(e.g. sole proprietor or partnership)
Who needs to furnish Form B?
Form B needs to be furnished by an individual who is resident in Malaysia and carries on a business.
What is the difference between Form BE and Form B?
Form BE – income assessed under Section 4 (b) – 4 (f) of the Income Tax Act 1967 (ITA 1967) and be completed by individual residents who have income other than business.
When is the due date for submission of Form B?
The due date for submission of Form B is 30 June of the following year.Form B – income assessed under Section 4 (a) – 4 (f) of the ITA 1967 and be completed by individual residents who have business income (sole proprietorship) or partnership.
Will penalty be imposed if I submit the Form B after 30th June?
Yes. You will be charged a penalty under subsection 112(3) of the ITA 1967. Inland Revenue Board of Malaysia (IRBM) will issue a notice of assessment under subsection 90(3) of the ITA 1967 and the taxpayer is required to pay additional taxes (and the original tax if still unpaid) within 30 days from the date the notice is issued.
Will penalty be imposed if I submit the Form B after 30th June? I received only employment income in the beginning of the year. Subsequently, I started my own business in the middle of the year. Which form do I need to fill up?
You are required to fill Form B because you have business income.
Why do I have to keep all the source documents for 7 years?
Records, documents and working sheets need to be kept for 7 years as evidence and reference if required.
Will a penalty be imposed if I do not keep all the records?
If you do not keep your business records, you may be charged in court under Section 119A of the ITA 1967. If convicted, the penalty imposed will be not less than RM300 and not more than RM10,000 or imprisonment for not less than 1 year or both.
I am a real estate agent / stocks / insurance / direct sales business. But I have not registered with the Companies Commission of Malaysia. What form should I use to declare my income?
Types of forms to be filled are not depending on whether you have registered the business with the Companies Commission of Malaysia (SSM) or not. It depends on the source of the income received by you whether or not a business source. Income received by an independent agent is treated as business income. Therefore, you must declare the income in Form B.
If someone receives consulting fees or commissions income from a company, whether the income is treated as business income or nonbusiness?
Commission income is treated as business income and you are required to complete Form B to report income.
Will I be able to check payment CP500 has been made in the current year?
Yes. You may make check at the branch handling your income tax file. Another easier option is to check the amount using the e-ledger at IRBM’s website. To use this service you need to enter your e-filing user id and password.
How can I appeal if I do not agree with my CP500 figure?
You can amend the figure by submitting the CP502 form before 30th June to your respective income tax branch
What is a Public Ruling?
Public Ruling is a guide for the public which sets out the interpretation Public Rulings of the Director General of Inland Revenue in respect of a particular tax law, policy and procedure that are to be applied. Details of each Public Ruling are available from the IRBM website.
I am a partner in the restaurant business. How can I report the income I get from the restaurant business? Is it based on the share capital contributed by me?
For each partnership, the precedent partner is responsible for filling out the Form P and issuing the Form CP30 to each and every partner. CP30 is a statement of apportionment of partnership income for each partner. The Form CP30 has to be provided to each partner so as to enable them to declare their partnership income in Form B.
In what circumstances the rental income can be considered as business income?
The rental income can be taxed as business income under section 4 (a) of the ITA Act 1967 if the property owner is comprehensively and actively providing maintenance services or support services in relation to the rental property. These services are offered, managed and provided by the person renting the property instead of rising passively or accidentally as a result of ownership or lease of the property.
What is meant by “maintenance services or support services” in relation to the rental property?
Maintenance services or support services comprehensively provided means services which include security, air conditioning, hot water, escalators, elevators, recreational facilities (clubhouse, gym, tennis / badminton / squash, swimming pools, etc.), cleaning or revisions, including waste disposal -garbage, property maintenance, gardens, landscaping, lighting, etc.
I paid for my mother in law’s medical expenses. Can I make a claim for that relief?
Medical expenses for spouse’s parent are not allowable.
How do I claim for relief for education fee on approved study?
An amount limited to a maximum of RM5,000 is deductible (self) in respect of fees expended on any course of study up to tertiary level in any institution in Malaysia recognized by the Malaysian Government or approved by the Minister for the purpose of acquiring any skills or qualifications.
What do you mean by full medical checkup and how am I eligible to claim that relief?
Complete medical examination refers to thorough examination as defined by Malaysian Medical Council (MMC) including both physical and mental examination and laboratory test (blood and urine test) together with doctor consultation as follows:
- Physical examination refers to examination for weight, blood pressure, eye, ears, nose and throat, examining your neck for the 23 size of the thyroid gland and enlarged lymph nodes, listening to your chest and heart, breast examination, abdominal examination, looking at your arms and legs and pelvic examination (pap smear).
- Lab examination refers to blood test, urinalysis and Pap smear. Blood test checking on your cholesterol level, thyroid hormones, complete blood count
- Consultation after examination.
Amount expended on own self, husband/wife or child is deductible up to a maximum of RM500 and must be proved with official receipt.
Can I make a claim under D8 relief if I purchased the books and electronic dictionary from overseas?
Yes, you can. Both hardcopy and electronic books but exclude newspapers or banned reading materials can be claimed under book/magazine relief limited to a maximum of RM1,000 regardless of where the books were purchased. Please keep the receipts for 7 years for the purpose of reference and review if required by IRBM.
What does it means by Sports Equipment?
Sports equipment for any sports activity as defined under the Sports Development Act 1997. Sports equipment includes equipment with short lifespan e.g. golf balls and shuttlecocks but excluding sports attire, e.g. swimsuits and sports shoes. The deductible amount is limited to RM300. For fitness sports – all fitness equipment such as treadmill, exercise bike and air walker can be claimed. For recreational sports – for example diving. All diving equipment can be claimed except for attire.
I am running a sole proprietorship business. I have made EPF contribution. Can I make a claim for EPF relief?
Yes, you can. Please note that the EPF contribution for your own self cannot be deducted as expenses in order to calculate your business adjusted income/loss.
Can I make a claim for life insurance relief under my child name?
Insurance premium on the life of the child does not qualify. Only Insurance Premiums paid for policies taken on the life of an individual, husband or wives are allowable deductions.