31 March 2006

Tax Filing - Malaysian Income Tax for Individual

When is the tax filing deadline? Where to file tax return? What documents do we need to send to Lembaga Hasil Dalam Negeri?

The problem about income tax is that we only do it once a year and therefore we tend to forget how we had successfully dealt with it last year. I have to admit even as an accountant who is used to corporate tax, I can be very unsure of what to do next when it comes to my own income tax return filing!

I hope this series of writings can provide a good Malaysian Income Tax reference for individual.

First thing first, this is the web site of Lembaga Hasil Dalam Negeri. But don't waste time searching to find information on Income Tax filing. I tried, nothing there...yet.

If you are a salaried employee without business source of income, you should fill up Form BE and your tax filing deadline is 28 April 2006 as 30 April 2006 falls on Sunday.

Please take note that dividend income and rental income (generally) are not considered as business source of income. For rental income, you will need to own several residential rental properties and/or commercial properties to be considered as business source of income.

So this means if you are a salaried employee owning an apartment for rental and few stocks with dividend income and without a business registered under your name, you should fill up Borang BE and file the tax return by 28 April 2006.

If you have a business source of income you should fill up Form B and your tax filing deadline is 30 June 2006.

Part 1: Malaysian income tax return filing deadlines
Part 2: Malaysian income tax return processes: from filing to payment...
Part 3: Are you subject to Malaysian Income Tax?