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The tax submission due date is only two weeks away. Best that we wrap this up quickly. The next section in the eFiling electronic BE form is the Tax Summary. As the title suggests, this section is a summary of the tax information you keyed in through the previous forms. It also calculates and derives payable or refundable taxes based on the values that you provided. While there is nothing to be filled, it is an important page that should be reviewed and double checked to ascertain that you made no data entry errors. Don’t take eFiling for granted. It’s also a good place to double check the calculations.

Very quickly, the fields from top to bottom and how the values are calculated/derived:

• Jumlah Pendapatan (Gross Income)

  The total income derived from the values provided in the second page of the BE form (eFiling Part 4: 2006 BE Form - Taxable Income). It is a simple sum of all the fields on that page.

  Now is a good time to revisit the values keyed in earlier and double check them. Is your annual salary printed in the EA form correct? Have you declared all your taxable income?

• Jumlah Pelepasan (Total Tax Exemption)

  This value is calculated from the values provided in the third page (eFiling Part 5: 2006 BE Form - Exemption Claims). Again a quick sum of all the values you keyed in.

  Double check that you have keyed in all the correct values and made the correct claims. See if you have missed out something that will directly reduce your nett taxable income. Make sure you have all your receipts on hand and file them properly in case of auditing.

• Pendapatan Bercukai (Nett Taxable Income)

  The first field (Gross Income) minus the second field (Total Tax Exemption) equals the nett taxable income. The amount of taxes that you have to pay will be calculated based on this value. It directly determines the tax bracket that you fall into, and the percentage (%) of taxes payable. The lower this derived value, the better.

  Check that the calculation is correct.

• Jumlah Cukai Pendapatan (Total Income Tax)

  This value is calculated from the Nett Taxable Income based on a tiered tax bracket system. The categories as follows:

  Category	Nett Taxable Income Range [A]	Calculation (RM) [B]	Rate (%) [C]	Tax (RM) [D]
  A	0 - 2,500	First 2,500	0	0
  B	2,501 - 5,000	Subsequent 2,500	1	25
  C	5,001 - 10,000	First 5,000 Subsequent 5,000	3	25 150
  D	10,001 - 20,000	First 10,000 Subsequent 10,000	3	175 300
  E	20,001 - 35,000	First 20,000 Subsequent 15,000	7	475 1,050
  F	35,001 - 50,000	First 35,000 Subsequent 15,000	13	1,525 1,950
  G	50,001 - 70,000	First 50,000 Subsequent 20,000	19	3,475 3,800
  H	70,001 - 100,000	First 70,000 Subsequent 30,000	24	7,275 7,200
  I	100,001 - 150,000	First 100,000 Subsequent 50,000	27	14,475 13,500
  J	150,001 - 250,000	First 150,000 Subsequent 100,000	27	27,975 27,000
  K	250,001 and above	First 250,000 Subsequent dollars	28	54,975 …

  From the schedule above, you start paying taxes if your nett taxable income is more than RM2500.00 per annum. However, there are further deductions/rebates to be made (as filled earlier) as well as implied rebates for individuals (described below). You’ll realise that you only really have to worry about paying taxes if your nett taxable income is above RM20,000.00.

  The payable taxes is tiered. From category C onwards, you’ll notice two values in the [D] column. The first value is for taxes payable for income below the bracket’s range (e.g. a sum of taxes for previous tiers). The second value is for taxable income within the bracket’s range.

  For example, if your nett taxable income is RM45,678 per annum. You fall under the F category. Your payable taxes are:

  Tax payable for the first RM35,000 (column [D] first value)	=	RM1,525.00
  Income within the bracket range	=	Nett taxable income - Previous bracket range
  	=	RM45,678.00 - RM35,000.00
  	=	RM10,678.00
  Tax rate for category F (column [C])	=	13%
  Tax payable for income within bracket range	=	Income within bracket range * Tax rate
  	=	RM10,678.00 * 13%
  	=	RM1388.14
  Total taxes payable	=	Tax payable for first RM35,000 + Tax payable for income within bracket range
  	=	RM1,525.00 + 1388.14
  	=	RM2913.14

  Double check that the calculations are correct based on your nett taxable income and the category you fall into.

• Rebat Cukai Individu (Individual Tax Rebate)

  You qualify for a individual tax rebate of RM350.00 (Previous years was RM300.00) if your nett taxable income is below RM35,000.00. This value is automatically derived depending on your calculated nett taxable income. If you qualify for this rebate, make sure the value appears. If you qualify but it doesn’t appear, submit your form manually and call the tax office to let them know there’s a bug in their system.

• Rebat Cukai Suami/Isteri (Spouse Tax Rebate For Joint Assessment)

  If you applied for joint assessment with your spouse, you are entitled to a rebate of RM350.00 if your joint nett taxable income is below RM35,000.00. I’m not sure whether this feature works within the eFiling system. Let me know if you are doing a joint assessment.

• Jumlah Rebat Lain (Total of Other Rebates)

  The sum of relevant rebates as derived from the values filled into the the eFiling Part 6: 2006 BE Form - Rebate Claims/Tax Deductions/Tax Relief form. Double check that you haven’t left anything out and that the total is correct.

• Jumlah Cukai Yang Dikenakan (Total Income Tax)

  Total Payable Income Tax = Total Income Tax (see above) - Total Rebates (sum of rebates above).

  Sum up the individual tax rebate, spouse joint assessment tax rebate and total of other rebates. That is the total amount of deductible rebates. Take that out from the total income tax and you’ll get the total amount of income tax that you have to pay. This value will either be zero or more. If it is zero, then you don’t need to pay any taxes.

• Jumlah Tolakan/Pelepasan Cukai (Total Deductions/Tax Relief)

  Also derived from the eFiling Part 6: 2006 BE Form - Rebate Claims/Tax Deductions/Tax Relief section of the form. A sum of relevant tax deductions and relief.

• Cukai Kena Dibayar (Total Payable Income Tax) OR Cukai Dibayar Balik (Tax Refund)

  This is the sum of money you owe to LHDN for taxes or vice versa.

  It is the total income tax minus total deductions/tax relief. If the value is positive, then the total payable income tax field is populated. Otherwise, the tax refund field is populated.

• Ansuran / PCB telah dibayar (Scheduled/PCB payments made)

  Derived from the field of the same name from earlier sections. If you have paid PCB or made scheduled tax payments, then the value is reflected here. Double check that the value is correct.

• Baki Cukai Kena Dibayar (Remainder Payable Income Tax) OR Cukai Terlebih Bayar (Overpaid Income Tax)

  Take the total payable income tax OR tax refund value calculated previously and minus out the scheduled payments. If the value is positive, then the Remainder Payable Income Tax is filled. You owe the tax man.

  Otherwise, the overpaid income tax field is populated and they owe you. Submit a tax refund claim. They have streamlined the process and it shouldn’t take more than a few weeks to get a refund cheque in the mail. The process used to take months (or worse, years).

And that’s a wrap. Make sure you double check all the values.

Next: eFiling Part 9: 2006 BE Form - Acknowledgment & Signature »