Good news for all taxpayers: due to the movement control order (MCO) taking effect from March 18 to April 14 2020, the deadline for the income tax return forms has been extended for two months. This also means that the timeline for tax payments is extended as well.
According to Malay Mail, the filing of all income tax return forms that falls between March and June 2020 is extended by 2 months.
Thus, an individual with employment income is given until June 30, 2020 to file his income tax return as opposed to filing the same on April 30, 2020.
Meanwhile, an individual with business source income is given until August 31, 2020 to file his tax income return as opposed to June 30, 2020.
Since all IRB offices are closed during the MCO period, taxpayers may use the online facility to apply for income tax reference number including e-Filing PIN number or if they forgot their e-Filing password.
A good majority of us are either an individual with employment income or an individual with business source income. Under these categories, whatever job or business that earns you income would be taxable (annual income of RM34,000 after EPF deduction).
For the new taxpayers, you may be wondering what other types of income are taxable in Malaysia. We list down the other eight types of taxable income in the country, so you’ll know which one to report to the IRB:
Annuities are commonly known as the income stream for retirees. It is a financial product by financial institutions (for example insurance or takaful companies) that provides a fixed stream of payments to an individual for a specific period.
The pensions received by government servants may be taxable where applicable. However, there will be tax exemptions for some retirees, for example those who retire at the age of 55 (or any other agerequired for one to retire) due to ill health, injury or disability.
Premiums refer to gifts and rewards received such as holidays, vouchers, phones, cash, laptops, and even a home. Tax payments may be imposed where applicable.
If you own a particular asset or intellectual property, like trademarks, patents, and copyrights, and you receive payments (also known as royalties) on a frequent basis for as long as the asset is being used, the royalties will be taxable. There are tax exemptions on royalties too, depending on the type of service or work paid in a year, which you can find more in details on the IRB’s official website.
If you receive income from renting out a home, land, vehicle or any other item that’s used by people, the payments earned are taxable.
Some of us may strike it lucky by getting discounts, for example discounts on the home or car that we purchase under special circumstances. However, good things always come with a price, and the huge discounts that you received will be taxable.
If you receive a dividend that counts as an income, you will be taxed on the dividend earned. However, there will be exemptions on dividends given by some institutions, for example Tabung Haji, Amanah Saham Bumiputera, and unit trust.
Some interest income is taxable, while the others will be exempt, for example individuals who received interest on money deposited in approved institutions, which include all licensed banks and financial institutions. If you receive interest from certain types of securities or bonds, it will also be exempt.
For more info on income types that are taxable or any queries regarding income tax, you may contact the Hasil Care Line at 03 8911 1000 (Monday – Friday, 9am – 5pm).