Type of Income
In general, a taxpayer is required to pay tax on all kind of earnings, including incomes from:
Business or Profession
Employment
Dividends
Interest
Discounts
Rent
Royalties
Premiums
Pensions
Annuities
Others
Record Keeping
Taxpayer is required to keep the following documents for 7 years:
EA/EC Form
Original dividend vouchers
Insurance premium receipts
Books purchase receipts
Medical receipts
Donation receipts
Zakat receipts
Children`s birth certificates
Marriage certificate
Other supporting documents
Working sheets (if any)
The calculation of the 7 year period begins from the end of the year in which the ITRF
(income tax return form) is filed.
Self Assessment System (SAS)
Tax administration under SAS is based on the concept Pay, Self Assess and File
Pay : Monthly salary deductions are made for individuals having employment income, or
through instalments for individuals having business income.
Self Assess : Taxpayers compute their own taxes.
Tax Chargeability
.
Am I taxable?
An individual who earns an annual employment income of RM25,501 (after EPF deduction)
has to register a tax file.
With effect year 2010 an individual who earns an annual employment income of RM26,501
(after EPF deduction) has to register a tax file.
With effect year 2013 an individual who earns an annual employment income of RM30,667
(after EPF deduction) has to register a tax file.
Nevertheless, with effect year 2015 an individual who earns an annual employment income
of RM34,000 (after EPF deduction) has to register a tax file.
If the employee is eligible for STD(schedular tax deduction) deduction, he is advised to
register an income tax file before STD is implemented.
What should I do if my income is taxable?
Application to register an income tax reference number can be made at the nearest IRBM
branch.
Documents 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
Assessment Year 2018-2019
Chargeable Income Calculations (RM) Rate % Tax(RM)
0 - 5,000 On the First 5,000 0 0
On the First 5,000 0
5,001 - 20,000 Next 15,000 1 150
On the First 20,000 150
20,001 - 35,000 Next 15,000 3 450
On the First 35,000 600
35,001 - 50,000 Next 15,000 8 1,200
On the First 50,000 1,800
50,001 - 70,000 Next 20,000 14 2,800
On the First 70,000 4,600
70,001 - 100,000 Next 30,000 21 6,300
On the First 100,000 10,900
100,001 - 250,000 Next 150,000 24 36,000
On the First 250,000 46,900
250,001 - 400,000 Next 150,000 24.5 36,750
On the First 400,000 83,650
400,001 - 600,000 Next 200,000 25 50,000
On the First 600,000 133,650
600,001 - 1,000,000 Next 400,000 26 104,00
On the First 1,000,000 237,650
Exceeding 1,000,000 Next ringgit 28 ..........
Tax Rebate
.
Income Tax Rebates For Resident Individual With Chargeable Income Less Than RM35,000
Year Of Year Of
Assessment Assessment
2001 - 2008 2009
No. Tax Rebate Onwards
(RM) (RM)
a Separate Assessment - -
Wife 350 400
Husband 350 400
b Combined Assessment - -
Wife 350 400
Husband 350 400
Total 700 800
b Assessment Where Husband Or Wife Does Not - -
Has Any Total Income 350 400
Wife 350 400
Husband
Total 700 800
Other Tax Rebates
No. Tax Rebate (RM)
a Zakat/Fitrah Subject to the maximum of tax charged
b Fees/Levy on Foreign Subject to the maximum of tax charged
Workers ( deleted from year
assessment 2011 )
