1. Self assessment means that taxpayer is required by law to determine his taxable income, compute chargeable income tax, submit the income tax return form and make tax payment for the year of assessment concerned.

Notice of assessment wil not be issued under SAS as the ITRF submission itself is the final assessment notice.

Below are type of forms used to declare income

    1. BE Form: Resident individual with employment income and does not carry on business.
    2. B Form: Resident individual who carry on business with employment and other income.
    3. M Form: Non-resident individual who carry on business, with employment income or others

      The residency status of individuals is subject to Section 7, Income Tax Act 1967.

Monthly Tax Deduction (MTD) as Final Tax has been enforced starting from the Year Assessment of 2014 whereby individuals with employment income and (MTD) have the option not to furnish ITRF to IBRM.

Requirements:

  • Works with one employer
  • Husband or wife does not opt for joint assessment under section 45 of the ITA.
  • MTD is deducted in accordance with the Income Tax (Deduction from Remuneration) Rules 1994 or MTD not applicable as income below the deductible level (MTD ‘0’). MTD must be made upon Benefits-In-Kind (BIK ) and Value of Living Accomodation (VOLA)
  • Working for twelve months in the basis period with the same employer
  • Employees who have just started employment within less than 12 months in the year of assessment
  • All employment income received for a particular period in the current year inclusive of previous year's employment taxable income in the year it is received as provided under subsection 25 (1) of the ITA

Any gross income from an employment is receivable in respect of any particular period, it shall, when received in the relevant period, be treated as the gross income of the relevant person for the relevant period as per subsection 25(1) such as:

    1. wages,
    2. remuneration,
    3. tip,
    4. allowance,
    5. commission,
    6. overtime salary,
    7. bonus,
    8. perquisite,
    9. skim opsyen saham pekerja,
    10. tax borne by employer,
    11. director fee,
    12. gratuity including deferred payment on termination of employment (not exempted under any provision of the act),
    13. leave pay received as an advance in case of termination
    14. other remuneration related to employment
  • The employment income receivable in the following year (whether received or not) on an individual who has left of will be leaving Malaysia in which he is a non-resident in the following year, will be taxed in the year he leaves Malaysia permanently as provided under subsection 25 (6) of the ITA.

  • Individual Criteria :
    1. Cessation of employment
    2. Leaving Malaysia
    3. Non -residents in the following year have the options of:

  • Gross income from the employee’s employment will cease to be derived from Malaysia on the expiration of a period of leave following the employee’s departure from Malaysia (Subsection 25(6) ITA 1967)

  • Gross income from an employment is receivable in respect of any particular period, it shall, when received in the relevant period, be treated as the gross income of the relevant person for the relevant period (Subsection 25(1) ITA 1967)