Hello,
Have you completed your income tax filing?
No?
Never?
WHAT is income tax return??????
Don't worry, I did my own mini-survey and found out that .....
(Note: this is totally un-official and based on my personal observation)
-
1 in 5 of my friends do not know what is e-filing and
never bothered to file their income tax return
-
2 in 5 of my friends have heard and
understand what tax return is
but have not filed theirs
- 1 in 10 of my friends
understand what tax return is,
knows the legal implications on tax filing
BUT decides not to declare income and never files for tax return (naughty, naughty) *taps forehead*
So, who should file for Individual Income Tax Return?
- Malaysian citizen earning an Income
- Income more than RM2,500.00 (after deduction from EPF)
Why should you file for Income Tax Return?
Most employers adopt the PCB system or Potongan Cukai Berjadual or in English - STD : Schedular Tax Deductions system
"STD is an income tax deduction mechanism from employee’s current monthly remuneration in accordance with the Schedule of Monthly Tax Deductions or other methods approved by the Director General (herein after referred to as “computerised calculation method”) according to the provision under Rule 3, Income Tax (Deduction from Remuneration) Rules 1994 (STD Rules). These deductions are intended to reduce the employee’s burden to pay in one lump sum when the actual tax is ascertained."
STD Rules are provided for in subsection 107(2) of the Income Tax Act 1967 (Act).
When this happens, more often than not the amount of tax paid by each individual may differ from the 'actual' amount of tax needed to be paid.
Actual amout of tax you have paid through STD...
...if in deficit = you will have to pay the differences
...if in excess = you will be REFUNDED
So, don't you want to know whether your tax money will be REFUNDED by the Government???
Yes my friends...it is your right to file for Tax Return and I suggest you do so, pronto!
Who knows, you might just get yourself back a couple of hundred ringgit, no?
Now, on to the sticky bit...
What you need ...
1) BE form (download
here before you proceed with the e-BE form)
2) Tax Reference Number - 11 digit starts with SG (it should be in your payslip, if not you can request from the Inland Revenue Board or your Accounts/HR Department)
3) Receipts for your Tax Relief (will be explained later)
4) Pin number for e-filing (request from IRB via email or phone call)
5) Form EA (will be mailed to either your house or to your Accounts department. If you do not have it, please contact IRB)
6) Reliable calculator, pencil and eraser
Step 1
Fill up your BE form manually. I suggest you do this first to avoid any errors or misinterpretation that may be irreversible/cause problem should you have done it in your e-BE form.
Please note that once you have submitted your e-filing Assessment Form for 2010, you will not be able to log in into your assessment form anymore. So print everything and anything, I say :P
For Penggajian / Salary you can take the total amount from 'Jumlah' in column C from your EA form.
You may refer to the
'Buku Panduan Mengisi Borang BE' that can be retrieved
here.
Step 2
The tricky part may be to fill up the Tax Relief or Pelepasan.
Tax Reliefs are taxes incurred for all items under the Tax Relief (Refer to Bahagian D).
What it does really is to reduce the total amount of tax you have to pay at the end of this calculation.
Things like books, sports item, medical bills are all eligible for Tax reliefs, so I suggest from now on you keep and stash those receipts somewhere as this will help reduce the amount of tax you have to pay.
And another important note: You may not need to present your receipts as proof to IRB during the submission, however
Please keep all your receipts for at least 7 years, because you may need to submit to IRB in cases where the IRB decides to audit you. (the percentage of IRB auditing individuals may not be high, but there is still the possibility that they will and if you're caught of misrepresentation you may be fined).
Oh, I forgot to inform you...please note that the whole calculation done in this form is
to determine the 'actual' amount of tax you are required to pay so this amount can be compared to what you have paid through the PCB or STD.
You can also find the total amout of EPF contributed (see D17) in your EA form.
Step 3
The next tricky bit is in Bahagian E - E2.
Please ignore column E2a.
For E2b and E2c you need to refer to this
Jadual Kadar Cukai 2010 schedule
For e.g:
Your E1 (Total Income - Total Tax Relief) is RM 34,200.00
Your E2b is your first RM 20,000 (refer
schedule)
is RM 475.00 (refer
schedule)
So, RM34,200.00 less RM 20,000 above = RM14,200
For your E2c you need to put in the balance of RM14,200
Atas kadar - 7% (refer
schedule)
is RM 14,200 x 7% = RM994.00
So, E3 is RM475 + RM994 = RM1,469
For E4, if your E1 is below RM35,000 you are entitled to RM400 discount
Please also to add in the amount of Zakat & Fitrah you have paid (this can be found in your EA form)
So, E9 is RM1,469.00 - [RM400 + Zakat you've paid]
Thus is the 'actual' amount of tax you need to pay.
Step 4
This is the fun part (if you've overpaid lah) =___=
Fill up Bahagian F where you can retrieve total PCB/STD you have paid from the EA form.
From then on, you'll know whether you have overpaid or under-paid.
If you have under-paid (your tax payable is more than your PCB/STD) = you need to pay IRB the amount of tax due
If you have over-paid (your tax payable is less than your PCB/STD) = IRB will refund you via Bank deposit.
Wooo-hooooo!!!
Final Step
So, is this fun for you so far??? I know I'm excited since IRB will be refunding me soon with quite a handsome figure :P
Now, next is to fill up you e-BE form
here by following the guidance provided.
It's simpler cause you do not need to use your calculator as it will automatically calculate for you.
Oh, Don't forget to
print out everything and keep it for your records, yeah! Especially the Slip Pengesahan :D
If your stumbled along the way or require clarification on some matters, please do call the very helpful IRB officers at
1-300-88-3010 or 03-4289 3500.
Remember, the
deadline for submission is 30 April 2011, so you have less than a week to do it!!!!
Good luck and all the best!
