Tips For Income Tax Saving

1) Claim all possible tax deduction
Tax deductions reduce your taxable income. Your total deductions are subtracted from your taxable income in order to determine your total taxable income for the year. Make full use of the available tax reliefs will save you more taxes.
Please be reminded to keep good tax records for future tax audit conducted by Inland Revenue Board Malaysia (IRBM).
2) Submit and pay income tax on time
Failure to submit or pay income tax on time may results in heavy tax penalty. Always submit and pay income tax on time and keep relevant records is responsibility of a good tax payer.
3) Follow Income Tax Act
Inland Revenue Board Malaysia (IRBM) is responsible for the collection and overall administration of direct taxes under the following Acts:
  1. Income Tax Act 1967
  2. Petroleum (Income Tax) Act 1967
  3. Real Property Gains Tax Act 1976
  4. Promotion of Investments Act 1986
  5. Stamp Act 1949
  6. Labuan Business Activity Tax Act 1990
Thus, it is undoubtedly that you will face lesser troubles if you submit your income tax by following the above Acts. IRBM is also issuing public ruling to provide relevant guidance for the public.
4) Apply for tax incentive
There are various tax incentives offered by the government which could further reduce a company’s tax liability. The Income Tax Act 1967 provides incentives in categories such as reinvestment allowance, approved service projects, international procurement centres, regional distribution centers, biotechnology and approved businesses. Further, there are also various tax incentives provided under the Promotion of Investment Act 1986, such as investment tax allowance, infrastructure allowance and pioneer status companies.
5) Seek the advice of tax consultant
In most cases, using a tax agent or accountant won’t just save you a lot of time, it will also improve your tax refund or net payable. We are experts in tax and constantly stay up-to-date with changes in tax legislation. We may find you are entitled to deductions you are unaware of or even an offset you didn’t know existed.
The best part is our tax fee is reasonable and is claimable as a deduction on next year’s tax return.
6) Be charitable
Donating to charity is always a good thing but what makes it even better is that the amount you donate is deductible on your tax return. After you make a donation, please ask for an official receipt and keep it properly. At tax time, enter the total amount into the charity donations section of your tax return.
One thing about donations we should clear up: Your donations do not come straight back on to your tax refund. The amount is subtracted from your taxable income, which means you will get a percentage back.
7) Earn Tax-free income
Some income is not subject to income tax. By earning more tax-free/net-tax income, a taxpayer can lower their tax liability. You could do this by depositing money with licensed bank, investing in bonds, investing in share market, and taking advantage of certain employees’ benefits such as childcare allowance.
8) Reduce your tax rate
The highest tax rate of a company or limited liability partnership (LLP) is 24%, if your individual income tax rate is higher than 24%, it will be more tax efficient to tax the business income under Company/LLP.
On the other hand, if your individual tax rate is lower than 24%, you may want to swift the business income to be taxed under individual through payment of directors’ fees, remuneration and etc.

What We Can Help You?

We are licensed Tax Agent registered with Inland Revenue Board (IRB) under Section 153(3) of Income Tax Act 1967. As a professional tax consultant, we can advise and assist you in your company or individual income tax compliance and submission according to Income Tax Act 1967, IRB’s public ruling, Tax audit & investigation frameworks, Tax technical guideline and etc. We can also advice you on income tax incentives which are available and best suited for you.
We are also GST agent registered with Royal Malaysian Customs Department. We can help you comply with and conform to the GST standards and requirements. Start from registration to preparation and submission of GST return, we can solve all GST technical issues faced by you. We will also advice you on rules and regulation related to your business or company GST affairs.
Our professional staff will assist our clients with:
  • the preparation and submission of all forms and returns on a timely basis;
  • the computations of tax payable whilst ensuring all possible deductions have been utilized;
  • correspondence with IRB in the event of tax appeals, disputes and reassessments;
  • advise on the best and latest possible incentive/tax deduction available for the tax payer.
Income tax payment can be made through internet banking in Malaysia. You can either make the payment through online portal of these banks or IRBM official payment website https://byrhasil.hasil.gov.my/
We will show you how to make income tax payment by online banking account (FPX) through IRBM official payment website:
1)
Visit https://byrhasil.hasil.gov.my/
Click “FPX” Logo under “Bayaran Melalui FPX”
online payment
2)
Select your Identification type (Jenis Pengenalan)
Identification Type can be:
  1. New identification card number (No. Kad Pengenalan Baru)
  2. Police number (No. Polis)
  3. Army number (No. Tentera)
  4. Passport number (No. Pasport)
  5. Company registration number (No. Pendaftaran Syarikat)
  6. Tax reference number (No. Rujukan Cukai)
Fill in your identification number (No. Pengenalan).
Fill in security code (Kod keselamatan) based on the words and figure shown
And click “Submit”
online payment 2
3)
Check if your name and tax reference number shown correctly.
Select:
  1. Code and payment type (Kod dan Jenis Bayaran)
The common code are:
084 Personal Income tax instalment
086 Company income tax instalment
095 Income tax final payment
  1. Year of assessment (Tahun Taksiran)
  2. Number of instalment (Bilangan ansuran), final payment is 99
  3. Tax amount (Amaun cukai) (RM)
  4. Bank account type (Jenis Akaun Bank)
Fill in your email and click “Hantar”
Fill in security code (Kod keselamatan) and click “Hantar” again
online payment 3
4) Double check your information and click “Hantar” online payment 4
5)
Select your bank account and click “Agree and Continue”
And you will be lead to your online banking portal to make payment.
online payment 5
6) Please save or print the receipt for your own record. Acknowledgment of receipt issued through internet banking must be kept as proof of payment. The Inland Revenue Board Malaysia will not issue any other receipt for payments made through the bank online payment 6
Income tax payment can be made by credit card (Issued by Malaysia bank) in Malaysia. However, credit card charges of 0.80% will be imposed on your income tax payment. Your income tax payment can be made with Ezypay of 6 months (1.25% interest) or 12 months (2.05% interest) if your income tax amount is between RM1,000 to RM500,000 and you are using Maybank credit card. You can make income Tax payment by credit card via IRBM official payment website https://byrhasil.hasil.gov.my/
We will show you how to make income tax payment by credit card through IRBM official payment website:
1)
Visit https://byrhasil.hasil.gov.my/
Click “VISA Mastercard American Express” Logo under “Bayaran Melalui Kad Kredit”
credit card 1
2)
Select your Identification type (Jenis Pengenalan)
Identification Type can be:
  1. New identification card number (No. Kad Pengenalan Baru)
  2. Police number (No. Polis)
  3. Army number (No. Tentera)
  4. Passport number (No. Pasport)
  5. Company registration number (No. Pendaftaran Syarikat)
  6. Tax reference number (No. Rujukan Cukai)
Fill in your identification number (No. Pengenalan).
Fill in security code (Kod keselamatan) based on the words and figure shown
And click “Hantar”
credit card 2
3)
Check if your name and tax reference number shown correctly.
Select:
  1. Code and payment type (Kod dan Jenis Bayaran)
The common code are:
084 Personal Income tax instalment
086 Company income tax instalment
095 Income tax final payment
  1. Year of assessment (Tahun Taksiran)
  2. Number of instalment (No. Ansuran), final payment is 99
  3. Card type (Jenis Kad)
  4. Ezypay
  5. Tax amount (Amaun cukai) (RM)
Click “Hantar”
Fill in security code (Kod keselamatan) and click “Hantar” again
credit card 3
4)
Double check your information and click “Bayar”
And you will be lead to credit card payment page to make payment
credit card 4
5) Please save or print the receipt for your own record. Acknowledgment of receipt issued through internet banking must be kept as proof of payment. The Inland Revenue Board Malaysia will not issue any other receipt for payments made by the credit card credit card 5
Income tax payment can be made at Public Bank cheque deposit machine. You can issue a cheque payable to “THE DIRECTOR GENERAL OF INLAND REVENUE” and deposit it at any Public Bank Branch cheque deposit machine. Please take note that there is only one type of cheque deposit machine can accept income tax payment. Please write the name of the tax payer, tax reference number, number of instalment, year of assessment and telephone number on the reverse side of the cheque.
We will show you how to make income tax payment by cheque deposit machine (Public Bank):
1) Select “Other payment” cheque payment 1
2) Select “LHDNM” cheque payment 2
3) Select “Accept” cheque payment 3
4) Select the branch location that your tax files located at, e.g. Johor is under “LHDNM Peninsular” cheque payment 4
5)
Key in your income tax number
OG Business Income Tax
SG Employee Income Tax
C Company Tax
PT Limited Liability Partnership Tax
cheque payment 5
6)
Check whether your name, income tax number and your IC No or Company number is correct
And select “Yes”
cheque payment 6
7)
Select your payment code
The common code are:
084 Personal Income tax instalment
086 Company income tax instalment
095 Income tax final payment
cheque payment 7
8)
Key in your income tax number of instalment and year of assessment
For example:
01/2018 for 1st income tax instalment made for year of assessment 2018
99/2018 for final income tax payment made for year of assessment 2018
cheque payment 8
9) Key in your income tax amount as stated on your cheque cheque payment 9
10) Double check if your information shown correctly and select “Yes” cheque payment 10
11) Please keep the bank in slip as proof of payment. The Inland Revenue Board Malaysia will not issue any other receipt for payments made through the bank cheque payment 11
Payment can be made at any Inland Revenue Board Malaysia (IRBM) payment counters. Every payment needs to be attached with CP 207 payment slip which has been sent to the company. There are 3 IRBM payments counter in Malaysia which is Jalan Tunku Abdul Halim Payment Counter for Peninsular Malaysia, Kuching Payment Counter for Sarawak & Kota Kinabalu Payment Counter for Sabah. The full addresses are as follow:
Peninsular Malaysia Sabah Sarawak
Ground Floor,
Block 8A,
Government Office Complex
Jalan Tunku Abdul Halim,
50600 Kuala Lumpur
Ground Floor,
Wisma Hasil,
Jalan Tunku Abdul Rahman,
88600 Kota Kinabalu,
Sabah
Level 1,
Wisma Hasil,
No.1 Jalan Padungan,
93100 Kuching,
Sarawak
Payment by post has to be made using crossed cheque/bank draft and made payable to “THE DIRECTOR GENERAL OF INLAND REVENUE”. State the name of the tax payer, the tax reference number, installment number, year of assessment and the address on the reverse side of the cheque. Post dated cheques and cheques issued by banks outside Malaysia will not be accepted. Please do not send cash through the post. Cheque/bank draft has to be submitted to Kuala Lumpur Payment Centre, Jalan Tunku Abdul Halim or collection unit in Kuching or Kota Kinabalu. The full addresses are as follow:
Peninsular Malaysia Sabah Sarawak
Inland Revenue Board of Malaysia,
Kuala Lumpur Payment Centre,
Level 15, Block 8A,
Government Office Complex Jalan Tunku Abdul Halim,
P.O Box 11061,
50990 Kuala Lumpur
Inland Revenue Board of Malaysia,
Collection Unit,
Ground Floor,
3 & 4 Wisma Hasil,
Jalan Tunku Abdul Rahman,
88600 Kota Kinabalu,
Sabah
Inland Revenue Board of Malaysia,
Collection Unit,
Level 1,
Wisma Hasil,
No. 1,
Jalan Padungan,
93100 Kuching,
Sarawak
Tax payment can also be made at any CIMB Bank, Public Bank, Maybank, Affin Bank, Bank Rakyat, Bank Simpanan Nasional and POS Malaysia counters throughout Malaysia. Please use the CP 207 payment slip as a guide to fill up IRBM’s Bank In Slip provided at the bank to make payment. The customer’s copy of the bank in slip must be kept as a proof of payment. The IRBM will not issue any other receipt for payments made through the bank.
Payment of income tax through monetary transfer from overseas can be done in two ways which are:-
1) Payment via Telegraphic Transfer (TT) / Transfer Interbank Giro (IBG) / Electronic Fund Transfer (EFT)
Tax payment via TT, IBG or EFT can be made to the Inland Revenue Board of Malaysia (IRBM) bank’s account. Details of the account are as follows:
  • Bank Account Number: 8000766957
  • Beneficiary (Payable to): Ketua Pengarah Hasil Dalam Negeri
  • Name and address of the bank: CIMB Bank Berhad, Cawangan Jalan Tunku Abdul Halim Tingkat Bawah, Blok 8, Kompleks Pejabat Kerajaan, 50480 Jalan Tunku Abdul Halim, Kuala Lumpur, Malaysia
For Telegraphic Transfer (RENTAS), the CIMB Bank Berhad swift’s code is CIBBMYKL
Tax payer is to furnish the following information to enable IRBM updating their tax accounts:
  • Tax Payer name
  • Tax reference number
  • Transaction reference number for the TT/IBG/ EFT
  • Tax assessment year
  • Payment code
  • Installment number, if any. If none, IRB will consider current month as installment number.
Please note that the above information must be sent to IRBM office at Jalan Tunku Abdul Halim, Kuala Lumpur via fax at 03-62019637 on the transaction day or email to the following officers:
  • Muhammad Haris Samad
muhammadharis@hasil.gov.my
  • Zaharah Shafie
zaharah.s@hasil.gov.my
  • Zakuan Afzan Abdul Halim
zakuanafzan@hasil.gov.my
  • zreen Abd Rahman
azreen@hasil.gov.my
IRBM official receipt can only be issued upon receiving the above information and sum received confirms by bank. Failure to adhere to the procedures may cause delay in updating tax accounts and the account is still subject to late penalty.
2) By Bank Draft
Monetary transfer from overseas by this method requires you to forward the following information:-
  1. Payable to : Director General Inland Revenue
  2. Name and address of payer bank:- must be ‘local paying bank’ or ‘local correspondence bank’ so that the draft becomes a local cheque.
    Bank draft cannot be bought in RM. Therefore, please ensure that the currency exchange for the amount to be paid is accurate. Payment and payer details must be written at the back of the bank draft and then posted to the address below:-
Payment Counter
Ground Floor, Block 8A
Government Offices Complex, Jalan Tunku Abdul Halim
50600 KUALA LUMPUR
Company
If the company has not fully paid the tax for that period, the company can apply to pay the balance of tax by instalments. The company can request in writing to the Collection Unit before the last date of payment of the relevant year. However, please note that even if the request is accepted, late payment penalty will still be imposed.
Personal
Personal can apply to pay balance of income tax by instalments at the Inland Revenue Board Malaysia branch where your income tax physical files located.