April is really a busy month, especially for those who need to declare their income to Inland Revenue Board of Malaysia (IRBM) for their individual income tax (without business sources) on or before 30th April 2010.
Today, we are briefly talking about Individual Income Tax (for Malaysian ONLY) and some other related information. In the next few days we will focus only on income tax matters, and it might not be interested by you. But you have to understand that, correctly declare your personal income is very essential
According to Income Tax Act 1967:
Failure to notify chargeability ( Subsection 77(2) or 77(3) )
Penalty imposed is 10% of the total tax payable subject to a minimum of RM 300 and a maximum of RM 5,000.
For more information, please click here.
For your information, if your annual income is less than RM 25,501 (after 8% of EPF/KWSP deduction), or RM 27,718 (before 8% of EPF/KWSP deduction), you are NOT require to register a tax file with IRBM.
If your income is more than that but not deducted through Schedular Tax Deduction (STD), you should register a tax file with IRBM by:
Going to the nearest IRBM branches documents (A copy of the latest Salary Statement (EA/EC Form) or latest Salary Slip; A copy of Identification card (IC) / police IC / army IC / international passport; A copy of marriage certificate (if applicable).) required OR
Effective from the year of assessment 2004, income received in Malaysia from outside Malaysia is exempted from tax. Hence, an individual, either or non-resident, is taxable only on income accruing in or derived from Malaysia. This also mean that all the income you earn from internet are totally exempted from tax, like payment from Google Adsense, ClickBank, Amazon, Adbrite and so on. But for your information, earning from Nuffnangs is under taxable income, because Nuffnangs is a Malaysian company.
Malaysia Individual Income Tax Matters 20107 04 2010