Titles In This Blog


Individual tax

Potongan Cukai Berjadual (PCB) / Schedular Tax Deduction (STD)

Real Property Gains Tax (RPGT)



The Malaysian newspapers sometimes run series of Q&As for Income Tax issues. They are compiled as follows :-

Feel free to put your comments here on other topics that might interest you or questions that you want answered.


  1. May I know when are the deadlines to submit income tax for indiviuals and businesses for this year?

  2. What is the difference between Form BE and Form B?

  3. Form BEs are for individuals with mainly Employment income. Form Bs are for individuals with Business Income

  4. Deadline for Form BE is 30 April 09. For Form B is 30 June. By businesses, I assume you mean individuals with business income, i.e. Form B.

    If you are talking about companies (Form C), then it is 6 months after your company's financial year end.

  5. Hi I am from Penang and currently working in China for more than 1 year. I submitted the CP21 form before I left Malaysia to clear all my income tax.

    My question is, do I still need to submit BE form every year if I continue to work abroad?

  6. Hi YT Ooi,

    It depends on whether you still have income in Malaysia (eg. rental, dividends, business, etc). If you have, technically you will have to declare your income.

    However, you have to determine your tax residence status under Section 7 of the Income Tax Act. If you are a non-resident, then you may be taxed at non-resident rate and you will need to fill up Borang M (for non-residents) and not Borang BE. If you are a tax resident, then Borang B or BE is the right form for you.

    Even if you do not have income, there's no harm in filing a 'Nil' return, i.e. if you are using e-filing, then just fill everyhting as 'Nil' or 0 (zero). If a Borang BE is issued to you, then you must return to the IRB, even if you do not have any income, just write '0' in every column for income.

  7. Hi, My employer issued us with the old format of EA form which does not have part G. Assuming the EA form contains the following:-
    Salary RM50,000
    Bonus RM10,000
    Other RM12,000 (which is car allowance) (I use own car for business travels)(I also claim separately on petrol based on petrol chits which is through staff reimbursement - not in EA).
    How do we take advantage of the 2,400/- (home to office) & 6,000 (biz travel) allowance. Does the employer need to issue me any letter or do I just net it off from my total income?

  8. If you read my posting on "Q&A With the Income Tax Department", you will note that "Car Allowance" is NOT tax-exempt. Only travelling, petrol and those others specifically mentioned are tax-exempt. So in order to be eligible for tax exemption, your employer has to word your 'allowance' appropriately.

  9. Thanks gtchye, will ask employer for it. so if transport allowance is 12,000/- am I entitled to be exempt 8,400/-?

  10. You will NOT be automatically entitled to RM8,400 exemption. Your employer will have to differentiate between 'transport allowance between your home and place of work' and 'transport allowance for business purposes'. Then only you are entitled to 2 tax exemptions. If there is no separate allowances, only one allowance is tax exempt, i.e. either RM2,400 or RM6,000.

  11. Great site and I have a request. Can you please discuss the possibility of non-Muslims opting to pay zakat instead of additional tax? I have heard that this is possible and the money is actually channelled to the state govt instead of federal. Is this true? It's very interesting, so please discuss.

  12. Thanks for the compliments. Your comments on zakat payment is very interesting indeed. However, I am in no position to discuss it as I have neither the knowledge on zakat nor the resources to find out about zakat payments.

    May be you can find out more from your nearest zakat office and enlighten us of your findings.

  13. Can I know for a company which carries on a manufacturing business, what tax efficient measures can be taken with regards to the following:-
    (a) Disposal of a plant where capital allowance has been claimed;
    (b) Valuation of raw materials;
    (c) Obsolete stock;
    (d)Doubtful trade debts;
    (e) Acquisition of proprietary rights;
    (f) Leasing of a non commercial vehicle (new) for business purpose;
    (g) Current year business loss;
    (h) Paid-up share capital

  14. Hi Anonymous,

    Your questions covered many areas for manufacturing companies and I am afraid it goes beyond the scope of this blog, which is mainly dedicated to employees and employers.

    You can get answers from many good books on Malaysian taxation (eg. The Malaysian Master Tax Guide).

    Sorry I am unable to help you here.

  15. hai there can I ask u a question?
    I quit working nearly a month ago from the goverment sector because I receive an offer to work overseas for a year.
    Do I need to do income tax clearance?
    If I didn't what will happen?

  16. Hi Casper,

    If your employer is aware that you are leaving Malaysia, it is their duty to inform the IRB by filing in the Borang CP21 (Leaver Form). The IRB will issue the tax clearance to your employer to release any money withheld by them to you.

    With PCB now in place, the IRB is not so worried about you leaving the country with unpaid taxes. Chances are they will not do anything to you, unless you really owe them a lot of money.

    However, it is still best that you get a clearance from them so as not to get any querries later. Get your employer to fill up the Borang CP21 and bring it to your Income Tax Branch. They can usually do it for you quite fast.