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2013

SQM
Basic tax information in Malaysia

BASIC TAX INFORMATION MA A!SIA " 2013 INCOM# TAX


Direct taxation in Malaysia is based on the unitary system and the basis of taxation is territorial in nature. Only income that is accrued or derived from sources in Malaysia is liable to tax. Income from foreign sources is liable to tax to the extent that it has its source of derivation in Malaysia by a resident company. The basis of assessment of tax is on a current year basis and is selfassessed. The self-assessment system and the current year basis of assessment require taxpayers to make estimate of tax payable for the current year of tax. #STIMATION OF TAX AN$ %A!M#NT OF TAX R&si'&nt com(ani&s are required to furnish their estimate of tax payable in the prescribed form not later than thirty days before the beginning of the basis period for that year of assessment. The estimate shall not be less than !" of the estimate of tax payable or revised estimate of tax payable for the immediately preceding year of assessment. #evisions to the estimate of tax payable for the current year of assessment may be made in the sixth and ninth month of the basis period in the prescribed form. Tax to be paid shall be made in equal monthly instalments in the basis period of that year of assessment and shall commence in the second month. The due date is the tenth day of each month. R&si'&nt in'i)i'*als do not have to furnish an estimate of tax payable. The estimate of tax payable $ill be determined by the Director %eneral of the Inland #evenue &oard together $ith the number of instalments of tax to be paid. In determining the estimate of tax payable and the number of instalments to be made consideration $ill be given to the tax assessed in the year of assessment preceding that year of assessment. 'ayment should be made $ithin thirty days of the due date. (n individual may apply in the prescribed form to revise the estimate of tax payable and the number of instalments not later than the thirtieth day of )une in that year of assessment.

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BASIC TAX INFORMATION MA A!SIA " 2013


FI IN+ OF TAX R#T,RN- ASS#SSM#NT AN$ BA ANC# OF TAX %A!AB # Com(ani&s have to file their income tax return and pay the balance of tax payable for the current year of assessment not later than the seventh month after the end of the basis period. In'i)i'*als have to file their income tax return and pay the balance of tax payable for the current year of assessment not later than +, th (pril of the follo$ing year. The basis year for individuals is the calendar year. The income tax return filed shall be deemed to be the notice of assessment for that year of assessment.

IN$I.I$,A
1 INCOM# TAX RAT#S C/ar0&a1l& Incom& RM -irst ./!,, 0ext ./!,, On !/,,, 0ext !/,,, On *,/,,, 0ext *,/,,, On .,/,,, 0ext *!/,,, On +!/,,, 0ext *!/,,, On !,/,,, 0ext .,/,,, On 3,/,,, 0ext +,/,,, On *,,/,,, 0ext !,/,,, On *!,/,,, 0ext *,,/,,, .!,/,,, 5xceeding .!,/,,, Tax Rat& 2 , , . . 1 ** *2 .4 .1 .1 .1 Tax %aya1l& RM , , , *,, *,, .,, +,, 2,, */.,, */1!, ./ !, +/ ,, 1/1!, 3/.,, *+/ !, *+/,,, .1/ !, .1/,,, !./ !,

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BASIC TAX INFORMATION MA A!SIA " 2013 IN$I.I$,A contin*&'


2 INCOM# TAX R#BAT#S RM 6a7 #ebate given to taxpayer #esident chargeable income not exceeding #M +!/,,, (dditional rebate for $ife If she does not elect for separate assessment or has no income or elects for combined assessment $ith husband (dditional rebate for husband If he has no income or elects for combined assessment $ith $ife 6b7 #ebate given to $ife if she elects for separate assessment or does not elect for combined assessment 4,, 4,,

4,, 4,,

6a7

I08OM5 T(9 #5&(T5 -O# :(;(T/ -IT#(< O# (0= OT<5# I>?(MI8 #5?I%IO@> D@5> -ull rebate in respect of Aakat/ fitrah or any other Islamic religious dues paid.

%#RSONA R# I#FS RM 2/,,, !/,,, !/,,,

Taxpayer - #esidents Medical expenses for parents 6Maximum7 Medical expenses for taxpayer/ spouse and children on serious diseases 6including #M !,, for medical examination expenses7 6Maximum7 Disabled personB Taxpayer >pouse >upporting equipment for disabled taxpayer/ spouse/ children or parent 6Maximum7

1/,,, +/!,, !/,,,

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BASIC TAX INFORMATION MA A!SIA " 2013 IN$I.I$,A contin*&'


3 %#RSONA R# I#FS Cife D if she has no total income or elects for combined assessment <usband D if he has no total income or elects for combined assessment 8hildrenB 'er child belo$ the age of * years Disabled child 6unmarried7 'er child over the age of * years Overseas universities/ colleges or similar establishments 6degree level and above7 ?ocal universities/ colleges or similar establishments ?ife insurance premiums E (pproved contributions E 'rivate pension fund 'rivate retirement scheme E Deferred annuity premium Insurance premiums for education or medical benefits -ees for acquiring technical/ vocational/ industrial/ scientific or technologies skills or qualifications 'urchase of books/ Fournals/ magaAines and other similar publications for the use of taxpayer/ spouse or children 'urchase of computer 6once in three years7 (mount deposited into >kim >impanan 'endidikan 0asional for his or her child 'urchase of sports equipment Interest paid on housing loan 6conditions apply7 &roadband subscription fund +/,,, +/,,,

*/,,, !/,,, 1/,,, 1/,,, 1/,,, +/,,, +/,,, !/,,, */,,,

+/,,, 1/,,, +,, *,/,,, !,,

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BASIC TAX INFORMATION MA A!SIA " 2013 IN$I.I$,A contin*&'


3 %#RSONA R# I#FS " contin*&' -ees for acquiring technical/ vocational/ industrial/ scientific or technologies skills or qualifications 6Maximum7 'urchase of books/ Fournals/ magaAines and other similar publications for the use of taxpayer/ spouse or children Interest expended to finance the purchase of a residential property 6if the taxpayer fulfill the requirement as stipulated in >.41( of the IT( *2137 !/,,, !,,

Maximum deduction #M+/,,,

B#N#FITS"IN"3IN$ AN$ %#R4,SIT#S FROM #M% O!M#NT


&enefitsDin-;ind and perquisites from employment are taxable and the Malaysian Inland #evenue &oard has issued 'ublic #ulings on the tax treatment of benefits-in-kind/ living accommodation/ leave passage/ entertainment/ Gkey-manH insurance and perquisites from employment.

COM%AN!
INCOM# TAX RAT#S 8ompany $ith paid up capital of #M ..! million and belo$ at the beginning of the basis period on first #M !,,/,,, chargeable income On subsequent chargeable income 8ompany $ith paid up capital above #M ..! million at the beginning of the basis period - .,"

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OT5#RS
INCOM# TAX RAT#S NON"R#SI$#NT %#RSON TR,ST BO$! COO%#RATI.# SOCI#T! >cale rates Maximum of .!" 6(mounts above #M3!,/,,,7 IMIT#$ IABI IT! %ARTN#RS5I% SAM# AS COM%AN!
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BASIC TAX INFORMATION MA A!SIA " 2013 OT5#RS contin*&'


Conc&ssionary rat&s a((ly to t/& follo6in0 cat&0ori&s ;no$ledge $orkers in Iskandar Malaysia #eturning 5xpert 'rogramme -*!" -*!"

7IT55O $IN+ TAX RAT#S


R&f&r&nc& >. *,2 IT( *213 >. *,2 IT( *213 >. *,2( IT( *213 >. *,2& IT( *213 C/ar0&a1l& %&rson 0on- resident person 0on- resident person 0on- resident person 0on- resident person Ty(&s of incom& Interest #oyalties #emuneration of public entertainer Technical fee and installation fee for services performed in Malaysia and rent of moveable property Tax Rat&s *!" *," *!" *,"

>. *,2( IT( *213

0on- resident person contractor/ consultant or professional

>ervice portion of *+" contract 6*," and payments +"7

R#A %RO%#RT! +AINS TAX RAT#S


$is(osal of r&al (ro(&rty Disposal $ithin . years after date of acquisition Disposal in the +rd year after date of acquisition Disposal after the !th year from the date of acquisition 5xemptions are available under certain circumstances. Rat&s 2 *! *, ,

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BASIC TAX INFORMATION MA A!SIA " 2013

!o* may 6is/ to contact t/& Malaysian Inlan' R&)&n*& Boar' on all matt&rs in r&s(&ct of t/& a'ministration of t/& incom& tax l&0islation8 Information on t/& l&0islation- 0*i'&lin&s an' (*1lic r*lin0s can 1& fo*n' on t/& official (ortal of t/& Malaysian Inlan' R&)&n*& Boar' at /tt(9::6668/asil80o)8my8 $isclaim&r T/& information contain&' in t/& articl& is for 0*i'anc& only an' is not &x/a*sti)&8 T/& information is (ro)i'&' 0rat*ito*sly an' 6it/o*t lia1ility8 S4M an' t/& AS4 0ro*( of com(ani&s s/all not 1& lia1l& for any loss or 'ama0& ca*s&' 1y t/& *sa0& of or r&lianc& on t/& information an' 0*i'anc& (ro)i'&' in t/is articl& an' ot/&r information (ro)i'&' on t/& S4M an' AS4 6&1sit&s8 %rof&ssional a')ic& an' assistanc& m*st al6ays 1& o1tain&' 1&for& yo* act on any of t/& 0*i'anc& (ro)i'&'8 %l&as& r&f&r to t/& r&s(&cti)& so*rc& of information- l&0islation an' t/& r&0*latory a*t/oriti&s for a*t/oritati)& 0*i'anc&8

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