BE 2017 EXPLANATORY NOTES. EXPLANATORY NOTES
ADDITIONS / AMENDMENTS
Item Subject Page
A7 Entitled to claim incentive under section 127 2
B5 Approved donations / gifts / contributions 7
- Gift of money to an approved fund - Gift of money for any sports activity approved
by the Minister of Finance
New relief: F8, F9 & F10
F8 Lifestyle 13
F9 Purchase of breastfeeding equipment for own 14
use for a child aged 2 years and below
F10 Child care fees to a registered child care centre / 14
kindergarten for a child aged 6 years and below
F11 Net deposit in Skim Simpanan Pendidikan 15
Nasional – This relief is extended until year
of assessment 2020 inclusive
F12 Husband / wife relief – NOT allowed if the 15
spouse (not a disabled person) has gross income exceeding RM4,000 derived from sources outside Malaysia
TOGETHER WE DEVELOP THE NATION
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1 - 4 Fill in relevant information only. For the item ‘Income Tax No.’, enter SG or OG followed by the income tax number in the box provided.
Example: For Income Tax No. SG 10234567080
Income Tax No.
5 PASSPORT NO. REGISTERED WITH LHDNM
Enter the last passport number filed with LHDNM prior to the current passport.
PART A PARTICULARS OF INDIVIDUAL
CITIZEN Enter ‘MY’ for citizen of Malaysia. If not a citizen of Malaysia, please refer to the country code provided on page 19 of this Explanatory Notes or Appendix E.
A2 SEX Enter ‘1’ for male or ‘2’ for female.
A3 DATE OF BIRTH Enter the date of birth according to the sequence: day, month and year.
STATUS AS AT 31-12-2017
Enter ‘1’ for single; ‘2’ for married; ‘3’ for divorcee / widow / widower or ‘4’ for deceased.
This Explanatory Notes is provided to assist an individual who is resident in Malaysia in accordance with the provision of section 7 Income Tax Act (ITA 1967) or deemed to be resident under subsection 7(1B) of the same Act, in completing the Form BE for Year of Assessment 2017. Please read this with care so that the return form and declarations made therein for Year of Assessment 2017 are true, complete and correct. In the case of a married individual who elects for joint assessment either in the name of husband or wife and has total income to be aggregated, both the husband and wife are each required to fill out separately whether: (a) Form B (individual who carries on business); or (b) Form BT * (knowledge worker or expert worker approved by the Minister); or (c) Form BE (individual who does not carry on business)
* For further information, please refer to. P.U. (A) 344/2010 regarding knowledge workers, and P.U. (A) 151/2012 on The Returning Expert Programme at the Official Portal of Lembaga Hasil Dalam Negeri Malaysia (LHDNM).
All records, working sheets and documents need not be enclosed when submitting the Form BE EXCEPT for the purpose of tax refund, in which case the following working sheet(s) is / are required to be submitted:
Working Sheet HK-6 pertaining to the claim for section 110 tax deduction (others); and
(i) Working Sheet HK-8 / HK-9 (if relevant) relating to the tax deducted in the foreign country.
All records, documents and working sheets used in the computation must be kept for a period of seven (7) years after the end of the year in which the return form is furnished to the Director General of Inland Revenue, for future reference and inspection if required. Please complete all relevant items in BLOCK LETTERS and use black ink pen. Leave the item(s) blank if not applicable.
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A5 DATE OF MARRIAGE / DIVORCE / DEMISE
If the marriage / separation in accordance with any law or demise occurred in the current year, enter the date according to the sequence: day, month and year.
A6 TYPE OF ASSESSMENT
(i) ‘1’ if the wife elects for joint assessment to be raised in the name of the husband. She does not have to fill in items B7 to B19 Part B and Part F of her Form BE; or
(ii) ‘2’ if the husband elects for joint assessment to be raised in the name of his wife. He does not have to fill in items B7 to B19 Part B and Part F of his Form BE; or
(iii) ‘3’ if the individual and spouse elect for separate assessment; or
(iv) ‘4’ if the individual is married with a spouse who has no income / no source of income or has income which is tax exempt.
(v) ‘5’ if the individual is single / a divorcee / a widow / a widower / a deceased person.
Note:- Conditions on eligibility to elect for joint assessment: (i) The husband and wife were living together in the basis year
for a year of assessment and did not in that basis year cease to live together;
(ii) Has total income to be aggregated with the total income of the spouse;
(iii) The husband / wife who elects for joint assessment must be a Malaysian citizen, if not resident in Malaysia;
(iv) The aggregation of total income can be made with one wife only.
A7 ENTITLED TO CLAIM INCENTIVE UNDER SECTION 127
Refers to incentives (for example exemptions) under the provision of paragraph 127(3)(b) or subsection 127(3A) of ITA 1967 entitled to be claimed as per the Government gazette or Minister’s approval letter.
(i) Enter ‘X’ in the box for the type(s) of incentive:-
entitled to be claimed for which a claim is made for the current year; or
entitled to be claimed but unable to make a claim for the current year for example by reason of no income.
(ii) Enter ‘X’ in the box for ‘Not relevant’ if:-
not entitled to claim the incentive; or
the application for incentive is not approved by the Minister.
The Government gazette / Minister’s approval letter has to be kept for future reference / inspection by LHDNM if required.
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PART B STATUTORY INCOME, TOTAL INCOME, TAX PAYABLE AND STATUS OF TAX
B1 STATUTORY INCOME FROM EMPLOYMENT
Salary, bonus, director’s fee, commission and any perquisite [such as share option scheme (Public Ruling No. 11/2012), insurance premium / school and tuition fee paid by the employer] have to be declared. Entertainment and travelling expenditure incurred in the production of gross employment income and discharge of official duties are allowable deductions. Deduction of entertainment expenditure is restricted to the amount of entertainment allowance included as gross income from employment. However, reimbursements by the employer in respect of both types of expenditure are neither deductible nor liable to tax.
Amount N4 from Working Sheet HK-2.
With effect from the Year of Assessment 2016, where gross income from an employment is receivable in respect of any particular period, it shall, when received, be taxed in the year in which it is received [Subsection 25(1) of ITA 1967].
Tax exempt allowances / perquisites / gifts / benefits received by employee from employer according to 2009 Budget announcement:
Reference: Public Ruling No. 2/2013 (Perquisites From Employment);
Public Ruling No. 3/2013 (Benefits-In-Kind); and
Income Tax (Exemption) Order 2009 [P.U. (A) 152/2009]
TYPE OF ALLOWANCES / PERQUISITIES /GIFTS / BENEFIT EXEMPTION LIMIT
(i) Perquisite (whether in money or otherwise) provided to the employee pursuant to his employment in respect of:- (a) past achievement award; (b) service excellence award, innovation award or productivity
award; or (c) long service award provided that the employee has exercised
an employment for more than 10 years with the same employer.
(Paragraph 25C Schedule 6 of ITA 1967)
Restricted to RM2,000
(ii) Petrol card, petrol allowance, travelling allowance or toll payment or any of its combination for official duties. If the amount received exceeds RM6,000 a year, the employee can make a further deduction in respect of the amount spent for official duties. Records pertaining to the claim for official duties and the exempted amount must be kept for a period of 7 years for audit purpose.
Restricted to RM6,000
(iii) Child care allowance in respect of children up to 12 years of age. Restricted to RM2,400 per year
(iv) Gift of fixed line telephone, mobile phone, pager or Personal Digital Assistant (PDA) registered in the name of the employee or employer including cost of registration and installation.
Limited to only 1 unit for each
category of assets
(v) Monthly bills for subscription of broadband, fixed line telephone, mobile phone, pager and PDA registered in the name of the employee or employer including cost of registration and installation.
Limited to only 1 line for each
category of assets
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(vi) Consumable business products of the employer provided free of charge or at a partly discounted price to the employee, his spouse and unmarried children. The value of the goods is based on the sales price. Benefits received by the employee from a company within the same group of companies as his employer are not exempted from tax.
Restricted to RM1,000
(vii) Services provided free or at a discount by the business of the employer to the employee, his spouse and unmarried children. Benefits received by the employee from a company within the same group of companies as his employer are not exempted from tax.
Restricted to the amount of discount or amount of services
(viii) Parking rate and parking allowance. This includes parking rate paid by the employer directly to the parking operator.
Restricted to the actual amount
Meal allowance received on a regular basis and given at the same rate to all employees. Meal allowance provided for purposes such as overtime or outstation / overseas trips and other similar purposes in exercising an employment are only exempted if given based on the rate fixed in the internal circular or written instruction of the employer.
(x) Tax exempt medical benefits are extended to include traditional medicine and maternity expenses. Traditional medicine means Malay, Chinese and Indian Traditional Medicine given by a medical practitioner registered with bodies which are certified or registered in accordance with the rules governing traditional medicine as laid down by the Ministry of Health. Examples: Malay traditional massage, ayurvedic or acupuncture. Complimentary medicine and homeopathy such as aromatherapy, reflexology, spa and Thai traditional massage are not included in this exemption.
(xi) Subsidised interest for housing, education or car loan is fully exempted from tax if the total amount of loan taken in aggregate does not exceed RM300,000. If the total amount of loan exceeds RM300,000, the amount of subsidized interest to be exempted from tax is limited in accordance with the following formula:
Where; A = is the difference between the amount of interest to be borne by the employee and the
amount of interest payable by the employee in the basis period for a year of assessment;
B = is the aggregate of the balance of the principal amount of housing, education or car loan taken by the employee in the basis period for a year of assessment or RM300,000, whichever is lower;
C = is the total aggregate of the principal amount of housing, education or car loan taken by the employee.
THE ABOVE EXEMPTIONS ARE NOT APPLICABLE TO AN EMPLOYEE HAVING CONTROL OVER HIS EMPLOYER If the employee has control over his employer, the allowances / perquisites / gifts / benefits received by him is taken to be part of his employment income and subject to tax.
‘Control over his employer’ means: (a) for a company, the power of the employee to secure, by means of the holding of shares or the
possession of voting power in or in relation to that or any other company, or by virtue of powers conferred by the articles of association or other document regulating that or any other company, that the affairs of the first mentioned company are conducted in accordance with the wish of the employee;
(b) for a partnership, the employee is a partner of the employer; or (c) for a sole proprietor, the employee and the employer is the same person.
Others Tax Exempt Benefits-In-Kind Please refer to Appendix B3 for the list of tax exempt benefits-in-kind.
C A x
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Gratuity (Reference: Public Ruling No. 9/2016)
This refers to a sum received upon retirement / termination of a contract of employment. Refer to Working Sheet HK-2.2 and Appendix B1 for computation.
1. The following gratuity is exempted from income tax:
i) Retirement gratuity
(a) The Director General is satisfied that the retirement is due to ill-health; or
(b) The retirement takes place on or after reaching the age of 55, or on reaching the compulsory age of retirement from employment and the individual has worked 10 years continuous employment with the same employer or companies within the same group; or
(c) The retirement takes place on reaching the compulsory age of retirement pursuant to a contract of employment or collective agreement at the age of 50 but before 55 and that employment has lasted for 10 years with the same employer or with companies in the same group.
ii) Gratuity paid out of public funds - Gratuity paid to an employee out of public funds on his retirement from an employment under any written law.
iii) Gratuity paid to a contract officer - Gratuity paid out of public funds to a contract officer on termination of a contract of employment regardless of whether the contract is renewed or not.
iv) Death gratuity - Sums received by way of death gratuity.
2. Partial exemption on gratuity
With effect from the year of assessment 2016, an employee who receives sums by way of gratuity:
i) on retirement from an employment; or
ii) upon termination of a contract of employment
other than gratuity qualified for exemption under paragraph 1 above, is eligible for an exemption of RM1,000 for each completed year of service. However, for the purpose of computing partial exemption, the period of employment with other companies within the same group is NOT REGARDED as a period of employment with the same employer.
Tax Allowance – The income tax of an employee borne by his employer is Tax Allowance which is chargeable to tax under the provision paragraph 13(1)(a) of ITA 1967. Refer to the Working Sheet HK-2.3, Appendix B2, and Public Ruling No. 11/2016 regarding computation.
Benefits In Kind (BIK) – Annual value of the benefits in kind provided by the employer such as motorcars, petrol, driver, household furnishings, apparatus and appliances, handphones, asset(s) provided for the purpose of entertainment and recreation. Refer to the Working Sheet HK-2.4, Appendix B3, and Public Ruling No. 3/2013 on computation.
Value Of Living Accommodation – Value of living accommodation provided in Malaysia by the employer. Working Sheet HK-2.5, Appendix B4, and Public Ruling No. 3/2005 (Original and Addendum) regarding computation.
Refund From Unapproved Pension Or Provident Fund, Scheme Or Society – Contributions made by an employer to an unapproved pension or provident fund from which payment is made to his employee before or after the cessation of his employment. Refer to the Working Sheet HK-2.6 on computation.
Compensation For Loss Of Employment – Payment made by an employer to his employee as compensation for loss of employment or other reason. Refer to the Working Sheet HK-2.7, Appendix B5, and Public Ruling No. 1/2012 regarding computation. Full or partial exemption on compensation for loss of employment:
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(i) Full exemption – If the Director General is satisfied that the payment is made on account of loss of employment due to ill health; or
(ii) Partial exemption – For termination of employment on or after 1 July 2008, compensation other than paragraph (i) above is eligible for exemption of RM10,000 for each completed year of service with the same employer or companies within the same group.
Subscriptions To Professional Bodies – Membership subscription paid to professional bodies to ensure the continuance of a professional standing for practice such as medical or legal professional fees, can be claimed as a deduction.
Rental received in respect of houses, shop houses, land, plant, machines, furniture and other similar assets. Amount C3 from Working Sheet HK-4.
Income in respect of interest received by individuals resident in Malaysia from money deposited with the following institutions is tax exempt:
(i) A bank or a finance company licensed or deemed to be licensed under the Financial Services Act 2013;
(ii) A bank licensed under the Islamic Financial Services Act 2013;
(iii) A development financial institutions prescribed under the Development Financial Institutions Act 2002;
(iv) The Lembaga Tabung Haji established under the Tabung Haji Act 1995;
(v) The Malaysia Building Society Berhad incorporated under the Companies Act 2016;
(vi) The Borneo Housing Finance Berhad incorporated under the Companies Act 2016;
(vii) Co-operative societies registered under the Co-operative Societies Act 1993.
Earnings from discounting transactions involving treasury bills, bills of exchange or promissory notes.
Royalties received in respect of the use of copyrights / patents are taxable if they exceed the following exemption limits:
No. Type of Royalty Exemption (RM)
(i) Publication of artistic works / recording discs / tapes
(ii) Translation of books / literary works 12,000
(iii) Publication of literary works / original paintings / musical compositions
Amount H from Working Sheet HK-5.
Pension derived from Malaysia and paid by the Government or from an approved pension scheme to a person on reaching the age of 55 years or compulsory age of retirement under any written law or if the retirement is due to ill-health, are exempt from tax.
Where a person is paid more than one pension, only the higher or highest pension is exempt from tax. Other pensions have to be reported.
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These are sums of money received in accordance with a will or an investment of money entitling the annuitants or investors to a series of annual payments, whether or not received regularly or for a limited period only.
These refer to recurring payments received at fixed times.
OTHER GAINS OR PROFITS
Other income such as payments received for part-time / occasional broadcasting, lecturing, writing and so forth.
B5 APPROVED DONATIONS / GIFTS / CONTRIBUTIONS
Gift of Money to the Government, State Government or Local Authorities Subsection 44(6) of ITA 1967.
Gift of Money to Approved Institutions / Organisations / Funds
Gift of money to any institution / organization / fund approved by the Director General of Inland Revenue. Subsection 44(6) and proviso, ITA 1967
Gift of Money for Any Sports Activity Approved by the Minister of Finance Subsection 44(11B) and proviso, ITA 1967
Gift of Money or Cost of Contribution In Kind for any Project of National Interest Approved by the Ministry of Finance
Subsection 44(11C) ) and proviso, ITA 1967
Restricted to 7% of the Aggregate Income in item B4
Gift of Artefacts, Manuscripts or Paintings
Gift of artefacts, manuscripts or paintings to the Government will be based on the value determined by the Director General of the National Museum or the National Archives. Subsection 44(6A) of ITA 1967. Gift of Money for the Provision of Library Facilities or to Libraries
Gift of money not exceeding RM20,000 for the provision of library facilities to public libraries or libraries of schools / institutions of higher learning. Subsection 44(8) of ITA 1967.
Gift of Money or Contribution In Kind for the Provision of Facilities in Public Places for the Benefit of Disabled Persons
Gift of money or contribution in kind for providing public facilities for the benefit of disabled persons will be determined by the relevant local authority.
Subsection 44(9) of ITA 1967.
Gift of Money or Medical Equipment to Any Healthcare Facility Approved by the Ministry of Health
Gift of money or medical equipment not exceeding RM20,000 in value given by an individual to any healthcare facility approved by the Ministry of Health. Subsection 44(10) of ITA 1967. Gift of Paintings to the National Art Gallery or Any State Art Gallery
An amount equal to the value of the gift of paintings as determined by the National Art Gallery or any state art gallery.
Subsection 44(11) of ITA 1967.
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B7 TOTAL INCOME TRANSFERRED FROM HUSBAND / WIFE FOR JOINT ASSESSMENT
* TYPE OF INCOME
TRANSFERRED FROM HUSBAND / WIFE
ITEMS B7 AND B8 ARE ONLY TO BE FILLED IN BY THE INDIVIDUAL IN WHOSE NAME THE JOINT ASSESSMENT IS TO BE RAISED.
Transfer the total income of the spouse to be aggregated with the total income of the individual to this item.
Note: Enter ‘1’ if the income transferred from the spouse includes income from a business source or ‘2’ if not.
Items B7 and B8 NEED NOT be filled if:
(i) the individual’s status is single / a divorcee / a widow / a widower
(ii) the spouse of the individual has no income, no source of income or has income which is tax exempt
(iii) the individual elects for separate assessment
(iv) the individual elects for joint assessment to be raised in the name of his / her spouse
B9 TOTAL RELIEF Transfer the amount from item F19.
B10 CHARGEABLE INCOME Amount ( B6 minus B9 ) or ( B8 minus B9 ).
B11 INCOME TAX COMPUTATION
Tax on the first Match the chargeable income from item B10 with the range of chargeable income in the tax schedule (page 18 of this Explanatory Notes). Example:
Chargeable income as per B10: RM 45,500 Use category D of the tax schedule to compute as follows:
Tax on the first RM35,000 RM 900.00
Tax on the balance RM10,500 @ 10% RM1,050.00
Total income tax RM1,950.00
Enter in items B11a, B11b and B12 of the Form BE as shown below:
B11b Tax on the balance
B12 Total Income Tax
B13 TOTAL REBATE
SELF A rebate of RM400 is granted to an individual whose chargeable income does not exceed RM35,000.
Paragraph 6A(2)(a) of ITA 1967.
HUSBAND AND WIFE
A rebate of RM400 is granted to an individual whose chargeable income does not exceed RM35,000 and where he / she has been allowed a deduction of RM4,000 for the spouse.
Paragraph 6A(2)(b) / Paragraph 6A(2)(c) of ITA 1967.
ZAKAT AND FITRAH A rebate is granted for payments of any zakat, fitrah and other obligatory Islamic religious dues in the basis year.
Subsection 6A(3) of ITA 1967.
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B15 TAX DEDUCTION UNDER SECTION 110 (OTHERS)
Compute the tax deducted under section 110 by using Working Sheet HK-6 in respect of other income such as interest, royalties, section 4A income and income from trust bodies.
Section 110 tax deduction (others) does NOT include withholding tax payment pursuant to Section 107A of ITA 1967.
Please submit Working Sheet HK-6 if you are entitled to a tax refund. Amount B from Working Sheet HK-6.
SECTION 132 TAX RELIEF
Tax relief in respect of income brought into Malaysia on which tax has been charged in the country of origin which have Avoidance of Double Taxation Agreements (DTA) with Malaysia. Refer to Appendix F for the list of countries which have DTA with Malaysia. Refer to Schedule 7 of ITA 1967 and Working Sheet HK-8 to compute the amount of credit.
SECTION 133 TAX RELIEF
Tax relief in respect of income brought into Malaysia on which tax has been charged in the country of origin which does not have Avoidance of Double Taxation Agreements (DTA) with Malaysia. Refer to Schedule 7 of ITA 1967 and Working Sheet HK-9 to compute the amount of credit.
B16 TAX PAYABLE
B14 minus B15. If the amount in B15 exceeds the amount in B14, enter “0” in this box.
B17 TAX REPAYABLE B15 minus B14.
B18 INSTALMENTS / MONTHLY TAX DEDUCTIONS (MTD) PAID FOR 2017 INCOME – SELF AND HUSBAND / WIFE IF JOINT ASSESSMENT
Monthly Tax Deductions (MTD) made by the employer in the year 2017 in respect of the following income have to be included in this item:
– income for the year 2017;
– employment income of preceding years (including bonus, director’s fee, arrears, etc.) paid in the year 2017; and
– employment income in respect of other year(s) paid in advance in the year 2017.
Example: Salary for the month of January 2018 paid in December 2017 and MTD is paid on or before 15 January 2018.
This does not include payments made in respect of outstanding tax for previous years of assessment.
Use Working Sheet HK-10 for computation. Transfer the amount from item E of Working Sheet HK-10 to this item.
For Joint Assessment – Total up the instalments / Monthly Tax Deductions paid by the husband / wife for entry in this item.
B19 BALANCE OF TAX PAYABLE
B26 minus B28.
The balance of tax payable must be paid within the stipulated period. Payment can be made via:
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(a) Bank - Counters of CIMB Bank Berhad (CIMB), Public Bank Berhad (PBB), Malayan Banking Berhad (Maybank), Affin Bank Berhad (ABB), RHB Bank Berhad (RHB), Bank Simpanan Nasional (BSN) and Bank Rakyat by using the bank payment slip.
- CIMB, PBB, Maybank, Hong Leong Bank, RHB & Alliance Bank internet banking, Bank Islam TAP Mobile Banking-i and Maybank phone banking.
- Auto Teller Machine (ATM) of PBB, Maybank & CIMB, PBB Cheque Deposit Machine and CIMB Cash Deposit Machine
(b) LHDNM - ByrHASiL via FPX (Financial Process Exchange) at
the LHDNM Official Portal, http://www.hasil.gov.my
- ByrHASiL via Visa, Mastercard & American Express credit cards at https://byrhasil.hasil.gov.my/creditcard
- Payment counters of LHDNM or by mail and use the Remittance Slip (CP501) which is available at the LHDNM Official Portal, http://www.hasil.gov.my
(c) Pos Malaysia Berhad - Counter and Pos Online
TAX PAID IN EXCESS B18 minus B16.
Enter ‘X’ in the box provided for Tax Paid in Excess.
A return form which is not duly signed, shall be deemed incomplete and will not be processed and a Notification of Incomplete Return Form will be issued to inform you. The use of signature stamp is not allowed. Penalty will be imposed in case of late resubmission of the return form to LHDNM.
PART C PARTICULARS OF HUSBAND / WIFE
Fill in relevant information only. Where there is more than one wife, please furnish the information as per format C1 to C4 by using attachment(s) and submit together with the Form BE.
PART D OTHER PARTICULARS
D1 TELEPHONE NO.
Telephone number of office / tax agent’s firm / residence. Please ensure that the information is correct and accurate. This information is for the official use of LHDNM.
HAND PHONE NO. Please ensure that the information given is correct. This information is for the official use of LHDNM only. Note:
Either the Hand Phone No. (D1) or e-Mail (D2) is compulsorily required to be completed during submission via e-Filing.
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e-MAIL Please ensure that the information given is correct. This information is for the official use of LHDNM only.
Note: Either e-Mail (D2) or Hand Phone No. (D1) is compulsorily required to be completed during submission via e-Filing.
D3 & D4
NAME OF BANK
& BANK ACCOUNT NO.
For the purpose of crediting tax refund (if any) by LHDNM, state the name of the bank and account number at the bank concerned.
D5 EMPLOYER’S NO. Enter the employer’s E reference number.
D6a DISPOSAL OF ASSET UNDER THE REAL PROPERTY GAINS TAX ACT 1976
Refers to chargeable asset under the Real Property Gains Tax Act 1976.
Enter ‘1’ in the box for ‘Yes’ if there is disposal of asset, and also complete item D6b.
Enter ‘2’ for ‘No’ if not applicable.
D6b DISPOSAL DECLARED TO LHDNM
Enter ‘1’ (‘Yes’) if the disposal has been declared to LHDNM or ‘2’ (‘No’) if not. If not yet declared, contact the LHDNM branch which handles the income tax file of the disposer. Further details are available from the LHDNM Official Portal, http://www.hasil.gov.my.
PART E NON-EMPLOYMENT INCOME OF PRECEDING YEARS NOT DECLARED
Income OTHER THAN from employment received in respect of preceding year(s) not previously declared.
Example: Income from rents or interest
Please use attachment in case of insufficient writing space.
PART F RELIEFS
For claim on relief with respect to expenditure which includes the payment of Goods & Services Tax (GST), the allowable deduction shall EXCLUDE the amount of GST.
F1 INDIVIDUAL AND DEPENDENT RELATIVES
Relief of RM9,000 for an individual in respect of himself and his dependent relatives is granted automatically.
Paragraph 46(1)(a) of ITA 1967.
F2a MEDICAL TREATMENT, SPECIAL NEEDS AND CARER EXPENSES FOR PARENTS
Medical treatment, special needs and carer expenses incurred on parents is limited to RM5,000. Paragraph 46(1)(c) of ITA 1967.
Medical expenses which qualify for deduction include:
(i) medical care and treatment provided by a nursing home; and
(ii) dental treatment limited to tooth extraction, filling, scaling and cleaning but excluding cosmetic dental treatment expenses such as teeth restoration and replacement involving crowning, root canal and dentures.
Such claim must be evidenced by a medical practitioner
registered with Malaysian Medical Council certifying that the
medical condition of parents require medical treatment or special
needs or carer.
Parents shall be individuals resident in Malaysia.
The medical treatment and care services are provided in
In the case of carer, a written certification or receipt from, or work permit of, the carer.
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‘Carer’ shall not include that individual, his wife or her husband or the child of the individual concerned.
F2b PARENTS This relief is available with effect from the year of assessment 2016 until the year of assessment 2020. Conditions for claim: (i) An individual who is qualified to claim this relief is a legitimate
child or legally adopted child. Claim for this relief is NOT allowed in respect of step-parents.
(ii) The individual did NOT make a claim in item F2a for relief on medical treatment, special needs and carer expenses expended for his parents for the same year.
(iii) The allowable relief is RM1,500 for only one mother and RM1,500 for only one father. If more than one individual claim this relief, the amount of relief has to be equally apportioned according to the number of individuals who claim in respect of the same parent.
(iv) The mother and / or father is 60 years of age and above at any time in the year concerned, and resident in Malaysia.
(v) The annual income of each parent does NOT exceed RM24,000 for that year of assessment.
If more than one individual claim this relief, Working Sheet HK-15 has to be completed and kept for future reference / inspection by LHDNM, when required. Paragraph 46(1)(o) of ITA 1967.
F3 BASIC SUPPORTING EQUIPMENT
The purchase of any supporting equipment for use by a disabled individual, husband, wife, child or parent, may be claimed up to a maximum of RM6,000. Basic supporting equipment includes haemodialysis machine, wheel chair, artificial leg and hearing aids but exclude optical lenses and spectacles.
Paragraph 46(1)(d) of ITA 1967.
F4 DISABLED INDIVIDUAL
An individual will be allowed an additional personal relief of RM6,000 if he is a disabled person.
Paragraph 46(1)(e) of ITA 1967.
F5 EDUCATION FEES (SELF)
An amount limited to a maximum of RM7,000 is deductible in respect of fees expended on any course of study up to tertiary level in any institution in Malaysia recognised by the Malaysian Government or approved by the Minister of Finance for the purpose of acquiring any skills or qualifications: (i) up to tertiary level (other than a degree at Masters or Doctorate
level), for the purpose of acquiring law, accounting, Islamic financing, technical, vocational, industrial, scientific or technological skills or qualifications; or
(ii) any course of study for a degree at Masters or Doctorate level – for acquiring any skill or qualification.
Paragraph 46(1)(f) of ITA 1967.
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F6 MEDICAL EXPENSES
ON SERIOUS DISEASES
Medical expenses on serious diseases includes the treatment of acquired immune deficiency syndrome (AIDS), Parkinson’s disease, cancer, renal failure, leukemia and other similar diseases such as heart attack, pulmonary hypertension, chronic liver disease, fulminant viral hepatitis, head trauma with neurological deficit, brain tumour or vascular malformation, major burns, major organ transplant and major amputation of limbs. Amount expended on own self, husband / wife or child is deductible up to a maximum of RM6,000 but total relief allowable for both items, F6 and F7 is restricted to RM6,000.
Paragraph 46(1)(g) of ITA 1967.
F7 COMPLETE MEDICAL EXAMINATION
Complete medical examination refers to thorough examination. Amount expended on own self, husband / wife or child is allowable as a deduction up to a maximum of RM500 but the total relief allowable for both items, F6 and F7 is limited to a maximum of RM6,000.
Paragraph 46(1)(h) of ITA 1967.
F8 (i) PURCHASE OF BOOKS / JOURNALS / MAGAZINES / PRINTED NEWSPAPERS / OTHER SIMILAR PUBLICATIONS
Expenditure for the purchase of books, journals, magazines, printed newspapers and other similar publications (in the form of hardcopy or electronic but EXCLUDING banned reading materials) for own use or for the use by own husband / wife or child.
Subparagraph 46(1)(p)(i) of ITA 1967.
Restricted to RM2,500
F8(ii) PURCHASE OF PERSONAL COMPUTER / SMARTPHONE OR TABLET
Expenditure for the purchase of personal computer, smartphone or tablet for own use or for the use by own husband / wife or child, and NOT being used for the purpose of own business.
Subparagraph 46(1)(p)(ii) of ITA 1967.
F8(iii) PURCHASE OF SPORTS EQUIPMENT FOR SPORTS ACTIVITY DEFINED UNDER THE SPORTS DEVELOPMENT ACT 1997 AND PAYMENT OF GYM MEMBERSHIP
Expenditure for own use or for the use by own husband / wife or child in respect of the:
(a) purchase of sports equipment for any sports activity as defined under the Sports Development Act 1997. Sports equipment includes equipment with short lifespan e.g. golf balls and shuttlecocks but EXCLUDING motorized two-wheel bicycles, sports attire for example swimsuits and sports shoes; and
(b) payment for gym membership.
Subparagraph 46(1)(p)(iii) of ITA 1967.
F8(iv) PAYMENT OF MONTHLY BILL FOR INTERNET SUBSCRIPTION
Payment of monthly bill for internet subscription under own name for own use or for the use by own husband / wife or child
Subparagraph 46(1)(p)(iv) of ITA 1967.
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F9 PURCHASE OF BREASTFEEDING EQUIPMENT FOR OWN USE FOR A CHILD AGED 2 YEARS AND BELOW
(a) This relief is given specifically for women taxpayers: (i) who has chargeable income; and (ii) has incurred expenditure for the purchase of
breastfeeding equipment for own use to breastfeed own child aged 2 years and below.
(b) Breastfeeding equipment which qualifies are: (i) breast pump kit dan ice pack; (ii) breast milk collection and storage equipment; and (iii) cooler set or bag.
(c) The deduction for this relief is limited to RM1,000 although the individual has more than one child.
(d) The deduction for this relief is only allowed ONCE in every two (2) years of assessment.
(e) A husband who elects for joint assessment in the name of his wife must be a Malaysian citizen, if he is not resident.
Paragraph 46(1)(q) of ITA 1967 (commencing from the year of assessment 2017).
Example 1: Joint Assessment In The Wife’s Name
Madam Arina has given birth to a child in the year 2017 and has purchased breastfeeding equipment at the cost of RM1,700. Her husband who is a non-resident Malaysian citizen has elected for joint assessment in the name of his wife.
In this case, Madam Arina is entitled to claim this relief but limited to RM1,000.
Example 2: Joint Assessment In The Husband’s Name
Madam Sally has given birth to a child in the year 2017 and has purchased breastfeeding equipment at the cost of RM1,300. Madam Sally has elected for joint assessment in the name of her husband.
For this case, the claim for this relief is not allowed as this provision is only applicable for joint assessment in the name of the wife.
F10 CHILD CARE FEES TO A REGISTERED CHILD CARE CENTRE / KINDERGARTEN FOR A CHILD AGED 6 YEARS AND BELOW
Relief is allowed in respect of a child * aged 6 years and below on child care fees to: – a child care centre registered with the Department of Social
Welfare under the Child Care Centre Act 1984 (Act 308); or – a kindergarten / preschool registered with the Ministry of
Education Malaysia under the Education Act 1996 (Act 550).
This relief is restricted to RM1,000 even though the number of children who fulfills the mentioned conditions exceeds one. If the amount of claim is less than RM1,000, the amount of deduction allowed is limited to the amount paid only.
Relief on the same child can ONLY be claimed either by the:
individual or his / her spouse who elects for separate assessment; or
individual or his / her former spouse.
Paragraph 46(1)(r) of ITA 1967 (commencing from the year of assessment 2017).
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Mr. Hassan and his wife have a child aged 3 years who is sent to a registered child care centre.
Amount Expended Separate Assessment Joint Assessment
Husband RM90 x 12 months = RM1,080 Restricted to RM1,000 if the husband claims.
Restricted to RM1,000
Wife RM60 x 12 months = RM720
Restricted to RM720 if the wife claims.
Note: The balance of RM280 is NOT allowed as a deduction for the husband as his wife has already claimed this relief on the same child.
Example 2: Mr. Ali and his wife have a child aged 3 years who is sent to a registered kindergarten.
Amount Expended Separate Assessment Joint Assessment
Husband RM75 x 12 months = RM900 Restricted to RM900 if the husband claims.
Restricted to RM1,000 [subsection
46(3) of ITA 1967 applies] Wife RM55 x 12 months = RM660 Restricted to RM660 if the wife claims.
F11 NET DEPOSIT IN SKIM SIMPANAN PENDIDIKAN NASIONAL (SSPN)
This relief is available with effect from the year of assessment 2012 until the year of assessment 2020.
Amount deposited in SSPN by an individual for his children’s education is deductible up to a maximum of RM6,000. The allowable deduction is limited to the net amount deposited in that basis year only.
Example: For year 2017,
Balance Brought Forward: RM4,500;
Total Deposit : RM2,000; and
Total Withdrawal : RM1,500.
Allowable deduction is RM500 (RM2,000 – RM1,500).
The Balance Brought Forward of RM4,500 is not taken into account.
Paragraph 46(1)(k) of ITA 1967.
F12 HUSBAND / WIFE / PAYMENT OF ALIMONY TO FORMER WIFE
A husband relief of RM4,000 is given in respect of a husband who has no source of income / no total income or the husband has elected for joint assessment. Section 45A of ITA 1967. With effect from Year of Assessment 2017, husband relief is NOT allowed if the husband (not a husband who is a disabled person) has gross income exceeding RM4,000 derived from sources outside Malaysia.
A wife relief of RM4,000 is given in respect of a wife who has no source of income / no total income or the wife has elected for joint assessment. Paragraph 47(1)(a) dan subsection 47(5) of ITA 1967. With effect from Year of Assessment 2017, wife relief is NOT allowed if the wife (not a wife who is a disabled person) has gross income exceeding RM4,000 derived from sources outside Malaysia.
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Payments to a former wife is entitled for relief provided that the total relief for wife and alimony payments to the former wife do not exceed RM4,000. Voluntary alimony payments under a mutual agreement but without any formal agreement do not qualify. Subsection 47(2) and 47(3) of ITA 1967.
F13 DISABLED HUSBAND / WIFE
An additional deduction of RM3,500 is given in respect of a disabled husband / wife.
Paragraph 47(1)(b) and section 45A OF ITA 1967.
Refer to Working Sheet HK-13 of the Form BE Guidebook.
No. Enter the total number of children on whom full relief (100% Eligibility) or partial relief (50% Eligibility) is entitled to be claimed by the individual. 100% Eligibility This item is to be completed by an individual entitled to claim full child relief. 50% Eligibility This item is only relevant where two or more individuals (not husband and wife living together) are each entitled to claim a deduction for payment made in respect of the same child, and each of those individuals is entitled to claim 50% of the allowable relief as a deduction. For example, when divorce occurs and there are two or more individuals entitled to claim a deduction on the same child.
For Separate Assessment, the individual and his spouse are required to select the relief in respect of each child on whom to claim respectively.
Example: Ali has five (5) children and elected for separate assessment. The number of children on whom relief may be claimed by Ali and his wife is:
Ali Wife Ali Wife
(i) 5 0 (iv) 2 3
(ii) 4 1 (v) 1 4
(iii) 3 2 (vi) 0 5
F14a CHILD - UNDER THE AGE OF 18 YEARS
A relief of RM2,000 per child is allowed if the child is unmarried and below the age 18 years in the current year.
F14b CHILD - 18 YEARS & ABOVE AND STUDYING
A relief of RM2,000 per child is allowed if the child is unmarried, 18 years of age and above, and is receiving full-time education; OR
A relief of RM8,000 is allowed if the child is unmarried, 18 years of age and above, and satisfies the following conditions:
(i) Receiving further education in Malaysia in respect of an award of diploma or higher (excluding matriculation / preparatory courses); or
(ii) Receiving further education outside Malaysia in respect of an award of degree or its equivalent (including Master or Doctorate); and
(iv) The instruction and educational establishment shall be approved by the relevant government authority.
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F14c CHILD - DISABLED CHILD
Relief allowed for a disabled child who is unmarried is RM6,000.
An additional relief of RM8,000 is allowed if the disabled child is unmarried, 18 years of age and above, and satisfies the following conditions:
(i) Receiving further education in Malaysia in respect of an award of diploma or higher (excluding matriculation / preparatory courses); or
(ii) Receiving further education outside Malaysia in respect of an award of degree or its equivalent (including Master or Doctorate); and
(iii) The instruction and educational establishment shall be approved by the relevant government authority.
An individual is entitled to a child relief of RM14,000 if the above conditions are complied with.
F15 LIFE INSURANCE AND EPF
Refer to Working Sheet HK-14.
Insurance premiums paid for policies taken on the life of an individual, husband or wife are allowed as tax relief. Insurance premiums on the life of the child do not qualify for relief.
Contributions to the Employees Provident Fund or other provident funds or pension schemes approved by the Director General of Inland Revenue.
Total relief for the payment of life insurance premiums and contributions to the Employees Provident Fund (EPF) or other approved schemes is restricted to RM6,000 for an individual and RM6,000 for the wife who has source of income. If the husband or wife elects for joint assessment, the total relief in respect of life insurance premiums and EPF contributions are limited to RM6,000.
Example: The insurance premiums paid by the husband and wife are RM300 and RM6,500 respectively. The tax payer elects for joint assessment. The total relief allowed is restricted to RM6,000 and not RM6,800.
Where the husband has no total income and the wife is assessed separately as an individual, any expenditure on insurance premium incurred by the husband shall be deemed to have been paid by the wife and is allowable up to the restricted amount only.
However, if the husband has no total income but contributes to EPF, the wife is not allowed to claim the relief as a deduction from her own income in respect of the husband’s EPF contribution. Likewise if the wife has no total income.
F16 PRIVATE RETIREMENT SCHEME AND DEFERRED ANNUITY
This relief is available with effect from the year of assessment 2012 until the year of assessment 2021.
A relief not exceeding RM3,000 is allowed for the total of contributions made to a Private Retirement Scheme (PRS) approved by the Securities Commission and premiums paid for deferred annuity.
The total relief in respect of contributions to PRS and premiums paid for deferred annuity is restricted to RM3,000 for an individual and RM3,000 for the wife who has source of income. If the husband or wife elects for joint assessment, the relief allowed for the total of contributions to PRS and premiums paid for deferred annuity is restricted to RM3,000.
Refer to Working Sheet HK-14.
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F17 EDUCATION AND MEDICAL INSURANCE
A relief not exceeding RM3,000 is available on insurance premiums in respect of education or medical benefits for an individual, husband, wife, or child.
The total relief in respect of premiums paid for insurance on education and medical benefits is restricted to RM3,000 for an individual and RM3,000 for the wife who has source of income. If the husband or wife elects for joint assessment, the relief allowed for the total of premiums paid for insurance on education and medical benefits is restricted to RM3,000.
Refer to Working Sheet HK-14.
F18 CONTRIBUTION TO THE SOCIAL SECURITY ORGANIZATION (SOCSO)
A relief not exceeding RM250 is allowed in respect of contribution to the Social Security Organization (SOCSO) made or suffered by the individual.
Refer to Working Sheet HK-14.
F19 TOTAL RELIEF Sum of amounts from items F1 to F18. Transfer this amount to item B9.
PART G PARTICULARS OF TAX AGENT WHO COMPLETES THIS RETURN FORM
Tax Agent’s Approval No. is the approval number given to tax agent’s approved under subsection 153(3) of ITA 1967.
This section has to be completed and duly signed by the tax agent / representative who completes this return form.
CATEGORY RANGE OF
A 0 - 5,000 First 5,000 0 0
B 5,001 - 20,000 First Next
C 20,001 - 35,000 First Next
D 35,001 - 50,000 First Next
E 50,001 - 70,000 First Next
F 70,001 - 100,000 First Next
G 100,001 -
H 250,001 -
I 400,001 -
600,000 First Next
400,000 200,000 25
J 600,001 - 1,000,000 First
600,000 1,000,000 26
First 1,000,000 238,650
K Exceeding 1,000,000 For every next ringgit 28 ...............
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The following are some of the codes for countries identified. Please refer to Appendix E for the full list.
Country Code Country Code Country Code
Australia AU Iran (Islamic R.O.) IR Philippines PH
Bangladesh BD Iraq IQ Saudi Arabia SA
Brunei BN Japan JP Singapore SG
Cambodia KH Korea, D.P.R. KP South Africa ZA
Canada CA Korea, R.O. KR Sri Lanka LK
China CN Laos, D.P.R. LA Taiwan TW
Denmark DK Malaysia MY Thailand TH
Hong Kong HK Myanmar MM United Kingdom GB
India IN New Zealand NZ United States US
Indonesia ID Pakistan PK Vietnam VN
Note: R.O. = Republic of; D.P.R. = Democratic People’s Republic of