Tax – Individual

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Tax – Individual

FAQ – Individual

1) Am I taxable?

Individual who earns an annual income of RM25,501 (after EPF deduction) has to register a tax file.

If your income is derived from employment and your employer has deducted your tax through Schedular Tax Deduction (STD), your income tax file will be registered automatically by the IRB.

 

2) What should I do if my income is taxable?

An individual should apply or register an income tax reference number at the nearest IRB branch.

Documents that required for registration:

  • 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)

You can also register an income tax reference number via e-Daftar (through the internet)

 

3) What if Form BE?

This is a tax return form which has to be completed by the following individuals:

  • Resident in Malaysia; and
  • He who has no business source in the year of assessment.

If you are carrying on a business but you receive a Form BE from Inland Revenue Board (IRB), please notify IRB to replace it with the Form B.
 

4) What if Form B?

This form has to be completed by the following individuals:

  • Resident in Malaysia; and
  • Having a business source in the year of assessment.

If you are not carrying on a business but you receive a Form B from IRB, you can either:

  • Use the form to declare income received; or
  • Notify IRB to replace it with the Form BE

 

5) What is the due date to submit income tax return form?

The due date for the submission of return form is as follows:

  • BE Form, for individuals without business source, the due date is on or before 30th April every year.
  • B Form, for individuals with business sources, the due date is on or before 30th June every year.
  • M Form, for a non-resident individual without business source, the due date is on or before 30th April every year.
  • M Form, for a non-resident individual with business source, the due date is on or before 30th June every year.
  • P Form, for partnership, the due date is on or before 30th June every year.

To avoid any penalty imposed by the IRB due to late submission, please ensure that the form is submitted on or before the due date.

 

6) How can an individual obtain the tax refund?

Credit in the account will be refunded to the taxpayer. However, if you do not receive your refund you can forward your application to the Collection Unit of the assessment branch where your tax file is registered.

 

7) How to obtain your tax position statement?

If you require a statement of your tax position, you can obtain it by calling or writing to the Collection Unit of the branch where your file is located.

 

8) What is CP500 installment scheme?

If a taxpayer has income other than employment such as business, rental and royalties, he is required to make 6 bi-monthly instalment payments, commencing from the month of March in that assessment year . The instalment dates will be stated in the notice of the instalments to be paid (CP500). The amount of each instalment will be estimated by the IRB usually base on his previous tax records. Taxpayers who do not received the Form CP500 by end of February each year, may check at the branch where their file is located.

Taxpayers who receive the Form CP500 can apply for the instalments to be revised by filling the CP502 Form. The application should be made on or before 30th June for the relevant year.

A comparison must be made between the total of the instalments paid and actual amount of tax payable. If the instalments are insufficient, the shortfall must be paid when submitting the income tax return form in the year following the year of assessment. If the total instalments paid are more than the actual tax payable, the taxpayer may claim a refund of the overpayment from the IRB.