Malaysia Individual Income Tax Matters 2010

April is really a busy month, especially for those who need to declare their income to Inland Revenue Board of Malaysia (IRBM) for their individual income tax (without business sources) on or before 30th April 2010.

Today, we are briefly talking about Individual Income Tax (for Malaysian ONLY) and some other related information. In the next few days we will focus only on income tax matters, and it might not be interested by you. But you have to understand that, correctly declare your personal income is very essential

According to Income Tax Act 1967:

Failure to notify chargeability ( Subsection 77(2) or 77(3) )

Penalty imposed is 10% of the total tax payable subject to a minimum of RM 300 and a maximum of RM 5,000.
For more information, please click here.

For your information, if your annual income is less than RM 25,501 (after 8% of EPF/KWSP deduction), or RM 27,718 (before 8% of EPF/KWSP deduction), you are NOT require to register a tax file with IRBM.

If your income is more than that but not deducted through Schedular Tax Deduction (STD), you should register a tax file with IRBM by:

  • Going to the nearest IRBM branches documents (A copy of the latest Salary Statement (EA/EC Form) or latest Salary Slip; A copy of Identification card (IC) / police IC / army IC / international passport; A copy of marriage certificate (if applicable).) required  OR
  • Via e-Daftar

Effective from the year of assessment 2004, income received in Malaysia from outside Malaysia is exempted from tax. Hence, an individual, either or non-resident, is taxable only on income accruing in or derived from Malaysia. This also mean that all the income you earn from internet are totally exempted from tax, like payment from Google Adsense, ClickBank, Amazon, Adbrite and so on. But for your information, earning from Nuffnangs is under taxable income, because Nuffnangs is a Malaysian company.

Tomorrow we will continue on the tax rate information, please stay back tomorrow. 😉

Today's Top Picks for Our Readers:

3 thoughts on “Malaysia Individual Income Tax Matters 2010

  1. Sim0n

    What if my Company had deducted my salary for march, do I need to register myself or LHDN will automatically create an account for me since I have some money with them?

    Please be informed that my March payslip comes with my salary and bonus. My salary actually not yet exceed the threshold to pay income tax

    Reply
    1. RMvalues Post author

      Hi,
      This year you only declare the income of year 2009 (from Jan to Dec). March 2010 income will be only declare on year 2011.
      If you never have account with LHDN/IRBM or your annual income has not meet the threshold to pay income tax, which is less than RM 25,501 (after 8% of EPF/KWSP deduction), or RM 27,718 (before 8% of EPF/KWSP deduction), you are NOT require to register a tax file with LHDN/IRBM.
      It doesn't matter how your company increase or deduct your salary, as long as annual income is less than RM 25,501 (after 8% of EPF/KWSP deduction), or RM 27,718 (before 8% of EPF/KWSP deduction), you are NOT require to register a tax file with IRBM.
      Even if your annual income of 2010 meet the threshold of require to register a tax file with IRBM, it doesn't mean that you MUST pay income tax. It will need to consider many factors, like tax exemption, tax relief, and so on. After all calculation, only know your exact payable income tax.
      Please continue to read our these few days post for income tax matter.
      Be a smart tax payer. 😉

      Reply

Leave your comment here: