Inland Revenue Board of Malaysia – Opening Hour| IRB LHDN

Have You Submit your Borang BE?


Do Know the deadline for individual taxpayers (BE and M forms) is April 30 and June 30 for businessmen (Forms B and M)?


For those who jointly file their income tax returns using the P Form have until June 30 to do so.



This month is the last month for you to submit your Borang BE.

If you opt for e-filing system then please do not do it at last minutes as the heavy volume of traffic on the Internet and IRB Servers, can be very frustrating!

So far the Inland Revenue Board (IRB) have received more than 30,000 returns since February 2010 and expected to see more coming.

Last year alone, IRB received almost 1.6 million income tax returns online, and submission of tax returns through e-filing is rising due to the convenience.

You need to go the IRB office even return the filling done via e-filing system if tax refund on Dividend income is required.

Depending on your level of taxable income, you may actually obtain a tax refund from the Inland Revenue Board (IRB) if your tax bracket is at 24% or below.

The IRB officer will verify your submission with the physical dividend vouchers. So remember to declared and keep the dividend vouchers.

You do not need to declare the dividend received when the Tax is Exempted.

Since there is no physical form submission, you are required by the Law to kept all records pertaining to the tax deduction and the exempted amount, for a period of seven years for tax audit purposes.


Inland Revenue Board of Malaysia – Office Opening Hour

Monday – Thursday : 7:30am – 5:30pm

Friday : 7:30am – 12:15pm and  2:45pm – 5:30pm

Closed on Saturday, Sunday and Public Holiday

Inland Revenue Board of Malaysia- Office Opening Hour -For Stamping of Document

Monday – Thursday : 7:45am – 3:45pm

Friday : 7:45am – 11:45pm and  2:45pm – 3:45pm

Closed on Saturday, Sunday and Public Holiday

*** Plan your Tax-deductible Expenses and ensure they are within the limit set.

If you hit the Maximum for the current year’s limit, then do consider to delay your next purchase till next year.

*** It good to consider also making deposit in Skim Simpanan Pendidikan Nasional if your education and medical insurance have reached their limit


IRB expects to collect RM89bil in taxes


Inland Revenue Board (IRB) CEO Datuk Hasmah Abdullah says out of the RM89billion collected for 2009, RM8.3billion was refunded to taxpayers. She adds that no increase is expected this year.


24 Responses to “Inland Revenue Board of Malaysia – Opening Hour| IRB LHDN”

  1. Tax savings for individuals, small businesses and investors

    PUBLISHER Sweet & Maxwell Asia has released three tax-related titles, all by Richard Thornton, for individuals, small businesses and Malaysian investors.

    100 Ways to Save Tax in Malaysia for Individuals is a practical tax guide written in a friendly style to help ordinary people plan their affairs effectively so as to minimise their tax burden.

    Most of us know the responsibilities we have under the self-assessment system introduced by the Inland Revenue Board and want to keep on the right side of the law.

    This book helps readers to properly plan their affairs to comply with tax regulations and avoid costly penalties and to minimise taxes within the limits of the law.

    Learn about the deductions, reliefs, rebates and tax exemptions that are available to singles and married couples. This tax guide has been fully updated to take into account new developments, including the two stimulus packages unveiled in the 2009 and 2010 budgets.

    100 Ways to Save Tax for Malaysian Investors guides investors to optimise the return on their investments. Often, too little attention is paid to tax even though it can take a big bite out of the investment return.

    This book helps investors to understand the way tax applies to different kinds of investments. The main focus is on investment in Malaysia by Malaysians, but the book also covers the tax implications of offshore investments, including those in Labuan and investments by non-residents and by successful applicants under the Malaysia My Second Home programme.

    The third title, 100 ways to Save Tax in Malaysia for Small Businesses, is written specifically to help owners of small businesses. It includes detailed explanations and examples of new and improved incentives such as accelerated capital allowances, reinvestment allowance, exemption for increased export of healthcare services and carry-back losses. The book also explains the factors that divide small companies from larger ones.

    The easy-reading style, clear examples and comprehensive index make it convenient for readers to search for tips and advice.

  2. Be careful when responding to SMS or email on taxes, IRB advises

    PETALING JAYA: The Inland Revenue Board (IRB) has advised the public to be cautious when responding to SMS and email messages from those claiming the recipient owed taxes or was entitled to a refund.

    IRB chief executive officer Datuk Hasmah Abdullah said with the increasing number of Malaysians expected to file their returns electronically this year, it was important for taxpayers to keep their information secured.

    “IRB has deployed a comprehensive security infrastructure for its electronic services and is using the public-and-private key encryption system for the services.

    “Nevertheless, be cautious when responding to those messages,” she said in a statement Wednesday, adding that individuals and businesses needed to be aware of safe online practices.

    She said as at end of last year, 1.6 million Malaysian taxpayers had registered for the e-Filing service, adding that with two days left for taxpayers to submit their returns for the assessment year 2009, more than 1.15 million had done so.

  3. Extended hours at Jalan Duta income tax counters

    PETALING JAYA: The income tax counters at Jalan Duta, Kuala Lumpur, will be open until 10pm Thursday and midnight Friday.

    This is to help taxpayers meet the April 30 deadline, said a statement Thursday from the Internal Revenue Board.

  4. Ensure tax statements and claims accurate, says IRB

    PETALING JAYA: The public have been advised to declare accurate statements and claims to obtain tax relief on housing loan interest.

    Inland Revenue Board (IRB) public relations officer Masrun Maslim said the board had received numerous reports from its branches on false declarations by taxpayers.

    “We would like to remind the public that the tax relief is restricted to interest on loans given by banks and financial institutions. Tax relief to a maximum of RM10,000 is deduc­tible for each basis year for three consecutive years of assessment from the date in which the interest was first imposed,” Masrun said.

    To be eligible for the tax relief, one has to be a citizen, with the relief granted to only one residential property.

    The sale and purchase agreement must also have been executed between March 10, 2009 and Dec 31, 2010. The residential property must not be rented out for the first three years.

    Masrun urged those who were eligible for the relief to register at the department website ( to speed up the tax relief process.

    Those who have not yet submitted their income tax returns and would like to do so electronically should go to the lobby of the IRB building between 8am and 5.30pm from Monday to Friday all this month.

  5. Extended hours to help last-minute taxpayers

    PETALING JAYA: The operating hours of counters at the Inland Revenue Board (IRB) office headquarters in Jalan Duta, Kuala Lumpur, will be open until midnight while other state IRB offices would extend counter services until 6pm or 8pm, for last-minute taxpayers to file their returns.

    “So far, the situation at the Jalan Duta counters is under control compared to last year, when there was a last-minute rush to file tax returns,” IRB public relations officer Masrun Maslim said.

    “This may be due to the easy payment facility we have been providing to individuals to make payments at IRB counters, banks via Internet banking (via CIMB, Public Bank, Maybank, Eonbank), Pos Malaysia or via e-payment.

    “The number of people doing e-filing is also increasing. We believe taxpayers are more confident with our system now,” said Masrun Maslim.

    He urged employees who had not filed their returns to do so by midnight today.

    “Failure to submit the form is an offence under the Income Tax Act 1967,” he said, adding that individuals could be fined bet-ween RM200 and RM2,000 or jailed up to six months or both.

    On the toll-free line (1-3000-88-3010) disruption at the Kuching IRB customer service centre between 8.30am and 12.30pm yesterday, IRB said it was caused by power disruption in Kuching, Sarawak.

    However, IRB officers from the Pandan Indah customer service centre managed to handle as many calls as possible during the power outage, it added.

  6. E-filing users cross 1 million mark

    KUALA LUMUR: The number of taxpayers using electronic filing (e-filing) has exceeded the one million mark, with the Inland Revenue Board (IRB) recording 1,011,703 users as of yesterday.

    The number represented a 29.18 per cent increase compared to 783,174 users within the same period last year, the department said in a statement today.

    It reminded individual taxpayers with income other than from business to submit the BE2009 form and not wait until the last minute or April 30, 2010.

    Payment of tax can be made online through the e-payments facilities offered by the department.

    Taxpayers who have not yet processed the BE2009 form are encouraged to shift to e-filing.

    This can be done by accessing the e-filing website at or through the IRB official website at

    Those who need assistance in filling up the form or explanations concerning e-filing from IRB officers can proceed to the nearest IRB office, the department said.

    The working hours of all IRB offices have been extended to 6pm from April 26 to April 30, 2010, it said.

    Failure to submit the form is an offence under the Income Tax Act 1967 and can incur a fine of not less than RM200 and not exceeding RM2,000 or six months’ jail or both, the IRB said.

  7. IRB expects to collect RM89bil in personal taxes

    KUALA LUMPUR: The Inland Revenue Board (IRB) expects to collect RM89bil in personal income taxes this year, about the same as was collected last year.

    Despite a slight increase in the number of taxpayers, IRB CEO Datuk Hasmah Abdullah said the revenue projection was being kept conservative due to the economic slowdown last year.

    “However, not all industries were affected. The food industry did very well. We are hoping the export-import (trade) will pick up,” she said.

    The RM89bil collected last year was a 3% to 5% increase from 2008, but Hasmah said no increase was expected this year.

    “Of the RM89bil collected, RM8.3bil was refunded to taxpayers,” she said.

    Hasmah said there were 6.4 million registered taxpayers in Malaysia, but only 2.4 million pay tax as the rest are ineligible as they are retired, had stopped work, or had an income below the taxable bracket.

    This year, IRB has authorised Pos Malaysia to collect taxes. From April 15 to 29 a total RM413,791 was collected at post offices.

    Besides post offices, taxes can only be paid at the IRB offices in Kuala Lumpur, Kota Kinabalu and Kuching, and at participating banks.

    “IRB officers don’t go door-to-door to collect and assess taxes, so do not be duped by conmen,” said Hasmah.

    As at 4.45pm Friday, 1,452,762 taxpayers had filed their taxes via e-Filing, which is an 11% increase from the 1,257,693 last year.

    Hasmah predicted that the figure would go above 1.5 million at midnight, the deadline for individuals to file their taxes.

    She said the IRB had upgraded its servers to cope with the heavy Internet traffic.

    “In the past four days, the number of people using e-Filing increased by two to three times as taxpayers are doing their taxes at the last minute,” she said.

    On April 25, 39,044 taxpayers used the e-Filing system, but the figure jumped to 89,357 the following day and peaked at 138,222 on Thursday.

    Hasmah said 263,707 new e-Filing users were recorded this year and that 242,504 taxpayers called up IRB to reset their passwords as they had forgotten them.

  8. Nearly 1.5 million submit income tax forms via e-Filing

    KUALA LUMPUR: A total of 1,494,752 taxpayers submitted their income tax forms via e-Filing as at midnight – a huge jump from last year’s figure.

    Inland Revenue Board (IRB) chief executive officer Datuk Hasmah Abdullah said that with the arrival of improved cyber infrastucture, the IRB servers ran smoothly as they were up to capacity this year.

    A check at the dedicated e-Filing centre at 11.30pm here last night saw scores of taxpayers still coming in droves to access computer terminals there.

    From 5pm to 12am, the IRB recorded 37,682 e-Filing transactions. From the figure, 4,871 happened in the last hour.

    Hasmah said Malaysians generally still had a “last minute” culture when it came to filing their taxes.

    “It is clearly seen since 2007, where the biggest spike in e-Filing took place during the last few days,” she said when met at IRB’s headquarters here last night.

    However, she noted that conditions were much better now compared to the pre-online days when taxes were filed manually.

    “Those days, the crowd was bigger as processing and assistance took a longer time,” she said.

    Many taxpayers, when approached, said they had not deliberately postponed their declarations to the IRB but had to deal with other commitments first.

    “Sometimes it is just inevitable. Like for me, I was overseas for work,” said engineer Bakri Hisham, 47.

    Kindergarten teacher Yeo Bee Kim, 61, said she could only find time to settle her tax documentation yesterday as she had a busy week.

    Businessman Govind Nair, who flew home yesterday from two busy weeks in Japan, said he preferred to do the e-Filing in Malaysia.

  9. Q&A: Tax on rental income

    Attending to a reader’s question regarding taxation on rental income is the Chairman of the International Tax Committee of Crowe Horwath International Poon Yew Hoe. Poon has more than 25 years of experience and as the tax partner of Crowe Horwath, he oversees all tax matters including tax advisory and tax planning services in respect of domestic taxes, corporate restructuring, public listing, due diligence exercises, takeovers, mergers and international tax.

    Dear Editor,

    I have a tough budget to meet every month due to various commitments including my family expenses, child’s tuition, medical bills, insurances, house loan, etc.

    Nonetheless, I still provide monthly expenses to both my parents even though my commitments and expenses would add up to more than what I can afford. The amount is so little that it hardly covers their medical bills.

    For this reason, I plan to purchase a medium cost apartment with my EPF/savings to provide additional rental income for them. Hopefully by doing that, I can help them to get a steady income.

    However, the house will be under me and my wife’s names but the money (rental) goes to my parents. Both of them have already retired with no fixed income.

    The question that lingers in my head is that whether in such kind of arrangement, do I still need to declare this as an income and subject it to tax? The rental agreement will be under their names too.

    My main concern is that whether I will be taxed for such kind of rental income for my old parents?

    Please advice.


    Dear Chan,

    The arrangement that you have mentioned is quite unusual because you and your wife are the owners of the property but your parents are the ones who entered into the rental agreement with the tenant. The intention is probably to divert the rental income to them as mentioned in your mail.

    However, it is not possible to simply divert income in such manner for tax purposes. Although the rental agreement is in your parents’ names and the rental income has been received by them, they would have received the income on your behalf.

    In such case, the rental income should be treated as you and your wife’s income and not your parents’ income. In a nutshell, rental income follows the ownership of the property for tax purposes.

    However, as a property owner, you should be able to deduct expenses against the rental income such as repairs and maintenance, insurance on the property, loan interest, service charges, quit rent and assessment. Only the net rental income will be subject to income tax.

    Good luck.

    Poon Yew Hoe

  10. Taxpayers file forms at IRB office — even after deadline

    KUALA LUMPUR: Taxpayers were still turning up at the Inland Revenue Board (IRB) office in Jalan Duta to submit their returns after Friday’s midnight deadline, surprising even the staff who were busy packing up their computers and getting ready to go home.

    IRB public relations officer Masrun Maslim said the taxpayers told them that they were there to use the computers to do “e-Filing”.

    When we asked them why they only came at that hour, they said they were busy. Our computers had already been packed. However, we decided to help them anyway. We only closed at 12.30am.” Masrun said almost all of the 60 computers, set up for the convenience of taxpayers, were fully occupied up to the last half hour before midnight.

    He said that in previous years, many had filed their tax returns after the deadline, warning that “one is considered late even if he or she submits it by 12.01am.”

    As at midnight on Friday, 1.49mil taxpayers have filed their returns via e-Filing and the IRB expects to collect a total of RM89bil in taxes this year.

  11. The importance of tax planning

    With the June 30 deadline for submission of corporate tax returns looming, chartered tax adviser and author of Malaysian taxation books, Richard Thornton, wants to remind small and medium enterprises (SMEs) the importance of tax planning.

    Considering that more than 90% of Malaysian businesses are SMEs, Thornton says it is imperative that the owners are aware of the tax rules applicable to them so that these can be factored into their business plans.

    “A lot of businesses are carried out by partnerships or sole traders, and these are the ones that need tax advisors and tax knowledge. It is about structuring business transactions in such a way that the incidences of taxes is mitigated in a lawful way,” says Thornton. “Tax planning is permitted but it is largely overlooked and left to tax agents.”

    For example, a wife makes a good business partner. A married couple pooling resources makes sense, but to reduce their tax liability, the husband and wife should be assessed separately as this allows them to claim more personal reliefs than if they were to opt for a joint assessment.

    “She also benefits from the scale rates of tax and if her chargeable income is not more than RM35,000 from a tax rebate. If she is in the business, she also becomes self-employed and the income can be divided between both spouses, and less tax is paid,” he writes in 100 Ways to Save Tax in Malaysia for Small Businesses. Another example is treating the car as a business expense.

    If the vehicle is bought on hire-purchase, the finance cost can be deducted as a business expense and a capital allowances deduction can be claimed for the purchase price, although there is a limit.

    “Using more than one vehicle, as most Malaysians do these days, gives businessmen the opportunity, or burden, according to your point of view, of bringing several vehicles into the mix,” he writes.

    Thorntons answers other questions pertaining to taxes for SMEs.

    Why is it important for SMEs to know the workings of the tax system considering that there are tax experts to help them?

    Many SMEs do not have, or cannot afford, regular access to tax experts and may only have contact with a tax agent around the time of submission of the annual tax return.

    To be effective, tax planning needs to be done in advance. If a manager has a good knowledge of the tax system, he can save the business a lot of money.

    Is there a shelf life to your book 100 Ways to Save Tax in Malaysia for Small Businesses?

    Not at all. It is completely up to date, with the latest legislation effective for 2010, and has many tips on tax strategies that will reduce the burden of tax payable in 2011 and after.

    Right now, there is no separate tax structure for SMEs. They follow either the individual or the corporate tax structure. Would it be more viable if SMEs have their own tax structure and why?

    Small businesses often grow into big ones and I am not in favour of a formal structure that would place a firewall around them.

    Also, we have to remember that SMEs may start out as sole traders or partner enterprises and go corporate after they grow to a suitable size. This gives them flexibility to opt for the tax structure that suits them at the time, whether individual tax as a family business or corporate income tax.

    But having said that, I would like to see more of the tax incentives that apply to companies made available to non-incorporated businesses.

    Are there any Asian countries with a special tax structure for SMEs and how successful is this?

    I am not aware of any.

    What are the differences between an individual tax structure and a corporate tax structure?

    They relate mainly to the extraction of profits. Sole traders and partners have no constraints on the withdrawal of profits whether by way of salaries or other benefits.

    However, they are liable for tax on the whole of the profit.

    A company has to pay regard to the “corporate veil” because the owners of the company are not the same as the company itself.

    Owners receive dividends, which are paid out of profits, after the company has paid tax on them and they have no personal tax liability on them. However, if the shareholders are also directors, they may receive directors’ fees on which they, and not the company, pay tax.

    Because there is no separate structure for SMEs, how will an SME know which one to choose – an individual or a corporate structure – in order to best mitigate taxes?

    Tax-wise, the decision is usually made by reference to the withdrawal of profit comparisons and in particular their influence on comparative tax rates.

    At the top end, there is little difference with companies being liable at 25% and individuals at 26% at the present time but in the fledgling stage, a business is often looking at much smaller amounts and maybe at losses, which can have significantly different tax consequences for corporate and non-corporate businesses.

    How will the impending goods and services tax (GST) impact SMEs?

    A non-registration threshold of RM500,000 per annum has been mooted and many small businesses will welcome this as a way to avoid the burden of compliance, which will be quite heavy for all businesses.

    Besides applying tax on goods and services, there is the need to keep track of what they pay to suppliers so that they can obtain the tax credits they are entitled to.

    What can SMEs do to mitigate this (in relation to the GST)?

    SMEs that cannot keep below the registration threshold should make sure that they are well informed on the workings of the GST system as early as possible and set up their administrative and accounting systems in good time so as to minimise the problems of the changeover.

  12. Govt forks out a bomb for taxpayers who shy away from e-filing

    KUALA LUMPUR: It cost the Government RM5.4mil to print and issue 800,000 income tax return forms for individual and sole proprietor taxpayers who prefer to fill in their forms manually.

    This does not include an undisclosed amount to be paid to a vendor, who is contracted to do the tedious job of processing the forms at the Inland Revenue Board data processing department in Pandan Indah before finally sending it to the IRB record management centre in Bukit Jelutong.

    IRB tax operation division deputy director-general Datuk Dr Mohd Shukor Mahfar said that as at April 30, IRB had received 677,885 income tax return forms manually from individual tax payers.

    “The cost of printing and issuing each form to each taxpayer is RM6.88,” he told reporters after the first ever media visit to the IRB data processing department here yesterday.

    While the number of taxpayers who submitted their income tax returns via e-filing had increased to over 1.48 million as at April 30, 2010 compared to over 1.25 million taxpayers last year, Mohd Shukor said he did know why there were still many people who preferred the manual method.

    “Probably, it is similar to paying toll; many motorists still prefer the cash lane to the Smart Tag lane,” he said, adding that he expected online submission of tax returns to be 90% of the total taxpayer population in 10 or 20 years.

  13. IRB asks more firms to go for e-filing

    KUALA LUMPUR: The Inland Revenue Board (IRB) is encouraging more business owners to file their taxes via e-filing.

    Chief executive officer and director-general Tan Sri Hasmah Abdullah said that currently, about 31% of 920,492 registered enterprises in Malaysia were using e-filing services.

    IRB records show that there were about 1.6 million e-filing users in 2009.

    “The take-up rate of e-filing by individual taxpayers has been very encouraging over the years.

    “But there is still a lot of companies that have not migrated to e-filing, choosing to rely solely on agents to file their taxes,” Hasmah told StarBiz yesterday.

    Of the total tax collected by IRB, 70% to 80% comes from the business community and the balance from individual taxpayers.

    Hasmah said business owners could expect e-filing to be efficient, convenient and transparent.

    She said it also enabled them to plan their expansion and manage their cashflow better.

    Hasmah said it was a fallacy for business owners to believe that late filing would benefit them as this would only make it longer for IRB to assess their tax obligations.

    “Filing in your taxes early via e-filing benefits everyone,” she said.

    Hasmah assures taxpayers – individuals and companies – that IRB had a stringent security policy to protect information submitted via e-filing.

    These include data protection using cutting-edge technology such as encryption software and strict security standards to prevent unauthorised access.

  14. Why citizens should pay their taxes

    Tax evasion should not be tolerated by society. Those who avoid paying taxes are actually living off the generosity of those who do.

    THERE are a number of ways for the government to raise funds for the running of public services for the community i.e. through sales of assets, taxes or borrowings.

    Of the three options, taxes are the most reliable as there is a limit to what assets the state can sell to raise revenue and borrowing requires repayment.

    In fact taxes have become an integral part of life as Benjamin Franklin (1706-1790) was quoted saying, “In this world nothing is certain but death and taxes”.

    The Malaysian tax system requires taxpayers to self-assess and pay the tax due to the Government.

    The foundation for success of the self-assessment system is voluntary compliance whereby taxpayers voluntarily comply with the tax laws.

    ‘Voluntary’ does not mean one can choose to pay or not to pay the tax.

    The law requires all those eligible to pay taxes to do so and there are sanctions for not complying, such as imposing penalties for late filing or late payment, for non declaration or under reporting of income and unsubstantiated claims for deductions and reliefs.

    Under certain circumstances, a taxpayer who has not settled his tax due can be prevented from leaving the country. In less than three decades after its independence, Malaysia has successfully transformed from a primary-based economy to that of an industrialised state in the 1990s, and has the vision to be a fully developed nation by 2020.

    The incidence of poverty was reduced from 49.3% in 1970 to 5.7% in 2005, literacy rate increased from 77% in 1965 to 95% in 2005, infant mortality rate reduced from 59 per 1,000 in 1965 to 3.5 per 1,000 in 2009, basic amenities of piped water and electricity extended to well over 90% of the population and a first-class infrastructure network saw the expansion of 9,200 kilometres of road in 1965 to 124,212 kilometres in 2009.

    Through all these developments, direct taxes, which are administered by the Inland Revenue Board (LHDNM), are the major source of funding which consistently contribute around 40% to 50% of the Government’s total revenue.

    The Government now has great plans to transform the nation from a middle-income to a high-income nation.

    This is to be achieved through the four pillars of national transformation namely the principle of 1Malaysia, ‘People First, Performance Now’, Government Transfor­mation Programme, Economic Transformation Programme under the New Economic Model and the 10th Malaysia Plan 2011-2015 to operationalise the above transformation programmes.

    The Government will be investing substantial sums of money into reducing crime, fighting corruption, improving student outcomes, raising the living standards of low-income households, improving basic rural infrastructure and improving urban public transport.

    Human capital development will be enhanced to generate a talented workforce to meet the needs of a high-value knowledge economy, capable of lifting the standard of living for all Malaysians.

    Many of us do not realise that what we are enjoying now are the fruits of development contributed through taxes paid by our fathers and forefathers.

    In the same way, we owe it to our future generations to ensure the transformation programme is a success so that our children and grandchildren can live in a better Malaysia.

    We can do this through voluntarily contributing our fair share of taxes and encouraging our friends, colleagues and family members to pay their share, too, as they also enjoy the services provided by the Government.

    Tax evasion should not be tolerated and should be frowned upon by society.

    Those who avoid or do not pay their taxes are actually living off the generosity of those who pay their taxes diligently.

    If everybody pays his share of taxes, Govern­ment revenue will increase and this can be translated into better services for the benefit of all.

    Tax evasion is morally wrong, thus tax evaders should be reported to the IRB so that appropriate action can be taken to ensure they too, contribute to nation building. One should take note that tax evaders are also enjoying the same benefits of development and services made possible by the taxes we all pay. Paying taxes is the responsibility of all who reside in this country. It might not be apparent, but the benefits we and our families enjoy through services provided by the Government are numerous and cannot be measured in monetary terms.

    To quote one taxpayer in a local daily on paying taxes, “We do not have the time and capability to build our own roads and bridges, so this is how we (taxpayers) can help the Government build these facilities for us.”

    In addition, paying taxes has been simplified and taxpayers need not feel burdened when filing their returns and paying tax. Filing can now be done 24/7 from one’s home or office through the e-Filing system.

    Similarly, payments has been made easier with the availability of various payment channels such as at IRB’s collection branches, CIMB Bank, Public Bank, post offices and Internet banking through IRB’s official website Other transactions such as registration of taxpayers and tax enquiries can also be made through the IRB’s website.

    In conclusion, I would like to advise those who have yet to fulfill their responsibilities to contribute their fair share of taxes towards nation building. We owe this much to our future generations who will eventually inherit this beloved nation of ours.

  15. Over 870,000 taxpayers overpaid RM10bil last year

    KUALA LUMPUR: A total of 870,630 taxpayers overpaid their taxes by RM10bil in 2009, said Deputy Finance Minister Datuk Dr Awang Adek Hussein.

    He told Pendang Member of Parliement Datuk Dr Mohd Hayati Othman at the Dewan Rakyat that 838,644 taxpayers overpaid by RM8.6bil in 2008 while 654,606 taxpayers overpaid by RM5.4bil in 2007. Some 291,315 taxpayers overpaid by RM4.3bil in 2006.

    He said as of last year, the Inland Revenue Board had yet to refund 150,757 taxpayers.

    The board had also not sent refunds to 76,960 assessed in 2008 and 58,633 the year before.

    All tax payment would be kept in the Con­solidated Fund, he said.

    To another question by Putatan MP Datuk Dr Marcus Mojigoh, he said it would be difficult to provide figures on those who could not be traced for refund payment.

    Dr Awang Adek said some 1.5 million taxpayers had opted for e-filing their returns.

    “For those who did e-filing, they got their refund in one month,” he said.

    He added that that almost 95% for the 270,835 taxpayers, who use the e-filing service during the first five months of this year and were eligible for refunds, got their within a month.

    Dr Awang Adek said those who filed their tax returns manually would receive their refund in three months.

    “There are about 3.5 million taxpayers but only two million are actively paying tax,” he said.

    SCS Global Consulting (M) Sdn Bhd tax consultant Harvinder Singh said the possibility of taxpayers having overpaid to Inland Revenue Board was due to them having to pay higher schedular tax deductions than the final sum of taxes that they had to fork out.

    He said individual taxpayers might also have high deductions, which were tax-exempted such as the purchase of computers, books, insurance and medical expenses.

    Another tax consultant who declined to be named said one reason for the overpaid taxes was pensioners declaring the dividends they received from owning shares as their income.

    “Those receiving dividends are to declare the total they have received by the end of the assessment year and then, they will be able to claim for a refund from the taxes already deducted by the board,” he said

  16. IRB refunded RM10.8bil to taxpayers last year

    KUALA LUMPUR: The Inland Revenue Board (IRB) last year refunded a total of RM10.8bil to taxpayers who overpaid.

    IRB chief executive officer and director-general Tan Sri Hasmah Abdullah said the amount was part of the RM88.4bil gross tax collected for calendar year 2009.

    She said there were taxpayers who had not been refunded on their overpayment due to backlog accumulated from 2006.

    “In 2006, we still had a backlog of repayment cases that we did not resolve. So we took action to make the repayments starting 2007, and the amount of repayments in 2007 increased three-fold,” she told reporters during the 10th National Tax Conference Wednesday.

    She was responding to a report on Deputy Finance Minister Datuk Dr Awang Adek Hussein telling Parliament on Tuesday that 150,757 taxpayers had not received their refunds as of last year.

    Dr Awang Adek added that the IRB had also not sent refunds to 76,960 assessed in 2008 and 58,633 the year before.

    He also said 291,315 taxpayers overpaid by RM4.3bil in 2006, 654,606 taxpayers overpaid by RM5.4bil in 2007, 838,644 taxpayers overpaid by RM8.6bil in 2008 and 870,630 taxpayers overpaid their taxes by RM10bil in 2009.

    Hasmah added that the IRB had, in 2005, introduced a tax refund reserve for those who overpaid.

    However, she said when the board needed money “up front”, they had to apply to the Finance Ministry, who would instruct the Accountant-General’s Department to credit the amount.

    “This is one of the factors that delays our repayments. Sometimes, when we do not have enough allocation, we are forced to apply for this facility,” she said.

  17. Taxpayers cry foul over delay

    PETALING JAYA: Many taxpayers are frustrated over the confusing tax deduction system and delay in getting refunds for overpaid tax amounts.

    A taxpayer and salaried employee claimed he had not received a refund of RM15,000 from the Inland Revenue Board (IRB).

    This amount was the accumulated tax he had overpaid over the past seven years. He was informed of the amount by the IRB.

    The taxpayer from Kuala Lumpur, who works in a public-listed company, said he had made several visits to the IRB office in Kuala Lumpur over the past two years, but was irritated because the officers kept asking him to re-submit documents he had given to them earlier.

    The situation turned more frustrating when he received a letter from the IRB saying he owed RM3,000 in tax for the 2009 assessment year; when he had yet to receive his RM15,000 refund.

    On Tuesday, Deputy Finance Minister Datuk Dr Awang Adek Hussein said 870,630 taxpayers overpaid their taxes by RM10bil in 2009.

    He added that almost 95% of the 270,835 taxpayers, who used the e-filing service during the first five months of this year and were eligible for refunds, got their refunds within a month.

    Meanwhile, an executive said she did receive RM600 in refund for overpaid tax in 2008 when she brought all her documents for the past seven years to her two meetings with the IRB officers.

    She added that she took up her case to the IRB when it sent her a letter early last year asking payment for RM9,200 outstanding tax for 2008.

    “If I didn’t bother to clarify with them, I would have to pay RM9,200 blindly instead of getting the RM600 refund,” she added.

    She urged taxpayers to keep all their documents and diligently pursue their case.

    A senior ranking executive of another public-listed company was shocked by an incident in 2008 when he was informed by the IRB that he owed about RM13,000 in taxes for the year 2000.

    He paid the amount in nine instalments from April 2008.

    For 2009, he filed his income tax via e-filing for year 2008. According to the IRB calculation formula, he had overpaid RM6,000 in the monthly schedular tax deduction.

    However, the IRB wrote to him on June 5, 2009 saying there was no overpaid tax amount reflected in his account.

    “On June 10, I was shocked when IRB again sent me a letter claiming I owe them another RM11,876.99 for years 2004 to 2008,” he said.

    For assessment year 2009, he again used e-filing to submit his income tax in April, and based on the calculation, he overpaid almost RM14,000 for that year alone.

    The IRB had informed him they were looking into the matter.

  18. Removal of 20% rebate on STD leads to confusion

    PETALING JAYA: The schedular tax deduction system (STD) implemented last year that removes a 20% rebate is among the reasons that could lead to confusion over the tax amount.

    The 2009 tax deduction system no longer gives a 20% rebate on the monthly schedular tax deduction for individuals earning below RM10,000 a month, said Ernst & Young Malaysia human capital director Irene Ang.

    “Therefore, the amount collected under this monthly deduction can be higher than the actual tax to be paid by an individual at the end of the assessment year,” she said.

    However, Ang stressed that the overpaid amount from the monthly schedular tax would not be a sizeable sum.

    Under this 2009 STD, Ang said taxpayers could also request their employers to lower the tax deduction for the particular month in the event the employees had incurred incidents allowing for tax relief.

    These included the purchase of computers, paying for parents’ medical bills and buying reading materials.

    Ang advised employees to be diligent in claiming for tax reliefs, although some effort – such as the need to fill forms – was required.

    A financial controller of a company said not all companies were actively helping their employees to make the tax relief claims because the process was tedious.

    “Can you imagine the extra paper work for employers and employees should there be a high number of employees making such requests every month,” said the high-level executive working in a public-listed company in Kuala Lumpur.

    A consultant with a local tax agency said most taxpayers would rather pay the estimated tax (accumulated from the STD) first and apply for tax relief when doing their taxes at the end of the assessment year, instead of applying for the tax relief every month to reduce the STD amount.

    “Many people find the tax calculations too confusing.

    “I suggest that the IRB continue to simplify the tax deduction measures,” he said.

  19. World Cup comes alive in 3D

    KUALA LUMPUR: Like the semi-final challenges, the World Cup final will also come “alive” in your living room — in 3D!

    Malaysians are among the world’s first to catch the World Cup matches via the latest craze in viewing.

    In the words of a fan who watched the Netherlands vs Uruguay semi-final match in 3D: “It’s like actually being in the stadium.”

    Astro chief operating officer Henry Tan said Astro B.yond customers with the sports package will be the first in South-East Asia to watch football in 3D.

    “I believe this will add more excitement to football fans’ viewing experience,” he said.

    La Bodega general manager Sebastien Delnatte, who also watched the semi-final match in 3D, said it was an experience like no other.

    “I like how the players ‘pop out’ when the camera pans along the field,” he said, adding that he would like to see more sports programmes in 3D, especially F1 racing.

    “It was quite an experience, like I was actually in the stadium,” said sponsorship manager M. Padmanabhan, who watched the last World Cup final in Germany four years ago.

    “I would definitely recommend hardcore football fans to get a 3D TV to watch the final.

    “It is the next best thing to actually being there (at Soccer City) yourself.”

    To catch the experience, Astro B.yond customers must subscribe to the sports package and have a 3D TV at home.

    The World Cup finals is at 2.30am (Malaysian time) on July 12.

  20. IRB: Submit income tax statements by July 31

    KUALA LUMPUR: The Inland Revenue Board (IRB) has reminded taxpayers under the company, trust bodies and cooperatives category whose audited accounts ended Dec 31, 2009 to submit their income tax statements by July 31at the latest.

    Failure to submit is an offence under the Income Tax Act 1967 and offenders are liable to a minimum fine of RM200 and maximum RM2,000 or six months’ jail or both, upon conviction, it said in a statement yesterday.

    Hence, taxpayers are urged to submit their income tax statements within the specified period and are advised to use the e-filing service as it is faster.

    In a separate statement, IRB said it had sent out notices to workers on the amount to be deducted from their salary by employers for the sum owed to the tax collecting agency. It said the amount was in addition to the monthly schedular tax deduction.

    The notices were being issued automatically via the computer system to taxpayers and a copy would be given to their employers, it said.

    Taxpayers could contact IRB to arrange for rescheduling of tax payment if the deductions were burdensome, it said. Taxpayers can also apply to cancel the salary deduction instruction if the stated tax arrears have been settled or the tax has been reduced.

  21. IRB instructs employers to collect outstanding taxes

    PETALING JAYA: The Inland Revenue Board has begun issuing notices to employers to deduct salaries of their workers to collect outstanding taxes.

    In a statement, the IRB said that the CP38 notice for collecting outstanding taxes was in addition to the required monthly tax deductions from salaries.

    “If the deductions become too burdensome, the employees can contact the department to rearrange payments.

    “Taxpayers can also apply for cancellation of the CP38 directive if they had settled the amount owed or if their tax payment had been reduced,” it said.

    The notices were generated automatically through a computer system and a copy would be sent to the employer.

    Any enquiries can be forwarded to the IRB branch stated in the notice or the IRB Customer Service Centre at 1-300-88-3010.

  22. Hi,

    I am now based overseas, preparing immigration exit clearance in MY, and got confused thinking that my company over there will handle the 2010 filing and CP21 at the same time. I was wrong and now I’m wondering if I can still use e-filing to file for 2010. Appreciate your advice. Thanks.

  23. Not sure about that…Please check with Inland Revenue Board (IRB) directly

  24. Income that can be taxed

    Many taxpayers are still unclear as to what constitutes taxable income.

    WITH the April 30 deadline only eight days away, many taxpayers seem to be still unsure as to what they can be taxed on. The Inland Revenue Board team, coordinated by the board’s public relations officer Masrun Maslim, takes on some of the queries.

    Q: I have a property which was completed in September 2009 and I only managed to rent it out in September 2011. However, I have been paying the monthly instalment of my bank loan since September 2009. For the assessment year 2011, am I correct to deduct the bank interest from January 2011 to December 2011 from my 2011 rental income to derive my nett rental income?

    A: Taxpayers may claim deduction on expenses which are wholly incurred (expended) on the asset concerned in the production of the rental income. Based on your scenario, you only rented out your property on September 2011, thus you can only deduct the bank interest from September 2011 until December 2011 to derive your nett rental income for the assessment year 2011.

    > I rented out a new property last year and it is under mortgage. How do I calculate the loan interest of 4.8% per annum to be deducted as expenses from the rental income? My rental per month is RM1,800 and the loan repayment is RM1,600.

    You have to refer to your loan statement issued by the bank. It will tell you how much your basic loan and your interest is. For example, the amount of your loan repayment is RM1,600 and from this amount your basic loan repayment is RM1,300 a month, so your interest would be RM300 a month.

    > My father joined the government service in 1982, which was privatised under the Government Privatisation Programme in 1992. He started receiving his pension in April 2008 at the age of 50. Is this taxable and does he have to declare this under the income tax?

    Pensions received by an individual are exempt under the following conditions:

    a. He retires at the age of 55 or at the compulsory age of retirement under any written law; or

    b. He retires due to ill health.

    For an employee in the public sector who elects for optional retirement, his pension will be taxed until he attains the age of 55 or the compulsory age of retirement under any written law. Where an individual receives more than one pension, the exemption is restricted to the highest pension received by him. In your father’s case, his pension is taxable and he still needs to declare his pension income until he attains the age of 55. Obviously, his employment income under Government Privatisation Programme is taxable.

    > I retired last year. I wrote to my former company in mid-February this year by registered post informing them to send the EA Form to my new address. I have made numerous calls to them but up till now I have still not received my EA Form. Because of this, I cannot file my income tax returns for last year. I understand that every employer must provide their employee the EA Form latest by the end of February. Time is running out as the last date of submission is April 30. Is the employer committing an offence by not providing their employee with the EA Form ?

    In accordance with subsection 83(1A) of the Income Tax Act (ITA) 1967, the EA Form (Remuneration statement for Private Employees) and EC Form (Remuneration statement for Government Employees) must be prepared and rendered to the employees on or before Feb 28 or 29 every year to enable them to complete and submit their respective Return Form within the stipulated period. Employees may report to the Inland Revenue Board if their employer has failed to commit to this rule.

    > I took optional retirement from the government sector when I was 40 years old. I am now 55. Must I declare my pension in my income tax this year? Will it be pro-rated as my birthday falls on June? I have been declaring my pension until now. I am still working but in the private sector.

    Pensions received by an individual are exempt under the following conditions:

    a. He retires at the age of 55 or at the compulsory age of retirement under any written law; or

    b. He retires due to ill health.

    For an employee in the public sector who elects for optional retirement, his pension will be taxed until he attains the age of 55 or the compulsory age of retirement under any written law. Where an individual receives more than one pension, the exemption is restricted to the highest pension received by him. In your case, you still need to declare your pension income for year assessment 2011. For your assessment 2012, your pension income from January until May is taxable. Your pension would not be taxable effective from month of June 2012.

    > If I earn my income from online sources like blogging or selling things, do I need to declare for tax?

    Income chargeable to tax is the income earned from a business activity or a profession, an employment, or a passive activity. The types of income include business income or profession, employment, rental, dividend, interest, discounts, royalty, premium, pension and others. Thus, your nett profit from your commercial activities is taxable and it has to be declared.

    > Is paying for a grandparent’s senior home care tax deductible?

    In accordance with Paragraph 46(1)(c) of Income Tax Act 1967, tax relief for medical treatment, special needs and carer expenses are only deductible for parents, NOT for grandparents.

    > I am a retired soldier who has served for 28 years. I retired in 2008 at the age of 47 and I currently draw a pension. I now also work with the government on a contract basis. Do I have to pay tax on my pension as well?

    Pensions received by an individual are exempt under the following conditions:

    a. He retires at the age of 55 or at the compulsory age of retirement under any written law; or

    b. He retires due to ill health.

    For your case, your pension is exempted because you were retired at the compulsory age of retirement under a written law. Your current income from government is taxable.