2009 Malaysia Tax Calculation - Guide from LHDN

Some of other info are which may not specify inside the note which will be implement in 2009:

Features & Things to Note

1. Strictly PCB not more than 27% tax impose when calculate Bonus & Commission. Previous year PCB calculation on Bonus & Commission has too high possibility of over-deduction.

2. Reduce and eventually abolish tax return starting from Year 2009 Income Tax Assessment.

3. Accurate tax calculation by dropping the use of PCB table from Year 2009 Tax Contribution. PCB Table still exists in 2009 as means for transition period only and will abolish fully next year.

4. Monthly net income RM2401 onwards has to contribute PCB because government no longer gives 20% discount on tax.

5. Bonus, Commission, Director Fee, OT and Non-Fixed Amount Allowance are categorized to calculate using bonus PCB formula and consider as additional income.

6. Bonus, Commission, Director Fee below year 2009 pay by company in year 2009 subject to 2009 PCB calculation, LHDN not accept the practice of declare in EA form as "PCB B/F from Previous Year" to minimize tax return. Example receive 2007 bonus and 2008 commission in April 2009, the PCB contribution are using 2009 PCB calculation only.

7. Anything subject to tax relief and rebate for this year must relief/rebate in this year and not allow B/F. For example buy computer in March 2009 worth RM2800; you can only declare tax relief in Year 2009 tax assessment only.

8. Employers are given the authority to approve employees' tax relief declaration. Do check your company HR department for latest HR policy.

9. Employees are held responsibility for any false/incorrect tax relief declaration and employers are liable any of it. Tax relief form must keep for 7 years by employees.

10. If you have resign from company, remember to get the actual figure of Year to Date relieved tax amount, contributed PCB amount, paid salary amount, contributed KWSP amount, contributed Zakat and Levy amount. They will help you and your new employer calculate accurate PCB contribution.

11. Minimum PCB contribution is RM10 (Which is for monthly net income RM2401)

12. Employees can declare tax relief or rebate by monthly, quarterly, yearly or random month basis subject to employer HR policy. Do check your company HR department for latest HR policy.

13. LHDN website will provide PCB calculator for public usage.

14. Final PCB amount are round up to nearest of RM0.05

Source from : http://www.ubc.com.my/content.asp?cnt_id=479