Tax Chargeability and Tax Return

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Tax Chargeability and Tax Return

A sole proprietor who is resident in Malaysia is taxable on all income accruing in or derived from Malaysia. It is the duty of each sole proprietor who works for themselves in their own business to properly and regularly update accounts and statements. Malaysia’s Income Tax Return Form (ITRF) is the document needed for every taxpayer to the Inland Revenue Board of Malaysia. There are several things which a sole proprietor should take note.

A sole proprietor who has employees shall register employer tax file. The tax file has to be registered only when the company has commenced operations or business. The registration of income tax reference number can be made at the nearest or any IRBM branch at any IRBM branch. Application to register can also be made through online via e-Daftar. Please note that a photocopy of the form is not accepted for submission. These are the documents needed to submit together with the application form to register an income tax reference number (E-number):- 1. A copy of identification card/passport of the applicants/ partners 2. A copy (1) latest audited account (if available)

3. A copy (1) Form D - Certificate of Registration from CCM 4. A copy (1) Form A - Business Information from Companies Commission of Malaysia (CCM) or; 5. A copy (1) a letter from Bar Council [if relevant] or; 6. A copy (1) Form 12 under Medical Act 1971 [if relevant] or; 7. A copy (1) Form Q or Form K from The Board of Valuers` Appraisers and Estate Agents Malaysia [if relevant] or; 8. A copy (1) an acknowledgement letter from Malaysia Institute of Accountants (MIA) [if relevant] and 9. A copy (1) appointment letter as a tax agent if the registration is done by a tax agent.

Every sole proprietor with business income who is liable to tax is required to declare his income to IRBM. You are responsible for obtaining and forwarding Income Tax Return Form (ITRF), which is Form B for resident...
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