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Today we’ll look at how to calculate and fill in the section on taxable income. This is where things get interesting. However, it is still a simple task to do, provided you have all the information on hand. Before proceeding, make sure you have the following documents on hand:

• EA Form (issued by your employer)
• Applicable receipts (Dividends, Donations, etc)

NOTE:
If you are doing joint assessments with your spouse, I suggest not using the eFiling system. Although it is supposed to support joint assessments, the system seems a little dodgy in that aspect (e.g. some fields are missing) and might not return accurate results.

Once again, the fields in order from top to bottom, left to right, and the means to calculating and filling them:

• Penggajian (Income)

  Total annual income, inclusive of monthly income, bonuses, director fees, commissions, and other benefits. Benefits include Employee’s Share Options Scheme (ESOS - press release), premiums, and insurance/school fees/tuition fees/housing loans/vehicle loans/etc paid by employers.

  There are exemptions, for which you’ll have to submit a separate worksheet. Exemptions include, but not limited to, monetary awards given during retirement or contract completions as a reward for past services.

  Basically, this value can be derived from the EA form where there should be a total income value. If you have multiple EA forms (e.g. you worked multiple jobs within the year), sum up the total income from all the EA forms.

• Dividen (Dividends)

  This covers any income from dividends that are qualified for exemptions. Those making dividend claims are required to submit a separate worksheet along with the original dividend vouchers. At this moment in time, the eFiling system does not support electronic submission of the form and vouchers.

• Faedah dan diskaun (Interests and discounts)

  All interests are taxable with the exception of:

  • Interests/bonuses from Bank Simpanan Nasional or Lembaga Tabung Haji
  • Interests on deposits up to RM100,000 in savings accounts with banks or financial institutions under the Akta Bank dan Institusi-Institusi Kewangan 1989 (Bank and Financial Institution Act 1989), Akta Bank Islam 1983 (Islamic Bank Act 1983), Bank Pertanian Malaysia, Malaysia Building Society Bhd., Borneo Housing Mortgage Finance Bhd., registered cooperations, and other institutions approved by the ministry.
  • Interests on deposits up to RM100,000 in fixed deposits or investment accounts for a period not exceeding 12 months with any financial institutions or banks as described in the paragraphs above.
  • Interests on deposits in fixed deposits or investment accounts for a period of 12 months or more with any financial institutions or banks as described in the paragraphs above.

  Unless you have monetary deposits in excess of RM100,000, you don’t have to worry about this field.

• Diskaun (Discounts)

  Income in the form of investment discounts.

• Sewa (Rent)

  Income collected from the letting of houses, shop houses, land, factories, machinery, furniture, etc. A separate worksheet is required.

  If you are collecting rent, declare the total amount collected here (most people usually ignore this).

• Royalti (Royalty)

  Royalties received for usage of copyrighted or patented materials that exceeds the following taxable exemption:

  Royalty Category	Exemption (RM)
  Publishing of works of arts/tape recordings/discs	10,000
  Publishing of book translations/literary works	12,000
  Publishing of literary works/original art/music	20,000

  This is only applicable for artists, musicians, and patent holders.

• Pencen, anuiti, dan bayaran berkala lain (Pension, annuity, and other fixed incomes)

  Any pension received from Malaysia for the purpose of retirement at age 55, or compulsory retirement are exempt from tax. If more than one pension is received, only the highest pension value is exempt. Other pensions must be declared.

  Annuities are defined monies received from wills or monetary investments that allow the receipt of annual payments (for a fixed period of time or forever).

  Other fixed income received on a regular basis must also be declared.

  Total up the values any declared income that fit the description above and fill it in.

• Apa-apa perolehan atau keuntungan lain (Other incomes or profits)

  Catch-all for any other intermittent income such as lectures, written articles or published works from part time or freelance efforts.

  Also include any payments from Amanah Pelaburan Harta Tanah (REIT - Real Estate Investment Trust) or Tabung Amanah Harta (PTF - Property Trust Fund).

  If you have no idea what I’m talking about, it’s probably safe to assume that you can leave this blank.

• Jumlah Derma dan Hadiah (Total Donations and Contributions)

  This field is a deduction for any donations or monetary gifts given to approved institutions. The field is automatically updated after you have filled in a separate electronic form. To access the form and the break down, click the folder icon labeled Derma & Hadiah located next to the field. This will bring up the following breakdown form:

  
  - Donations & Contributions (Enlarge) -

  The following is the break-down for each field in the Donations and Contributions form from left to right, top down:

  • Hadiah wang kepada Kerajaan/Kerajaan Tempatan atau institusi yang diluluskan (Monetary contributions to the government/state government or approved institutions)
    Includes charities such as the SPCA.
  • Hadiah artifact, manuskrip atau lukisan (Contributions of artifacts, manuscripts or works of art)
  • Hadiah wang untuk kemudahan perpustakaan atau kepada perpustakaan (Monetary contribution towards library facilities or to a library)
    Limited to RM20,000 in donations to public libraries/school libraries/libraries of institutions of higher learning.
  • Hadiah wang atau sumbangan manfaat bagi menyediakan kemudahan di tempat awam untuk orang kurang upaya (Monetary contributions towards accessibility facilities for the disabled in public places)
  • Hadiah wang atau kos peralatan perubatan kepada mana-mana badan rawatan kesihatan (Monetary contributions or costs of medical equipment to any medical body)
    Limited to RM20,000 in donations to any medical institutions approved by the Malaysian Ministry of Health
  • Hadiah lukisan kepada balai seni lukis negara atau balai seni lukis negeri (Donations of works of arts to the National Art Gallery or State Art Galleries)
• Ansuran/PCB telah dibayar - SENDIRI dan SUAMI/ISTERI bagi taksiran bersama (Monthly deductions/PCB paid - SELF or HUSBAND/WIFE for joint assessment)

  Include any monthly tax deductions that you have made (e.g. automatic deductions made from your salary). If you are doing joint assessments, put in the total value for both you and your spouse.

• Pendapatan Tahun Kebelakangan Yang Belum Dilaporkan (Undeclared Income From Previous Years)

  The subsequent section is for any past income that have not been declared. This can be derived from the EA form issued by your employer. The explanation of each field as follows:

  • Jenis Pendapatan (Type of income)
  • Bayaran bagi tahun (Year of income)
    The year when the income was acquired
  • Amaun kasar (Gross amount)
  • Caruman kumpulan wang (EPF and other deductions)

  If you have no undeclared incomes from previous years, leave this section blank.

Looking at the form, the sum of the first six fields is your aggregate annual income. Donations and Contributions are tax exemptions for your contributions to the country or charities. The aggregate income minus contributions is your gross taxable annual income.

The PCB deduction represents any scheduled payments that you have already made to LHDN.

The final section constitutes any undeclared income from previous years. This will be backdated to your previous years and do not contribute to the current year’s taxable income (e.g. will not increase your taxes for the current year).

Once you’ve filled in the details, simply click the Simpan & Teruskan (Save & Continue) button at the bottom of the page to continue to the next form. The Kembali button will bring you to the previous form (Personal Details).

Next: eFiling Part 5: 2006 BE Form - Exemption Claims »