Income Tax
What Bro BluJacker says is very true, & easy for layman like us to understand.
Return Form
Its for declaring your income for that year, if u hav reg/open a tax file with IRB, then u shld have received Form B/BE every year send by IRB. If still not reg with IRB, then if you have reach the taxable level of income, then shld reg with IRB & declare ur income. If not yet reach the taxable level, then no need reg with IRB.
If u received Form B/BE (ie u already reg with IRB) in later yrs even when your income have fall below the taxable level (touch wood!! but if that happen), you still have to submit the Return Form. This keeps u away from potential complication with them.
PCB / STD
The PCB (Potongan Cukai Berjadual) or STD (Scheduler Tax Deduction) is just a scheme (in line with PAYE), for execution purpose, to deduct tax mainly for salary earners. Look at it in +ve way: it helps u to pay tax by mthly instalment, so u wont feel the pinch when come next yr declaring & paying your tax.
The min to qualify for mthly PCB is salary of rm2,500 net of EPF (employer portion), the max of EPF can net off in calc of PCB is rm500 per mth (YA2005 onwards) However alot of ppl experience different level of deduction, this may due to : diff ppl diff defination of income (some exclude allowance, gratuity etc, which is not correct), uses of different payroll software which may not updated correctly, or wrong at the first place, issuance of bonus (it require different type of calc) etc
Taxable or not
If u fall under PCB already, it doesn't necessarily mean u have paid(deducted) enough neither nor u are taxable, its all depends on how much relief & rebate that u declare, if claim a lot of reliefs/rebate, then you may end up over paid(deducted) or end up not taxable also possible. Only when go thru the tax computation for the whole yr then only u can tell whats the exact amt of tax, if any. Balance of tax need to be paid b4 end of the due date for the Return Form.
BE - Apr, B - Jun.
Basically if one's salary RM2,200, w/o EPF w/o claiming further relief/rebate etc ie everything is basic, no children/wife or anything, is already in taxable position, although still not qualify under PCB scheme.
However, kena PCB/STD not necessarily mean u are in taxable position.
Form J
Its the notice of assessment. Last time IRB assessed ur returns, then they issue Form J to inform how much tax to pay, ppl who received have 1 mth to pay fr date of Form J. Form YA2004 onwards, change to self assessment system, so no more Form J issue. If you received one after YA2004, its not a good thing, meaning u have not pay / pay late & now they charge u with penalty in the Form J.
However, alot of ppl out there dont cope with this & still asking for Form J.
Previously the duty to assess the tax comp is lies with IRB, now they "modernize" their system & shift the duty to the tax payers. In this way, now thay can channel their man power more on tax auditing/investigation work. They just checking around & chase for tax only :Not_Impressed: Thats why you'll see the increasing trend of thier audit/investigation on streets.
The time bar for IRB to chase back is 7 yrs, however, if its on tax evation/criminal case, this time bar doesn't apply. Besides, its diff for ordinary ppl to challenge IRB if they chase more than 7 yrs.
In general, its good to submit the Return Form (if qualify) & let PCB do its work (if kena lar), this ways save u alot of potential hussle. Of course, what level of income should one declare? thats the question.......esp for biz man, hehehe
Just my 2 cents. Pls correct me if i am wrong.
Cheers!
