What are the essential things to remember as a taxpayer in Malaysia?
Truthfully declare your income and reliefs.
It is important to truthfully declare incomes and reliefs and pay your taxes accordingly, especially in developing countries as they are essential in the developing of economy. Inland Revenue Board of Malaysia has implemented Self-Assessment System (SAS) in the year 2001, which requires the tax payers to understand all the laws and regulations and then, calculate the tax payment themselves. Understating the tax paid amount may cause the taxpayer is being penalized. In recent years, the IRB has introduced a further advance in taxpaying system as it has been actively promoting its e-filing system which allows taxpayers to fill out their tax returns and submit it remotely via the internet.
Submit your tax files before the deadline stipulated by LHDN.
The deadline for submitting tax files was initially in on 30th April every year, however, with the introduction of e-filing system in recent years, the IRB has extended the deadline for individuals filing their taxes to 15th May this year, although this only applies to those who use the e-filing system and the deadline for individuals filing their taxes traditionally over the counter remains 30th April.
The Star Online, Sunday 30 April 2017
If you’re filing for reliefs, make sure you keep your documents.
Taxpayers are required to keep the following documents for seven years from the end of the year in which the Income Tax Return Form (ITRF) is filed:
- 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)
Failure to produce the supporting documents during a tax audit can result in tax penalty of RM300 to RM10, 000, or imprisonment, or both.
