Special Thanks

It’s end of April. It’s the last day to submit your Form BE. Have you submitted your form to IRB? I do hope you are.

I am one of the last minutes lover. I take half day leave just because I need to drop my BR form to IRD. I went to IRD Cheras Branch this afternoon. Parking is RM3 per entry. Officers there are very nice and patient even thought everyone there are last minutes lover. Two big transparent boxes are prepared for all the forms submission. Just drop the form and I can go home. They even have Photostat service.

I heard that those officers are going to be work until twelve midnight today. I just want to express my thank you to them. They not suppose to do so but force to. This extend is for last minutes lover convenience. Thank you for the great job!

Act Now Before Too Late

I am trying to escape this but here comes the deadline. I have to admit I am a very lazy woman. It's about a week left for me to do the calculation, to fill up the form, to seal the envelope, to put in the mailbox for the 2007 income tax form BE submission.

Yes, the due date is end of this month. Better act fast otherwise penalty will be imposed....

Tax Alert - April 2008

It's beginning of the month. A friendly reminder to all of you who are receiving Form BE, M, TP, TF and TJ whoever without running any business the due date to file your submission is end of this month.

10th April 2008

Due date for monthly tax installment

30th April 2008

Statutory deadline for filing of tax returns for companies with September year-end.

Submission deadline for Form BE, M, TP, TF and TJ (without business income).

April 2008

6th month revision of tax estimates for companies with October year-end.

9th month revision of tax estimates for companies with July year-end.

Form R31

If you still don't know about this. You better update yourself. The Form R31 and the explanatory notes can be accessed from IRB's website: www.hasil.org.my

Under section 45(1)(b) of the Finance Act 2007, all companies whose basis period for the year of assessment 2007 ends on a day other than 31 December 2007 ("early year-end companies") are required to file a statement of the "108 Balance" as at 31st December 2007 by 31st January 2008. The form for this purpose - Form R31 - was recently issued by the IRB.

The IRB has clarified that:

1. All early year-end companies, irrespective of whether they paid dividends during the period from the beginning of their basis period to 31.12.2007, are required to file the Form R31;

2. Although there is a statutory requirement to file the form by 31 January 2008, the IRB has extended the filing deadline to 30 April 2008; and

3. The forms will be sent directly to all early year-end companies by the first week of April 2008.

The forms will be sent directly to all early year-end companies by the first week of April 2008.

Tax Alert - March 2008

I know this comes a bit late but better than never. A friendly reminder to all the relevant companies or HR and Finance Staffs. Hopefully we all will make it on time to prevent extra spending on late penalty impose by IRB.

10th March 2008

Due date for monthly tax installment


31st March 2008

Statutory deadline for filing of tax returns for companies with August year-end.


March 2008

6th month revision of tax estimates for companies with September year-end.

9th month revision of tax estimates for companies with June year-end.

Form R31 - Extension of Filing Deadline

Under section 45 of the Finance Act 2007, a company has to furnish to the IRB a statement in the prescribed form (Form R31) within 30 days from the date the dividend is paid. The requirement has an impact only on early year end companies.

In this regard, the IRB had previously allowed a concession to the companies. For dividends paid during the period from the first day of the basis period for the year of assessment 2008 to 31 December 2007, companies were given an extension of time until 29 February 2008 to file the statement.

The IRB has recently informed that as the prescribed Form R31 was still not ready, as a result the filing deadline has been extended from 29 February 2008 to 30 April 2008.

Exemption for Old Folks

As far as I know, we all have to pay income tax as long as we are working and with income. I have a query after I done my father in law tax computation. Last year he still enjoys children deduction as my sister in law still study. But this is he has to pay more tax because he can no more enjoy the said deduction.

I am wondering why IRD have no any rebate or exemption that can benefit to old folks. He is over 65 years old now and still working. And he is paying more tax because he can not enjoy those deductions that available. I am planning to write in this suggestion to IRD. Do you think my suggestion is acceptable?

Income Tax Rules

Here I share with you another latest from the Inland Revenue Board. I will update periodically whatever I have to this blog about the Malaysian Developments Tax Alert. This is the Tax E-News Service provided by Ernst & Young. By continue build up my knowledge, hope to share with you what I know. :)

The Income Tax (Deduction for Cost of Spectrum Assignment) Rules 2007 has been recently gazette. Under the Rules, which comes into effect for the year of assessment 2007, fees paid by a company to the Malaysia Communications and Multimedia Commission (MCMC) for the use of "spectrum assignment" is allowed as a deduction. The deduction, however, is given on an amount of the cost incurred which is divided equally over a period of 12 years i.e. from the years of assessment 2007 to 2018.

Further it is provided in the Rules, the cost of spectrum assignment incurred prior to the year of assessment 2007 will be deemed to have been incurred in the year of assessment 2007.

The term "spectrum assignment" refers to the rights to use specified frequency bands for the provision of third-generation mobile telecommunication services in Malaysia, which is issued by MCMC.

Forms Submission Deadline

For all of you who earning income no matter you are working as self employed or employment please be aware of the deadline for submission of 2007 Income Tax returns: -

Form BE - 30th April 2008

Form B - 30th June 2008

Form P (Partnership) - 30th June 2008

Form E - 31th March 2008

Education Fees Exemption

With effective from the year of assessment 2006, resident individuals will be entitled to a deduction of up to RM5,000 per annum on fees paid for tertiary level education in the field of law or accounting and also for acquiring technical, vocational, industrial and scientific or technological skills or qualifications in any institution or professional body recognized by the Government.

For this purpose, the following professional bodies have been identified by the Inland Revenue Board (IRB) as having received the recognition of the Government:

1. Malaysia Institute of Accounts (MIA)
2. The Malaysian Institute of Certified Public Accountants (MICPA)
3. The Institution of Engineers Malaysia
4. Board of Engineers Malaysia (BEM)
5. Board of Architects Malaysia
6. Malaysia Institute of Architects
7. Board of Quantity Surveyors of Malaysia
8. Land Surveyors Board Malaysia
9. Board of Valuers, Appraisers and Estate Agents Malaysia
10. The Institution of Surveyors Malaysia

With regard to the institutions recognized by the Government, the list is available on the Public Services Department’s website: wwww.jpa.gov.my

Utilisation of Unabsorbed Losses & Capital Allowances

New Policy from The Inland Revenue Board (IRB) that a company owner should take attention on: -

IRB recently issued a guideline on the new policy announced by the Misnistry of Finance on the utilisation of unsbsorded losses and capital allowances.

According to the guideline,the restrction introduced in the year of assessment 2006 on carrying forward unabsorded losses and capital allowances by a company with a substantial change(50% or more) in shareholdings will be suspended. Apart from dormant companies,all other companies will be allowed to carry forward their unabsorbed losses and capital allowances. This means that the substantial change in shareholdings test for the utilisation of unabsorbed losses and capital allowances under sections 44(5A) to 44(5D) and paragraphs 75A to 75C of Schedule 3 of the Income Tax Act 1967 will only apply to dormant companies.

The new policy has retrospective effect i.e. from the year of assessment 2006. It is to be noted that the new policy supersedes the earlier concession given by the Ministry of Finance where unabsorbeb losses and capital allowances were allowed to be
utilised as long as there was no change in the ultimate shareholders. The concession was also extended to companies where a substantial change in shareholdings was as a result of privatisation of government-owned companies, nationalisation or government directive for reorganisation, restructuring,mergers and acquisitions.

The guideline on the new policy can be accessed from the IRB's website: http://www.hasil.org.my/

Extentsion Tax Payment

Due to Chinese New Year long holidays, the Inland Revenue Board has informed taxpayers that the extension tax payment to prevent and avoid late penalty charges incurred.

The following payments, which are normally due on 10 February 2008, will be extended to Friday, 14 February 2008:

1. Schedule Tax Deductions (STD) by employers;

and

2. Monthly tax installment payments by companies, co-operative societies and trust bodies.

Happy Chinese New Year & enjoy your holidays!

It isn't hard to attain a cash advance these days and they can certainly help you purchase different things when you are in need. You can get a payday loan or different cash advances so you can get the cash you need when you need it.

Tax Alert - February 2008

Today is first of February. This month looks short because we can enjoy CNY holidays. Some more, we have 29 days in February. Here are the important dates you need to bear in mind:

10th February 2008
Due date for monthly tax installments.

29th
February 2008
Statutory deadline for filing of 2007 tax returns for
companies with July year-end.
Due date for tax estimates for companies with
March 2009 year-end.

January 2008
1. Sixth month revision of tax
estimates for companies with August year-end.
2. Ninth month revision of tax
estimated for companies with May year-end.

Dividend Vouchers New Format

For your information, the dividend voucher sample can be accessed from the IRB's website.

The IRB has released a sample of the new dividend voucher for the 6-year
transitional period arising from the introduction of the single-tier system i.e.
01.01.2008 to 31.12.2013. The following types of dividends can be included in a
single dividend voucher provided that the payment of all types of dividend are
made on one date -

1. Franked Dividend
2. Normal Exempt Dividend
3. Single-Tier Exempt Dividend

If the dividends mentioned above are
paid on different dates, separate vouchers must be used.

Public Ruling No.2/2005

This is for all tax payers. It's time to get ready yourself updates on tax so that you are smart enough to fill up your Form B or BE. There are some updates that you need to know. Just to share with you, here is one that you need to find out in details:

The IRB has issued the Second Addendum to Public Ruling
No.2/2005 - Computation of Income Tax Payable by a Resident
Individual. The Addendum covers recent amendments on tax deductions in
respect of:

1. Fees for Further Education

2. Reading Material Expenses

3. Purchase of Personal Computer

4. Child relief

The Addendum forms part of the Public Ruling No.2/2005 and is
available on the IRB's website: www.hasil.org.my

Tax Alert - Janaury 2008

A friendly reminder to all Malaysia Companies here are the important dates in January that you need to bear in mind: -

10th January 2008
Due date for monthly tax installments.

31st January 2008
Statutory deadline for filing of 2007 tax returns for companies with June year-end.

January 2008
1. Sixth month revision of tax estimates for companies with July year-end.
2. Ninth month revision of tax estimated for companies with April year-end.

Resubmit Form B

I submitted my 2007 Form B some where around Jun'07. Because I didn't received the original copy at the time, I make a photocopy for myself for the submission. I am using A4 size paper to photocopy, fill it up and submitted to IRD. After nearly five months submission, I received an envelope from IRD.

The envelope including a new blank Form B (A3 size) 2007 Form B together with the Form B that previously I'd submitted. A letter from IRD mentioned that I need to resubmit again with the completed new Form B.

I am wondering will IRD treat my 2nd submission is the valid one and will this become a late submission? Luckily my previous submission have a date stamping proof that IRD did received it on Jun'07. Since the letter didn't mentioned any possible penalty incurred, I make it save. I fill up the new form as same as my previous submission and resubmit together with a copy of my previous submission. I treat my new submission as superseded copy. I do wish that this will not incurred any penalty due to this issue.

Outstanding PCB

I am facing a problem here. Last year my salary had been deducted under the PCB section. Company had deducted my salaries for about 3 months but company not affords to pay the money to IRD. If you think the amount to big, then you are wrong. That's because my company having a serious financial problems and stop payment to all the outstanding expenses.

My question here is: I had submitted my EA for year 2006. My tax payable is RM110. After deducted the PCB, I have to top up another RM70. I had tried to call IRD but their phone line is really hot and I can not reach to their officer. So, shall I make a payment of RM110 or I have to pay the tax payable balance amount of RM70??

Really no idea about this....

E-Filing

As you know the Form BE deadline will be on 30.04.07. Have you completed your tax computation? Have you fill up the Form BE? I just completed mine. Actually I wish to have a try on e-filing but fail. I can successful download the software required but I can not or to say I don know how to get the digital certificate.

Any one has successful submitted your forms by e-filing? Please share with me your experience.

IRD Form B & BE

Form B to be fill up by resident in Malaysia who are earning Business, Employment and Other Incomes.

Form BE to be fill up by resident in Malaysia who are earning Employment and Other Incomes (Without Business Income).

For married couple who choose for joint assessment, both the husband and wife are still required to fill out separate tax forms B/BE.

You can refer to Form B Explanatory Notes and Form BE Explanatory Notes to guides you on form fill out.

All records, documents and working sheets used in the Tax computation must be kept for a period of seven (7) years after the end of the year in which the return form is furnished to the IRD, for future reference if required.

Forms Submission Deadlines:
Form B 2006 - 30.06.2007
Form BE 2006 - 30.04.2007