Which entities can enjoy the benefit of tax exemption under section 44 (6) of the Income Tax Act 1967?
%402x%20(2).svg){kind=icon}
Applicable for a company limited by guarantee approved by Inland Revenue Board (IRB) only.
I have a company (Sdn. Bhd.) and I want to cease the operation. What should I do?
As the director of the company, do ensure that all Income Tax Return Form (ITRF) is yearly updated and inform the IRB to notify the closure of the company’s tax file and get the Tax Clearance Letter.
If my company has a car & paid for the monthly installment payment, is it tax-deductible from my business income?
No, you cannot deduct the monthly installment payment as business expenses. But, you may claim that installment payment as a capital allowance.
Does my company have to file a Tax Form if no income is received or Dormant?
Yes, a company must file an income tax return to IRB even if there is no income.
What does the company need to do once it has been registered with SSM?
Register tax file with IRB and receive two (2) Reference Number:
- Company’s Tax Reference Number (No. C) and
- Employer’s Tax Reference Number (No. E).
What is the difference between Tax for Company (Sdn. Bhd.) and Enterprise (Sole-Proprietorship/Partnership)?
- Sdn. Bhd. : the Financial Account must be audited in order to proceed with tax calculation (tax rate is fixed)
- Business Enterprise (Sole-proprietorship/Partnerships): no requirement to audit the Financial Account (tax rate: based on the individual tax bracket).
Do I/Company need to keep receipts/documents of my business?
Documents must be kept for 7 years to justify your incomes and expenditures to IRB.
If I give my parents a fixed allowance every month, can I deduct the expenses from my individual tax?
No. You cannot deduct that expenses from your personal tax. The only things you may claim is on medical treatment for parents (subject to IRB’s eligibility).
How can I declare my personal tax?
- Declaration for personal tax is made via e-Filing submission or manual. The Due date of submission is subject to IRB’s guide and regulation.
- Resident Individual and Does Not Carry On Business: 30 April every year
- Resident Individual and Carry On Business: 30 June every year
I have paid my medical insurance every year. Can I deduct the expenses from my individual tax?
Yes. Personal insurance can be claimed as tax relief (subject to IRB’s eligibility).
