When does taxpayer has to file tax return?

If you are an employee, you can manually file your tax return form (Form BE) by 30 April. If you choose to file online or by way of electronic submission via mytax hasil website, there will be an extension of 15 days until 15th of May.

However, if you are a business owner, you can manually file your tax return Form (Form B) by 30th June. The same goes to online submission, you get an extension of 15 days to file by 15th July. 

Tax Relief

When you file your Form BE, you will calculate your total income for the previous year, ie, you filling form BE in year 2023, you will calculate the overall income from 1.1.2022 to 31.12.2022 (the year of assessment for 2022). You will get a gross income. However, for taxation purpose, you can claim tax relief, to relieve your income to a lower figure to be taxed by the government. 

Some of the tax relief are as follow, and usually are divided into four [4] main categories:

Personal Tax Relief

Some of the personal tax reliefs are as follow:

• Individual tax relief – RM9,000

• Payment Alimony to Ex-wife/Ex-Husband – RM4,000

• Additional deduction to disabled wife/husband –  RM5,000

• Additional deduction to disabled Individual – RM6,000

Contribution

The Government also recognizes certain contribution made by taxpayer individual/business owner such as:

• PERKESO/SOCSO – RM350

• Private Retirement Scheme – RM3,000

• SSPN/Education Savings Scheme – RM8,000

• Life Insurance – RM3,000

• EPF – RM4,000

• Education & Medical Insurance – RM3,000

Lifestyle

Lifestyle can also claim for tax relief as follow:

• Installation of EV Car Charge at Home – RM2,500
• Purchase of breastfeeding equipment – RM1,000
• Basic supporting Equipment for individual – RM6,000
• Lifestyle – RM2,500
• Additional Sport Equipment and Lifestyle reliefs – RM500
• Medical Treatment for Parent – RM8,000
• Medical Expenses (ownselves/spouse/children) – RM10,000

Child Relief

When you have children, you can claim for child relief as follow:

• Per Child (below 18 years old) – RM2,000
• Per Child (Above 18 years old) – (Foundation/Asasi/A-Level) – RM2,000
• Per Child (Above 18 years old) – (Diploma/Degree) – RM8,000
• Payment to Child Care/Child Nursery – RM3,000
• Disabled Children – RM8,000
• Additional Child Relief – RM6,000

Conclusion

It is concludes that it is once your income threshold reaches RM100,000 and above, there should be proper tax planning being implemented ie, to form a Sdn Bhd, Enterprise, Sole-Proprietorship or Partnership. 

you should also start recognizing your income as business income and not employment income to enjoy the tax deduction on business expenses.

Please take note that tax law changes every year, and this require thorough review on your current tax planning with the amendment in tax legislations.

If you need any tax consultation or tax appeal, kindly contact the writer below.