Am I taxable?

Malaysia is an exceptionally nation in terms of taxes. Income taxes similarly low compared to other country.

All persons staying in Malaysia for more than 182 days are considered as residents under Malaysian tax law, regardless of nationality. All persons staying less than 182 are regarded non-residents and are taxed on a different scale.

The income tax of non-residents is calculated on a three-step tax rate, 27%, 15% and 10%, depending on the type of income.

The income tax rate for residents is calculated on the amount of income and is much more precise. The income is classified into 8 different tax groups ranging from 0% to 26%. 18d9e1e0-a8fd-424e-b77f-d899f4cb7516

Changes in Tax Rates for Resident Individuals Read more

Is electronic receipts for tax valid?

We would say keeping receipts is still the best way to assess your business annual spending accurately. The key to success lies in commitment to a system that makes it more like a daily habit than a chore.

The deadline to file taxes slowly approaching, you start checking your home on a mad hunt to cull all those receipts from business trips, work lunches and any other necessary expenditure that might help you improve your chances of reduce your chargeable income. The best solution from e-BizBook community = Snap every single business receipts paid with cash via mobile phone, then print it or sort it with your tax accountant once a year. receiptThere is whole lot of app in smart phone that help snap receipts, choose what that suit your needs.

So, whether scanned, photographed or otherwise electronic receipts are legal and accepted by the for tax purposes? Read more

How to lower risk of being tax audited by the Inland Revenue

The basis of selecting a tax audit are totally random, and there’s nothing that the individual taxpayer can do about them, many audits are actually instigated by the taxpayers themselves.  To that end, below is a list of indicators that can cause your return to be selected by the Inland Revenue Board (IRB) for audit.

  1. over claiming Personnel Deduction/Relief Amounts

Personnel reliefs are claimable by taxpayers if they meet the conditions as stipulated by the relief claimed. Unfortunately many, if not most, taxpayers either aren’t aware of this, or simply choose to ignore this fact and claim reliefs beyond reasonable level.

  1. Math Errors

While this may sound simple, many returns are selected for audit due to basic math errors. Make sure that the columns add up. Also make sure that the total value of gains and/or losses are properly calculated. Even a small error can raise eyebrows.

  1. Failure to Sign the Return

Don’t be a part of that number! Failure to sign the return will almost guarantee that it will receive additional scrutiny. Read more

Malaysian Source Income

Malaysia income tax is based on territorial concept. Tax on income derive from Malaysia for resident/non-resident. Thus employment and business income that exercised in/rendered in Malaysia liable to tax, regardless place of payment/contract is signed.

However, with effect 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.
Malaysia source income
Taxability of income in short: –
a)X capital (sell properties/share)
b)Derived during the year
c)In Malaysia
d)By any person (any age) Read more

GST Introduction

GST is a broad based consumption tax borne by end consumers. It is a tax collected at every level of supply chains, production and distribution. It is a tax on the value added at each stage of the chain which is the difference between the tax on sales and purchases.

GST shall be levied and charged on the taxable supply of goods and services made in the course or furtherance of business in Malaysia by a taxable person. GST is also charged on the importation of goods and services.


A taxable supply is a supply which is standard rated or zero rated. Exempt and out of scope supplies are not taxable supplies.

GST is to be levied and charged at the proposed rate of 4% on the value of the supply.

GST can only be levied and charged if the business is registered under GST. A business is not liable to be registered if its annual turnover of taxable supplies does not reach the prescribed threshold. Therefore, such businesses cannot charge and collect GST on the supply of goods and services made to their customers. Nevertheless, businesses can apply to be registered voluntarily.

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