayer’s tax liability (debt balance) at any given time, a credit balance is created. When the tax liability exceeds the tax payments, there is a debit.

How to avoid an overabundance of credit in the taxpayer’s account

The monthly deductions from wages or monthly instalment payments on business revenue should be tracked and compared to the real tax liability as stated in the notice of assessment.

To avoid excessive deductions from salary, an application to the IRBMs Branch to prohibit further deductions from salaries must be initiated as soon as the tax liability is confirmed.

Taxpayers must ensure that their employer is notified of the following changes to their personal information. marriage, Number of children, Divorce / separation, Death of spouse, Death of a child. In addition, taxpayers may submit Form PCB / TP1 (a form for claiming personal deductions and credits) to their employer if they can claim other deductions. This information is important for determining the correct amount of monthly deduction according to the planned tax deduction table. IRBM must notify the taxpayer of the amount of zakat paid in one year.