1. What is Monthly Tax Deduction (MTD) as Final Tax?
Tax payers who fulfil the criteria of MTD as Final Tax may elect not to furnish
a return (BNCP) to Inland Revenue Board of Malaysia (IRBM).
2. Who may elect
not to furnish return?
Tax payer may elect not to furnish return, if:
i. Has employment income only;
ii. MTD have been made by his employer;
iii. Working for twelve months in the basis period with the same employer;
iv. Taxes are not borne by their employers; and
v. Not opted for joint/combined assessment with the spouse.
i. Has employment income only;
ii. MTD have been made by his employer;
iii. Working for twelve months in the basis period with the same employer;
iv. Taxes are not borne by their employers; and
v. Not opted for joint/combined assessment with the spouse.
3. If tax payer do not fulfill with the criteria of MTD as
final tax, does he need to furnish return?
Yes. Tax payer needs to furnish
return, if:
i. Works more than one employer or change employers during the year;
ii. Works less than twelve months during the year;
iii. Tax borne by employer;
iv. Opt for joint assessment;
v. Has non-employment income such as business income, rental income, etc during the year;
vi. Wish to claim refund or deduction/rebate and etc.
i. Works more than one employer or change employers during the year;
ii. Works less than twelve months during the year;
iii. Tax borne by employer;
iv. Opt for joint assessment;
v. Has non-employment income such as business income, rental income, etc during the year;
vi. Wish to claim refund or deduction/rebate and etc.
4. If tax payer works with two or more different companies within twelve months in a year, does he need to furnish return?
Yes. The
tax payer has not complied with the criteria of working for twelve months in
the basis period with the same employer.
5. If tax payer receive rental or
dividend income, does he need to furnish return?
Yes. Tax payer has income
other than gains or profits from an employment, i.e. rental income, dividend income, commission without MTD deduction is not qualify elect not to furnish
return. Therefore, he must submits the return before or on 30th April.
6. Tax
payer fulfil the criteria of MTD as Final Tax, does he allow to furnish a return?
Yes. He may submits the return before or on 30th April.
7. How to verify the MTD as final tax
calculation is accurate and correct?
(a) Employer’s who use the payroll
system (Computerised Calculation Method)
- Tax payer may use the ‘Kalkulator PCB’ at IRBM website to verify the MTD calculation.
- Tax payer may use the ‘Kalkulator PCB’ at IRBM website to verify the MTD calculation.
(b) Employer’s who use manual
Table/Schedule of MTD (without payroll system)
- Tax payer may use table/schedule of MTD to verify the MTD calculation.
- Tax payer may use table/schedule of MTD to verify the MTD calculation.
8. The MTD calculation using formula
(computerised calculation method) is different from using table/schedule of
MTD?
Yes. There is a slightly difference of MTD calculation by using
formula (computerised calculation method) compare to table/schedule of MTD. The
formula (computerised calculation method) is more accurate and round up to cent value. But, MTD calculation for table/schedule of MTD is
based on the range of RM5.00 within the two value by taking the highest of that
particular range as MTD calculation (i.e. RM2,571 – RM 2,575, the MTD
calculation is based on RM 2,575).
9. If the employer using the wrong method
to determine the MTD calculation, is there any compound issue to employer?
Yes. The
compound will be issued to the employer whose is not complied with using the correct
method to determine MTD and deduct less MTD. However, the employer has the
right to appeal for that particular compound issued.
10. Tax payer received
EA/EC form from employer and discovered the MTD as Final Tax is not
accurate/correct, What should tax payer do?
Tax payer may elect to submit
return form to verify the accuracy of MTD deduction determined by employer. If
the taxable amount as per return form is different from the MTD deducted by the
employer, tax payer may elect to furnish return form before or on 30 April.
11. Tax payer
fulfill the criteria MTD as Final Tax and submit the return form after 30 April
to claim additional deduction or rebate, is there any late submission penalty?
Yes. Penalty will be imposed. The total
penalty amount should offset with the refund (if any).
Scenario 1
The MTD
deducted is accurate and correct with deduction and rebate. However, tax payer
insists to submit return form and the actual tax to be paid is same as MTD.
Although the return forms received after 30 April, however the penalty will not be issued.
Although the return forms received after 30 April, however the penalty will not be issued.
Scenario 2
The
MTD deducted is accurate and correct with deduction and rebate. However, tax
payer wish to submit return form and claim additional deduction or rebate.
If the actual tax to be paid is different from MTD (over or under-deducted) and return form received after 30 April. Then, the penalty will be imposed.
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If the actual tax to be paid is different from MTD (over or under-deducted) and return form received after 30 April. Then, the penalty will be imposed.
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Edited by: 浪子
Bibliography
Lembaga Hasil Dalam Negeri. (n.d.). Frequently Asked Questions (FAQ) – Monthly Tax Deduction (MTD) as Final Tax. Retrieved from http://lampiran1.hasil.gov.my/pdf/pdfam/FAQ_MTD_Final_Tax_2.pdf
Bibliography
Lembaga Hasil Dalam Negeri. (n.d.). Frequently Asked Questions (FAQ) – Monthly Tax Deduction (MTD) as Final Tax. Retrieved from http://lampiran1.hasil.gov.my/pdf/pdfam/FAQ_MTD_Final_Tax_2.pdf
Monthly Tax Deduction (MTD) as Final Tax
Reviewed by 浪子
on
September 16, 2018
Rating:
Reviewed by 浪子
on
September 16, 2018
Rating:
