A Personal Finance Blog for Malaysian: Is my income subjected to Income Tax?

Wednesday, November 10, 2010

Is my income subjected to Income Tax?

Assumed Richard does not have a Tax File number yet (Tax File = Account open with Income Tax Department)

If Richard is self-employed with total earnings around RM30,000 and above per calendar year - probably he need to open a tax file with LHDN and file a Borang B every year.

If Richard is under employment with monthly gross salary around RM2,800 and above - he should be subjected to PCB deduction by his employer on monthly basis (subject to marital status, spouse working or not and number of children). In this case, he will have a tax file number and need to file a Borang BE every year.

What is subjected to income tax for an individual?
  • Business income (including income from online business / advertisement income)
  • Employment income (salary, bonus and incentive etc)
  • Rental income 
  • Miscellaneous income not specifically exempted, e.g. casual wages, referral fees etc.

To register for a Tax File number online, click here.
To engage a tax service, click here.