Form M Guidebook Cover 2007.pmd - LHDN

GUIDEBOOK 

NON-RESIDENT INDIVIDUAL 

M 2007 

SELF ASSESSMENT SYSTEM 

Mesra Membantu Memuaskan 

FOR ENQUIRIES, CONTACT: 

• Non-resident Branch : 603-62092671/2/3/4/6/7, 

603-62092695/6/7, 

603-62092368 

• Non-resident Branch e-mail : nonres@hasil.org.my 

• Hunting Line : 1-300-88-3010 

• Main Line - Calls from Overseas : 603-4289-3500 

• Website 

: http://www.hasil.org.my 

ADDITIONAL ITEMS IN FORM M 2007 

No. Item Page 

1. 7a & B7a 7 & 9 

2. A6 (code ‘4’ added) 8 

3. C30 & C31 15 

AMENDMENTS TO THE INCOME TAX ACT 1967 

No. Subject 

1. Tax exempt perquisites (Working Sheet HK-2.1) 

2. Exemption of gratuity received on reaching the 

compulsory retirement age of 50 but before 55 

(Working Sheet HK-2.2 & Appendix B1) 

3. Leave passage within Malaysia includes meals and 

accomodation (Appendix B3) 

4. Gift of money or contribution in kind for any approved 

sports activity (page 15) 

5. Gift of money or contribution in kind for any project of 

national interest approved by the Minister of Finance 

(page 15) 

6. Certain deductions for calculation of section 130 relief 

(Working Sheet HK-7) - 

(a) Education fees (self) - additional course ie. Islamic 

financing 

(b) Purchase of books/journals/magazines/ similar 

publications - limit increased from RM700 to RM1,000 

(c) Purchase of personal computer for individual 

- limited to RM3,000 once in every 3 years 

(This relief is given instead of rebate) 

(d) Net deposit in Skim Simpanan Pendidikan Nasional 

(SSPN) - limited to RM3,000 

7. Claim code - 107 (amended) (Appendix D)

Form M Guidebook Self Assessment System 

CONTENTS OF GUIDEBOOK 

ITEM 

Page 

Foreword 1 

What Is Form M Guidebook 1 

Reminder Before Filling Out The Return Form 2 

Part 1 — Form M 

Basic Information 7 

Part A : Particulars of Individual 7 

Part B : Particulars of Husband / Wife 9 

Part C : Statutory Income and Total Income 9 

Part D : Tax Payable / Repayable 16 

Part E : Status of Tax For Year of Assessment 2007 18 

Part F : Income of Preceding Years Not Declared 18 

Part G : Particulars of Executor of the Deceased Person’s Estate 18 

Part H : Particulars of Losses, Capital Allowances and Withholding Taxes 19 

Part J : Special Deduction, Further Deduction and Double Deduction 21 

Part K : Incentive Claim / Exempt Income 21 

Part L : Financial Particulars of Individual 22 

Declaration 24 

Particulars of Tax Agent who Completes this Return Form 24 

Reminder 24 

Part 2 — Working Sheets 

HK-1 – Computation of Statutory Income from Business 25 

HK-1A – Not applicable to non-resident individuals (not enclosed) - 

HK-1B1 – Computation of Statutory Income from Partnership Business 28 

HK-1C – Not applicable to non-resident individuals (not enclosed) - 

HK-1D – Not applicable to non-resident individuals (not enclosed) - 

HK-1E – Computation of Statutory Income from Pioneer Business 29 

HK-1.1 – Computation of Mining Allowance 29 

HK-1.2 – Summary of Capital Allowances 29 

HK-1.3 – Adjustment of Losses for Business and Partnership 29 

HK-1.4 – Adjustment of Losses for Pioneer Business 30 

HK-2 – Computation of Statutory Income from Employment 30 

HK-2.1 – Receipts under Paragraph 13(1)(a) 33 

HK-2.2 – Computation of Taxable Gratuity 34 

HK-2.3 – Computation of Tax Allowance 34 

HK-2.4 – Benefits-In-Kind (BIK) [paragraph 13(1)(b)] 34 

HK-2.5 – Value of Living Accomodation Benefit [paragraph 13(1)(c)] 34 

i


HK-2.6 – Refund from Unapproved Pension or Provident Fund, 

Scheme or Society 35 

HK-2.7 – Computation of Taxable Compensation 35 

HK-3 – Tax Deduction under Section 110 (Dividends) 36 

HK-4 – Particulars of Properties/Assets and Total Rental 36 

HK-5 – Not applicable to non-resident individuals (not enclosed) - 

HK-6 – Tax Deduction under Section 110 (Others) 36 

HK-7 – Non-Resident Malaysian Citizen Relief (Section 130) 36 


HK-9 – Claim for Section 133 Tax Relief - Income from Countries 

Without Avoidance of Double Taxation Agreement 36 

HK-10 – Instalments / Schedular Tax Deductions Paid 37 

HK-11 – Basis Year Payment to Non-residents (Withholding Tax) 37 


HK-13 – Deduction for Maintenance of Unmarried Children 37 

HK-14 – Life Insurance Premiums / Contributions to Approved 

Provident or Pension Fund, Education and Medical Insurance 38 

Series 

CONTENTS OF WORKING SHEETS 

(Paper marked blue) 

Working Sheet 

Page 

HK-1 – Computation of Statutory Income from Business 1 

HK-1A – Not applicable to non-resident individuals (not enclosed) - 

HK-1B1 – Computation of Statutory Income from Partnership Business 4 

HK-1C – Not applicable to non-resident individuals (not enclosed) - 

HK-1D – Not applicable to non-resident individuals (not enclosed) - 

HK-1E – Computation of Statutory Income from Pioneer Business 5 

HK-1.1 – Mining Allowance 9 

HK-1.1A – Summary of Mining Allowances 11 

HK-1.2 – Summary of Capital Allowances 12 

HK-1.2.1 – Agriculture Allowance 13 

HK-1.2.1A – Summary of Agriculture Allowances 15 

HK-1.2.2 – Forest Allowance 16 

HK-1.2.2A – Summary of Forest Allowances 18 

HK-1.2.3 – Industrial Building Allowance 19 

HK-1.2.3A – Summary of Industrial Building Allowances 21 

HK-1.2.4 – Plant and Machinery Allowance 22 

HK-1.2.4A – Summary of Plant and Machinery Allowances 24 

HK-1.2A – Summary of Capital Expenditure 25 

HK-1.3 – Adjustment of Losses for Business and Partnership 26 

HK-1.4 – Adjustment of Losses for Pioneer Business 27 

HK-2 – Computation of Statutory Income from Employment 28 

ii


HK-2.1 – Receipts under Paragraph 13(1)(a) 30 

HK-2.2 – Computation of Taxable Gratuity 31 

HK-2.3 – Computation of Tax Allowance 32 

HK-2.4 – Benefits-In-Kind (BIK) [paragraph 13(1)(b)] 33 

HK-2.5 – Value of Living Accomodation Benefit [paragraph 13(1)(c)] 34 

HK-2.6 – Refund from Unapproved Pension or Provident Fund, 

Scheme or Society 36 

HK-2.7 – Computation of Taxable Compensation 37 

HK-3 – Tax Deduction under Section 110 (Dividends) 38 

HK-4 – Particulars of Properties / Assets and Total Rental 40 


HK-6 – Tax Deduction under Section 110 (Others) 42 

HK-7 – Non-Resident Malaysian Citizen Relief (Section 130) 43 


HK-9 – Claim for Section 133 Tax Relief - Income from Countries 

Without Avoidance of Double Taxation Agreement 46 

HK-10 – Instalments/Schedular Tax Deductions Paid 47 

HK-11 – Basis Year Payment to Non-Residents (Withholding Tax) 48 

HK-13 – Deduction for Maintenance of Unmarried Children 49 

HK-14 – Life Insurance Premiums / Contributions to Approved 

Provident or Pension Fund, Education and Medical Insurance 51 

Series 

CONTENTS OF APPENDICES 

(Paper marked brown) 

Appendix 

Page 

Appendix A1 - 1. Gross Business Income 1 

2. Allowable Expenses 1 

Appendix A1.1 - Reminder on the need to keep record of adjustments and 3 

tax computation for the business 

Appendix B1 - Gratuity 5 

Appendix B2 - Tax Allowance 8 

Appendix B3 - Benefits-In-Kind (BIK) [paragraph 13(1)(b)] 10 

Appendix B4 - Value of Living Accomodation Benefit [paragraph 13(1)(c)] 14 

Appendix B5 - Compensation for Loss of Employment 18 

Appendix C - Foreign Currency Exchange Rates (Yearly Average) 19 

Appendix D - Claim Codes 20 

Appendix E - Country Codes 21 

Appendix F - Avoidance of Double Taxation Agreements (DTA) and 

Withholding Tax Rates on Payments to Non-residents 26 

Appendix G - Business Codes 28 

Appendix H - Director General’s Public Rulings 49 

iii


FOREWORD 

Lembaga Hasil Dalam Negeri Malaysia (LHDNM) expresses its appreciation towards individuals who have consistently performed 

their duty as responsible taxpayers in the settlement of their annual income tax. Their tax contributions have assisted in the 

development and improvement of the national socio-economic status. 

To expedite and facilitate the performance by taxpayers of their respective tax responsibility, the government has entrusted 

its faith in them to assess and settle their income tax with the introduction of the Self Assessment System commencing from 

the year of assessment 2004 for individuals and non-corporate taxpayers. 

Simplified forms with explanations and guides on how to fill out those forms and compute the chargeable income and income 

tax have been prepared to assist taxpayers. 

WHAT IS FORM M GUIDEBOOK 

The following are contents of the Form M Guidebook: 

1. A complete guide on how to fill out the Form M. 

2. A series of Working Sheets (series HK-1 ... ) for computing the statutory income and loss from business: 

HK-1 - Computation of Statutory Income from Business 

HK-1A - Not applicable to non-resident individuals (not enclosed) 

HK-1B1 - Computation of Statutory Income from Partnership Business 

HK-1C - Not applicable to non-resident individuals (not enclosed) 

HK-1D - Not applicable to non-resident individuals (not enclosed) 

HK-1E - Computation of Statutory Income from Pioneer Business 

HK-1.1 - Mining Allowance 

HK-1.1A - Summary of Mining Allowances 

HK-1.2 - Summary of Capital Allowances 

HK-1.2.1 - Agriculture Allowance 

HK-1.2.1A - Summary of Agriculture Allowances 

HK-1.2.2 - Forest Allowance 

HK-1.2.2A - Summary of Forest Allowances 

HK-1.2.3 - Industrial Building Allowance 

HK-1.2.3A - Summary of Industrial Building Allowances 

HK-1.2.4 - Plant and Machinery Allowance 

HK-1.2.4A - Summary of Plant and Machinery Allowances 

HK-1.2A - Summary of Capital Expenditure 

HK-1.3 - Adjustment of Losses for Business and Partnership 

HK-1.4 - Adjustment of Losses for Pioneer Business 

3. A series of Working Sheets (series HK-2 ... ) for computing the statutory income from employment: 

HK-2 - Computation of Statutory Income from Employment 

HK-2.1 - Receipts under Paragraph 13(1)(a) 

HK-2.2 - Computation of Taxable Gratuity 

HK-2.3 - Computation of Tax Allowance 

HK-2.4 - Benefits-In-Kind (BIK) [paragraph 13(1)(b)] 

HK-2.5 - Value of Living Accomodation Benefit [paragraph 13(1)(c)] 

HK-2.6 - Refund from Unapproved Pension or Provident Fund, Scheme or Society 

HK-2.7 - Computation of Taxable Compensation 

1

Form M Guidebook 

Self Assessment System 

4. Other Working Sheets are as follows: 

HK-3 - Tax Deduction under Section 110 (Dividends) 

HK-4 - Particulars of Properties / Assets and Total Rental 

HK-5 - Not applicable to non-resident individuals (not enclosed) 

HK-6 - Tax Deduction under Section 110 (Others) 

HK-7 - Non-Resident Malaysian Citizen Relief (Section 130) 


HK-9 - Claim for Section 133 Tax Relief - Income from Countries 

Without Avoidance of Double Taxation Agreement 

HK-10 - Instalments/Schedular Tax Deductions Paid 

HK-11 - Basis Year Payment to Non-residents (Withholding Tax) 


HK-13 - Deduction for Maintenance of Unmarried Children 

HK-14 - Life Insurance Premiums / Contributions to Approved Provident or 

Pension Fund, Education and Medical Insurance 

5. A series of Appendices (series A ....) to explain and give guidance in computing the business income: 

Appendix A1 - 1. Gross business income 

2. Allowable expenses 

Appendix A1.1 - Reminder on the need to keep record of adjustments and tax computation for the business 

6. A series of Appendices (series B .....) to serve as a guide in the computation of employment income: 

Appendix B1 - Explanation on Gratuity 

Appendix B2 - Explanation on Tax Allowance/Tax Borne by the Employer 

Appendix B3 - Explanation on Benefits-In-Kind or Amenities arising out of Employment 

Appendix B4 - Explanation on Living Accomodation provided by the Employer 

Appendix B5 - Explanation on Income from Compensation 

7. The following are other appendices to enable the entry of required information in the Form M: 

Appendix C - Foreign Currency Exchange Rates (Yearly Average) 

Appendix D - Claim Codes: 1. Special Deductions 

2. Further Deductions 

3. Double Deductions 

Appendix E - List of countries with their respective code for the individual to fill in the code of the country where 

he is resident/a citizen 

Appendix F - List of countries with which Avoidance of Double Taxation Agreements have been signed 

Appendix G - List of codes for various types of businesses carried on by the individual 

Appendix H - List of Director General’s Public Rulings as guidelines for computing the income according to 

the provision of the Income Tax Act (ITA) 1967 

REMINDER BEFORE FILLING OUT THE RETURN FORM 

Please take note of the following: 

1. (a) A non-resident individual is required to fill out Form M. He is considered not resident in Malaysia if he does 

not qualify for residence status under the provision of section 7 ITA 1967. Refer to Public Ruling No. 2/2005 

(issued on 6 June 2005) on the determination of residence status. 

(b) If he is resident by virtue of section 7 for a particular year of assessment, he is required to make an early 

request for either: 

Form B (with business source of income) OR Form BE (without business source of income) 

meant for a resident individual so that it can be completed and furnished to LHDNM within the stipulated 

period. 

2


(c) 

(d) 

Husband and wife are required to fill out separate return forms if each of them has income accruing in or 

derived from Malaysia. 

Working sheets, records and documents need not be furnished with the Form M except in the following 

cases:- 

If the individual is entitled to a tax refund as per item D11 (Form M), he is required to furnish: 

(i) Working Sheet HK-3 and original dividend vouchers in respect of the claim for section 110 tax deduction 

(dividends); 

(ii) 

(iii) 

Working Sheet HK-6 and relevant documents pertaining to the claim for section 110 tax deduction (others); 

Working Sheet HK-7 and relevant documents relating to the claim for non-resident Malaysian citizen 

tax relief (section 130). 

All working sheets, records and documents are to be kept for a period of seven (7) years after the end of 

the year in which the return is furnished (sections 82 and 82A) 

2. CONDITIONS ON ELIGIBILTY TO ELECT FOR JOINT ASSESSMENT 

A husband/wife who is not resident in Malaysia may elect only if: 

(a) he or she who elects is a Malaysian citizen and has total income * ; 

(b) the spouse in whose name the joint assessment is to be raised, has total income * ; and 

(c) both husband and wife were living together and did not cease to live together or to be husband and wife of 

each other in the basis year for a year of assessment. Where the husband has more than one wife, election 

shall only be made with one wife. Election is valid only if no other wife/wives of his elects to combine her 

total income with his total income. 

* Note:- An individual is considered as having no ‘total income’ (ie. amount ‘Nil’ for item C32 Form M) if: 

(i) he/she suffered loss from business; or 

(ii) the amount of expenditure exceeds the gross income in respect of non-business source(s) 

for a year of assessment and therefore does not satisfy the condition for joint assessment. 

3. JOINT ASSESSMENT 

An individual is also not eligible to elect for joint assessment is he/she does not have any source 

of income. 

(a) Election for joint assessment has to be made in writing under item A6 of the Form M. 

(b) 

(c) 

The individual and the spouse are required to fill out separate return forms (M / B / BE). If the spouse 

in whose name the joint assessment is to be raised is resident in Malaysia, then the spouse is required to 

fill out either Form B or BE, whichever is applicable. 

Example: 

If the wife elects for joint assessment, she is required to enter ‘1’ in item A6 and her total income in item 

C35 of her Form M. She need not fill in items C36 and C37 of Part C, Parts D and E of her Form M. However, 

other parts of the return form (if relevant) must be completed. 

Subsequently, she has to enter her total income in either item:- 

C36 (Form M), 

C35 (Form B) OR 

C17 (Form BE) of her husband; and 

enter ‘1’ if it includes business income or ‘2’ if not. 

Instalments/Schedular Tax Deductions (STD) [if any] paid by the husband and wife for the current year of 

assessment, have to be totalled and entered in either item:- 

E2 (Form M), 

F2 (Form B) OR 

F2 (Form BE) of her husband on whom the tax is to be raised. 

The method for filling in these items is shown in the following example. 

3



Example: 

Mr. A and his wife are Malaysian citizens. His wife is resident in Malaysia for the basis year whereas 

he is not. Both are not in the employment of any Malaysian public service or statutory authority. They have two 

(2) school-going children. 

As he is a Malaysian citizen, he can elect for joint assessment and has done so in his Form M (item 

A6). He has a total income from Malaysia of RM48,000 (employment income) and schedular tax deductions amounting 

to RM3,600 for the basis year. Part C of his Form M has to be completed as follows: 

FORM M OF MR. A 

PART C : 

STATUTORY INCOME AND TOTAL INCOME 

C10 

Employment * / Director’s fees 

* Claim for exemption under: 

C10 

, 

, 

4 

8 0 0 0 , 

1 = Paragraph 21 Schedule 6 

2 = Avoidance of Double Taxation 

Agreement between Malaysia and 

(Use Country Code) 

C35 

TOTAL INCOME (SELF) ( C32 to C34d ) 

C35 

, 

, 

4 

8 0 0 0 , 

He need not fill in items C36 and C37 of Part C, Parts D and E of his Form M. However, other parts of the form (if relevant) 

have to be completed. 

Mrs. A has a total income from Malaysia of RM36,000 (rental income) and advance payment made by instalments of RM1,200 

for the basis year. Parts C, D and E of her Form BE have to be completed as follows :- 

FORM BE OF MRS. A 

PART C : 


C4 

Rents, royalties and premiums 

C4 

, 

, 

3 

6 0 0 0 , 

C7 AGGREGATE INCOME ( C1 to C6 ) 

C7 

, 

, 

3 

6 0 0 0 , 

C16 

TOTAL INCOME (SELF) [ C7 - ( C8 to C15 ) ] 

(Enter “0” if value is negative) 

C16 

, 

, 

3 

6 0 0 0 , 

C17 

TOTAL INCOME TRANSFERRED FROM 

HUSBAND / WIFE FOR JOINT ASSESSMENT 

C17 

, 

, 

4 

8 0 0 0 , 

* Type of income transferred 

from HUSBAND / WIFE 

2 

1 = With business income 

2 = Without business income 

C18 

AGGREGATE OF TOTAL INCOME ( C16 + C17 ) 

C18 

, 

, 

8 

4 0 0 0 , 

4


PART D : 

RELIEF 

D1 

Individual and dependent relatives 

8 0 0 0 , 

D9 

Husband / Wife / Payment of alimony to former wife 

RESTRICTED TO 3,000 

3 0 0 0 , 

D11a 

Child - Under the age of 18 years 

Eligible Rate 

100% 50% 

No. 

No. 

0 2 2 , 0 0 0 

x 1,000 = x 500 = 

, 

2 0 0 0 , 

D14 

Total Relief ( D1 to D13 ) 

D14 

, 

1 

3 0 0 0 , 

PART E : 

TAX PAYABLE 

E1 

CHARGEABLE INCOME [ ( C16 - D14 ) or ( C18 - D14 ) ] 

E1 

, 

, 

7 

1 0 0 0 , 

E2 

INCOME TAX COMPUTATION (Refer to the tax rate schedule provided) 

E2a 

Tax on the first 

, 

, 

7 

0 0 0 0 , 

, , 7, 2 7 5 . 0 0 

E2b 

Tax on the 

balance 

, 

, 

1 0 0 0 , 

At Rate (%) 

2 4 

, , , 2 4 0 . 0 0 

E3 

TOTAL INCOME TAX ( E2a + E2b ) 

E3 

, , 7, 5 1 5 . 0 0 

E14 

TAX PAYABLE [ E9 - ( E10 + E11 + E12 + E13 ) ] 

E14 

, , 7, 5 1 5 . 0 0 

PART F : STATUS OF TAX FOR YEAR OF ASSESSMENT 2007 

F1 

Tax payable (from E14) 

F1 

, , 7, 5 1 5 . 0 0 

LESS: 

F2 

Instalments / Schedular Tax Deductions Paid for 2007 

Income - SELF and HUSBAND / WIFE if joint assessment 

, , 4, 8 0 0 . 0 0 

F3 

Balance of tax payable ( F1 - F2 ) 

F3 

, , 2, 7 1 5 . 0 0 

In the above example, only significant items in the return form are shown. Where appropriate, other items not shown have to 

be completed also. 

Please take note that the tax computation should be done separately for the husband and wife when using relevant working 

sheets provided in this Guidebook. Record of separate tax computations for the husband and wife must be properly kept for 

reference by LHDNM. 

5



4. GENERAL RULES FOR FILLING OUT THE FORM M 

Please complete the return form in BLOCK LETTERS. Use black ink pen. 

You are required to enter relevant information for the basis year in the boxes provided under every section of the 

return form as listed below. Leave the box(es) blank if not relevant to you. 

i. Basic Information 

ii. Part A : Particulars of Individual 

iii. Part B : Particulars of Husband/Wife 

iv. Part C : Statutory Income and Total Income 

If the individual elects for joint assessment to be raised in the name of the spouse, he is required 

to enter his total income in item C33 but need not fill in items C34 and C35; Parts D and E of his 

own return form. However, other parts of the return form (where relevant) have to be completed. 

v. Part D : Tax Payable / Repayable 

The individual who elects for joint assessment does not have to fill in this section of his own 

return form. 

vi. Part E : Status of Tax for Year of Assessment 2007 

The individual is not required to fill in this section of his own return form if he elects for joint 

assessment. 

vii. Part F : Income of Preceding Years Not Declared 

viii. Part G : Particulars of Executor of the Deceased Person’s Estate 

ix. Part H : Particulars of Losses, Capital Allowances and Withholding Taxes 

x. Part J : Special Deduction, Further Deduction and Double Deduction 

xi. Part K : Incentive Claim / Exempt Income 

xii. Part L : Financial Particulars of Individual 

xiii. 

Declaration 

If the return form is not affirmed and duly signed, it shall be deemed incomplete and returned to you. Penalty 

will be imposed in case of late resubmission of the return form to LHDNM. 

xiv. 

Particulars of Tax Agent who completes this Return Form 

This section has to be filled in, affirmed and duly signed by the tax agent who completes the return form. 

6


Part I - Form M 

BASIC INFORMATION 

Item Subject Explanation Working Appendix 

Sheet 

1 Name Name as per identity card/passport. - - 

2 Tax Reference Income tax reference number. - - 

No. 

Enter SG or OG followed by the reference no. in the boxes 

provided. 

Example I: 

SG / OG S G 1 0 2 3 4 5 6 7 0 8 0 

For reference no. SG 10234567080 

Example II: 

SG / OG S G 1 0 2 3 4 5 6 7 0 8 1 

For reference no. SG 10234567081 

Example III: 

SG / OG O G 0 1 2 3 4 5 6 7 0 9 0 

For reference no. OG 01234567090 

3 New Identity Card New identity card number. - - 

No. 

4 Old Identity Card Old identity card number. - - 

No. 

5 Police No. Police number (if any). - - 

6 Army No. Army number (if any). - - 

7 Current Number of passport currently in use. - - 

Passport No. 

7a Last Passport This refers to the last passport number filed with LHDNM prior 

No. Registered to the current passport. 

with LHDNM 

8 Expiry Date of Expiry date of passport currently in use. - 

- Current Passport 

9 Date of Birth Date of birth as per birth certificate/identity card/passport. - - 

PART A : 

PARTICULARS OF INDIVIDUAL 


Sheet 

A1 Malaysian Citizen Enter ‘1’ if you are a Malaysian citizen or ‘2’ if not. - - 

A2 Country of Refer to the Form M Explanatory Notes or the full list in - E 

Residence/ Appendix E (Guidebook) for the code of the country where 

Domicile 

you are a resident/domicile. 

A3 Sex Enter ‘1’ if male or ‘2’ if female. - - 

A4 Status as at Enter ‘1’ if unmarried, ‘2’ if married, ‘3’ if a divorcee/ - - 

31-12-2007 widow/widower or ‘4’ if deceased. 

7




Sheet 

A5 Date of Marriage / If the marriage, divorce/separation (according to any law) or - - 

Divorce / Demise demise occurred in the current year, enter the date according 

to the sequence: day, month and year. 

A6 Type of Assessment Enter ‘1’ if the wife elects for joint assessment to be raised - - 

in the name of her husband 

Or 

‘2’ if the husband elects for joint assessment to be raised in 

the name of his wife. 

Or 

‘3’ if the individual and spouse elect for separate assessment 

to be raised in their respective name. 

Or 

‘4’ if the individual is single/adivorcee/widow/widower/ 

deceased person; or married with a spouse who has income 

which is tax exempt/no source of income. 

A7 Compliance with Public Ruling is a guide for the public which sets out the - - 

Public Rulings interpretation of the Director General of Inland Revenue in 

respect of a particular tax law, policy and procedure that are 

to be applied. 

Refer to:- 

Appendix H in this Guidebook for the list of Director 

General’s Public Rulings; and 

LHDNM website: http://www.hasil.org.my for details of each 

Public Ruling. 

Enter ‘1’ for full compliance with Public Rulings or ‘2’ if there 

is non-compliance with any Public Ruling. 

A8 Record-keeping This refers to the keeping of sufficient records as required - - 

under the provision of ITA 1967. Enter ‘1’ for compliance or 

‘2’ for non-compliance. 

A9 Correspondence Address to be used for any correspondence with LHDNM. - - 

Address 

A10 Permanent Address Address in country of origin where the individual/executor of - - 

in Country of Origin the deceased person’s estate resides. 

of Individual / 

Executor of the 

Deceased Person’s 

Estate 

A11 Address of Address where the main business is carried on. - - 

Business Premise 

A12 Telephone No. Telephone number of individual’s office/residence/handphone. - - 

A13 e-mail e-mail address (if any). - - 

A14 Name of Bank For the purpose of tax refund (if any) by LHDNM, state the - - 

name of the bank through which the payment is to be made. 

A15 Bank Account No. Your account number at the bank in relation to item A14. - - 

A16 Employer’s Name Name of employer. - - 

A17 Employer’s No. Enter the employer’s E file reference number. - - 

Example: E 1023456708 

8


P ART B : 

PARTICULARS OF HUSBAND / WIFE 


Sheet 

B1 Name of Husband / Name of the husband/wife as per identity card. - - 

Wife 

B2 Tax Reference No. Fill in the income tax reference number of your husband/wife - - 

by entering SG or OG followed by the reference no. in the 

boxes provided. 

B3 New Identity Card No. New identity card number of the husband/wife. - - 

B4 Old Identity Card No. Old identity card number of the husband/wife. - - 

B5 Police No. Police number of the husband/wife (if any). - - 

B6 Army No. Army number of the husband/wife (if any). - - 

B7 Current Current passport number of the husband/wife. - - 

Passport No. 

B7a Last Passport No. This refers to the husband/wife’s passport number last filed - - 

Registered with with LHDNM prior to the current passport. 

LHDNM 

B8 Expiry Date of Expiry date of the husband’s/wife’s current passport. - - 

Current Passport 

B9 Date of Birth Date of birth as per birth certificate/identity card/passport. - - 

Note: 

Where there is more than one (1) wife, prepare the required information according to format 

B1 to B9 by using attachment(s) and furnish together with the Form M. 

PART C : 



Sheet 

C1 Statutory Business If there is only one business, use the boxes provided for 

Income Business 1. - - 

Business 1 

With effect from the year 2004, this business shall be known 

as ‘Business 1’until the business is wound up. Other 

businesses shall be known as ‘Business 2’ and so forth. 

Business Code Business code is available in Appendix G (Guidebook). - G 

Amount Use separate working sheet for each business. HK-1 and A1 

Transfer the amount from item J5 Working Sheet HK-1 to HK-1.1 to 

this item. 

HK-1.2A 

C2 Business 2 Refer to the explanation for item C1. Refer to Refer to 

item C1 item C1 

C3 Business 3 + 4 Refer to the explanation for item C1. Refer to Refer to 

and so forth (if any) If there are more than three (3) businesses, enter the sum of item C1 item C1 

statutory income from Business 3 and so forth in this item. 

List out Business 3 and so forth as per format C1 and C2 for 

each business by using attachment(s) and furnish together 

with the Form M. 

C4 Statutory Partnership If there is only one partnership business, use the boxes - - 

Income provided for Partnership 1. 

Partnership 1 

With effect from the year 2004, this partnership shall be known 

as ‘Partnership 1’until the partnership business is wound up. 

Other partnership businesses shall be known as ‘Partnership 2’ 

and so forth. 

9




Sheet 

Tax Reference No. State the income tax reference number of the partnership - - 

business concerned. 

Example: D 01234567-09 

Amount Use separate working sheet for each partnership business. HK-1B1 - 

Transfer the amount from item E Working Sheet HK-1B1 to 

this item. 

C5 Partnership 2 Refer to the explanation for item C4. HK-1B1 - 

C6 Partnership 3 + 4 Refer to the explanation for item C4. HK-1B1 - 

and so forth (if any) If there are more than three (3) partnership businesses, enter 

the sum of statutory business income from Partnership 3 and 

so forth in this item. List out Partnership 3 and so forth as per 

format C4 and C5 for each partnership business by using 

attachment(s) and furnish together with the Form M. 

C7 Aggregate statutory Sum of amounts from items C1 to C6. - - 

income from 

businesses 

C8 Business losses Business losses not absorbed due to insufficiency of the HK-1.3 - 

brought forward previous year’s income and therefore brought forward for 

deduction against the current year’s aggregate statutory 

income from businesses and partnerships. 

Amount from item B Working Sheet HK-1.3. 

If the amount in item C8 exceeds the amount in item C7, 

enter the amount as per item C7 in this box. Enter ‘0’ in this 

box if there is no business loss brought forward. 

C9 TOTAL C7 minus C8 - - 

C10 Employment * / Amount from item N4 Working Sheet HK-2. HK-2 B1-B5 

Director’s Fees 

* Claim for exemption under paragraph 21 Schedule 6 ACP 1967: 

Income of a non-resident individual is tax exempt if derived from 

an employment exercised by him in Malaysia for:- 

(a) a period or periods which together do not exceed 60 days in 

the basis year for a year of assessment; or 

(b) a continuous period (not exceeding 60 days) which overlaps 

the basis years for 2 successive years of assessment; or 

(c) a continuous period (not exceeding 60 days) which overlaps 

the basis years for 2 successive years of assessment and for 

a period or periods which together with that continuous period 

do not exceed 60 days. 

Enter ‘1’ in the box provided if there’s a claim for exemption under 

paragraph 21 Schedule 6. 

Contoh 1: 

Mr. Johnson was in Malaysia for the following periods:- 

01.06.2007 to 10.07.2007 40 days (employment) 

16.09.2007 to 03.10.2007 18 days (employment) 

Total: 58 days 

His employment income is tax exempt for the year of assessment 

2007 as he is not resident (not physically present in Malaysia for 

at least 182 days in the basis year) and has exercised his 

employment for less than 60 days. 

10



Sheet 

Contoh 2: 

Mr. Tanaka was employed in Malaysia for the following periods:- 

01.10.2007 to 20.10.2007 20 days 

21.11.2007 to 31.12.2007 41 days 


He left Malaysia on 29th December 2007. 30th December 2007 

is a non-working day and he was on vacation leave on 31st 

December 2007. As such, he was physically present in Malaysia 

for 59 days only. 

His income for the period of employment (61 days) will be 

subjected to tax at the non-resident tax rate of 28% (paragraph 

22 Schedule 6). 

Contoh 3: 

Mr. Mathew exercised his employment in Malaysia for the 

following periods:- 

18.11.2007 to 31.12.2007 44 days 

01.01.2008 to 20.01.2007 20 days 


His employment income for the continuous period (exceeding 

60 days) which overlaps the basis years for 2 successive years 

of assessment will be subjected to tax at the non-resident rate 

of 28% for the years of assessment 2007 and 2008. 

Contoh 4: 

Mr. Peter exercised his employment in Malaysia for the 

following periods:- 

16.12.2007 to 31.12.2007 16 days 

01.01.2008 to 15.01.2008 15 days 

01.03.2008 to 15.04.2008 46 days 


His employment income for the continuous period which 

overlaps the basis years for 2 successive years of assessment 

and another period which in total exceeds 60 days, will be 

subjected to tax at the non-resident rate of 28% for the years of 

assessment 2007 and 2008. 

The 60-day exemption rule does not apply to:- 

(a) non-resident directors of Malaysian companies 

(b) public entertainers 

Example: 

Professional entertainers, artistes, sportpersons or other 

individual who entertain publicly or privately on stage, radio, 

television, at a stadium or sports ground for profit or otherwise 

unless their visit is supported by public funds of a government 

of another country. 

This 60-day exemption rule does not apply to film stars coming to 

Malaysia in connection with the shooting of scenes although they 

are not considered as public entertainers. 

* Claim for exemption under an Avoidance of Double Taxation 

Agreement 

Where there is a claim for exemption under an Avoidance of 

Double Taxation Agreement, enter ‘2’ and the appropriate country 

code in the boxes provided. 

11




Sheet 

Country code - Refer to page 18 of the Form M Explanatory 

Notes or the full list in Appendix E of this 

Guidebook. 

Countries having Avoidance of Double Taxation Agreements 

with Malaysia - Refer to Appendix F of this Guidebook. 

C11 Dividends Amount from item C(iii) Working Sheet HK-3. HK-3 - 

C12 Discounts These relate to earnings from discounting transactions such - - 

as dealings in treasury bills, bills of exchange and promissory 

notes which are liable to tax. 

C13 Rents and Rents – These are income from rental / leasing of immovable HK-4 - 

premiums 

properties such as landed properties (land, buildings, 

etc.) situated in Malaysia and other similar assets. 

Allowable expenses are deductible against the gross 

rental income from the property (source). Where the 

property does not generate any income, such expenses 

are disallowed. Rental income from each source is 

computed separately. Only the sum of net income from 

all rental sources is taken into account in the tax 

computation. 

Examples of allowable expenditure: 

Interest charged on loan taken to acquire the property 

(source), quit rent, assessment, fire insurance premium, 

renewal of the rental / lease agreement, repairs and 

maintenance, management fee, service charges and 

sinking fund for the apartment/condominium, rental 

collection fee (restricted to 5% of the total gross 

rental for the year from that source), estate agent’s 

commission for finding tenants to ensure that the 

property continues to be let out. 

Examples of non-allowable expenditure: 

Capital repayment of the loan taken to acquire the 

property, renovations and improvements to the 

property, estate agent’s commission for finding the 

very first tenant/lessee for that property and the cost 

of preparation of the rental agreement with that tenant. 

Amount from item D Working Sheet HK-4. 

Premiums – Amounts received in connection with the granting of - - 

a lease on immovable properties such as land and 

buildings, are liable to tax. 

Enter the sum of rents and premiums (if any) in item C13. 

C14 Pensions, annuities Pensions – Pensions derived from Malaysia and paid to a person - - 

and other periodical 

on reaching the age of 55 years/compulsory age of 

payments not falling 

retirement or who retires due to ill-health are exempt 

under C10 to C13 

from tax if paid out from an approved fund, scheme 

or society. Where a person is paid more than one 

pension, only the higher or highest pension is exempt 

from tax. Other pensions not tax exempt have to be 

taken into account in the tax computation. 

Amount of pension to be taxed is as per the annual 

pension statement. 

12



Sheet 

Example:A retiree receives two (2) pensions. 

Pension (public service - approved fund) 

Political pension 

Total: 

Amount of taxable pension: 

RM35,000 

RM55,000 

RM90,000 

RM35,000 

Annuities – These are sums of money received in accordance with - - 

a will, settlement, insurance policy, investment of 

money or contract entitling the annuitant to a series of 

payments, whether or not received regularly or for a 

limited period only. Annuities received under annuity 

contracts issued by the Malaysian life insurers are tax 

exempt (paragraph 36 Schedule 6 ITA 1967). Only 

annuities not tax exempt are taken into account in 

the tax computation. 

Periodical payments – These refer to recurring payments received 

not falling under any of the above categories such as - - 

alimony and sums payable under a separation order. 

The amounts received are taxable. 

Enter the sum of taxable pensions, annuities and periodical payments 

(if any) in item C14. 

C15 Other gains or Other taxable income not falling under any of the above categories HK-6 - 

profits not falling includes payments received for part-time/occasional broadcasting, 

under C10 to C14 lecturing, writing, etc. 

Where Working Sheet HK-6 is used, transfer amount G from the 

working sheet to item C15 Form M. 

Where such income entitles an individual to a tax refund as per 

item D11 Form M in respect of a claim for section 110 tax deduction 

(others), Working Sheet HK-6 and relevant documents must be 

furnished with the Form M. 

C16 Additions These are income subject to tax and shall be included in - - 

pursuant to 

aggregate income if a claim for deduction of the following 

paragraph 43(1)(c) expenditure had previously been made and allowed by LHDNM. 

These refer to earnings/proceeds received in respect of 

qualifying prospecting expenditure under Schedule 4 ITA 1967. 

Please refer to paragraph 43(1)(c) and paragraph 16 Schedule 4 

ITA 1967 before computing the amount that should be taken into 

account as part of the aggregate income. 

Enter the amount computed in this item. 

C17 Aggregate statutory Sum of amounts from items C10 to C16. - - 

income from other 

sources 

C18 AGGREGATE Sum of amounts from items C9 and C17. - - 

INCOME 

C19 Current year Adjusted business loss is computed separately for each HK-1 and - 

business losses business according to the format as per Working Sheet HK-1. HK-1.3 

Current year losses from business and partnership can be 

deducted from the same year’s aggregate income. 

Example: Business and partnership losses of the year 2007 

can be deducted from the aggregate income of the 

same year. 

13




Sheet 

Where the losses cannot be fully absorbed due to insufficiency 

of the aggregate income, the excess can be carried forward 

to be set off against the following year’s aggregate statutory 

income from businesses and partnerships. 

Adjustment of losses for business and partnership (if any) 

should be done on Working Sheet HK-1.3. 

Total up all the adjusted losses if there are losses from more 

than one (1) business and enter the amount in item D1 

Working Sheet HK-1.3. 

Current year partnership losses (amount from items A13 and 

A19 in the CP30) are to be entered in item D2 Working Sheet 

HK-1.3. 

Enter the amount from item E Working Sheet HK-1.3 in this 

box. The amount in item C19 is restricted to the amount in 

item C18. If the amount in item C19 exceeds the amount in 

item C18, enter the amount as per item C18 in this box. 

C20 TOTAL C18 minus C19 - - 

C21 Qualifying The amount of expenditure on prospecting operations wholly - - 

prospecting 

and exclusively incurred in searching for, discovering or 

expenditure - winning access to mineral deposits in an eligible area or in 

Schedule 4 and testing such deposits, qualifies for deduction. 

paragraph 44(1)(b) 

Refer to Schedule 4 and paragraph 44(1)(b) ITA 1967 for the 

type of expenditure which qualifies; and paragraph 5 Schedule 4 

ITA 1967 on the method of computation. Computations are to be 

kept for examination by LHDNM. 

Enter the amount of claim (unclaimed balance from previous 

years and current year claim) in this box. 

Enter any balance not absorbed in item K1. 

C22 Qualifying farm Refer to the saving and transitional provision for Schedule 4A - - 

expenditure - relating to the balance of capital expenditure not fully claimed. 

Schedule 4A and 

paragraph 44(1)(b) Computations are to be kept for examination by LHDNM. 

Enter the amount of claim (unclaimed balance from previous 

years) in this box. 

Enter any balance not absorbed in item K2. 

C23 TOTAL C20 minus ( C21 plus C22 ). Enter ‘0’ if value is negative. - - 

C24 Gift of money to Gift of money to the Government, State Government, local - - 

the Government, authorities or institutions/organisations approved by the 

State Government, Director General - Subsection 44(6) 

local authorities or 

approved institutions 

and organisations 

C25 Gift of artefacts, An amount equal to the value of the gift as determined by the - - 

manuscripts or Department of Museum and Antiquities or the National Archives. 

paintings to the 

Government / State Subsection 44(6A) 

Government 

C26 Gift of money for Gift of money in the basis year for the provision of library - - 

the provision of facilities accessible to the public and contributions to public 

library facilities libraries, libraries of schools and institutions of higher 

or to libraries education, not exceeding RM20,000. 

Subsection 44(8) 

14



Sheet 

C27 Gift of money or An amount equal to any gift of money or contribution in kind (its - - 

contribution in kind value to be determined by the relevant local authority) in the 

for the provision of basis year for the provision of facilities in public places for the 

facilities in public benefit of disabled persons. 

places for the benefit 

of disabled persons Subsection 44(9) 

C28 Gift of money or An amount equal to any gift of money or the cost or value (as - - 

medical equipment certified by the Ministry of Health) of any gift of medical 

to any healthcare equipment in the basis year to any healthcare facility approved 

facility approved by by the Ministry, not exceeding RM20,000. 

the Ministry of Health Subseksyen 44(10) 

C29 Gift of paintings An amount equal to the value of any gift of painting (to be - - 

to the National Art determined by the National Art Gallery or any state art gallery) in 

Gallery or any the basis year to the National Art Gallery or any state art gallery. 

state art gallery Subsection 44(11) 

C30 Gift of money or Gift of money or contribution in kind for any sports activity - - 

contribution in kind approved by the Minister or any sports body approved by the 

for any approved Commissioner of Sports appointed under the Sports Development 

sports activity Act 1997. Amount to be deducted shall not exceed the difference 

between 7% of the aggregate income in C18 and the amount 

deducted pursuant to subsection 44(11C) ie. ( C30 + C31 ) is 

restricted to 7% of the amount in C18. 

Subsection 44(11B) 

C31 Gift of money or Gift of money or contribution in kind for anyproject of national - - 

contribution in kind interest approved by the Minister. Amount to be deducted shall 

for any project of not exceed the difference between 7% of the aggregate income 

national interest in C18 and the amount deducted pursuant to subsection 44(11B). 

approved by the ie. ( C31 + C30 ) is restricted to 7% of the amount in C18. 

Minister of Finance Subsection 44(11C) 

C32 TOTAL C23 minus ( C24 to C31 ). Enter ‘0’ if value is negative. - - 

C33 TAXABLE Pioneer status is a tax incentive as defined in sections 5 to 25 HK-1E - 

PIONEER 

of the Promotion of Investments Act (PIA) 1986. When granted 

INCOME 

to an individual, his business income from participating in a 

promoted activity or producing a promoted product in relation 

to agriculture (agro-based) shall be fully/partially tax exempt. 

Refer to Working Sheet HK-1E for the amount to be entered in 

this item. 

C34 Gross income This refers to income subject to tax at gross on which rates other - - 

subject to tax at than 28% apply eg. interest, royalties, special classes of 

other rates 

income under section 4A and other relevant income. 

C34a Interest including Only interest not tax exempt is taken into account in the tax - - 

loan stock interest computation. 

However, interest paid or credited by licensed banks/financial 

institutions in Malaysia and interest derived from Malaysia 

on an approved loan are tax exempt (paragraphs 27 and 33 

Schedule 6 ITA 1967) as well as interest specifically exempted 

under an Avoidance of Double Taxation Agreement. 

C34b Royalties These are sums received in respect of: - - 

the use of or the right to use property or rights such as 

copyrights, patents, trademarks, films and tapes, know-how 

or information concerning technical, industrial, commercial 

or scientific knowledge, experience or skill; or 

the alienation of any such property, know-how or information 

as mentioned above. 

15




Sheet 

C34c Special classes of Income derived from Malaysia by a non-resident person in - - 

income under respect of amounts paid in consideration of: 

section 4A 

services rendered by the person or his employee in 

connection with the use of property or rights belonging to, 

or the installation or operation of any plant, machinery or 

other apparatus purchased from, such person; 

technical advice, assistance or services rendered in 

connection with the technical management or 

administration of any scientific, industrial or commercial 

undertaking, venture, project or scheme; or 

rent or other payments made under any agreement or 

arrangement for the use of any movable property. 

C34d Other income Other income (if any) not listed above. - - 

C35 TOTAL INCOME Sum of amounts from items C32 to C34d. - - 

(SELF) 

C36 TOTAL INCOME Joint Assessment - - 

TRANSFERRED The individual (in whose name the joint assessment is to be 

FROM HUSBAND / raised), must enter the total income of the spouse (who elects 

WIFE* FOR JOINT for joint assessment) in this item. 

ASSESSMENT 

Enter ‘1’in the box provided if the total income of the spouse 

includes business income or ‘2’ if not. 

C37 AGGREGATE OF Sum of amounts from items C35 and C36. - - 

TOTAL INCOME 

PART D : 

TAX PAYABLE / REPAYABLE 


Sheet 

D1 CHARGEABLE Amount from item C35 or item C37 whichever applies. - - 

INCOME 

D2 COMPUTATION OF In general, the chargeable income of a non-resident individual is - - 

to TAX CHARGEABLE taxed at the flat rate of 28%. 

D2g 

Chargeable Income 

Rate (%) 

Income Tax 

D2a 

D2f 

, 4 8 0 0 0 28 , 13, 

4 4 0 0 0 

If the chargeable income (amount D1) includes income subject to 

tax at gross on which rates other than 28% apply, it has to be 

apportioned according to the rate applicable. 

Tax rates according to the ITA 1967 (percentage on gross): 

Interest - 15%, Royalty - 10%, Section 4A - 10%, 

Other income - Refer to ITA 1967 

Refer to Appendix F (Guidebook) for tax rates according to the 

Avoidance of Double Taxation Agreements. 

, , 

, . 

Gross income subject to tax at other rates 

Chargeable Income 

Rate (%) 

Income Tax 

, , 1 2, 

0 0 0 15 , , 1 , 8 0 0. 

0 

0 

16



Sheet 

D3 Total Income Tax Sum of amounts from items D2a to D2g. - - 

D4 Fees / Levy paid in A rebate is given in respect of any fee paid to the Malaysian - - 

2007 by a holder of Government under the Fees Act 1951 for the issue of an 

an Employment Employment Pass, Visit Pass (Temporary Employment) or Work 

Pass, Visit Pass Pass, but shall not exceed the amount of income tax charged in 

(Temporary item D3 (section 6C ITA 1967). 

Employment) or 

Work Pass 

D5 Total D3 minus D4 - - 

D6 Section 110 Computation can be done on Working Sheet HK-3. HK-3 - 

tax deduction Enter the amount from item D Working Sheet HK-3 in this item. 

(dividends) 

If entitled to a tax refund as per item D11, submit original dividend 

vouchers and Working Sheet HK-3 with the Form M. 

D7 Section 110 This refers to a claim for credit (if any) with respect to income HK-6 - 

tax deduction (other than dividends) from which tax has withheld/charged and 

(others) in 

remitted to LHDNM in accordance with the provisions of income 

respect of 

tax. 

C15 and / or C34 

Use Working Sheet HK-6 to compute. 

Enter the amount from item B Working Sheet HK-6 in this box. 

D8 Section 130 tax This relief is only available to a Malaysian citizen who is in the HK-7 - 

relief for a 

employment of a Malaysian public service or statutory body and 

non-resident is a non-resident by virtue of that employment. 

Malaysian citizen 

exercising 

Computation should be done on Working Sheet HK-7. 

employment outside Enter the amount from item D3 Working Sheet HK-7 in this box. 

Malaysia in the public 

services or the 

service of a statutory 

authority of Malaysia 

D9 Total deduction Sum of amounts from items D6 to D8. - - 

and relief 

D10 TAX PAYABLE D5 minus D9 (If the amount in D5 is more than the amount in D9). - - 

D11 TAX REPAYABLE D9 minus D5 (If the amount in D9 is more than the amount in D5). HK-3, HK-6 - 

If entitled to a tax refund, submit: 

(i) Working Sheet HK-3 and original dividend vouchers in 

respect of the claim for section 110 tax deduction 

(dividends); 

(ii) 

(iii) 

Working Sheet HK-6 and relevant documents pertaining to 

the claim for section 110 tax deduction (others) 

Working Sheet HK-7 and relevant documents relating to the 

the claim for non-resident Malaysian citizen tax relief 

(section 130). 

17



PART E : STATUS OF TAX FOR YEAR OF ASSESSMENT 2007 

Payments made through the instalment/Schedular Tax Deduction (STD) scheme are set off against the tax payable in this section. 


Sheet 

E1 Tax payable Amount from item D10. - - 

Enter ‘0’ in this item if you are entitled to a tax refund as per item 

D11. 

E2 Instalments/ Working Sheet HK-10 can be used to compute the total amount HK-10 - 

Schedular Tax of instalments/Schedular Tax Deductions (STD) paid for tax on 

Deductions Paid for income of year of assessment 2007. Payments made in respect 

2007 Income - SELF of outstanding tax for previous years of assessment must be 

and HUSBAND / excluded. Refer to the annual statement of income (Form EA / EC) 

WIFE if joint for the amount of STD to be entered. 

assessment 

E3 Balance of tax E1 minus E2 - - 

payable 

The balance of tax payable must be paid within the stipulated period. 

Use the Remittance Slip (CP501) provided together with the return 

form. Please take note of the instructions and addresses given on the 

reverse side of the enclosed CP501 before making any payment. 

Enter ‘0’ if the amount in item E2 exceeds the amount in item E1. 

E4 Tax paid in excess E2 minus E1 - - 

PART F : 

INCOME OF PRECEDING YEARS NOT DECLARED 

This refers to income received in respect of any earlier year not previously declared such as payment of salary, bonus, allowance, 

commission, dividend in arrears,etc. If the amount received relates to more than one (1) year, enter separately according to the 

year for which it is paid. Use attachment(s) in case of insufficient writing space and submit together with the return form. 


Sheet 

F1 Enter the type of income, the year for which it is paid, the gross - - 

to 

amount and where relevant, the amount of your contribution as 

F3 

an employee to an approved provident/pension fund such as the 

Employees Provident Fund (EPF). 

PART G : PARTICULARS OF EXECUTOR OF THE DECEASED PERSON’S ESTATE 


Sheet 

G1 Executor’s Name Name of the appointed executor of the deceased person’s estate. - - 

G2 New Identity New identity card number of the executor. - - 

Card No. 

G3 Old Identity Old identity card number of the executor. - - 

Card No. 

G4 Police No. Police number of the executor (if any). - - 

G5 Army No. Army number of the executor (if any). - - 

G6 Passport No. Current passport number of the executor (if any). - - 

18


PART H : PARTICULARS OF LOSSES, CAPITAL ALLOWANCES AND WITHHOLDING TAXES 


Sheet 

H1a Balance from Balance from current year’s business/partnership losses not HK-1.3 - 

current year losses absorbed. 

Enter the amount from item F Working Sheet HK-1.3. 

H1b Balance from Balance from previous years’ business/partnership losses not HK-1.3 - 

previous years’ absorbed. 

losses 

Enter the amount from item C Working Sheet HK-1.3. 

H1c Losses carried Sum of amounts from items H1a and H1b. HK-1.3 - 

forward 

OR 

Amount from item G Working Sheet HK-1.3. 

H1d Pioneer loss Pioneer business loss can only be absorbed by income from HK-1.4 - 

other pioneer business. Hence, its accounts must be kept 

separate from that of non-pioneer business. 

Amount absorbed Enter the amount of pioneer loss absorbed in this item. HK-1.4 - 

Amount from item D Working Sheet HK-1.4. 

Balance carried The balance of pioneer loss not absorbed is to be entered here. HK-1.4 - 

forward 

Amount from item E Working Sheet HK-1.4. 

H2 Capital Claim for capital allowances in the computation of statutory - - 

Allowances 

income from business and partnership. 

H2a Business 1 This refers to Business 1 in item C1. - - 

Allowance absorbed Capital allowance absorbed in the current year for Business 1. HK-1 - 

Amount from item K5 Working Sheet HK-1. 

Balance carried Balance of capital allowance not absorbed in the current year HK-1 - 

forward for Business 1. 

Amount from item K6 Working Sheet HK-1. 

H2b Business 2 This refers to Business 2 in item C2. HK-1 - 

Refer to the explanation for item H2a regarding ‘Allowance 

absorbed’ and ‘Balance carried forward’. 

H2c Business 3 + 4 This refers to Business 3 + 4 and so forth in item C3. HK-1 - 

and so forth (if any) 

Refer to the explanation for item H2a regarding ‘Allowance 


H2d Partnership 1 This refers to Partnership 1 in item C4. - - 

Allowance absorbed Capital allowance absorbed in the current year for Partnership 1. HK-1B1 - 

Amount from item F4 Working Sheet HK-1B1. 

Balance carried Balance of capital allowance not absorbed in the current year for HK-1B1 - 

forward Partnership 1. 

Amount from item F5 Working Sheet HK-1B1. 

H2e Partnership 2 This refers to Partnership 2 in item C5. HK-1B1 - 

Refer to the explanation for item H2d regarding ‘Allowance 


19




Sheet 

H2f Partnership 3 + 4 This refers to Partnership 3 + 4 and so forth in item C6. HK-1B1 - 

and so forth (if any) 

Refer to the explanation for item H2d regarding ‘Allowance 


H3 Withholding Taxes These refer to basis year payments to non-resident individuals - - 

subject to the withholding tax provision under sections 107A, 

109, 109A and 109B. Regulations and procedures regarding its 

remittance to LHDNM have to be complied. The gross amount 

paid to non-residents shall not be allowed as a business 

expense if there is non-compliance with the withholding tax 

provision. 

H3a Section 107A Payments to a non-resident contractor for services under a HK-11 - 

contract. 

Total Gross 

Amount Paid 

Enter the total gross amount paid in the box provided. 

Total Tax Withheld 

and Remitted to 

Lembaga Hasil Withholding tax rate according to ITA 1967: 

Dalam Negeri 

Malaysia 

Enter the amount of tax withheld and remitted to LHDNM. 

10% on the gross amount [paragraph 107A(1)(a)] on account of tax 

which is or may be payable by that non-resident contractor 

Plus 

3% on the gross amount [paragraph 107A(1)(b)] on account of tax 

which is or may be payable by the employees of that non-resident 

contractor. 

H3b Section 109 Payment of interest or royalties to a non-resident person. HK-11 F 

Total Gross 

Amount Paid 


Total Tax Withheld Enter the amount of tax withheld and remitted to LHDNM. 

and Remitted to Withholding tax rates according to Part II Schedule 1 ITA 1967 

Lembaga Hasil (percentage on gross): 

Dalam Negeri 

Malaysia Interest - 15% Royalty - 10% 

Refer to Appendix F in this Guidebook on withholding tax rates 

according to the Avoidance of Double Taxation Agreements. 

H3c Section 109A Payment in respect of services performed/rendered in Malaysia HK-11 - 

by a public entertainer. 

Total Gross 

Amount Paid 




Lembaga Hasil Withholding tax rate: 15% of gross (Part II Schedule 1 ITA 1967) 

Dalam Negeri 

Malaysia 

20



Sheet 

H3d Section 109B Payment of the kind classified under section 4A to a non-resident HK-11 F 

person. Refer to Public Ruling 4/2005 on its withholding tax. 

Total Gross 

Amount Paid 




Lembaga Hasil Withholding tax rate: 10% of gross (Part V Schedule 1 ITA 1967) 

Dalam Negeri 

Malaysia 

Refer to Appendix F in this Guidebook on withholding tax rates 

according to the Avoidance of Double Taxation Agreements. 

PART J : SPECIAL DEDUCTION, FURTHER DEDUCTION AND DOUBLE DEDUCTION 


Sheet 

J1 to Claim Code Refer to the claim codes provided in the Form M Explanatory - D 

J4 

Notes or Appendix D in this Guidebook. 

Amount 

Enter the amount in the box provided. 

J5 Total Claimed Sum of amounts from items J1 to J4. - - 

PART K : INCENTIVE CLAIM / EXEMPT INCOME 


Sheet 

K1 Schedule 4 Refer to the explanation for item C21. - - 

qualifying 

expenditure 

Any balance after deducting the amount claimed in item C21 

is carried forward by entering the amount in this item. 

Enter ‘0’ if there is no balance to be carried forward. 

K2 Schedule 4A Refer to the explanation for item C22. - - 

qualifying 

expenditure 

Any balance not absorbed in item C22 is carried forward by 

entering the amount in this item. 

Enter ‘0’ if there is no balance. 

K3 Pioneer income Enter the amount of tax exempt pioneer income i.e. amount HK-1E - 

(Amount Exempted) from item M4 Working Sheet HK-1E. 

21



PART L: 

FINANCIAL PARTICULARS OF INDIVIDUAL 

Extract relevant particulars from the current year’s Manufacturing Account (if any), Trading, Profit & Loss Account and Balance 

Sheet of the main business. Where there is more than one (1) main business, enter the particulars of the business with the 

highest turnover. 


Sheet 

L1 Business code Refer to Appendix G in this Guidebook before entering the - G 

business code applicable to the type of business carried on. 

L2 Sales or Turnover Gross amount including accrued income from sales, fees and - - 

other receipts. 

L3 Opening stock Opening stock of finished goods as per Trading Account. - - 

L4 Purchases and cost Gross amount of purchases minus purchase returns and - - 

of production 

discounts/rebates received. 

Cost of production as per Manufacturing Account. 

L5 Closing stock Closing stock of finished goods as per Trading Account. - - 

L6 Cost of sales L3 plus L4 minus L5 - - 

Enter ‘0’ if none. 

L7 GROSS PROFIT / Gross Profit: L2 minus L6 - - 

(GROSS LOSS) (if the amount in item L2 is more than the amount in item L6) 

OR 

Gross Loss: L6 minus L2 

(if the amount in item L6 is more than the amount in item L2) 

If gross loss, mark ‘X’ in the box provided. 

L8 Other business Sum of sales/turnover from businesses other than L1. - - 

income 

For income from partnership - amount from item A13 of the CP30. 

L9 Dividends Amount from item C(i) Working Sheet HK-3. HK-3 - 

L10 Interest and Gross amount received/receivable - - 

discounts 

L11 Rents, royalties Gross amount received/receivable. 

and premiums For rents - Amount from item B1 Working Sheet HK-4. HK-4 - 

L12 Other income Sum of gross income from non-business sources other than L9 - - 

to L11. 

L13 TOTAL Sum of amounts from items L8 to L12. - - 

L14 Loan interest Total expenditure on interest excluding interest on hire-purchase/ - - 

lease. 

L15 

L16 

L17 

Salaries and wages 

Rental / Lease 

Contracts and 

subcontracts 

Amount as per Profit and Loss Account - - 

22



Sheet 

L18 

L19 

L20 

L21 

L22 

Commissions 

Bad debts 

Travelling and 

transport 

Repairs and 

maintenance 

Promotion and 

advertisement 

Amount as per Profit and Loss Account - - 

L23 Other expenses Total amount of other expenses in the Profit and Loss Account - - 

not listed in items from L14 to L22. 

L24 

TOTAL 

EXPENDITURE Sum of amounts from items L14 to L23. - - 

L25 NET PROFIT / Amount as per Profit and Loss Account. - - 

(NET LOSS) If net loss, indicate ‘X’ in the box provided. 

L26 Non-allowable Amount from item F1 Working Sheet HK-1 / Working Sheet HK-1 or - 

expenses HK-1E (whichever applies). HK-1E 

L27 

L28 

L29 

L30 

Land and buildings 

Plant and machinery 

Motor vehicles 

Other fixed assets 

Net book value as per Balance Sheet - - 

L31 TOTAL FIXED Sum of amounts from items L27 to L30. - - 

ASSETS 

L32 Investments Cost of investments and fixed deposits. - - 

L33 Stock Closing stock as per Balance Sheet. - - 

L34 Trade debtors Trade debtors/Trade receivables as per Balance Sheet. - - 

L35 Sundry debtors Amount as per Balance Sheet excluding drawings by proprietor. - - 

L36 

L37 

Cash in hand 

Cash at bank 

Amount as per Balance Sheet - - 

L38 Other current assets Current assets other than L33 to L37. - - 

L39 TOTAL CURRENT Sum of amounts from items L33 to L38. - - 

ASSETS 

L40 TOTAL ASSETS Sum of amounts from items L31, L32 and L39. - - 

L41 Loans and overdrafts Amount as per Balance Sheet including long and short-term loans. - - 

L42 Trade creditors Trade creditors as per Balance Sheet. - - 

L43 Sundry creditors Sundry creditors as per Balance Sheet. - - 

L44 TOTAL LIABILITIES Sum of amounts from items L41 to L43. - - 

23




Sheet 

OWNER’S EQUITY 

L45 Capital account Amount as per Balance Sheet. - - 

L46 Current account Current account balance carried forward from last year, - - 

balance brought excluding capital. 

forward 

L47 Current year Amount as per Profit and Loss Account. - - 

profit / (loss) If loss, indicate ‘X’ in the box provided. 

L48 Net advance / Takings of cash, stock in trade, etc. from the business by the - - 

drawing 

proprietor for personal use/advance of cash. 

L49 Current account Sum of amounts from items L46 to L48. - - 

balance carried 

forward 

DECLARATION 

If the return form is not affirmed and duly signed, it shall be deemed incomplete and returned to you. Penalty will be imposed in 

case of late resubmission of the return form to Lembaga Hasil Dalam Negeri Malaysia. 


Sheet 

This return form is 

made: 

on my own behalf Enter ‘1’ if this return form is signed by the individual himself. - - 

on behalf of Enter ‘2’ if this return form is signed by a representative * of the - - 

individual. 

* A ‘representative’ must be a person as defined by the ITA 1967. 

PARTICULARS OF TAX AGENT WHO COMPLETES THIS RETURN FORM 


Sheet 

a Name of Firm Name of the appointed tax consultancy firm responsible for filling - - 

out this return form. 

b Telephone No. Telephone number of the tax consultancy firm. - - 

c Tax Agent’s This section is to be completed only by a tax agent approved - - 

Approval No. under the provision of subsection 153(3) ITA 1967. 

Please take note of the reminder on page 11 of the Form M before signing it. Enter the date and designation clearly. 

24


Part 2 - Working Sheets 


For computations exceeding one (1) working sheet, use attachment(s) of the same format as the working sheet concerned 

and indicate them as Attachment 1, 2, 3 and so forth. 

Working Sheet HK-1 is prepared to assist you in the compution of statutory income from business. 

HK-1 : 

COMPUTATION OF STATUTORY INCOME FROM BUSINESS 

Use separate working sheet for each business source. 


Sheet 

A Balance as per Profit Transfer the amount from the Profit and Loss Account of the - - 

and Loss Account business. 

Separation of This refers to any non-business income which has been included - - 

Income by Class in the Profit and Loss Account. Such income has to be taken out 

and entered under the appropriate item in the Form M. 

Enter the amount according to the class of non-business income 

in the relevant box. 

B Total Non-Business This is the sum of all non-business income from sources such - - 

Income 

as dividends, rents, royalties, interest and others. 

C Total Business A minus B - - 

Income 

D1 Non-allowable Losses such as capital/non-trade losses in the Profit and Loss - - 

losses 

Account are not allowed and have to be added back. 

If not listed, indicate the type of loss in the space provided and 

enter the amount. 

Example: 

Loss on disposal of motor vehicle (WGQ 8090) RM4,000 

Realized loss on foreign exchange (non-trade) RM3,000 

D2 Surplus recovered Amount from item A Working Sheet HK-1.1A HK-1.1A - 

expenditure (mining) 

D3 Total Sum of amounts from items D1 and D2. - - 

D4 Non-taxable gains/ Profits/Gains in the Profit and Loss Account which are not - - 

income entered in liable to tax such as capital gain have to be taken out. 

the profit and loss If not listed, indicate the type of profit/gain in the space 

account 

provided and enter the amount. 

Example: 

Profit on disposal of motor vehicle (WJC 2938) RM5,000 

Realized gain on foreign exchange (non-trade) RM2,000 

D5 Total D3 minus D4 - - 

E Business Income Sum of amounts from items C and D5. - - 

F1 Non-allowable Non-allowable expenditure/charges claimed in the accounts of - - 

expenditure and the business must be adjusted/added back in accordance with 

charges 

the provision of income tax. 

1.1 Depreciation Provision made on the use of business assets is not allowed. - - 

However, it is allowed in the form of capital allowance which is 

deductible from the adjusted income of the business. 

Paragraph 39(1)(b) 

25




Sheet 

1.2 Own salary, Remuneration paid to ownself. - - 

allowances, Paragraph 39(1)(a) 

bonus, EPF 

1.3 Entertainment In general, entertainment is disallowed unless it is a provision - - 

of the kind such as food, drinks, recreation or hospitality of any 

kind for the benefit of own employees. 

Paragraph 39(1)(l) 

1.4 Gifts Gifts are not allowable unless for own employees. - - 


1.5 Donations Donations include donations approved under the provision of - - 

subsections 44(6), 44(6A), 44(8) to 44(11), 44(11B) dan 44(11C). 

Only approved donations, if claimed are deductible from the 

aggregate income in item C32 Form M. 


1.6 Penalties/Fines Payments made due to legal offences or violations of law. - - 

Compound Paragraph 39(1)(b) 

1.7 Withdrawal of Withdrawal of stock in trade for personal use is taken into account - - 

stock in trade at market value as at the time of withdrawal. 

for own use Paragraph 24(2)(a) 

1.8 Cash drawings Withdrawal for personal use of unrecorded business cash receipts. - - 

Paragraph 39(1)(a) 

1.9 Provision for Such provision is disallowed unless it is specific. - - 

bad/doubtful Subsection 34(2) 

debts 

1.10 Initial/ Expenditure incurred prior to the commencement of the business - - 

Termination or in terminating it. 

of business Paragraph 39(1)(b) 

expenditure 

1.11 Capital Expenses which are capital in nature such as the purchase of - - 

expenditure assets. Paragraph 39(1)(b) 

1.12 Legal fees Legal fees which are capital/personal in nature, incurred for - - 

example in the acquisition of assets. 


1.13 Expenditure Interest not wholly and exclusively incurred in the production - - 

on interest of gross business income such as interest on loan taken wholly/ 

partly for personal use. 

Refer to subsection 33(2) on the restriction of interest. 

1.14 Restriction Contributions by the employer to an approved scheme which - - 

on EPF 

exceeds 19% of the employees’ remuneration. 

Paragraph 34(4)(a) 

1.15 Assets written This refers to assets no longer used in the business and are written - - 

off 

off. It is disallowed if charged to the accounts as it is capital in nature. 


1.16 Personal Domestic or private expenses. - - 

expenditure Paragraph 39(1)(a) 

26




Sheet 

(a) Travelling/ Allowances/Reimbursements to ownself or own employees in - - 

Accomodation respect of travelling/accomodation unrelated to the business such 

as holiday trips, travelling to and from the house and place of work. 

(b) Use of Expenses on petrol, toll, parking, insurance, repairs and - - 

motor vehicle(s) maintenance of motor vehicle(s) for personal use. 

(c) Household Disbursements for personal/household use such as water and - - 

benefits electricity, quit rent, assessment, rental, loan interest, repairs and 

maintenance, renovation, insurance, etc. charged to the business. 

(d) Telephones/ Payment for the purchase of handphone(s) for personal use and - - 

Handphones personal calls charged to the business. 

(e) Fees/ Fees/Subscriptions paid to associations and clubs such as - - 

Subscriptions entrance fees and membership subscriptions. 

(unrelated to Example: 

the business) Golf club membership 

(f) Seminars Payments to attend seminars for the purpose of enhancing - - 

knowledge and skills. 

(g) Medical Medical expenses on ownself and family members. - - 

1.17 Other Other expenses not wholly and exclusively incurred in the - - 

expenditure production of gross business income. 

(Please 

specify....) Paragraph 39(1)(b) 

Total Sum of amounts from items 1.1 to 1.17. - - 

F2 Mining allowance Amount from item B Working Sheet HK-1.1A. HK-1.1A - 

F3 Surplus residual Amount from item C Working Sheet HK-1.1A. HK-1.1A - 

expenditure (mining) 

F4 Further deductions These are incentives given under the provisions of income tax. - D 

Refer to the Form M Explanatory Notes or Appendix D in this 

Guidebook to determine the type of incentive you qualify for. 

List out the incentives claimed in the spaces provided. 

Example: 

Further deduction is allowed on the 

remuneration for disabled employees RM12,000 * 

* This expenditure qualifies for double deduction. As RM12,000 

has already been charged once to the Profit and Loss Account, 

a further deduction of the same amount is allowed. 

F5 Total Sum of amounts from items F2, F3 and F4. - - 

F6 Total Adjusted F1 minus F5 - - 

Expenditure 

G Adjusted Income Compute the adjusted income/loss by doing the necessary - - 

subtractions and additions for items E and F6. 

If the computed figure is positive (+), it is adjusted income. 

Proceed to item J (if relevant) for further computation. 

H Adjusted Loss If the computed figure is negative (-), it is adjusted loss. HK-1.3 - 

Transfer the amount to item D1 Working Sheet HK-1.3. 

J1 Adjusted Income Amount from item G. - - 

If adjusted loss, enter ‘0’ in the box provided. 

27




Sheet 

J2 Balancing charge This is the result of adjustments made when business assets for HK-1.2 - 

which capital allowances had previously been claimed, ceased 

to be used in the business. 

Transfer the amount from item A5 Working Sheet HK-1.2. 

Enter ‘0’ if not relevant. 

J3 Total Sum of amounts from items J1 and J2. - - 

J4 Capital allowance Amount as per item K4 but restricted to the amount in item J3. - - 

absorbed 

J5 Statutory Income J3 minus J4 - - 

Transfer this amount to item C1 / C2 / C3 Form M. 

K1 Balance brought Balance of capital allowances from previous years not absorbed. - - 

forward 


K2 Balancing allowance Residual expenditure of business assets which ceased to be HK-1.2 - 

used in the business. 

Transfer the amount from item B3 Working Sheet HK-1.2. 

Enter ‘0’ if not applicable. 

K3 Capital allowance Claim for current year’s capital allowance. HK-1.2 - 

Transfer the amount from item C5 Working Sheet HK-1.2. 


K4 Total Sum of amounts from items K1, K2 and K3. - - 

K5 Capital allowance Amount as per item K4 but restricted to the amount in item J3. - - 

absorbed in the 

current year Transfer this amount to item J2a / J2b / J2c Form M. 

K6 Balance carried K4 minus K5. - - 

forward Transfer this amount to item J2a / J2b / J2c Form M. 

This balance shall be the amount for item K1 in the following 

year of assessment. 

Enter ‘0’ if the amount in item K4 is fully absorbed by the amount 

in item J3 (i.e. K4 = K5). 

HK-1B1 : 

COMPUTATION OF STATUTORY INCOME FROM PARTNERSHIP BUSINESS 

Use separate working sheet for each partnership business. 


Sheet 

A Adjusted Enter the sum of amounts from items A13 and A19 of the CP30. CP30 - 

income from 

If loss, enter ‘0’ in the box provided and transfer the amount of 

partnership adjusted loss to item D2 Working Sheet HK-1.3. HK-1.3 

business 

Proceed with your computation for items B to F5 (if relevant) 

B Balancing charge Enter the sum of amounts from items A14 and A20 of the CP30. CP30 - 

C Total Sum of amounts from items A and B. - - 

D Capital allowance Amount of capital allowance that can be absorbed as per item CP30 - 

absorbed F3 but is restricted to the amount in item C. 

E Statutory Income C minus D - - 

Transfer this amount to item C4 / C5 / C6 Form M. 

28




Sheet 

F 

Adjustment of the Balance of Capital Allowance (if relevant) 

1. Balance brought Previous years’ capital allowances not absorbed. - - 

forward 

2. Balancing Enter the sum of amounts from items A15 and A21 of the CP30. CP30 - 

allowance and 

capital allowance 

3. Total Sum of amounts from items F1 and F2. - - 

4. Capital allowance Amount as per item D. - - 

absorbed in the 

current year Transfer this amount to item J2d / J2e / J2f Form M. 

5. Balance carried F3 minus F4. - - 

forward Transfer this amount to item J2d / J2e / J2f Form M. 

HK-1E : COMPUTATION OF STATUTORY INCOME FROM PIONEER BUSINESS 

Working Sheet HK-1E is provided as a guide for the computation of statutory income from pioneer business. Use separate 

working sheet for each pioneer business. 

HK-1.1 : 

HK-1.2 : 

COMPUTATION OF MINING ALLOWANCES & 

SUMMARY OF CAPITAL ALLOWANCES 

1. To facilitate a proper claim for mining allowances and capital allowances, relevant assets and expenditure have been 

classified as follows : 

SUMMARY OF CAPITAL ALLOWANCE CLAIM INDEX 

(Arranged in order according to the ITA 1967) 

Allowance Type Class Schedule (ITA 1967) Working Sheet 

Mining A A1-A3 2 1.1 

Agriculture B B1-B3 3 1.2.1 

Forest C C1-C2 3 1.2.2 

Industrial Building D D1-D4 3 1.2.3 

Plant and Machinery E E1-E5 3 1.2.4 

2. Assets/Expenditure (according to the type) have been classified according to the rate of capital allowance that can 

be claimed. Refer to this index before entering the type of claim in column A of every working sheet for the computation 

of mining allowances and capital allowances. 

3. Working Sheet HK1.2 has been prepared for use as a summary of capital allowance claim for a year of assessment so that 

the final computed figure can be entered in Working Sheet HK-1 / HK-1E. 

4. Refer to the index of business assets/capital expenditure provided behind Working Sheets HK-1.1, HK1.2.1, HK-1.2.2, HK-1.2.3 

and HK-1.2.4 for guidance. Working Sheet HK-1.2A has been prepared for use as a summary of capital expenditure made 

and has to be kept as long as the business continues to operate. 

HK-1.3 : ADJUSTMENT OF LOSSES FOR BUSINESS AND PARTNERSHIP 


Sheet 

A Previous years’ Balance of previous years’ losses from business/partnership not - - 

losses brought absorbed. 

forward 

29




Sheet 

B Previous years’ losses Amount as per item C8 Form M. - - 

absorbed by current 

year’s aggregate 

statutory income 

from businesses 

and partnerships 

C Balance from A minus B - - 

previous years’ 

losses not absorbed Transfer this amount to item J1b Form M. 

D Current year losses: 

1. Business Amount H from Working Sheet HK-1. HK-1 - 

2. Partnership Sum of amounts from items A13 and A19 of the CP30. CP30 - 

3. Total Sum of amounts from items D1 and D2. - - 

E Losses absorbed Amount as per item C19 Form M. - - 

by current year’s 

aggregate income 

F Balance from D3 minus E - - 

current year losses 

not absorbed Transfer this amount to item J1a Form M. 

G Losses carried Sum of amounts from items C and F. - - 

forward Transfer this amount to item J1c Form M. 

HK-1.4 : 

ADJUSTMENT OF LOSSES FOR PIONEER BUSINESS 


Sheet 

A Losses brought Balance of previous years’ losses from pioneer business(es) - - 

forward 

not absorbed. 

B Current year’s Current year’s adjusted loss from pioneer business(es). HK-1E - 

adjusted loss Amount from item H Working Sheet HK-1E. 


D Losses absorbed Amount from item M3 Working Sheet HK-1E. HK-1E - 

E Losses carried C minus D - - 

forward 

HK-2 : 

COMPUTATION OF STATUTORY INCOME FROM EMPLOYMENT 


Sheet 

A Receipts under paragraph 13(1)(a) HK-2.1 - 

1. Money Monetary receipts (other than gratuity, tax allowance and 

allowances deemed wholly expended) in respect of having or 

exercising an employment include gross salary/remuneration, 

wages, leave pay, overtime pay, fees, commissions, bonuses, 

gross tips, awards/rewards, allowances and so forth. 

30




Sheet 

Benefits or Receipts include perquisites such as shares given free or offered 

amenities at lower than market price by the employer. Refer to Public Ruling 

convertible No. 4/2004 (issued on 9 December 2004) at the LHDNM website: 

into money 

http://www.hasil.org.my 

for details about Employee Share Option Scheme Benefit (ESOS) 

received by an employee by reason of his employment. 

Amount from item Q Working Sheet HK-2.1. 

2. Gratuity Refer to the explanation in the Form M Explanatory Notes or HK-2.2 B1 

Appendix B1 in this Guidebook. 

Amount from item E4(vi) Working Sheet HK-2.2. 

3. Tax allowance/ Refer to the explanation in the Form M Explanatory Notes or HK-2.3 B2 

Tax borne by Appendix B2 in this Guidebook. 

the employer Amount from item C7 Working Sheet HK-2.3. 

4. Total Sum of amounts from items A1 to A3. - - 

B Benefits-in-kind Refer to the explanation in the Form M Explanatory Notes or HK-2.4 B3 

(BIK) 


[paragraph 13(1)(b)] Amount from item K Working Sheet HK-2.4. 

C Value of living Refer to the explanation in the Form M Explanatory Notes or HK-2.5 B4 

accomodation Appendix B4 in this Guidebook. 

benefit 

Amount Z from item J1 / J2.1 / J2.2 / J2.3 / J3.1 / J3.2 (whichever 

[paragraph 13(1)(c)] applies) of Working Sheet HK-2.5. 

D Refund from Amount as reported by the employer in the Form EA / EC. HK-2.6 - 

unapproved Pension 

or Provident Fund, Amount to be taxed shall be the amount paid out from the 

Scheme or Society employer’s contribution in such fund, scheme or society to the 

[paragraph 13(1)(d)] employee. 

Example: 

Amount received from an unapproved pension scheme:- 

Employer’s contribution 

RM24,000 

Employee’s contribution 

RM30,000 

Total 

RM54,000 

The taxable amount is RM 24,000. 

Enter amount A from Working Sheet HK-2.6. 

E Compensation for Refer to the explanation in the Form M Explanatory Notes or HK-2.7 - 

loss of employment Appendix B5 in this Guidebook. 

[paragraph 13(1)(e)] 

Amount D from Working Sheet HK-2.7. 

F Total gross Sum of amounts from items A to E. - - 

employment income 

G Subscriptions to Compulsory membership subscriptions paid to professional bodies - - 

professional bodies to ensure the continuance of a professional standing and practice 

such as those paid by doctors and lawyers. 

H Entertainment Entertainment includes the provision of: - - 

expenditure 

(a) food, drinks, recreation or hospitality of any kind; or 

(b) accomodation or travel in connection with or for the purpose of 

facilitating entertainment of the kind mentioned in (a) above. 

31




Sheet 

Section 18 

Entertainment expenditure is an allowable deduction if incurred in 

the discharge of official duties. 

Section 38A 

The amount deductible shall not exceed the amount of entertainment 

allowance included as part of the gross employment income. 

Example: Annual salary RM30,000 

Annual entertainment allowance RM 8,000 

Amount expended in respect of entertainment is RM10,000 but the 

amount of deduction allowed is restricted to RM8,000. 

J Travelling 1. Before this expenditure can be wholly or partly deductible, - - 

expenditure 

the gross travelling allowance must first be included in item A1 

Working Sheet HK-2 as part of the gross employment income. 

However, reimbursements received from the employer in 

respect of travelling is neither liable to tax nor deductible. 

2. Travelling expenditure wholly and exclusively incurred in the 

production of gross employment income is deductible. 

However, it is not allowable if incurred in travelling to and from 

the house and place of work. 

Example: Annual salary RM30,000 

Annual travelling allowance RM 6,000 

Amount expended on travelling in the discharge of official 

duties is RM5,000. Amount of deduction allowed is RM5,000. 

K Expenditure related Expenditure paid by an employee in respect of the living HK-2.5 B4 

to the living 

accomodation provided by his employer, is deductible such as: 

accomodation 1. Rental of living accomodation and furniture, 

provided by the 2. Quit rent, assessment, insurance premiums, 

employer 3. Repairs/Maintenance of the living accomodation (excluding 

the upkeep of land attached to the living accomodation for 

use by way of amenity as garden or grounds and expenses 

of a capital nature). 

However, the amount of claim is restricted to the sum of the 

value of living accomodation and related benefits/amenities 

provided to the employee. Paragraphs 38(1)(a) and (b). 

L Total Sum of amounts from items G, H, J and K5. - - 

M Statutory Income F minus L - - 

from Employment 

N Summary of Statutory Income from Employment - - 

Enter amount M for: 

1. Employment 1 Employment 1. 



4. Total Sum of amounts from items N1 to N3. 

Transfer amount from item N4 to item C10 Form M. 

32



HK-2.1 : RECEIPTS UNDER PARAGRAPH 13(1)(a) 


Sheet 

A Gross salary/ Gross salary/remuneration as per Form EA / EC. - - 

remuneration 

B Wages Payments received for work/services rendered especially if paid - - 

by the hour, day or week. 

C Leave pay Gains or profits for any period of leave attributable to the exercise - - 

of an employment in Malaysia, constitutes employment income 

derived from Malaysia. 

D Overtime pay Payments received in respect of overtime work/services. - - 

E Fees - - 

F Commissions Amount received as per Form EA / EC. - - 

G Bonuses - - 

H Gross tips Tips received from customers. - - 

J Perquisites Benefits in cash or in kind which are convertible into money - - 

received by an employee from the employer/third parties in 

respect of having or exercising the employment. Refer to 

Public Ruling No. 1/2006 (issued on 17 January 2006). 

Perquisites relating to Employee Share Option Scheme (ESOS) 

- refer to Public Ruling No. 4/2004 

Perquisite (whether in money or otherwise) is exempted from tax 

to a maximum amount or value of RM1,000 for a year of assessment 

in respect of:- (paragraph 25C Schedule 6) 

- past achievement award; 

- service excellence award; or 

- long service award provided that the employee has exercised 

an employment for more 10 years with the same employer 

K Awards/Rewards Awards/Rewards received from the employer. - - 

L Allowances Allowances received may be of various types such as housing - - 

allowance, motor vehicle allowance and so forth. 

M Household telephone If the telephone is subscribed by the employee, the benefit to be - - 

bills paid by the taxed shall be the actual cost of the employee’s private bills paid 

employer 

by his employer. 

N Recreational club Where the type of membership is for individuals, the taxable - - 

membership 

benefit shall be the amount paid/reimbursed by the employer 

for his employee’s entrance fee and monthly/annual membership 

subscription fees for club membership and term membership. 

P Other receipts Other payments received for work/services rendered. - - 

Q Total Sum of amounts from items A to P. - - 

Transfer this amount to item A1 Working Sheet HK-2. 

33



HK-2.2 : COMPUTATION OF TAXABLE GRATUITY 


Sheet 

A - E Taxable gratuity Refer to the explanation in the Form M Explanatory Notes or - B1 


F Transfer the amounts from items E4(i) to E4(v) for the - - 

preceding years of assessment to Part F Form M. 

G Transfer the amount from item E4(vi) for the current year of HK-2 - 

assessment to item A2 Working Sheet HK-2. 

HK-2.3 : COMPUTATION OF TAX ALLOWANCE 


Sheet 

A - C Tax Allowance Refer to the explanation in the Form M Explanatory Notes or - B2 


HK-2.4 : 

BENEFITS-IN-KIND (BIK) [PARAGRAPH 13(1)(b)] 


Sheet 

A - J Benefits-in-kind Refer to the explanation in the Form M Explanatory Notes or - B3 


Enter the amount according to the type of benefit received. 

K Total Sum of amounts from items A to J. HK-2 - 

Transfer this amount to item B Working Sheet HK-2. 

HK-2.5 : VALUE OF LIVING ACCOMODATION BENEFIT [PARAGRAPH 13(1)(c)] 


Sheet 

A Job status Enter ‘X‘ in the relevant box to indicate the current job status. - - 

B Type of living Enter ‘X‘ according to the type of living accomodation provided. - - 

accomodation 

C Share of living Enter ‘X‘ in the relevant box. - - 

accomodation If shared, indicate your share of the living accomodation provided 

(X) and the living accomodation provided as a whole (Y). 

Example: 

If the living accomodation is shared equally by you and three other 

employees, then your share is 1/4. 

Enter: 

Share of accomodation ( X ) 1 ( Y ) 4 

34




Sheet 

If the living accomodation is partly used to advance the interests 

of the employer, indicate the portion of the premise used for such 

purpose and your share of the living accomodation provided. 

Example: 

If half of the living accomodation is used for official purpose, then 

your share is 1/2. 

Enter: 

Share of accomodation ( X ) 1 ( Y ) 2 

D Period for which the State the length of the period for which the accomodation is - - 

living accomodation provided in number of months. 

is provided 

E Length of employment State the length of employment during the current year in - - 

in the current year number of months. 

F Defined value Refer to Appendix B4 in this Guidebook on the definition and - B4 

computation of the ‘defined value’ of the living accomodation 

provided in the basis year. 

G Receipts under Transfer the amount from item A5 Working Sheet HK-2 for the HK-2 - 

paragraph 13(1)(a) purpose of computation in item H. 

H 1. 30% of G for A2 Enter the result from the computation of G x 30/100 in this box. - - 

2. 3% of G for A1 Enter the result from the computation of G x 3/100 in this box. - - 

J1 Value of living Refer to the explanation in the Form M Explanatory Notes or HK-2 B4 

to accomodation Appendix B4 in this Guidebook. 

J3.2 benefit subject 

to tax 

Select the appropriate category, compute and enter the 

amount derived in the box provided. 

Transfer amount Z to item C Working Sheet HK-2. 

HK-2.6 : 

REFUND FROM UNAPPROVED PENSION OR PROVIDENT FUND, SCHEME OR SOCIETY 


Sheet 

A Employer’s Enter the amount of employer’s contribution. HK-2 - 

contribution 

Transfer this amount to item D Working Sheet HK-2. 

B Employee’s Enter the amount of employee’s contribution. - - 

contribution 


HK-2.7 : COMPUTATION OF TAXABLE COMPENSATION 


Sheet 

A - D Taxable Refer to the explanation in the Form M Explanatory Notes or HK-2 B5 

compensation Appendix B5 in this Guidebook. 

Transfer amount D to item E Working Sheet HK-2. 

35



HK-3 : 

TAX DEDUCTION UNDER SECTION 110 (DIVIDENDS) 


Sheet 

A - D Tax deduction This working sheet is prepared for use in the computation of - - 

under section 110 gross income from dividends and the tax deducted under section 

(dividends) 110. 

HK-4 : 

PARTICULARS OF PROPERTIES / ASSETS AND TOTAL RENTAL 


Sheet 

A - D Particulars of This working sheet is provided for the purpose of computing the - - 

properties/assets statutory income from rents. 

and total rental 

HK-6 : 

TAX DEDUCTION UNDER SECTION 110 (OTHERS) 


Sheet 

A - G Tax deduction under This working sheet is prepared for use where there is a claim for - - 

section 110 (other credit in respect of income (other than dividends) from which tax 

income) 

has been withheld/charged and remitted to LHDNM in accordance 

with the provisions of income tax. 

Use this working sheet to compute the gross income and tax 

deducted under section 110 in respect of interest, royalties, 

special classes of income under section 4A, income from trust 

bodies including Real Estate Invesrment Trusts (REIT) and 

Property Trust Funds (PTF) and other relevant income. 

HK-7 : NON-RESIDENT MALAYSIAN CITIZEN RELIEF (SECTION 130) 


Sheet 

A - D Non-resident Refer to the explanation in the Form M Explanatory Notes. - - 

Malaysian citizen Use this working sheet to compute the relief. 

relief (section 130) Transfer amount D3 from this working sheet to item D8 Form M. 

HK-9 : 

CLAIM FOR SECTION 133 TAX RELIEF - INCOME FROM COUNTRIES 

WITHOUT AVOIDANCE OF DOUBLE TAXATION AGREEMENT 


Sheet 

A - H Claim for section 133 This is unilateral credit allowed in respect of any foreign income - - 

tax relief - Income on which foreign tax has been paid in a country without any 

from countries without Avoidance of Double Taxation Agreement with Malaysia. 

Avoidance of Double This shall not exceed half the foreign tax payable on that income. 

Taxation Agreement 

This working sheet is provided for the calculation of:- 

income from countries without any Avoidance of Double 

Taxation Agreement with Malaysia; and 

claim for tax relief pursuant to section 133 of ITA 1967. 

36



HK-10 : 

INSTALMENTS / SCHEDULAR TAX DEDUCTIONS PAID 


Sheet 

A 

Deductions made by the employer in the current year 

A1 Employer’s E No. Enter the E file reference number of the employer who made the - - 

deductions. 

A2 Period of Deduction State the period of deduction for which the deductions were made - - 

in the current year. 

A3 Schedular Tax Schedular Tax Deductions (STD) made in the current year by the - - 

Deductions (STD) employer in respect of current year’s income. 

A4 CP38 Deductions Deductions made by the employer according to the CP38 - - 

(Direction To Deduct From The Remuneration) for payment of the 

previous years’ tax liability. 

A5 Deductions for Zakat Deductions for zakat made by the employer in the current year. - - 

B Schedular Tax Deductions made by the employer in the current year in respect of previous 

years income 

B1 Employer’s E No. Enter the E file reference number of the employer who deducts. - - 

B2 Year/Period of The year or period for which the previous year’s income is paid. - - 

Income 

B3 Schedular Tax Schedular Tax Deductions (STD) made in the current year due to - - 

Deductions (STD) previous years’ income. 

C Instalments paid in Instalment payments made under the direction of CP500 or - - 

respect of CP500 CP503 in respect of current year’s income. 

or CP503 

D Payments made for Payments made in the current year other than A, B and C with - - 

the current year other regard to the current year’s income. 

than A, B and C 

E Total Sum of amounts from items A3, C and D. - - 

Transfer this amount to item E2 Form M. 

HK-11 : 

BASIS YEAR PAYMENTS TO NON-RESIDENTS (WITHHOLDING TAX) 


Sheet 

Basis year payments Use this working sheet to report the details of payments made - - 

to non-residents in the basis year to non-residents subject to the withholding tax 

(withholding tax) provision of sections 107A, 109, 109A, 109B and 109D. 

HK-13 : 

DEDUCTION FOR MAINTENANCE OF UNMARRIED CHILDREN 


Sheet 

Deduction for This working sheet is provided for calculating the amount of this HK-7 - 

maintenance of deduction for inclusion in the computation of non-resident 

unmarried children Malaysian citizen relief (section 130). 

(refer to the notes behind the working sheet). 

Transfer the amount to item 4.12 (a), (b) and/or (c) (whichever is 

relevant) in Working Sheet HK-7. 

37



HK-14 : 

LIFE INSURANCE PREMIUMS / CONTRIBUTIONS TO APPROVED PROVIDENT 

OR PENSION FUND, EDUCATION AND MEDICAL INSURANCE 


Sheet 

Life insurance Use this working sheet to calculate the amount of deduction in HK-7 - 

premiums / 

respect of:- 

Contribution to (i) any premium paid for life insurance policy; 

approved Provident (ii) contributions made to an approved Provident or Pension 

or Pension Fund, 

Fund; and 

education and medical (iii) any premium paid for insurance on education or for medical 

insurance 

benefits 

for inclusion in the computation of non-resident Malaysian citizen 

relief (section 130). (refer to the notes behind the working sheet). 

Transfer the amount to item 4.13 and/or 4.14 (whichever is 

relevant) in Working Sheet HK-7. 

38

HK-1: 

COMPUTATION OF STATUTORY INCOME FROM BUSINESS 

Name 

Tax Reference No. 

I/C No. 

Business Registration No. 

Business 

Enter ‘X’ in the relevant box. 

Type of Business 

1 2 3 4 5 

Year of Assessment 

Business Code 

Item Amount (RM) 

A. BALANCE AS PER PROFIT 

AND LOSS ACCOUNT 

+ – 

LESS: 

SEPARATION OF INCOME BY CLASS 

Dividend income 

Rental income 

Royalty income 

Interest income 

Other income 

B. TOTAL NON-BUSINESS INCOME 

C. TOTAL BUSINESS INCOME ( A - B ) 

D. ADJUSTMENT OF BUSINESS INCOME 

ADD: 

1. Non-allowable losses: 

Loss on disposal of assets 

Foreign exchange losses 

Loss from investments 

................................................. 

................................................. 

TOTAL 

2. Surplus recovered expenditure 

(mining) 

3. TOTAL ( D1 + D2 ) 

Working Sheet page - 1

LESS: 

4. Non-taxable gains/income entered in the profit and loss account: 

Profit on disposal of assets 

Foreign exchange gain 

Profit from investments 

................................................................. 

................................................................. 

TOTAL 

5. TOTAL ( D3 - D4 ) 

E. BUSINESS INCOME ( C + D5 ) 

F. ADJUSTMENT OF BUSINESS EXPENDITURE 

ADD: 

1. Non-allowable expenditure and charges: 

1.1 Depreciation 

1.2 Own salary, allowances, bonus, EPF 

1.3 Entertainment 

1.4 Gifts 

1.5 Donations 

1.6 Penalties/Fines/Compound 

1.7 Withdrawal of stock in trade for own use 

1.8 Cash drawings 

1.9 Provision for bad/doubtful debts 

1.10 Initial/Termination of business expenditure 

1.11 Capital expenditure 

1.12 Legal fees 

1.13 Expenditure on interest 

1.14 Restriction on EPF 

1.15 Assets written off 

1.16 Personal expenditure: 

(a) Travelling/Accomodation 

(b) Use of motor vehicle(s) 

(c) Household benefits 

(d) Telephones/Handphones 

(e) Fees/Subscriptions (unrelated to the business) 

(f) Seminars 

(g) Medical 

1.17 Other expenditure 

(Please specify ............................................) 

TOTAL ( 1.1 to 1.17 ) 


LESS: 

2. Mining allowance 

3. Surplus residual expenditure (mining) 

4. Further deductions: 

4.1 ..................................................... 

4.2 ..................................................... 

4.3 ..................................................... 

5. TOTAL ( F2 + F3 + F4 ) 

6. TOTAL ADJUSTED EXPENDITURE 

( F1 - F5 ) 

G. ADJUSTED INCOME ( E + F6 ) 

OR 

H. ADJUSTED LOSS ( F6 – E ) 

If G (Adjusted Income) - Proceed to item J for further computation. 

If H (Adjusted Loss) - Transfer this amount to item D1 Working Sheet HK-1.3. 

Then, proceed to items J and K to compute the balance 

of capital allowance to be carried forward. 

J. COMPUTATION OF STATUTORY INCOME 

1. ADJUSTED INCOME 

(Enter ‘0’ in this box if there is adjusted loss for item H) 

2. ADD: Balancing charge (amount from item A5 Working Sheet HK-1.2) 

3. TOTAL ( J1 + J2 ) 

4. LESS: Capital allowance absorbed 

(amount as per item K4 but restricted to the amount in item J3) 

5. STATUTORY INCOME ( J3 - J4 ) 

K. ADJUSTMENT OF CAPITAL ALLOWANCE (if relevant) 

1. Balance brought forward 

ADD: 

2. Balancing allowance (amount from item B3 Working Sheet HK-1.2) 

3. Capital allowance (amount from item C5 Working Sheet HK-1.2) 

4. TOTAL ( K1 + K2 + K3 ) 

LESS: 

5. Capital allowance absorbed in the current year 

(amount as per item J4) 

6. Balance carried forward ( K4 - K5 ) 


HK-1B1: COMPUTATION OF STATUTORY INCOME FROM PARTNERSHIP BUSINESS 

Name 

Tax Reference No. D 


Partnership Business 


1 2 3 4 5 

Year of Assesment 


A. Adjusted income from partnership business 

(amount from items A13 and A19 of the CP30) 

If loss, enter ‘0’ in this box and transfer the amount of adjusted loss 

to item D2 Working Sheet HK-1.3. Proceed with your computation 

for items B to F below (if applicable) 

ADD: 

B. Balancing charge (amount from items A14 and A20 of the CP30) 

C. TOTAL ( A + B ) 

LESS: 

D. Capital allowance absorbed 

(amount as per item F3 but restricted to the amount in item C) 

E. STATUTORY INCOME ( C - D ) 

F. ADJUSTMENT OF CAPITAL ALLOWANCE (if relevant) 


ADD: 

2. Balancing allowance and capital allowance 

(amount from items A15 and A21 of the CP30) 

3. TOTAL ( F1 + F2 ) 

LESS: 


(amount as per item D) 

5. Balance carried forward ( F3 - F4 ) 


HK-1E: COMPUTATION OF STATUTORY INCOME FROM PIONEER BUSINESS 

Name 


I/C No. 


Enter ‘X’ in the relevant box. Select one only. Use separate working sheet for each type of promoted activity/product. 

APPROVAL UNDER PROMOTION OF INVESTMENTS ACT 1986: 

APPLICATION FOR INCENTIVE MADE BEFORE 1/1/1991 

100% ADJUSTED INCOME EXEMPTED 

APPLICATION FOR INCENTIVE MADE ON OR AFTER 1/1/1991 

100% STATUTORY INCOME EXEMPTED 



TYPE OF PROMOTED ACTIVITY / PRODUCT 

Business 


Type of Business 

1 2 3 4 5 


Business Code 


+ – 

A. BALANCE AS PER PROFIT 

AND LOSS ACCOUNT 

LESS: 

SEPARATION OF INCOME BY CLASS 

Dividend income 

Rental income 

Royalty income 

Interest income 

Other income 

B. TOTAL NON-BUSINESS INCOME 

C. TOTAL BUSINESS INCOME ( A - B ) 


D. ADJUSTMENT OF BUSINESS INCOME 

ADD: 

1. Non-allowable losses: 

Loss on disposal of assets 

Foreign exchange losses 

Loss from investments 

................................................. 

................................................. 

TOTAL 

LESS: 

2. Non-taxable gains/income entered in the profit and loss account: 

Profit on disposal of assets 

Foreign exchange gain 

Profit from investments 

.................................................. 

.................................................. 

TOTAL 

3. TOTAL ( D1 - D2 ) 

E. BUSINESS INCOME ( C + D3 ) 

F. ADJUSTMENT OF BUSINESS EXPENDITURE 

ADD: 

1. Non-allowable expenditure and charges: 

1.1 Depreciation 

1.2 Own salary, allowances, bonus, EPF 

1.3 Entertainment 

1.4 Gifts 

1.5 Donations 

1.6 Penalties/Fines/Compound 

1.7 Withdrawal of stock in trade for own use 

1.8 Cash drawings 

1.9 Provision for bad/doubtful debts 

1.10 Initial/Termination of business expenditure 

1.11 Capital expenditure 

1.12 Legal fees 

1.13 Expenditure on interest 

1.14 Restriction on EPF 

1.15 Assets written off 


1.16 Personal expenditure: 

(a) Travelling/Accomodation 

(b) Use of motor vehicle(s) 

(c) Household benefits 

(d) Telephones/Handphones 

(e) Fees/Subscriptions (unrelated to the business) 

(f) Seminars 

(g) Medical 

1.17 Other expenditure 

(Please specify ............................................) 

TOTAL ( 1.1 to 1.17 ) 

LESS: 

2. Further deductions: 

2.1 ..................................................... 

2.2 ..................................................... 

2.3 ..................................................... 

3. TOTAL ADJUSTED EXPENDITURE 

( F1 - F2 ) 

G. ADJUSTED INCOME ( E + F3 ) 

OR 

H. ADJUSTED LOSS ( F3 – E ) 

If G (Adjusted Income) - Proceed to item J for further computation. 

If H (Adjusted Loss) - Transfer this amount to item B Working Sheet HK-1.4. 

J. COMPUTATION OF STATUTORY INCOME 

1. ADJUSTED INCOME 

(Enter ‘0’ in this box if there is adjusted loss for item H) 

2. ADD: Balancing charge 

3. TOTAL ( J1 + J2 ) 

4. LESS: Capital allowance absorbed 

(amount as per item N4 but restricted to the amount in item J3) 

5. STATUTORY INCOME ( J3 - J4 ) 


K. Computation of the taxable and tax exempt statutory income 

1. Taxable statutory income = 

% x 

(J5) 

= 

2. Tax exempt statutory income = 

% x 

(J5) 

= 

L. Please use the following columns for deduction of losses (if any). 

1. Adjusted income (amount from item J1) 

OR 

2. Statutory income (amount from item J5) 

M. COMPUTATION OF TAX EXEMPT PIONEER INCOME 

1. Amount from item K2 / L1 / L2 

LESS: 

2. Section 21A PIA 1986 loss 

(Non-promoted activity/product) 

3. Section 25(2) PIA 1986 loss 

[(Pioneer loss brought forward and current year’s 

pioneer losses from other pioneer businesses (if any)] 

4. TAX EXEMPT PIONEER INCOME (M1 - M2 - M3) 

N. ADJUSTMENT OF CAPITAL ALLOWANCE (if relevant) 


ADD: 

2. Balancing allowance 

3. Capital allowance 

4. TOTAL (N1 + N2 + N3) 

LESS: 


(amount as per item J4) 

6. Balance carried forward (N4 - N5) 


Item 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

Class 

11 TOTAL 

Residual life 

of the mine 

Residual 

expenditure 

b/f 

Development 

expenditure 

Total 

( C + D ) 

Recovered 

expenditure 

Total 

( E - F ) 

Mining 

allowance 

Surplus 

residual 

expenditure 

Surplus 

recovered 

expenditure 

Residual 

expenditure 

c/f 

= X years 

= X years 

HK-1.1 

Note: The allowance is arrived at by dividing the residual expenditure at the end of the basis period by the residual life of the mine at the beginning of 

the basis period. 

Where the accounting period is less or more than 12 months, the allowance is decreased or increased according to time basis. 

A B C D E F G H J K L 

Expected Life of the Mine: 1. Total acreage of deposits available for dredging or other mining operations 

HK-1.1: MINING ALLOWANCE 

Year Of Assessment 

Name 


(Transfer the amounts from items 11H, 11J and 11K to Working Sheet 1.1A) 

Expected acreage to be dredged, etc., annually 

OR 

2. Total estimated deposits in tons/piculs 

Expected rate of annual production in tons/piculs 


MINING ALLOWANCE INDEX 

Class Type of Asset Allowance Reference 

A1 

Cost of acquisition of the mine or rights in or over the mine, 

a. Roads, tramways, 

b. Workshops, stores and quarters. 

A2 

Cost of prospecting new or existing mine; 

a. Sinking shafts, tunnelling and underground development; As per computation Section 34(6)(c) 

prepared 

b. Works in connection with water and power supply, roads, under this Schedule Paragraphs 3 and 5 

tramways, railway sidings, tailings, retention and slime 

Schedule 2 ITA 

disposal; and 1967 

c. Construction of buildings including quarters for the mining 

staff. 

A3 

General administration and management expenses before 

the commencement of production or during the temporary 

non-production period. 

COMPUTATION OF THE EXPECTED LIFE OF THE MINE 

The expected life of the mine is computed as follows: 

1. Total acreage of deposits available for dredging or 

other mining operations (T) 

Expected acreage to be dredged, etc., annually (M) 

= X years 

Or 

T 

M 

= X years 

2. Total estimated deposits in tons/piculs (P) 

Expected rate of annual production in tons/piculs (K) 

= X years 

Or 

P 

K 

= X years 


HK-1.1A: SUMMARY OF MINING ALLOWANCES 


Name 


ATTACHMENT 1 

ATTACHMENT 2 

ATTACHMENT 3 

ATTACHMENT 4 

ATTACHMENT 5 

A B C 

Surplus Recovered Mining Allowance Surplus Residual 

Expenditure [Section 34 & Expenditure [Section 34 & 

[Subsection 30(3)] Paragraph 3 Schedule 2] Paragraph 12 Schedule 2] 

TOTAL 

(Transfer this amount to item (Transfer this amount to item (Transfer this amount to item 

D2 Working Sheet HK-1) F2 Working Sheet HK-1) F3 Working Sheet HK-1) 


HK-1.2: 

SUMMARY OF CAPITAL ALLOWANCES 


Name 


A. BALANCING CHARGE Working Sheet 

1. Qualifying agriculture expenditure HK-1.2.1A 

2. Qualifying forest expenditure HK-1.2.2A 

3. Industrial building HK-1.2.3A 

4. Plant and machinery HK-1.2.4A 

5. TOTAL 

(Transfer this amount to item J2 Working Sheet HK-1 / J2 Working Sheet HK-1E) 

B. BALANCING ALLOWANCE 



3. TOTAL 

(Transfer this amount to item K2 Working Sheet HK-1 / N2 Working Sheet HK-1E) 

C. CURRENT YEAR CAPITAL ALLOWANCE 

1. Qualifying agriculture expenditure HK-1.2.1A 

2. Qualifying forest expenditure HK-1.2.2A 



5. TOTAL 

(Transfer this amount to item K3 Working Sheet HK-1 / N3 Working Sheet HK-1E ) 


HK-1.2.1 

HK-1.2.1: AGRICULTURE ALLOWANCE 


Name 


A B C D E F G H J K L M N 

Item 

Class 

Date of Residual 

Date of Year of Rate 

expenditure 

disposal assessment % 

Cost expenditure 

incurred b/f 

Annual 

allowance 

Residual 

expenditure 

c/f 

Grant/ 

Subsidy 

Agriculture 

charge 

Agriculture 

allowance 

Accumulated 

allowance 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 TOTAL 

12 AGRICULTURE CHARGE ( 11K + 11L ) (Transfer this amount to Working Sheet HK-1.2.1A) 

13 AGRICULTURE ALLOWANCE ( 11M ) (Transfer this amount to Working Sheet HK-1.2.1A) 

NOTE: 

Agriculture charge on an asset which is disposed of within 6 years from the date on which the expenditure was incurred or deemed incurred, is: 

(i) Value N or 

(ii) N/Y * where the agriculture charge is spread equally over the years of assessment for which the agriculture allowances were given 

(Proviso to paragraph 27 Schedule 3). 

* ‘Y’ is the number of years of assessment for which the agriculture allowances were given to the business. 


AGRICULTURE ALLOWANCE INDEX 

Class 

Type of Asset 

Reference 

(Schedule 3) 

Annual Allowance 

Rate (%) Reference (Schedule 3) 

B1 

Qualifying agriculture expenditure: 

a. Clearing and preparation of land for the 

purposes of agriculture 

Paragraph 7 (1)(a) 

b. Planting (but not replanting) of crops on land 

cleared for planting Paragraph 7 (1)(b) 50 Paragraph 23 

c. Construction on a farm of a road or bridge Paragraph 7 (1)(c) 

B2 

Construction of a building for the welfare of 

persons or as living accomodation for 

persons, employed in or in connection with 

the working of that farm Paragraph 7 (1)(d) 20 Paragraph 22(a) 

B3 

Buildings 

a. Office 

b. Building for the purpose of working the farm Paragraph 7 (1)(d) 10 Paragraph 22 (b) 


HK-1.2.1A: 

SUMMARY OF AGRICULTURE ALLOWANCES 


Name 


A 

Agriculture 

Charge 

B 

Agriculture 

Allowance 

ATTACHMENT 1 

ATTACHMENT 2 

ATTACHMENT 3 

ATTACHMENT 4 

ATTACHMENT 5 

TOTAL 

(Transfer this amount to item (Transfer this amount to item 

A1 Working Sheet HK-1.2) C1 Working Sheet HK-1.2) 


HK-1.2.2 

HK-1.2.2: FOREST ALLOWANCE 


Name 


A B C D E F G H J K L 

Date of 


Residual 

Forest 

Residual 

Forest 

Accumulated 

Item Class expenditure 

disposal Assessment % 

Cost expenditure 

allowance 

expenditure 

charge 

forest 

incurred 

b/f 

c/f 

allowance 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 TOTAL 

12 FOREST CHARGE ( 11K ) (Transfer this amount to Working Sheet HK-1.2.2A) 

13 FOREST ALLOWANCE ( 11H ) (Transfer this amount to Working Sheet HK-1.2.2A) 

NOTE: 

Forest charge on an asset which is disposed, is: 

(i) Value L or 

(ii) L/Y * where the forest charge is spread equally over the years of assessment for which the forest allowances were given. 

(Proviso to paragraph 32 Schedule 3) 

* ‘Y’ is the number of years of assessment for which the forest allowances were given to the business. 


FOREST ALLOWANCE INDEX 

Class 

Type of Asset 

Reference 

(Schedule 3) 

Rate (%) 


Reference 

(Schedule 3) 

C1 Expenditure for the purpose of a business which 

consists wholly or partly of the extraction of timber 

from the forest: 

a. Road Paragraph 8(1)(a) 10 Paragraph 30(b) 

b. Building 

C2 Expenditure for the welfare of persons employed in 

or in connection with the extraction of timber from 

the forest: 

a. Building Paragraph 8(1)(b) 20 Paragraph 30(a) 

b. Living accomodation 


HK-1.2.2A: 

SUMMARY OF FOREST ALLOWANCES 


Name 


A 

Forest 

Charge 

B 

Forest 

Allowance 

ATTACHMENT 1 

ATTACHMENT 2 

ATTACHMENT 3 

ATTACHMENT 4 

ATTACHMENT 5 

TOTAL 

(Transfer this amount to item (Transfer this amount to item 

A2 Working Sheet HK-1.2) C2 Working Sheet HK-1.2) 


HK-1.2.3 

3 HK-1.2.3: INDUSTRIAL BUILDING ALLOWANCE 


Name 


A B C D E F G H J K L M N 

Item 

Class 

Date of 

purchase/ 

completion of 

construction 


disposal assessment % 

Cost 

Residual 

expenditure 

b/f 

Residual 

Initial Annual expenditure Disposal Balancing Balancing 

allowance allowance c/f value charge allowance 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 TOTAL 

12 BALANCING CHARGE (11M) (Transfer this amount to Working Sheet HK-1.2.3A) 

13 BALANCING ALLOWANCE (11N) (Transfer this amount to Working Sheet HK-1.2.3A) 

14 INDUSTRIAL BUILDING ALLOWANCE (11H + 11J) (Transfer this amount to Working Sheet HK-1.2.3A) 


Class 

Type of Industrial Building 

INDUSTRIAL BUILDING ALLOWANCE INDEX 

Reference 

[Schedule 3 

and P.U.(A)] 

Initial Allowance 

Reference 

[Schedule 3 & P.U.(A)] 


D1 Common Industrial Bulidings: Paragraph 63 & 64 

a Factory 

b Dock, wharf, jetty or other similar building 

c Warehouse (with factory) 

d Supply of water, electricity and 

telecommunication services 

e Agriculture 

f Mining 

g Canteen, rest-room, recreation room, lavatory, Paragraph 65 

bathhouse, bathroom or wash-room (with 

industrial building) 10 Paragraph 12 3 Paragraph 16 

h Building for the welfare or living accomodation 

of persons employed in the working of a farm 

i Private hospital Paragraph 37A 

j Nursing home 

k Maternity home 

l Building for the purpose of approved research Paragraph 37B 

m Building for use in approved service project Paragraph 37E 

under Schedule 7B 

n Hotel registered with the Ministry of Tourism Paragraph 37F 

o Airport Paragraph 37G 

p Approved motor racing circuit Paragraph 37H 

q Public road and ancillary structures on which Paragraph 67A 10 Paragraph 12 6 P.U. (A) 87/1986 

expenditure is recoverable through toll 

collection 

r Old folks care centre P.U. (A) 143/2003 NIL P.U. (A) 143/2003 10 P.U. (A) 143/2003 

D2 Other Industrial Buildings 

a Warehouse for purpose of storage of goods for Paragraph 37C NIL Paragraph 37C 10 Paragraph 37C 

export or imported goods to be processed and 

distributed or re-exported 

b Living accomodation for individuals employed 

in the following businesses: Paragraph 42A(1) NIL Paragraph 42A(1) 10 Paragraph 42A(1) 

– Manufacturing 

– Hotel 

– Tourism 

– Approved service project 

c Child care facilities Paragraph 42A(2) NIL Paragraph 42A(1) 10 Paragraph 42A(2) 

d Building for: 

– School Paragraph 42B NIL Paragraph 42B 10 Paragraph 42B 

– Approved educational institution 

e Building for the purpose of approved: 

– Industrial training Paragraph 42C NIL Paragraph 42C 10 Paragraph 42C 

– Technical training 

– Vocational training 

D3 Building constructed for use as living Paragraph 42(1) 40 Paragraph 42(1) 3 Paragraph 16 

accomodation of employed individuals (with 

industrial building) 

D4 Building constructed under an approved build- Paragraph 67B 10 Paragraph12 6 Paragraph 16A 

lease-transfer agreement with the Government 

D5 Building constructed or purchased for use by an P.U.(A) 202/2006 & NIL P.U.(A) 202/2006 & 10 P.U.(A) 202/2006 & 

approved Multimedia Super Corridor (MSC) P.U.(A) 317/2006 P.U.(A) 317/2006 P.U.(A) 317/2006 

status company 

Rate 

(%) 

Rate 

(%) 

Reference 

[Schedule 3 & P.U.(A)] 


HK-1.2.3A: 

SUMMARY OF INDUSTRIAL BUILDING ALLOWANCES 


Name 


A B C 

Balancing Balancing Industrial 

Charge Allowance Building 

Allowance 

ATTACHMENT 1 

ATTACHMENT 2 

ATTACHMENT 3 

ATTACHMENT 4 

ATTACHMENT 5 

TOTAL 


A3 Working Sheet HK-1.2) B1 Working Sheet HK-1.2) C3 Working Sheet HK-1.2) 


HK-1.2.4 

HK-1.2.4: PLANT AND MACHINERY ALLOWANCE 


Name 


Item 

1 

A B C D E F G H J K L M N P 

Class 

Date of 

purchase 

Date of 

disposal 

First year of 

assessment 

which qualifies 

Rate 

% 

Qualifying 

expenditure 

Residual 

expenditure 

b/f 

Instalment 

payments 

Initial 

allowance 

Annual 

allowance/ 

Allowance 

claimed on 

small value 

assets 

Residual 

expenditure 

c/f 

Disposal 

value 

Balancing 

charge 

Balancing 

allowance 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 TOTAL 

12 BALANCING CHARGE (11N) (Transfer this amount to Working Sheet HK-1.2.4A) 

13 BALANCING ALLOWANCE (11P) (Transfer this amount to Working Sheet HK-1.2.4A) 

14 CAPITAL ALLOWANCE (11J + 11K) (Transfer this amount to Working Sheet HK-1.2.4A) 

Note: Balancing charge (M - G) = Disposal value (M) exceeds the residual expenditure (G) at the date of disposal. 

Balancing allowance (G - M) = Residual expenditure (G) at the date of disposal exceeds the disposal value (M). 


Class 

PLANT AND MACHINERY ALLOWANCE INDEX 

Type of Asset 

E1 Heavy machinery/Motor vehicle: 

a. General 20 Paragraph 10 20 P.U.(A)52/2000 

b. Building and construction industry 30 P.U.(A)294/1998 20 P.U.(A)52/2000 

c. Timber industry 60 P.U.(A)294/1998 20 P.U.(A)52/2000 

d. Tin mining industry 60 P.U.(A)294/1998 20 P.U.(A)52/2000 

e. Imported heavy machinery 10 P.U.(A)474/1997 10 P.U.(A)474/1997 

f. Heavy machinery/Motor vehicle subject to 

provisions under paragraphs 2A and 2C Schedule 3 NIL Paragraph 13A 20 P.U(A)52/2000 

E2 Plant and machinery: 





e. Plant and machinery subject to provisions under 

paragraphs 2A and 2C Schedule 3 NIL Paragraph 13A 14 P.U.(A)52/2000 

E3 Others: 





e. Others subject to provisions under paragraphs 

2A and 2C Schedule 3 NIL Paragraph 13A 10 P.U.(A)52/2000 

E4 Special / Specific purpose plant and machinery/ 

equipment for: 

a. Storage, treatment and disposal of scheduled wastes; 40 P.U.(A) 339/1995; 20 P.U.(A) 339/1995; 

and recycling of wastes and P.U.(A) 505/2000 and P.U.(A) 505/2000 

b. Natural gas refuelling 40 P.U.(A) 265/1997 20 P.U.(A) 265/1997 

c. Control of wastes and pollution of environment 40 P.U.(A) 295/1998 20 P.U.(A) 295/1998 

d. Conservation of energy 40 P.U.(A) 349/2003 and 20 P.U.(A) 349/2003 and 

P.U.(A) 64/2006 P.U.(A) 64/2006 

e. Special plant and machinery subject to provisions 

under paragraphs 2A and 2C Schedule 3 NIL Paragraph 13A 20 P.U.(A) 52/2000 

f Purposes of a qualifying project under Schedule 7A 40 P.U.(A) 506/2000 20 P.U.(A) 506/2000 

g Controlling the quality of electric power 20 P.U.(A) 87/2005 40 P.U.(A) 87/2005 

h Generating energy using renewable energy 20 P.U.(A) 88/2005 and 80 P.U.(A) 88/2005 and 

resources (dibatalkan mulai 8 Sept 2007) P.U.(A) 115/2005 P.U.(A) 115/2005 

i Agriculture sector 20 P.U.(A) 188/2005 40 P.U.(A) 188/2005 

j Mould for the production of industrialised building 

system component 40 P.U.(A) 249/2006 20 P.U.(A) 249/2006 

E5 Computer and ICT equipment: 

a. Computers and information technology equipment 20 Paragraph 10 40 P.U.(A) 187/1998 

b. Cost of provision of computer software 20 Paragraph 10 40 P.U.(A) 272/1999 

E6 Small value assets Paragraph 19A 

Rate 

(%) 

Initial Allowance 

Note: 1. Heavy machinery – Bulldozers, cranes, ditchers, excavators, graders, loaders, rippers, rollers, rooters, scrappers, 

shovels, tractors, vibrator wagons and so on. 

2. Motor vehicles – All types of motorized vehicles such as motorcycles, aeroplanes, ships and so forth. 

3. Plant and machinery – General plant and machinery not included under heavy machinery such as air conditioners, 

compressors, lifts, laboratory and medical equipment, ovens and so forth. 

4. Others - Office equipment, furniture and fittings. 

Working Sheet page - 23 

Reference 

[Schedule 3 and P.U.(A)] 

Rate 

(%) 


Reference 

[Schedule 3 and P.U.(A)]

HK-1.2.4A: SUMMARY OF PLANT AND MACHINERY ALLOWANCES 


Name 


A B C 

Balancing Balancing Capital 

Charge Allowance Allowance 

ATTACHMENT 1 

ATTACHMENT 2 

ATTACHMENT 3 

ATTACHMENT 4 

ATTACHMENT 5 

TOTAL 


A4 Working Sheet HK-1.2) B2 Working Sheet HK-1.2) C4 Working Sheet HK-1.2) 


HK-1.2A: SUMMARY OF CAPITAL EXPENDITURE 


Name 


No. Class of Asset Description of Asset Date of Purchase Date of Disposal Method of Payment 


HK-1.3: ADJUSTMENT OF LOSSES FOR BUSINESS AND PARTNERSHIP 

Name 


Business 

Enter ‘X’ in the relevant box 

1 2 3 4 5 

I/C No. 




A. Previous years’ losses brought forward 

LESS: 

B. Previous years’ losses absorbed by current year’s 

aggregate statutory income from businesses and partnerships 

C. Balance from previous years’ losses not absorbed ( A - B ) 

D. Current year losses: 

1. Business 

(amount from item H Working Sheet HK-1) 

2. Partnership 

(amount from items A13 and A19 of the CP 30) 

3. TOTAL ( D1 + D2 ) 

LESS: 

E. Losses absorbed by current year’s aggregate income 

F. Balance from current year losses not absorbed ( D3 - E ) 

G. Losses carried forward ( C + F ) 


HK-1.4: ADJUSTMENT OF LOSSES FOR PIONEER BUSINESS 

Name 


Business 


1 2 3 4 5 

I/C No. 



A. Losses brought forward 

ADD: 

B. Current year’s adjusted loss 


LESS: 

D. Losses absorbed 

E. Losses carried forward ( C - D ) 


HK-2: 

COMPUTATION OF STATUTORY INCOME FROM EMPLOYMENT 

Name 


Employment 

Enter ‘X’ in the relevant box 

1 2 3 4 5 

Item 

I/C No. 



Amount (RM) 

A. Receipts under paragraph 13(1)(a): 

1. Money/Benefits or amenities convertible into money 

(amount from item Q Working Sheet HK-2.1) 

2. Gratuity 

(amount from item E4(vi) Working Sheet HK-2.2) 

3. Tax allowance/Tax borne by the employer 

(amount from item C7 Working Sheet HK-2.3) 

4. TOTAL ( A1 to A3 ) 

B. Benefits-in-kind (BIK) [paragraph 13(1)(b)] 

(amount from item K Working Sheet HK-2.4) 

C. Value of living accomodation benefit [paragraph 13(1)(c)] 

(amount from item J Working Sheet HK-2.5) 

D. Refund from unapproved Pension or Provident Fund, Scheme 

or Society [paragraph 13(1)(d)] 

(amount attributable to employer’s contribution only) 

(amount from item A Working Sheet HK-2.6) 

E. Compensation for loss of employment [paragraph 13(1)(e)] 

(amount from item D Working Sheet HK-2.7) 

F. TOTAL GROSS EMPLOYMENT INCOME ( A to E ) 

LESS: 

G. Subscriptions to professional bodies 

H. Entertainment expenditure 

(restricted—section 38A) 

J. Travelling expenditure 


K. Expenditure related to the living accomodation provided by the employer 

1. Benefit of living accomodation taken into account: 

(a) 

(b) 

Value of benefits/amenities related to the 

living accomodation provided 

[amount as per total of item B Working Sheet 

HK-2.4 – subsection 32(1)] 

Value of living accomodation benefit 

[amount as per item C – subsection 32(2)] 

(c) TOTAL [ K1(a) + K1(b) ] 

2. Rental of living accomodation and furniture paid 

by the employee [paragraph 38(1)(a)] 

3. Quit rent, assessment, insurance premiums and 

repairs/maintenance of the living accomodation 

paid by the employee [paragraph 38(1)(b)] 

4. TOTAL PAYMENT ( K2 + K3 ) 

5. Deductible expenditure: 

K1(c) or K4 whichever is lower 

[subsection 38(3)] 

L. TOTAL ( G, H, J and K5 ) 

M. Statutory Income from Employment ( F - L ) 

N. SUMMARY OF STATUTORY INCOME FROM EMPLOYMENT 

1. Employment 1 (amount M from Employment 1) 



4. TOTAL [ N1 + N2 + N3 and so forth (if any) ] 


HK-2.1: 

RECEIPTS UNDER PARAGRAPH 13(1)(a) 

Name 


I/C No. 

Item 

A. Gross salary/remuneration 

B. Wages 

C. Leave pay 

D. Overtime pay 

E. Fees 

F. Commissions 

G. Bonuses 

H. Gross tips 

J. Perquisites (cash/in kind) 

Less: 

Exemption limited to RM1,000 

in amount/value in respect of:- 

1. past achievement award 

2. service excellence award 

3. long service * award 

( * more than 10 years 

service with same employer) 

4. Subtotal ( J1 + J2 + J3 ) (restricted to RM1,000) 

TOTAL ( J - J4 ) 

K. Awards/Rewards 

L. Allowances 


MONEY / BENEFITS OR AMENITIES CONVERTIBLE INTO MONEY 

M. Household telephone bills paid by the employer 

(telephone subscribed by the employee) 

N. Recreational club membership 

(type of membership - individual): 

- entrance fee 

- monthly/annual membership 

subscription fees for club membership; and 

- term membership 

paid/reimbursed by the employer 

P. Other receipts 

Q. TOTAL ( A to P ) 

(Transfer this amount to item A1 Working Sheet HK-2) 


Amount (RM)

HK-2.2: COMPUTATION OF TAXABLE GRATUITY 

Name 


I/C No. 


A. Total gratuity RM 

B. Date of payment 

C. Length of continuous 

service 

– – 

Day Month Year 

– – 


to 

– – = year(s) month(s) 


D. Basis of apportionment: 

1. Method 1 

Apportionment according to time basis 

No. of complete days (D1) = days 

* 

( * Enter ‘X’ in the relevant box ) 

2. Method 2 

Divided into 6 (six) years 

* 

E. Apportionment of gratuity according to Year of Assessment 

1 2 3 4 5 

Apportionment Period Computation Amount Year of 

(days/years) RM Assessment 

(i) Year Method 1: A x E2/D1 (In Days) 

OR 

Method 2: A x E2/6 (In Years) 

(ii) Year as above 

(iii) Year as above 

(iv) Year as above 

(v) Year as above 

(vi) Current year as above 

F. Transfer the amount from items E4(i) to E4(v) for the preceding years of assessment to the part ‘Preceding Years’ Income Not 

Declared’ in the return form. 

G. Transfer the amount from item E4(vi) for the current year of assessment to item A2 Working Sheet HK-2. 


HK-2.3: 

COMPUTATION OF TAX ALLOWANCE 

Name 


I/C No. 

A. Year of Assessment 

B. Preceding Year of Assessment 

C. Tax Allowance 

No. Year of Assessment Date of Notice of Assessment Amount of Tax/Additional Tax (RM) 

1 

2 

3 

4 

5 

6 

7 Total ( C1 to C6 ) 

(Transfer the amount from item C7 to item A3 Working Sheet HK-2) 

Reminder: 

1. Tax allowance is an income chargeable on the employee who receives the benefit of tax borne/paid by his employer. 

2. This benefit constitutes part of the income under paragraph 13(1)(a) ITA 1967. 

3. Tax for the preceding year of assessment indicated in item B is to be taken into account as a benefit for the year 

of assessment indicated in item A, even if the tax has not been paid by the employer. 

4. Additional tax is taken into account as a tax allowance if the notice of assessment is issued in the basis period for 

the year of assessment indicated in item A, even though the tax has not yet been paid by the employer. 

5. Use the columns in item C to compute the total of all tax allowances which shall be taken into account for the 

current year of assessment indicated in item A. 

Use row C1 for the year of assessment indicated in item B. 

 

Use rows C2 to C6 for additional taxes of preceding years of assessment raised in the basis period for the year 

of assessment indicated in item A. Use one row for each year of assessment. 


HK-2.4: 


Name 


I/C No. 

BENEFITS-IN-KIND (BIK) 


Item 

Amount (RM) 

A. Motorcars 

(1) Value of motorcars and petrol 

(2) Value of driver 

B. Value of household benefits 

(1) Semi-furnished with furniture in the lounge, dining room, or 

bedrooms 

(2) Semi-furnished with furniture as in item B(1) and one 

or more of air-conditioners, curtains and alike; and carpets 

(3) Fully-furnished with benefits as in items B(1) and (2) plus 

one or more of kitchen equipment, crockery, utensils and 

appliances 

(4) Service charges and other bills such as water and electricity 

C. Mobile phones: Hardware 

Bills 

D. Household telephone bills (telephone subscribed by the employer) 

E. Gardeners 

F. Household servants 

G. Monthly/Annual recreational club membership subscription 

fees for club membership (type of membership: corporate) 

H. Leave passages 

J. Other benefits: 

K. TOTAL ( A to J ) 

(Transfer this amount to item B Working Sheet HK-2) 


HK-2.5: VALUE OF LIVING ACCOMODATION BENEFIT [PARAGRAPH 13(1)(c)] 

Name 


I/C No. 


* Enter ‘X’ in the relevant box. 

A. JOB STATUS * 

1. Employee (other than officer of a government/statutory body) or service director 

2. Director of a controlled company 

B. TYPE OF LIVING ACCOMODATION * 

1. Ordinary residential premise 

2. Hotel, hostel or similar premise; 

any premise on a plantation or in the forest; or 

any premise which, although in a rateable area, is not subject 

to public rates such. 

C. SHARE OF LIVING ACCOMODATION * 

1. Not shared 

2. Shared Share of living accomodation (X) (Y) 

3. Partly used for advancing 

the interests of the employer Share of living accomodation (X) (Y) 

‘X’ is your share of the living accomodation provided. 

‘Y’ is the living accomodation provided as a whole. 

D. Period for which the living accomodation is provided (n) Month(s) 

E. Length of employment in the current year (m) Month(s) 

F. Defined value ( rental per month x m ) RM 

G. Receipts under paragraph 13(1)(a) RM 

(amount from item A4 Working Sheet HK-2) 

H. 1. 30% of G ( G x 30/100 ) for item A2. RM 

2. 3% of G ( G x 3/100 ) for item A1. RM 


J. VALUE OF LIVING ACCOMODATION BENEFIT SUBJECT TO TAX 


An employee (other than officer of a government/statutory body) or a service director provided with living 

accomodation of type B2 

Amount H2 x n/m 

Value of living accomodation benefit Z 

(Transfer the amount from item Z to item C Working Sheet HK-2) 

(Enter ‘0’ if value is negative) 


An employee (other than officer of a government/statutory body) or a service director provided with: 

2.1 Living accomodation of type B1 and the share of living accomodation is C1. 

Amount H1 or F (whichever is lower) x n/m Value of living accomodation benefit Z 




Amount H1 or F x X/Y (whichever is lower) x n/m Value of living accomodation benefit Z 




Amount H1 or F x X/Y (whichever is lower) x n/m Value of living accomodation benefit Z 



3. Director of a controlled company 

A director of a controlled company provided with: 


Amount F x n/m 




3.2 Living acomodation of type B1 and the share of living accomodation is C2. 

Amount F x X/Y x n/m 





HK-2.6: REFUND FROM UNAPPROVED PENSION OR PROVIDENT FUND, 

SCHEME OR SOCIETY 

Name 


I/C No. 


The amount to be taken into account shall be as reported by the employer in the Form EA / EC. 

The amount subject to tax is the sum received by the employee from the employer’s contribution. 

The amount received is from an unapproved pension or provident fund, scheme or society. 

A. Employer’s contribution 

RM 

B. Employee’s contribution 


(Transfer the amount from item A above to item D Working Sheet HK-2) 


HK-2.7: 

COMPUTATION OF TAXABLE COMPENSATION 

Name 


I/C No. 


A. Length of service with the same employer or companies in the same group 

1. Date of commencement 

2. Date of cessation 

3. No. of completed years of service * Year(s) 

B. Amount of compensation RM 

C. Amount of exempted compensation RM6,000 x A3 = 

D. Taxable compensation ( B - C ) 

(Transfer this amount to item E Working Sheet HK-2) 

* The following examples illustrate the method of computing the number of completed years of service : 

Example 1: 

Date of commencement 01.07.2001 

Date of cessation 31.12.2005 

Length of service 

4 years 6 months 

No. of completed years 

04 years 

Example 2: 

Date of commencement 01.06.1996 

Date of cessation 15.01.2005 

Length of service 

8 years 7 months 15 days 

No. of completed years 

08 years 


HK-3: 

TAX DEDUCTION UNDER SECTION 110 (DIVIDENDS) 

Name 


I/C No. 

A. List of dividend income: 


Submit this Working Sheet and original dividend vouchers if entitled to a tax refund 

(Use separate HK-3 for dividends regrossed) 

No. 

Date of 

Payment 

Warrant No./ 

Serial No. 

Name of Company 

Gross Dividend Tax Deducted Net Dividend 

RM sen RM sen RM sen 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

TOTAL NET DIVIDEND 

Total Regrossed 

X 

Y 

Note: Proceed with the computation overleaf if the rate of tax deducted on dividend received as per voucher/ 

certificate differs from the tax rate for current year of assessment 


B. Computation of regrossed dividend and tax deemed deducted 

If the rate of tax deducted as per dividend voucher/certificate differs from the current year’s tax rate for 

corporations, please use the following formula to regross the net dividend received and compute the tax 

deemed deducted:- 

(i) Dividend regrossed (X) 

1 

= Net dividend 

x 

( 1 - Z * ) 

= (X) 

Enter the amount of regrossed dividend in column ‘X’ under ‘Gross Dividend’. 

(ii) 

Tax deemed deducted (Y) 

= X 

= (Y) 

x 

Z * 

* Where Z is the current year’s tax rate for corporations. 

C. Computation of statutory income from dividends 

(i) 

(ii) 

Gross dividend (X) 

Less: 

Interest on loan employed in the 

production of gross dividend income 

(iii) Statutory Income 

D. Section 110 tax deduction (dividends) 

(as per amount Y above) 

Example of dividend regrossed: 

Details of dividend voucher: 

VOUCHER NO. DIVIDEND NO. TYPE OF DIVIDEND FOR YEAR ENDED 


FOR SHARES 

REGISTERED ON 

DATE OF PAYMENT 

12345 67 FOURTH INTERIM 30 JUNE 2007 23 AUGUST 2007 1 SEPTEMBER 2007 

SHAREHOLDING 

GROSS 

DIVIDEND RATE 

INCOME 

TAX RATE 

GROSS DIVIDEND 

(RM) 

INCOME TAX 

(RM) 

NET DIVIDEND 

(RM) 

5000 16% 

27% 

800.00 216.00 584.00 

Year ended - 30/06/2007 

Date of payment of dividend - 01/09/2007 

Basis period of company which paid the dividend - 01/07/2007 - 30/06/2008 

The date of payment of dividend ie. 01/09/2007 falls within the basis period 01/07/2007 - 30/06/2008 which is 

year of assessment 2008 whereby the tax rate for corporations is 26%. As the tax deducted from the dividend 

is at the rate of 27%, therefore the dividend has to be regrossed using the rate of 26%. 

Computation of regrossed dividend and tax deemed deducted: 

(i) Dividend regrossed (X) 

1 

= 584 x 

( 1 - 0.26 ) 

= 789.19 * * Amount to be entered in the return form as Statutory Income from Dividends 

is RM789 (sen not taken into account) 

(ii) Tax deemed deducted (Y) 

= 789.19 x 26% 

= 205.19

HK-4: 

PARTICULARS OF PROPERTIES / ASSETS AND TOTAL RENTAL 

Name 


I/C No. 


A. LIST OF PROPERTIES RENTED OUT / ASSETS LEASED OUT 

No. Type of Property/Asset Address of the Property/ 

Lessor of the Asset 

Date of 

Commencement of 

the Rental / Lease 

Total Gross Rental / Lease 

Payments received in the 

Year of Assessment (RM) 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

Note: 1. Properties refer to houses, factories, land and other immovable properties. 

2. Assets refer to plant, machineries, furniture and other movable properties. 


B. COMPUTATION OF STATUTORY INCOME FROM RENTS 

(Compute separately for each source of rental income) 

1. GROSS RENTAL INCOME (from item A1 or A2 or A3 .... A10) 

LESS: 

Allowable Expenditure 

(i) 

(ii) 

(iii) 

(iv) 

Interest expended on loan 

employed exclusively in the 

production of the above rental income 

Assessment 

Quit rent 

Insurance 

Other revenue expenditure: 

(v) 

(vi) 

Repairs and maintenance 

Renewal of tenancy agreement 

(vii) ......................................................... 

(ix) ......................................................... 

(x) ......................................................... 

(xi) ......................................................... 

(xii) ......................................................... 

(xiii) ......................................................... 

(xiv) ......................................................... 

(xv) ......................................................... 

2. Total Expenditure [ (i) to (xv) ] 

C. STATUTORY INCOME FROM RENTS ( B1 - B2 ) 

D. SUMMARY OF STATUTORY INCOME FROM RENTS 

Source 1 (amount from item C) 




......................................................... 

Total statutory income from rents including 

rents received from partnership businesses 


HK-6: 

TAX DEDUCTION UNDER SECTION 110 (OTHERS) 

Name 


I/C No. 


A. List out: interest/royalty income pursuant to the provision under section 109 ITA 1967; 

section 4A income subject to the provision under section 109B ITA 1967; 

income from trust bodies as per CP30A and other relevant income. 

(Note - Income Code: 

3 = interest, 5 = royalties, 6 = section 4A income, 

7 = income from trust bodies, 

8 = other relevant income) 

No. *Code Name of Payer/ Gross Tax Deducted Date of Receipt 

Trust Body Income (RM) RM sen Payment No. 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

TOTAL 

(Z) 

B. Total tax deducted under section 110 (others) 

(Z) 

C. Total gross interest income (income code = 3) 

D. Total gross royalty income (income code = 5) 

E. Total gross section 4A income (income code = 6) 

F. Total gross income from trust bodies (income code = 7) 

G. Total gross of other income (income code = 8) 


HK-7: NON-RESIDENT MALAYSIAN CITIZEN RELIEF (SECTION 130) 

Name 


I/C No. 



A. TAX COMPUTATION ON INCOME WHEREVER DERIVED AS IF RESIDENT IN MALAYSIA 

Total Income: 

1. Malaysian (excluding gross income subject to tax at other rates) (P) 

2. Non-Malaysian 

3. Total Income wherever derived as if resident ( A1 + A2 ) (Q) 

4. LESS: Reliefs 

4.1 Self and dependent relatives 

8,000 

4.2 Medical expenses for own parents 

certified by medical practitioner Restricted to 5,000 

4.3 Basic supporting equipment for 

disabled self, spouse, child or parent Restricted to 5,000 

4.4 Disabled person (self) 6,000 

4.5 Education fees (self) for acquiring law, 

accounting, Islamic financing, technical, 

vocational, industrial, scientific or 

technological skills or qualifications Restricted to 5,000 

4.6 Medical expenses on serious 

diseases for self, spouse or child 

4.7 Complete medical examination for 

self, spouse or child (Restricted to RM500) 

, 

Restricted 

t o 

5,000 

4.8 Purchase of books/journals/magazines/ 

similar publications (except newspapers 

and banned reading materials) 

for self, spouse or child Restricted to 1,000 

4.9 Purchase of personal computer for 

individual (deduction allowed once 

in every 3 years) Restricted to 3,000 

4.10 Net deposit in Skim Simpanan 

Pendidikan Nasional (SSPN) 

(total deposit in 2007 minus 

total withdrawal in 2007) Restricted to 3,000 

4.11 Husband / Wife / 

Payment of alimony to former wife Restricted to 3,000 

4.12 Disabled husband / wife 3,500 


4.13 Child: (only one type of child relief can be claimed on each child) 

(a) Unmarried child under the age of 

18 years at any time in that year 

No. 

Eligible Rate 

100% 50% 

x 1,000 = 

, 

x 500 = 

, 

(b) Unmarried child of age 18 years & above 

and receiving education 

No. 

Eligible Rate 

100% 50% 

x 1,000 = 

, 

x 500 = 

, 

x 4,000 = 

, 

x 2,000 = 

, 

(c) Physically/Mentally disabled child 

No. 

Eligible Rate 

100% 50% 

x 5,000 = 

, 

x 2,500 = 

, 

x 9,000 = 

, 

x 4,500 = 

, 

4.14 Life insurance and EPF Restricted to 6,000 

4.15 Education and medical insurance Restricted to 3,000 

4.16 Total Relief ( Item 4.1 to Item 4.15 ) 

5. Chargeable Income ( Item 3 minus Item 4.16 ) (Enter ‘0’ if value is negative) 

6. Income Tax Computation (refer to the tax rate schedule provided) 

6.1 Tax on the first RM ................... 

6.2 Tax on the balance RM .................. at ..... % 

6.3 Total Income Tax ( Item 6.1 plus Item 6.2 ) 


7. LESS: Rebates 

7.1 Tax rebate for self 

(if Item 5 does not exceed RM35,000) 350 

7.2 Tax rebate for wife/husband 

(if Item 5 does not exceed RM35,000 

and Item 4.11 is claimed ) 350 

7.3 Zakat/Fitrah 

7.4 Fees (Levy) paid by a holder of an 

Employment Pass, Visit Pass (Temporary 

Employment) or Work Pass 

7.5 Total Rebate ( Item 7.1 to Item 7.4 ) 

(Restricted to amount in item 6.3) 

8. Tax Chargeable on income wherever derived as if resident 

( Item 6.3 minus Item 7.5 ) (R) 

B. COMPUTATION OF TAX CHARGEABLE ON MALAYSIAN INCOME 

(excluding gross income subject to tax at other rates) 

Total income from Malaysia (excluding gross 

income subject to tax at other rates) (P) Tax chargeable on income wherever 

x derived as if resident (R) 

Total income wherever derived as if resident (Q) 

= (P) x (R) 

(Q) 

= (S) 

C. COMPUTATION OF TAX CHARGEABLE ON MALAYSIAN INCOME AS A NON-RESIDENT 

Total income from Malaysia (excluding 

gross income subject to tax at other rates) 

x 28% = (T) 

D. COMPUTATION OF NON-RESIDENT MALAYSIAN CITIZEN RELIEF (SECTION 130) 

1. Tax chargeable on Malaysian income as a non-resident ` (T) 

Less: 

2. Tax chargeable on Malaysian income (excluding gross income 

subject to tax at other rates) (S) 

3. Non-Resident Malaysian Citizen Relief (Section 130) ( T - S ) 


HK-9 : 

CLAIM FOR SECTION 133 TAX RELIEF - INCOME FROM COUNTRIES 

WITHOUT AVOIDANCE OF DOUBLE TAXATION AGREEMENT 

Name 


Registration No. 


A. Details of Income 

(Note - * Income Code: 1 = business, 2 = dividends, 3 = interest, 5 = royalty, 6 = section 4A income 

7 = income from trust bodies 8 = other relevant income) 

No. * Code Gross Income 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

Total 

B. Relief claimed (U or Z, whichever is lower) 

(X) 

C. Total gross dividend income (income code = 2) 

(Transfer this amount to Working Sheet HK-C14) 

D. Total gross interest income (income code = 3) 


E. Total gross royalty income (income code = 5) 


F. Total gross section 4A income (income code = 6) 

G. Total gross income from trust bodies (income code = 7) 

H. Total gross of other income (income code = 8) 

Note: 1. Use the foreign currency exchange rate provided in Appendix C if the rate as at the time the income is paid or 

credited is not available. 

2. If entitled to a refund, submit this Appendix together with relevant documents pertaining to the tax deducted in 

the foreign country. 


Tax Deducted in the 

Foreign Country 

Y/2 = 

Relief due is either amount Z or amount U, where amount U is computed using the following formula: 

Total X 

Total Income from all sources 

x 

Tax chargeable 

before relief 

= U 

(Y) 

(Z)

HK-10: 

INSTALMENTS / SCHEDULAR TAX DEDUCTIONS PAID 

Name 


I/C No. 



A. Deductions made by the employer in the current year 

1 2 3 4 5 

Period 

Schedular Tax 

No. Employer’s E No. of Deduction Deductions [STD] CP38 Deductions 

(RM) 

(RM) 

Deductions for 

Zakat 

(RM) 

i 

ii 

iii 

iv 

v 

E 

E 

E 

E 

E 

TOTAL 

B. Schedular Tax Deductions made by the employer in the current 

year in respect of previous years’ income 

1 2 3 

No. 

Employer’s E No. 

Year/Period 

of Income 

Schedular Tax 

Deductions [STD] 

(RM) 

i 

ii 

iii 

iv 

v 

E 

E 

E 

E 

E 

TOTAL 

C. Instalments paid in respect of CP500 or CP503 

D. Payments made for the current year other than A, B and C 

E. TOTAL ( A3 + C + D ) 

[Use attachments in case of insufficient writing space] 


HK-11: BASIS YEAR PAYMENT TO NON-RESIDENTS (WITHHOLDING TAX) 

Name 


I/C No. 


Enter ‘X’ in the relevant box. Select one only. Use separate working sheet for each type of withholding tax. 

PAYMENTS MADE IN THE BASIS YEAR TO NON-RESIDENTS UNDER THE WITHHOLDING TAX PROVISION 

OF SECTION : 

107A ITA 1967 (NON-RESIDENT CONTRACTORS) 

109 ITA 1967 (INTEREST AND ROYALTIES) 

109A ITA 1967 (PUBLIC ENTERTAINERS) 

109B ITA 1967 (SECTION 4A INCOME) 

109D ITA 1967 (INCOME FROM UNIT TRUSTS) 

No. Receipt Date of Gross Withholding Tax Withholding Tax Net 

No. Payment Amount Remitted to Remitted to Amount 

Paid LHDNM LHDNM Paid 

(RM) (RM) [for paragraph (RM) 

107A(1)(b) only 

(3%)] (RM) 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

TOTAL 


1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

1 

2 

3 

4 

5 

1 

2 

3 

4 

5 

Date of 

Birth 

Eligible 

Rate * 

Amount of 

Relief 

claimed 

HK- 13 

HK-13: DEDUCTION FOR MAINTENANCE OF UNMARRIED CHILDREN 


Name 


No. Name of Child 

Name of School / College / 

University / Institution of Higher 

Education 

Level of Education at the Institution of 

Higher Education 

In Malaysia Outside Malaysia 100% 50% 

CHILD - BELOW THE AGE OF 18 YEARS 

TOTAL ( 1 to 10 ) 

CHILD - 18 YEARS OF AGE & ABOVE AND RECEIVING EDUCATION 

TOTAL ( 1 to 5 ) 

CHILD - DISABLED 

TOTAL ( 1 to 5 ) 

* Enter ‘X’ in the relevant box. 

Use attachment(s) in case of insufficient writing space. 


NOTE: 

CHILD RELIEF (only one type of relief can be claimed on each child) 

100% Eligibility - Deduction is wholly allowed to the individual entitled to claim full child relief in respect 

of the child on whom the claim is made. 

50% Eligibility - Where two or more individuals (not husband and wife living together eg. divorced 

parents and foster parents) are each entitled to claim a deduction for payments made 

in respect of the same child, the deduction allowed to each of those individuals is 50% 

of the allowable deduction. 

Subsection 48(4) 

CHILD - BELOW AGE OF 18 YEARS 

Relief of RM1,000 is given in respect of each unmarried child who at any time in the current year 

is below the age of 18 years. 

Paragraphs 48(1)(a) and 48(2)(a) 

CHILD - 18 YEARS & ABOVE; AND RECEIVING EDUCATION 

Relief for each unmarried child of age 18 years and above who is receiving full-time 

instruction is RM1,000. 

Paragraphs 48(1)(b), 48(1)(c) and 48(2)(a) 

 

Relief of RM4,000 for each unmarried child over the age of 18 years who is receiving fulltime 

instruction at a university, college or other similar establishment of higher education 

(excluding matriculation and pre-university level) ; or is serving under articles or indentures 

with a view to qualifying in a trade or profession, is given provided: 

(i) in Malaysia - the child is pursuing a course in respect of an award of 

diploma or higher 

(ii) outside Malaysia - the child is pursuing a course in respect of an award of 

degree (including a degree at Master or Doctorate level) or the 

equivalent of a degree 

(iii) the instruction and educational establishment is approved by the relevant government 

authority. 

Paragraphs 48(1)(b), 48(1)(c), subparagraph 48(3)(a)(i) and paragraph 48(3)(b) 

CHILD - DISABLED 

Relief of RM5,000 is given in respect of each unmarried physically/mentally disabled child 

regardless of age and whether the child is receiving full-time instruction. 

Paragraphs 48(1)(d) and 48(2)(b) 

 

Additional relief of RM4,000 for each unmarried child over the age of 18 years who is receiving 

full-time instruction at a university, college or other similar establishment of higher 

education (excluding matriculation and pre-university level); or is serving under articles 

or indentures with a view to qualifying in a trade or profession, is given provided: 

(i) in Malaysia - the child is pursuing a course in respect of an award of 

diploma or higher 

(ii) outside Malaysia - the child is pursuing a course in respect of an award of 

degree (including a degree at Master or Doctorate level) or the 

equivalent of a degree 

(iii) the instruction and educational establishment is approved by the relevant government 

authority. 

* The individual is entitled to claim RM9,000 as deduction for child if the above 

conditions are met. 

Paragraph 48(1)(d), subparagraph 48(3)(a)(ii) and paragraph 48(3)(b) 


HK-14: LIFE INSURANCE PREMIUMS / CONTRIBUTIONS 

TO APPROVED PROVIDENT OR PENSION FUND, 

EDUCATION AND MEDICAL INSURANCE 

Name 


I/C No. 



A. LIFE INSURANCE / PROVIDENT AND PENSION FUND 

No. 

Name of 

Insurance Company / 

Provident and Pension Fund 

Policy No. / 

Provident Fund No. 

On Own Life or 

Life of Husband / 

Wife / Wives 

Contributions / 

Premiums Paid in 

the Current Year (RM) 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

TOTAL ( 1 to 10 ) 

B. EDUCATION AND MEDICAL INSURANCE 

No. 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

Name of 

Insurance Company 

Policy No. 

TOTAL ( 1 to 10 ) 

On Self or 

Husband / Wife 

or Child 

Premiums Paid in the 

Current Year (RM) 


NOTE: 

A. LIFE INSURANCE AND EPF 

Deduction is allowed for payment of premiums on life insurance policy or deferred 

annuity contracted on own life, life of spouse(s) or joint lives of ownself and 

spouse(s). However, deduction is not allowable on premiums paid on life insurance 

policy or deferred annuity contracted for by the individual on the life of his child. 

Contribution to the Employees Provident Fund (EPF) or other provident fund/ 

pension scheme approved by the Director General. 

With effect from Year of Assessment 2005, the total deduction allowable for life 

insurance premiums and contributions to EPF or other approved provident fund/ 

pension scheme is restricted to RM6,000 for an individual and RM6,000 for the 

spouse who has total income. If the husband or wife elects for joint assessment, 

the deduction for life insurance premiums and EPF contribution is restricted to 

RM6,000. 

Sections 49 and 50 

B. EDUCATION AND MEDICAL INSURANCE 

Deduction for premiums paid in respect of insurance on education or medical benefits 

for an individual, spouse or child shall not exceed RM3,000. 

Subsections 49(1B) and 50(2) 




APPENDIX A1 

1. Gross Business Income 

Legal Provision 

Subject 

12 Gross business income derived from Malaysia. 

22(2)(a)(i) 

22(2)(a)(ii) 

22(2)(b) 

Sums receivable or deemed to have been received by way of insurance, indemnity, recoupment, 

recovery, reimbursement or otherwise in respect of outgoings and expenses deductible in ascertaining 

the adjusted income. 

Sums receivable or deemed to have been received under a contract of indemnity. 

Compensation for loss of income from that source. 

24(1) Debt owing to a relevant person arising in or before the relevant period. 

24(2) Market value of the stock in trade at the time of its withdrawal for personal use. 

30(1)(a) 

30(1)(b) 

Recovered bad debts. 

Specific provision for doubtful debts no longer required. 

30(4) Debt released in respect of any outgoing / expense / allowance which has been made under paragraphs 

33(1)(a), (b) or (c); or Schedule 3 

– Income other than the above. 

2. Allowable Expenses 


Subject 

33(1) Outgoings and expenses wholly and exclusively incurred in the production of gross income. 

33(1)(a) 

33(1)(b) 

33(1)(c) 

34(6)(a)/(b) 

34(6)(d) 

Interest on any money borrowed and employed in the production of gross income; or laid out on assets 

used or held for the production of gross income from that source, but restricted in accordance with 

subsection 33(2). 

Rent payable in respect of any land or building or part thereof occupied for the purpose of producing 

gross income from that source. 

Expenses incurred for the repair of premises, plant, machinery or fixtures employed in the production 

of gross income from that source. 

Other expenses include: 

the renewal, repair or alteration of any implement, utensil or article so employed, which do not 

qualify for capital allowance, 

 

any means of conveyance. 

Amount of payroll tax/turnover tax paid. 

Expenses incurred in the replanting of crops (in connection with the working of a farm/estate relating to 

the cultivation of crops). 

Appendix page - 1


34(6)(e) 

34(6)(f) 

34(6)(g) 

34(6)(h) 

34(6)(i) 

34(6)(j) 

34(6)(k) 

34(6)(n) 

Subject 

Equipment for disabled employees. 

Transaltion into or publication in the national language of cultural, literary, professional, scientific or 

technical books approved by the Dewan Bahasa dan Pustaka. 

Provision of library facilities accessible to the public or contributions to public libraries and libraries of 

schools and institutions of higher education not exceeding RM100,000. 

Provision of services, public amenities and contributions to a charity or community project pertaining 

to education, health, housing, infrastructure and information and communication technology approved 

by the Minister. 

Expenditure incurred, not being capital expenditure on land, premises, buildings, structures or works of 

a permanent nature or on alterations, additions or extensions thereof or in the acquisition of any rights 

in or over any property on the provision and maintenance of a child care centre for the benefit of 

employees. 

Expenditure incurred in establishing and managing a musical or cultural group approved by the Minister. 

Expenditure incurred in sponsoring any arts, cultural or heritage activity approved by the Ministry of 

Culture, Arts and Heritage: 

not exceeding RM200,000 for sponsoring foreign arts, cultural or heritage activity but 

not exceeding RM500,000 in aggregate 

Expenditure incurred on the provision of practical training in Malaysia, in relation to the business, to a 

resident individual who is not own employee 

Appendix page - 2



APPENDIX A1.1: 

REMINDER 

Please take note of the following requirements when computing any adjustment. Documents, records and other written 

evidence must be properly kept as the onus-of-proof is on the individual who makes the claim/adjustment. Any claim/ 

adjustment not supported by sufficient documentation shall be disallowed in the event of a tax audit and penalty may be 

imposed. 

The following are the required information and documents which must be made available and retained with any adjustment 

and tax computation. 

1. Adjustment of income and expenses 

Adjustments must be supported by: 

An analysis of income and expenditure 

Subsidiary accounts 

Receipts/Invoices 

2. Contract/Subcontract payments, commission, rents and other contract payments for services to residents: 

Name, address, identity card number and amount paid in respect of each recipient 

Type of contract/commission/service 

Type of asset leased 

3. Contract payments to non-residents (receipts by non-resident contractors - section 107A applies): 

Name, type, location and duration of project 

Value of the whole contract and value of the service portion of the contract 

Contract payments and payments for the service portion of the contract in the current year of assessment 

Name, address, tax reference number and passport number of the foreign contractor 

4. Payment of management fees to residents: 

Name, address, identity card number and amount paid 

Relationship with the recipient, if any 

Basis of payment 

Service agreement or other relevant documents 

5. Payment of professional, technical or management fees and rents to non-residents (section 4A income): 

a) Payment of professional, technical or management fees 

Name, address and amount paid 

Type of services rendered 

Furnish reasons if the whole or part of the payment is not considered as a section 4A income and keep a copy 

of the agreement for future examination. 

b) Payments for rental of movable properties 

Type of movable property 

Name, address and amount paid in respect of each recipient 

If the payment is not subjected to withholding tax, retain the relevant supporting documents and rental 

agreement, if any. 

6. Overseas trips: 

Name and designation of each employee concerned 

Dates, destinations and purpose of trips 

Analysis of expenditure indicating the portion of private expenses 

Appendix page - 3



7. Public Rulings, Government Gazettes, guidelines and application forms for incentive claims: 

Director General’s Public Rulings (refer to Appendix H) 

* 

Application for an approved research project and claim for double deduction on research expenditure under 

section 34A ITA 1967 

Director General’s Public Ruling : Public Ruling No. 5/2004 (issued on 31/12/2004) 

Reference no. of application form : Borang 1 (Sek 34A ACP 1967) and Borang 2 (Sek 34A ACP 1967) 

Guideline on the claim for double deduction on research expenditure under section 34B ITA 1967 

* 

Reference no. of the LHDNM guideline : LHDN.01/35/(S)/42/51/286-18 

Reference no. of application form : Borang DD2/1995(Pin.2) 

Guideline on application under subsection 44(6) ITA 1967 for deduction of any gift of money to an approved 

organisation in aid of individuals suffering from chronic/serious diseases. Refer to LAMPIRAN A on the 

types of chronic/serious diseases. 

Reference no. of the LHDNM guideline : 

Reference no. of application form : LAMPIRAN B 

Guideline on the types of serius diseases under subsection 46(g) ITA 1967 

Reference no. of the LHDNM guideline : LHDN.01/35/(S)/42/51/224-36.4 

Reference no. of application form : None 

Guideline on the criteria for education and medical insurance policies 

Reference no. of the LHDNM guideline : LHDN.01/35/(S)/42/51/224-36.2 


Guideline on the tax treatment of remisiers 

Reference no. of the LHDNM guideline : LHDN.01/35/(S)/42/51/84 


8. Housing Developers: 

Name, address and location of project 

Approved layout plan 

Date of completion for each phase of the project 

Cost of land 

Development cost analysis for each phase on cumulative basis for each year of assessment 

Computation of profit or loss on progress payments basis if the percentage of completion method is not adopted 

( Available at the LHDNM website) 

* 

Appendix page - 4



APPENDIX B1: 

GRATUITY 

A. Gratuity 

Gratuity is a gift of money for services rendered and is received/receivable upon retirement or termination of a contract 

of employment. Gratuities are liable to tax except those listed in item C on Appendix page 6. 

B. Computation of Taxable Gratuity 

In computing the amount of taxable gratuity, the basis periods for which it is paid have to be considered in accordance 

with the proviso to subsection 25(4). 

Basis of apportionment: 

Method 1 

The amount of taxable gratuity shall be treated as accruing evenly over the period of continuous employment with 

the same employer or companies within the same group. (refer to Example I) 

OR 

Method 2 

If the period of continuous employment with the same employer or companies within the same group commenced 

more than five (5) years before the commencement of the basis period in which the employment ceases, the 

amount of taxable gratuity shall be apportioned equally for the last six (6) years of assessment. (refer to Example II) 

Example I 

An employee ceased employment at the age of 40 after five months of service with the same employer. 

Period of employment : Commencement - 01.10.2006 

Cessation - 29.02.2007 

Amount of gratuity : RM5,000 

Length of service : 151 days (Use Method 1) 

Basis period for the year ending : 31.12.2006 (01.10.2006 - 31.12.2006) = 92 days 

31.12.2007 (01.01.2007 - 28.02.2007) = 59 days 

Total 151 days 

Apportionment of gratuity according to the Year of Assessment: 

1 2 3 4 5 


(year) (days/year) RM Assessment 

(i) 2006 92 days 92/151 x 5,000 3,046 2006 

(ii) - - - - - 

(iii) - - - - - 

(iv) - - - - - 

(v) - - - - - 

(vi) 2007 59 days 59/151 x 5,000 1,954 2007 

Transfer the amount from item 4(i) for the previous year of assessment to Part F Form M. 

Transfer amount 4(vi) for the current year of assessment to item A2 Working Sheet HK-2. 

Appendix page - 5



Example II 

An employee ceased employment under a collective agreement at the age of 45 after seven years of service with the same 

employer. 

Period of employment : Commencement - 01.07.2000 

Cessation - 30.06.2007 

Amount of gratuity : RM25,000 

Length of service : More than five (5) years before the commencement of the basis period in which the employment 

ceases. (Use Method 2) 


Basis period for the year ending : 31.12.2002 2002 

31.12.2003 2003 

31.12.2004 2004 

31.12.2005 2004 

31.12.2006 2006 

31.12.2007 2007 

Apportionment of gratuity according to the Year of Assessment: 

1 2 3 4 5 


(year) (months/year) RM Assessment 

(i) 2002 1 year 1/6 x 25,000 4,167 2002 

(ii) 2003 1 year 1/6 x 25,000 4,167 2003 

(iii) 2004 1 year 1/6 x 25,000 4,167 2004 

(iv) 2005 1 year 1/6 x 25,000 4,167 2005 

(v) 2006 1 year 1/6 x 25,000 4,166 2006 

(vi) 2007 1 year 1/6 x 25,000 4,166 2007 

Transfer the amounts from item 4(i) to 4(v) for the previous years of assessment to Part F Form M. 

Transfer amount 4(vi) for the current year of assessment to item A2 Working Sheet HK-2. 

Appendix page - 7



C. Exempted Gratuity 

1. Retirement gratuity (a) If the Director General of Inland Revenue is satisfied that 

the retirement is due to ill-health 

Or 

(b) 

Retirement on or after reaching the age of 55 years/compulsory 

age of retirement and the individual has worked ten (10) 

years continuous employment with the same employer or 

companies within the same group 

Or 

(c) 

If 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 ten years with the same employer 

or with companies in the same group 

2. Gratuity paid out of public funds Gratuity paid out of public funds on retirement from an 

employment under any written law 

3. Gratuity paid out of public funds to a Gratuity paid out of public funds on termination of a contract 

contract officer on termination of a 

of employment ( less the employer’s contribution to the 

contract of employment 

Employees Provident Fund, if any, and interest thereon) 

regardless of whether the contract is renewed or not. 

4. Death gratuity Sums received by way of death gratuity. 

Appendix page - 6



APPENDIX B2: 

TAX ALLOWANCE 

Tax Allowance/Tax Borne by the Employer 

Employee’s tax borne by the employer is TAX ALLOWANCE which is a perquisite chargeable to tax on the employee under 

the provision of paragraph 13(1)(a) ITA 1967. Public Ruling No. 2/2006 (issued on 17 Januari 2006) may be referred to for 

further explanation. 

Method of computing this allowance for an employment which commences and ceases in the same year of assessment (Y/A) differs 

from that for an employment which ceases in the following year of assessment. 

Employment which commences and ceases in the same Y/A 

Tax borne by the employer in respect of the employee’s income for a Y/A shall be taken into account as his tax allowance 

for that Y/A. The employee’s tax borne by the employer in respect of his employment income for the year 2006 (Y/A 2006) 

is taken into account as his tax allowance for the same year (same Y/A) because the amount of tax payable is determined 

in the year 2006. 

Example 1: 

Period of employment in Malaysia - 01.03.2007 to 30.06.2007 

Tax computation for Y/A 2007 to determine the tax allowance for the same Y/A 

Income for the period from 01.03.2007 to 30.06.2007 (for year ending 31.12.2007): 

Salary - RM100,000 

Benefit-in-kind - RM 2,220 

Value of living accomodation benefit - RM 7,200 

Chargeable income 

RM109,420 

Tax on RM109,420 at 28% = RM30,637.60 

Half of the tax payable is borne by the employer (partly borne). 

Therefore, RM30,637.60 x 1/2 = RM15,318.80 (A) is the tax allowance to be taken into account for Y/A 2007. 

Transfer amount A to item A3 Working Sheet HK-2. 

Appendix page - 8



Employment which commences in a Y/A but ceases in the following Y/A 

For an employment which ceases in the following Y/A, the tax for two years of assessment shall be taken into account for 

the Y/A in which the employment ceases. 

Example 2: 

Period of employment in Malaysia - 01.10.2006 to 31.01.2007 

Tax computation for Y/A 2006 to determine the tax allowance for Y/A 2007 



Benefit-in-kind - RM 1,500 



RM78,750 

Tax on RM78,750 at 28% = RM22,050 

(B) 

Tax for Y/A 2006 is raised on 05.02.2007 and is fully borne by the employer. The tax payable of RM22,050 is the 

tax allowance to be taken into account as part of his income for the year 2007. 

Tax computation for Y/A 2007 to determine the tax allowance for Y/A 2007 



Tax allowance (Y/A 2006) - RM22,050 (B) 

RM47,050 

Benefit-in-kind - RM 500 



RM48,962 

Tax on RM48,962 at 28% = RM13,709.36 

(C) 

As the tax for Y/A 2007 is fully borne by the employer, the tax payable of RM13,709.36 is the tax allowance to be 

taken into account also as part of his income for the year 2007. 

Tax allowance for Y/A 2007: 

Tax allowance (Y/A 2006) - RM22,050.00 (B) 

Tax allowance (Y/A 2007) - RM13,709.36 (C) 

Total: 

RM35,759.36 (D) 

Transfer amount D to item A3 Working Sheet HK-2. 

Appendix page - 9



APPENDIX B3: 


BENEFITS-IN-KIND (BIK) 

(i) These are benefits/amenities not convertible into money provided by/on behalf of the employer for the personal use/ 

enjoyment by his employee, wife, family, servants, dependents or guests of that employee. 

(ii) The employer is required to report annually in his employee’s Statement of Remuneration and in the Form E for Employer, 

all values of the BIK provided to that employee. 

(iii) The value of the BIK determined according to Public Ruling No. 2/2004 including its Addendum and Second Addendum 

(issued on 8 November 2004, 20 May 2005 and 17 January 2006 respectively) is to be taken as part of that employee’s 

gross employment income. This Public Ruling supercedes the Income Tax Ruling ITR 1997/2 (issued on 25 August 

1997) with effect from year of assessment 2004. 

VALUATION OF BIK PROVIDED TO THE EMPLOYEE BY THE EMPLOYER 

(i) The two methods which may be used to determine the value of BIK are:- 

(a) the prescribed value method; and 

(b) the formula method. 

(ii) Whichever method used as the basis of computing the benefit must be consistently applied throughout the period of 

the provision of the benefit. 

(iii) In any case where motorcar is provided with/without petrol, the employer is required to report the type, year of manufacture 

and model of the motorcar as well as the date on which it is provided, in the employee’s Statement of Remuneration. 

(iv) Toll fees paid by the employer is regarded as inclusive in the value of BIK on the motorcar. Maintenance costs such 

as servicing, repairs, annual road tax and annual insurance premium are not regarded as part of the benefit of the employee. 

(v) Where an amenity and its related benefits are provided, the method of valuation for those related benefits will depend on the 

method used to value the amenity provided. For example, the method of valuation in respect of petrol depends on the method 

used to value the benefit of the motorcar. 

A. THE PRESCRIBED VALUE METHOD 

1. Under this method, the value of the BIK can be abated if the BIK is:- 

(i) provided for less than a year; or/and 

(ii) shared with another employee. 

However, there is no abatement on the value of the BIK provided to the employee for business usage or deduction for any 

expense incurred by the employee in acquiring the benefit. 

2. PRESCRIBED VALUE OF MOTORCAR AND ITS RELATED BENEFITS 

(i) The following table can be used to determine the value of benefit from the private usage of motorcar and petrol 

provided: 

Annual Prescribed 

Benefit of: 

Cost of Motorcar 

Cost of Motorcar 

when New Motorcar Petrol when New Motorcar Petrol 

RM RM RM RM RM RM 

Up to 50,000 1,200 600 200,001 - 250,000 9,000 2,100 

50,001 - 75,000 2,400 900 250,001 - 350,000 15,000 2,400 

75,001 - 100,000 3,600 1,200 350,001 - 500,000 21,250 2,700 

100,001 - 150,000 5,000 1,500 500,001 and above 25,000 3,000 

150,001 - 200,000 7,000 1,800 

(ii) Under this method, the valuation will be based on the actual cost of the motorcar inclusive of accessories but 

excluding financial charges, insurance premium and road tax at the time when it was new. This treatment is 

also applied to secondhand, leased or rented motorcars. New motorcar includes a reconditioned motorcar at the 

time when it was first registered in Malaysia. 

Example: Employee J is provided with a motorcar leased by his employer from a leasing company. His employer 

paid a monthly lease rental of RM3,000 for 48 months. The cost of the motorcar when new is RM90,000. 

The annual value of BIK taxable as part of J’s gross employment income in respect of the motorcar is 

RM3,600 [from the table in item A2(i)]. Payment for the lease rental is ignored. 

(iii) The annual value of the BIK in respect of the motorcar can be reduced to half (1/2) of the prescribed value if 

the motorcar provided is more than five (5) years old. The value of the BIK in respect of petrol remains unchanged. 

Appendix page - 10 

Annual Prescribed 

Benefit of:



3. PETROL PROVIDED WITHOUT MOTORCAR 

The taxable benefit is the total value of petrol provided to the employee. 

4. DRIVER PROVIDED 

The value of this benefit is fixed at RM600 per month. Where the driver is not specifically provided to the employee but 

comes from a pool of drivers provided by the employer solely for business purposes, no benefit will be taxable on the 

employee. 

5. PRESCRIBED VALUE OF HOUSEHOLD FURNISHINGS, APPARATUS AND APPLIANCES 

(i) To avoid detailed computation, please refer to the following table: 

Category Type of Benefit Annual Value of BIK 

(a) Semi-furnished with furniture in the lounge, dining room or bedroom RM 840 

(b) Semi-furnished with furniture as in (a) above and one or two of the RM1,680 

following:- air-conditioners, curtains and alike, carpets 

(c) Fully-furnished with benefits as in (a) and (b) above plus one or more RM3,360 

of kitchen equipment, crockery, utensils and appliances 

(d) Service charges and other bills such as water and electricity Service charges and bills 

paid by the employer 

(ii) The value of the benefit can be adjusted accordingly depending on whether any or all of the furnishings, apparatus 

and appliances mentioned in items A5(i)(a), (b) and (c) have been provided. If an employee has been provided with 

all except those in item A5(i)(a), the value of the benefit to be assessed shall be RM2,520 (RM3,360 - RM840). 

(iii) The value of the benefit can also be apportioned based on the period for which the benefit [items A5(i)(a), (b) 

or (c)] is provided. If an employee is provided with the benefit as per item A5(i)(a) from 01.04.2007, then the value 

of benefit for the period 01.04.2007 - 31.12.2007 to be assessed for the Year of Assessment 2007, shall be RM630 

(RM840 x 9/12). 

(iv) Reasonable adjustment on the value of the BIK can be made if the use of the benefit is shared with another employee. 

Example: Facts of the case are the same as in example A5(iii) above. If the benefit is shared equally with another 

employee, the value of the benefit for the Year of Assessment 2007 will be RM315 (RM630 x 1/2). 

(v) Fans and water heaters are treated as part of the residential premise and therefore disregarded. 

6. PRESCRIBED VALUE OF OTHER BENEFITS 

Item Type of Benefit Value of BIK per Year 

(a) (i) Mobile phone Hardware : RM 300 per telephone 

Bills : RM 300 per telephone 

(ii) House telephone subscribed by the employer Bills : RM 300 per telephone 

Note: Irrespective of whichever method of valuation used in respect of house telephone subscribed by the 

employee, the actual cost of the employee’s private bills paid by the employer is a benefit to be taxed under 

paragraph 13(1)(a) and not paragraph 13(1)(b) 

(b) Gardener RM3,600 per gardener 

(c) Household servant RM4,800 per servant 

(d) Recreational club membership: 

Type of membership - Corporate Entrance fee : Not taxable 

Monthly/Annual membership subscription 

fees for club membership paid by the employer 

Note: 

Type of membership - Individual 

Entrance fee 

Monthly/Annual membership 

subscription fees for club 

membership 

Term membership 

Amount paid/reimbursed by 

employer is taxed under 

paragraph 13(1)(a) and not 

paragraph 13(1)(b) 

Appendix page - 11



B. THE FORMULA METHOD 

1. The value of BIK based on formula method can be abated if the BIK is:- 

(i) provided for less than a year; or/and 

(ii) shared with another employee; or/and 

(iii) used for the purpose of the employer’s business. 

2. Under this method, the value of each benefit provided is ascertained by using the formula below: 

Cost * of the asset provided as benefit/amenity 

Prescribed average life span* of the asset 

= Annual value of the benefit 

* Note: (i) ‘Cost’ means the actual cost incurred by the employer. 

(ii) ‘Prescribed average life span’ tabulated in item B6 must be applied for any benefit/amenity regardless of 

whether the asset is old or new. 

3. Where the formula method is used in respect of the private usage of:- 

(a) mobile phone 

- hardware : the value of the benefit is calculated by using the formula in item B2 

- bills : actual cost of the employee’s private bills paid by the employer 

(b) house telephone subscribed by the employer 

- bills : actual cost of the employee’s private bills paid by the employer 

(c) house telephone subscribed by the employee 

- bills : actual cost of the employee’s private bills paid by the employer is taxed under paragraph 13(1)(a) 

and not paragraph 13(1)(b) 

4. Where a motorcar and its related benefits are provided, 

(a) (i) an abatement of 20% which is deemed to be the value of the motorcar at the time when it is returned to the 

employer by the employee, is given and the following formula is to be applied: 

(ii) 

(iii) 

Cost of the motorcar provided as benefit/amenity 

8 ( Prescribed average life span ) 

no abatement is available if the motorcar provided is more than five (5) years old. 

x 80% = Annual value of benefit of the motorcar 

a reduction in the value of the benefits can be made if the employee is required to pay a sum of money to his 

employer for the benefits provided. 

(b) 

the value of the benefit in respect of petrol is the actual value of petrol provided to the employee. Likewise if 

a motorcar is not provided together. 

Example: 

Employee K is provided with a 6-year old motorcar and free petrol throughout the year 2007. 

Cost of motorcar when new 

: RM280,000 

Cost of purchase of the motorcar by his employer : RM200,000 

Total mileage of the motorcar in the year 2006 : 36,000 km. of which 12,000 km. is in respect of K’s private 

use. 

Amount expended by his employer on petrol in 

respect of this motorcar 

: RM8,400 

K is required to pay his employer RM1,200 to subsidize the cost of the petrol. 

The annual value of BIK taxable as part of K’s gross employment income for the Year of Assessment 2007 

in respect of: 

motorcar is RM6,667 ( 200,000/8 x 80% x 12,000/36,000 ) 

petrol is RM1,600 [ ( 8,400 x 12,000/36,000 ) - 1,200 ] 

5. Other assets provided to the employee for his entertainment, recreation or other purposes such as piano, organ, television, 

stereo set, swimming pool and others will be treated as additional benefits and have to be separately assessed based on 

the formula in item B2. 

Appendix page - 12

6. PRESCRIBED AVERAGE LIFE SPAN OF VARIOUS ASSETS PROVIDED BY EMPLOYERS TO EMPLOYEES: 

Category Assets Prescribed Average 

Life Span (Years) 

(a) Motorcar 8 

(b) 

Furniture and fittings: 

Curtains and carpets 5 

Furniture, sewing machine 15 

Air-conditioner 8 

Refrigerator 10 

(c) Kitchen equipment 6 

(i.e. crockery, rice-cooker, electric kettle, toaster, coffee maker, 

gas cooker, cooker hood, oven, dish-washer, washing machine, 

dryer, food processor, etc.) 

(d) 

Entertainment and recreation: 

Piano 20 

Organ 10 

TV, video recorder, CD/ DVD player, stereo set 7 

Swimming pool (detachable), sauna 15 

(e) Miscellaneous 5 

C. TAX EXEMPT BENEFITS 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

Medical, dental benefit or child-care benefit; 

Leave passage for travel (confined only to the employee and members of his immediate family i.e. spouse and children): 

- within Malaysia not exceeding three times in any calendar year (cost of fares, meals and accomodation); or 

- between Malaysia and any place outside Malaysia not exceeding one passage in any 

calendar year, is limited to a maximum of RM3,000 (only cost of fares); 

The benefit is used by the employee solely for purposes of performing his employment duty; 

Goods and services offered at discounted prices (refer to the Second Addendum to Public Ruling 2/2004 issued on 

17 January 2006); 

Food and drinks provided free of charge; 

Free transportation between pick-up points or home and the place of work (to and fro); 

Insurance premiums which are obligatory for foreign workers as a replacement to SOCSO contributions; and 

Group insurance premium to cover workers in the event of an accident. 

Appendix page - 13



APPENDIX B4: VALUE OF LIVING ACCOMODATION BENEFIT [PARAGRAPH 13(1)(c)] 

COMPUTATION OF THE VALUE OF LIVING ACCOMODATION BENEFIT 

Where an employer provides living accomodation in Malaysia for the use or enjoyment by his employee and spouse, family, 

servants, dependents or guests, the value of this benefit is liable to tax and chargeable on the employee under the provision 

of paragraph 13(1)(c) ITA 1967. 

The value of the living accomodation benefit for each year is determined as follows: 

(i) 3% of the gross employment income for category 1 

(ii) 30% of the gross employment income or the defined value *, whichever is lower for category 2 

(iii) The defined value for category 3 

For the following examples:- 

Gross employment income under paragraph 13(1)(a) = T 

Value of the living accomodation provided = Z 

Period for which the living accomodation is provided = n 

Length of employment = m 

Portion of the living accomodation provided = X 

The living accomodation provided as a whole = Y 

Defined value * = F 

CATEGORY 1: Living accomodation provided for employee (other than officer of a Government/Statutory Body) / service 

director:- 

- hotel, hostel or similar premise; 

- any premise on a plantation or in a forest; or 

- any premise which, although in a rateable area, is not subject to public rates. 

Value of living accomodation benefit = 3% x Gross employment income under paragraph 13(1)(a) 

Example 1: Living accomodation is provided throughout the period of employment in Malaysia. 

- Gross employment income under paragraph 13(1)(a) RM36,000 (T) 

- Period for which the living accomodation is provided 4 months (n) 

- Length of employment in the current year 4 months (m) 

Computation of the value of living accomodation benefit: 

Value of the living accomodation benefit (Z) = 3% x T x 

= 

3 

100 

x 36,000 x 

n 

m 

4 

4 

= RM1,080 

The taxable value of living accomodation benefit (Z) = RM1,080 

(Transfer amount Z to item C Working Sheet HK-2) 

Appendix page - 14


Example 2: 


If the living accomodation is provided for only part of the period of employment in Malaysia, the value 

of the living accomodation is calculated based on the period the living accomodation is provided. 


- Period for which the living accomodation is provided 1 month (n) 


Computation of the value of accomodation provided: 

Value of the living accomodation benefit (Z) = 3% x T x 

= 

3 

100 

x 40,000 x 

n 

m 

1 

4 

= RM300 

The taxable value of living accomodation benefit (Z) = RM300 


CATEGORY 2: Living accomodation provided for employee (other than officer of a Government/Statutory Body) or service 

director by the employer 

Value of living accomodation benefit = 30% x Gross employment income under paragraph 13(1)(a) 

OR 

The defined value * 

whichever is lower 

( * Refer to Appendix page - 16 for the definition of ‘defined value’ ) 

Example 1: Living accomodation is not shared with any other employee 




- Rental of the living accomodation provided RM2,000 per month (unfurnished) 

- Defined value * [2,000 x 3 months (m)] RM6,000 (F) 


30% x T 

OR 

= 

30 

x 24,000 

100 

= RM7,200 

F 

= RM6,000 

Value of the living accomodation benefit (Z) = 6,000 x 

= 6,000 x 

= RM6,000 




n 

m 

3 

3 

whichever is lower

Example 2: Living accomodation is shared equally with another employee 





- 2 persons sharing: 

- portion of living accomodation provided 1 (X) 

- living accomodation provided as a whole 2 (Y) 



30% x T 

= 

30 

100 

x 45,000 

= RM13,500 

whichever is lower 

OR 

F 

x 

X 

Y 

= 6,000 x 

1 

2 

= RM3,000 


n 

m 

3 

= 3,000 x 

3 

= RM3,000 



Example 3: Part of the living accomodation provided is used to further the interests of the employer (official 

use) for example 1/3 





- Portion of living accomodation provided for personal use 2 (X) 

- Living accomodation provided as a whole 3 (Y) 



30% x T 

= 

30 

100 

x 25,000 

= RM7,500 

OR 

X 

F 

x Y 

2 

= 15,000 x 

3 

= RM10,000 


= 7,500 x 

= RM6,000 




n 

m 

4 

5 

whichever is lower

CATEGORY 3: 

Living accomodation provided for directors of controlled companies by the employer 

Value of the living accomodation shall be the defined value * of the living accomodation provided. There is no 

comparison with 30% of the gross employment income under paragraph 13(1)(a). 

Example 1: 

Living accomodation is not shared 






Computation of the value of living accomodation provided: 

Value of the living accomodation benefit (Z) = F x 

= 15,000 x 

n 

m 

3 

5 

= RM9,000 



Example 2: 

Living accomodation is shared equally with another director/employee 





- 2 persons sharing: 

- portion of living accomodation provided 1 (X) 

- living accomodation provided as a whole 2 (Y) 




X 

Y 

x 

= 8,000 x 

1 

2 

x 

= RM4,000 

n 

m 

4 

4 



* DEFINED VALUE: (i) Where the accomodation is not affected by any written law providing for the restriction or control of rents 

and the person so providing the accomodation holds the accomodation on lease, the rent which is or 

would have been paid if the accomodation is or had been unfurnished and the lessor and the lessee were 

independent persons dealing at arm’s length. 

(ii) in any other case, the rateable value or, in the absence of a rateable value, the economic rent. 

Where the rental includes the rental of furniture, the amount used to compute the defined value shall be net of the rental of furniture. 

The rental of furniture is a benefit-in-kind [paragraph 13(1)(b) ITA 1967]. 

Appendix page - 17



APPENDIX B5 : 

COMPENSATION FOR LOSS OF EMPLOYMENT 

1. INCOME FROM COMPENSATION 

This is any amount received by an employee from his employer as compensation for loss of employment before or after his 

employment ceases. 

2. FULL / PARTIAL TAX EXEMPTION OF COMPENSATION 

If the Director General is satisfied that the 

compensation received is due to ill-health 

Full exemption is granted 

Compensation received due to reasons other 

than the above 

Exemption of RM6,000 is granted for each 

completed year of service with the same 

employer or companies in the same group 

(An example is illustrated below) 

3. TAXABLE COMPENSATION 

Compensation received by a director 

(not a service director) of a controlled 

company 

The whole amount is subject to tax 

(Transfer this amount to item E Working Sheet HK-2) 

Example: 

The service of an employee/service director of a controlled company has been terminated not by reason of ill-health. The 

particulars of his employment are as follows:- 

A. Length of Service 

1. Date of commencement 01.04.2000 

2. Date of cessation 30.06.2007 

3. No. of completed years of service 07 years 

B. Amount of compensation RM45,000 

C. Amount exempted (RM6,000 x 7) RM42,000 

D. Taxable compensation (RM45,000 - RM42,000) RM3,000 

(Transfer amount D to item E Working Sheet HK-2) 

Appendix page - 18



APPENDIX C 

APPENDIX C : FOREIGN CURRENCY EXCHANGE RATES (YEARLY AVERAGE) 

YEAR OF $1 1 DINAR $1 $1 1 RENMINBI 1 RIYAL 1 RAND 1 KRONE $1 1 RUPEE 1 RUPIAH 1 YEN 

ASSESSMENT AUST. BAHRAIN BRUNEI CANADA CHINA ARAB SAUDI S.AFRICA NORWAY HK INDIA INDONESIA JAPAN 

1997 1.9745 6.6861 1.7892 1.8507 - - - - 0.3260 0.0716 0.0011 0.0236 

1998 2.1213 7.7248 1.9346 2.0981 0.3522 - - - 0.3762 0.0799 0.0010 0.0240 

1999 2.4712 10.3919 2.3438 2.6480 0.4745 - - - 0.5057 0.0953 0.0004 0.0301 

2000 (TBTS) 2.4748 10.0800 2.2626 2.5810 0.4633 - - - 0.4942 0.0891 0.0005 0.0338 

2000 (STTS) 2.2350 10.0839 2.2270 2.5849 0.4636 - - 0.4371 0.4925 0.0855 0.0005 0.0356 

2001 1.9874 12.5202 2.1436 2.4793 0.4637 - - 0.4274 0.4921 0.0814 0.0004 0.0316 

2002 2.0851 10.0815 2.1434 2.4444 0.4637 1.0234 0.3665 0.4831 0.4921 0.0790 0.0004 0.0307 

2003 2.4967 10.0812 2.2038 2.7407 0.4637 1.0234 0.5092 0.5433 0.4928 0.0824 0.0004 0.0331 

2004 2.8277 10.0822 2.2708 2.9533 0.4637 1.0234 0.5978 0.5701 0.4927 0.0847 0.0004 0.0354 

2005 2.9161 10.0891 2.2967 3.1529 0.4669 1.0199 0.6013 0.5955 0.4918 0.0869 0.0004 0.0348 

2006 2.7885 9.8261 2.3305 3.2648 0.4646 0.9877 0.5522 0.5777 0.4772 0.0820 0.0004 0.0318 

2007 2.9084 9.1412 2.3038 3.2396 0.4563 0.9265 0.4926 0.5932 0.4450 0.0844 0.0004 0.0295 

YEAR OF 1 WON $1 NEW 1 RUPEE 1 PESO $1 1 RUPEE 1 FRANC $1 BAHT £1 $1 1 

ASSESSMENT SOUTH KOREA ZEALAND PAKISTAN PHIL. S’PORE SRI LANKA SWITZERLAND TAIWAN THAI UK USA EURO 

1997 - 1.7339 0.0705 0.0962 1.7892 0.0459 - 0.0919 0.0995 3.9305 2.5209 - 

1998 0.0030 1.9007 0.0699 0.0959 1.9346 0.0492 - 0.1003 0.0905 4.7807 2.9122 - 

1999 0.0028 2.1099 0.0816 0.0965 2.3438 0.0607 2.7092 0.1173 0.0957 6.4916 3.9177 - 

2000 (TBTS) 0.0032 2.0310 0.0746 0.0982 2.2626 0.0542 2.5579 0.1188 0.1014 6.2044 3.8000 - 

2000 (STTS) 0.0034 1.7557 0.0714 0.0874 2.2270 0.0500 2.2753 0.1230 0.0959 5.8211 3.8000 - 

2001 0.0030 1.6148 0.0623 0.0753 2.1436 0.0430 2.2776 0.1137 0.0863 5.5292 3.8000 - 

2002 0.0031 1.7790 0.0643 0.0745 2.1434 0.0402 2.4718 0.1113 0.0893 5.7623 3.8000 3.6254 

2003 0.0032 2.2299 0.0665 0.0709 2.2038 0.0398 2.8512 0.1117 0.0925 6.2699 3.8000 4.3339 

2004 0.0033 2.5495 0.0658 0.0685 2.2708 0.0379 3.0925 0.1150 0.0953 7.0348 3.8000 4.7725 

2005 0.0037 2.6947 0.0642 0.0694 2.2969 0.0381 3.0796 0.1191 0.0951 6.9664 3.8034 4.7666 

2006 0.0038 2.4063 0.0614 0.0722 2.3306 0.0356 2.9553 0.1139 0.0976 6.8176 3.7043 4.6479 

2007 0.0037 2.5534 0.0571 0.0754 2.3040 0.0314 2.8937 0.1057 0.1007 6.9464 3.4721 4.7529 

Appendix page - 19



APPENDIX D: 

CLAIM CODES 

1. Special Deductions and Other Claims 

Code Type of Expenditure Reference 

101 Equipment for disabled employees Paragraph 34(6)(e) 

102 Translation into or publication in the national language of books approved by the Dewan 

Bahasa dan Pustaka 

Paragraph 34(6)(f) 

103 Provision of library facilities or contributions to libraries not exceeding RM100,000 Paragraph 34(6)(g) 

104 Provision of services, public amenities and contributions to approved charity/community 

projects pertaining to education, health, housing infrastructure, information and 

communication technology 

Paragraph 34(6)(h) 

105 Revenue expenditure on the provision and maintenance of child care centre for employees’ 

benefit 

Paragraph 34(6)(i) 

106 Establishment and management of approved musical or cultural groups Paragraph 34(6)(j) 

107 Expenditure incurred in sponsoring any approved local and foreign arts, cultural or heritage 

activity: 

- not exceeding RM500,000 in aggregate 

- not exceeding RM200,000 for sponsoring foreign arts, cultural or heritage activity Paragraph 34(6)(k) 

110 Revenue expenditure on scientific research directly undertaken and related to the business Subsection 34(7) 

114 Deduction for information technology-related expenditure P. U. (A) 51/2000 

116 Contribution to an approved benevolent fund/trust account in respect of individuals suffering 

from serious diseases Subsection 44(6) 

117 Provision of practical training in Malaysia to resident individuals who are not own employees Paragraph 34(6)(n) 

2. Further Deductions 


201 Premiums paid for the import of cargo insured with an insurance company incorporated in 

Malaysia P. U. (A) 72/1982 

202 Remuneration of disabled employees P. U. (A) 73/1982 

204 Premiums paid for the export of cargo insured with an insurance company incorporated in 

Malaysia P. U. (A) 79/1995 

205 Freight charges incurred for the export of rattan and wood-based products (excluding veneer 

and sawn timber) P. U. (A) 422/1990 

208 Premiums paid on export credit insurance taken with Malaysia Export Credit Insurance Berhad P. U. (A) 526/1985 

212 Freight charges for shipping goods from Sabah/Sarawak to Peninsular Malaysia P. U. (A) 50/2000 

3. Double Deductions 


301 Revenue expenditure incurred on approved research Section 34A 

ITA 1967 

302 Cash contributions to an approved research institute or payment for the use of services of 

an approved research institute/company, a research and development company or contract 

research and development company 

Section 34B 

Appendix page - 20



APPENDIX E: 

COUNTRY CODES 

Name of Country 

Country Code 


Country Code 

Afghanistan 

AF 

Botswana 

BW 

Aland Islands 

AX 

Bouvet Island 

BV 

Albania 

AL 

Brazil 

BR 

Algeria 

DZ 

British Indian Ocean Territory 

IO 

American Samoa 

AS 

Brunei Darussalam 

BN 

Andorra 

AD 

Bulgaria 

BG 

Angola 

AO 

Burkina Faso 

BF 

Anguilla 

AI 

Burundi 

BI 

Antarctica 

AQ 

Cambodia 

KH 

Antigua and Barbuda 

AG 

Cameroon 

CM 

Argentina 

AR 

Canada 

CA 

Armenia 

AM 

Cape Verde 

CV 

Aruba 

AW 

Cayman Islands 

KY 

Australia 

AU 

Central African Republic 

CF 

Austria 

AT 

Chad 

TD 

Azerbaijan 

AZ 

Chile 

CL 

Bahamas 

BS 

China 

CN 

Bahrain 

BH 

Christmas Island 

CX 

Bangladesh 

BD 

Cocos (Keeling) Islands 

CC 

Barbados 

BB 

Colombia 

CO 

Belarus 

BY 

Comoros 

KM 

Belgium 

BE 

Congo 

CG 

Belize 

BZ 

Congo, The Democratic Republic of the 

CD 

Benin 

BJ 

Cook Islands 

CK 

Bermuda 

BM 

Costa Rica 

CR 

Bhutan 

BT 

Cote D’ivoire 

CI 

Bolivia 

BO 

Croatia (local name: Hrvatska) 

HR 

Bosnia and Herzegovina 

BA 

Cuba 

CU 

Appendix page - 21




Country Code 


Country Code 

Cyprus 

CY 

Greece 

GR 

Czech Republic 

CZ 

Greenland 

GL 

Denmark 

DK 

Grenada 

GD 

Djibouti 

DJ 

Guadeloupe 

GP 

Dominica 

DM 

Guam 

GU 

Dominican Republic 

DO 

Guatemala 

GT 

East Timor 

TP 

Guinea 

GN 

Ecuador 

EC 

Guinea-Bissau 

GW 

Egypt 

EG 

Guyana 

GY 

El Salvador 

SV 

Haiti 

HT 

Equatorial Guinea 

GQ 

Heard and McDonald Islands 

HM 

Eritrea 

ER 

Honduras 

HN 

Estonia 

EE 

Hong Kong 

HK 

Ethiopia 

ET 

Hungary 

HU 

Falkland Islands (Malvinas) 

FK 

Iceland 

IS 

Faroe Islands 

FO 

India 

IN 

Fiji 

FJ 

Indonesia 

ID 

Finland 

FI 

Iran Islamic Republic of 

IR 

France 

FR 

Iraq 

IQ 

France, Metropolitan 

FX 

Ireland 

IE 

French Guiana 

GF 

Israel 

IL 

French Polynesia 

PF 

Italy 

IT 

French Southern Territories 

TF 

Jamaica 

JM 

Gabon 

GA 

Japan 

JP 

Gambia 

GM 

Jordan 

JO 

Georgia 

GE 

Kazakhstan 

KZ 

Germany 

DE 

Kenya 

KE 

Ghana 

GH 

Kiribati 

KI 

Gibraltar 

GI 

Korea, Democratic People’s Republic of 

KP 

Appendix page - 22




Country Code 


Country Code 

Korea, Republic of 

KR 

Mongolia 

MN 

Kuwait 

KW 

Montserrat 

MS 

Kyrgyzstan 

KG 

Morocco 

MA 

Laos People’s Democratic Republic 

LA 

Mozambique 

MZ 

Latvia 

LV 

Myanmar 

MM 

Lebanon 

LB 

Namibia 

NA 

Lesotho 

LS 

Nauru 

NR 

Liberia 

LR 

Nepal 

NP 

Libyan Arab Jamahiriya 

LY 

Netherlands 

NL 

Liechtenstein 

LI 

Netherlands Antilles 

AN 

Lithuania 

LT 

New Caledonia 

NC 

Luxembourg 

LU 

New Zealand 

NZ 

Macao 

MO 

Nicaragua 

NI 

Macedonia, The Former Yugoslav Republic of 

MK 

Niger 

NE 

Madagascar 

MG 

Nigeria 

NG 

Malawi 

MW 

Niue 

NU 

Malaysia 

MY 

Norfolk Island 

NF 

Maldives 

MV 

Northern Mariana Islands 

MP 

Mali 

ML 

Norway 

NO 

Malta 

MT 

Oman 

OM 

Marshall Islands 

MH 

Pakistan 

PK 

Martinique 

MQ 

Palau 

PW 

Mauritania 

MR 

Palestinian Territory, Occupied 

PS 

Mauritius 

MU 

Panama 

PA 

Mayotte 

YT 

Papua New Guinea 

PG 

Mexico 

MX 

Paraguay 

PY 

Micronesia, Federated States of 

FM 

Peru 

PE 

Moldova, Republic of 

MD 

Philippines 

PH 

Monaco 

MC 

Pitcairn 

PN 

Appendix page - 23




Country Code 


Country Code 

Poland 

PL 

St. Pierre and Miquelon 

PM 

Portugal 

PT 

Sudan 

SD 

Puerto Rico 

PR 

Suriname 

SR 

Qatar 

QA 

Svalbard and Jan Mayen Islands 

SJ 

Reunion 

RE 

Swaziland 

SZ 

Romania 

RO 

Sweden 

SE 

Russian Federation 

RU 

Switzerland 

CH 

Rwanda 

RW 

Syrian Arab Republic 

SY 

Saint Kitts and Nevis 

KN 

Taiwan, Province of China 

TW 

Saint Lucia 

LC 

Tajikistan 

TJ 

Saint Vincent and the Grenadines 

VC 

Tanzania, United Republic of 

TZ 

Samoa 

WS 

Thailand 

TH 

San Marino 

SM 

Timor - Leste 

TL 

Sao Tome and Principe 

ST 

Togo 

TG 

Saudi Arabia 

SA 

Tokelau 

TK 

Senegal 

SN 

Tonga 

TO 

Serbia and Montenegro 

CS 

Trinidad and Tobago 

TT 

Seychelles 

SC 

Tunisia 

TN 

Sierra Leone 

SL 

Turkey 

TR 

Singapore 

SG 

Turkmenistan 

TM 

Slovakia (Slovak Republic) 

SK 

Turks and Caicos Islands 

TC 

Slovenia 

SI 

Tuvalu 

TV 

Solomon Islands 

SB 

Uganda 

UG 

Somalia 

SO 

Ukraine 

UA 

South Africa 

ZA 

United Arab Emirates 

AE 

South Georgia and the South Sandwich Islands 

GS 

United Kingdom 

GB 

Spain 

ES 

United States 

US 

Sri Lanka 

LK 

United States Minor Outlying Islands 

UM 

St. Helena 

SH 

Uruguay 

UY 

Appendix page - 24




Country Code 


Country Code 

Uzbekistan 

UZ 

Wallis And Futuna Islands 

WF 

Vanuatu 

VU 

Western Sahara 

EH 

Vatican City State (Holy See) 

VA 

Yemen 

YE 

Venezuela 

VE 

Yugoslavia 

YU 

Vietnam 

VN 

Zambia 

ZM 

Virgin Islands (British) 

VG 

Zimbabwe 

ZW 

Virgin Islands (U.S.) 

VI 

Appendix page - 25



APPENDIX F : AVOIDANCE OF DOUBLE TAXATION AGREEMENTS (DTA) AND 

WITHHOLDING TAX RATES ON PAYMENTS TO NON-RESIDENTS 

No. 

Country 

Interest 

% 

1 Albania 10 10 10 

2 Argentina* 15 10 10 

3 Australia 15 10 NIL 

4 Austria 15 10 10 

5 Bahrain 5 8 10 

6 Bangladesh 15 10 10 

7 Belgium 10 10 10 

8 Bosnia & Herzegovina** 10 8 10 

9 Canada 15 10 10 

10 Chile** 15 10 5 

11 China 10 10 10 

12 Croatia 10 10 10 

13 Czech Republic 12 10 10 

14 Denmark 15 10 10 

15 Egypt 15 10 10 

16 Fiji 15 10 10 

17 Finland 15 10 10 

18 France 15 10 10 

19 Germany 15 10 NIL 

20 Hungary 15 10 10 

21 India 10 10 10 

22 Indonesia 15 10 10 

23 Iran** 15 10 10 

24 Ireland 10 8 10 

25 Italy 15 10 10 

26 Japan 10 10 10 

27 Jordan 15 10 10 

28 Kazakhstan** 10 10 10 

29 Krygyz 10 10 10 

30 Kuwait 10 10 10 

31 Lebanon 10 8 10 

32 Luxembourg 10 8 8 

33 Malta 15 10 10 

34 Mauritius 15 10 10 

35 Mongolia 10 10 10 

36 Morocco 10 10 10 

37 Myanmar** 10 10 10 

38 Namibia 10 5 5 


Royalty 

% 

Fees for 

Technical Services 

%



No. 

Country 

Interest 

% 

Royalty 

% 

Fees for 

Technical Services 

% 

39 Netherlands 10 8 8 

40 New Zealand 15 10 10 

41 Norway 15 10 10 

42 Pakistan 15 10 10 

43 Papua New Guinea 15 10 10 

44 Philippines 15 10 10 

45 Poland 15 10 10 

46 Romania 15 10 10 

47 Russia 15 10 10 

48 Saudi Arabia 5 8 8 

49 Seychelles 10 10 10 

50 Singapore 10 8 5 

51 South Africa 10 5 5 

52 South Korea 15 10 10 

53 Spain 10 7 5 

54 Sri Lanka 10 10 10 

55 Sudan 10 10 10 

56 Syria 10 10 10 

57 Sweden 10 8 8 

58 Switzerland 10 10 10 

59 Thailand 15 10 10 

60 Turkey 15 10 10 

61 United Arab Emirates 5 10 10 

62 United Kingdom 10 8 8 

63 United States of America* 15 10 10 

64 Uzbekistan 10 10 10 

65 Venezuela** 15 10 10 

66 Vietnam 10 10 10 

67 Zimbabwe** 10 10 10 

Notes: 

1. There is no withholding tax on dividends paid by Malaysian companies. 

2. Where the rate of tax is not specifically stated in the respective DTA, the applicable rate of tax as stated in the ITA 1967 shall 

apply. 

3. Where the rate of tax provided in the ITA 1967 is lower than the maximum rate of tax mentioned in the respective DTA, the lower 

rate of tax shall apply. 

4. In the case of Taiwan (represented by Taipei Economic and Cultural Office in Malaysia), double taxation relief is given by way 

of the following Income Tax Exemption Order. 

(i) P.U.(A) 201 (1998) 

(ii) P.U.(A) 202 (1998) 

The withholding tax for Interest, Royalties and Fees for Technical Services are reduced to 10%, 10% and 7.5% respectively. 

* Limited DTA 

** Not effective 

Appendix page - 2



APPENDIX G : BUSINESS CODES 

A 

AGRICULTURE, HUNTING AND FORESTRY 

01111 Growing of paddy 

01112 Growing of tobacco 

01113 Growing of sugar cane 

01114 Growing of tapioca 

01115 Rubber estate 

01116 Rubber smallholdings 

01117 Oil palm estate 

01118 Oil palm smallholdings 

01119 Growing of other crops n.e.c. (Example: sweet potatoes, yam, maize, groundnuts, cultivated sago) 

01121 Growing of vegetables [including mushrooms] 

01129 Growing of flower plants for planting or ornamental purposes 

01131 Growing of cocoa 

01132 Growing of tea 

01133 Growing of coffee 

01134 Growing of pineapple 

01135 Growing of banana 

01136 Growing of pepper 

01137 Growing of coconut (estates and smallholdings) 

01138 Growing of durian 

01139 Growing of other fruits 

01211 Cattle farming 

01212 Poultry farming 

01213 Pig farming 

01219 Other livestock farming 

01300 Mixed farming: growing of crops combined with farming of livestock 

01400 Agricultural and animal husbandry service activities except veterinary activities 

01500 Hunting, trapping and game propagation including related service activities 

02001 Logging (except rubber wood logging) 

02002 Collection of rattan and other jungle produce 

02003 Charcoal production [when carried out in the forest] 

02004 Wild sago palm collection 

02005 Bird’s nest collection 

02006 Rubber wood logging 

02009 Forest services n.e.c. 

B 

FISHING 

05001 Ocean and coastal fishing 

05002 Inland fishing 

05003 Aquaculture 

05009 Fishing n.e.c. 

Appendix page - 28



C 

MINING AND QUARRYING 

10100 Mining of charcoal and lignite; extraction of peat 

11100 Extraction of crude oil and natural gas 

11200 Service activities incidental to crude oil and natural gas extraction excluding surveying 

12000 Mining of uranium and thorium ores 

13100 Mining of iron ores 

13201 Mining of tin ores 

13202 Amang retreatment 

13203 Mining of copper 

13204 Mining of gold 

13205 Mining of bauxite 

13206 Mining of ilmenite 

13209 Mining of other non-ferrous metal ores 

14101 Quarrying of granite 

14102 Quarrying of limestone 

14103 Mining of sand and gravel 

14104 Mining of kaolin [china clay] 

14105 Mining of ball clay/plastic clay 

14106 Mining of other clay 

14107 Mining of barytes 

14108 Mining of silica sand 

14109 Quarrying of other rocks n.e.c. 

14211 Extraction of guano and phosphate rock 

14219 Mining of other chemical and fertilizer minerals 

14220 Extraction of salt 

14290 Other mining and quarrying n.e.c. 

D 

MANUFACTURING 

Production, processing and preservation of meat, fish, fruits, vegetables, oil and fats 

15111 Processing and preserving of poultry and poultry products 

15119 Production, processing and preserving of other meat products 

15120 Processing and preserving of fish and fish products 

15131 Pineapple canning 

15139 Canning and preserving of other fruits and vegetables 

15141 Manufacture of coconut oil 

15142 Manufacture of crude palm oil 

15143 Manufacture of refined palm oil 

15144 Manufacture of palm kernel oil 

15149 Manufacture of other vegetable and animal oils and fats 

MANUFACTURE OF DAIRY PRODUCTS 

15201 Manufacture of ice-cream 

15202 Manufacture of condensed, powdered and evaporated milk 

15209 Manufacture of other dairy products 

Appendix page - 29



Manufacture of grain mill products, starches and starch products, and prepared animal feeds 

15311 Rice milling 

15312 Flour milling 

15319 Manufacture of other flour/grain mill products 

15321 Manufacture of starch 

15322 Manufacture of glucose and glucose syrup, maltose 

15323 Manufacture of sago and tapioca flour/products 

15329 Manufacture of other starch products 

15330 Manufacture of prepared animal feeds 

Manufacture of other food products 

15411 Manufacture of biscuits and cookies 

15412 Manufacture of bread, cake and other bakery products 

15420 Manufacture of sugar 

15431 Manufacture of cocoa products 

15432 Manufacture of chocolate products and sugar confectionery 

15440 Manufacture of macaroni, noodles and similar products 

15491 Manufacture of ice (excluding dry ice) 

15492 Manufacture of coffee 

15493 Manufacture of tea 

15494 Manufacture of spices and curry powder 

15495 Manufacture of nut and nut products 

15496 Manufacture of sauces including flavouring extracts such as monosodium glutamate 

15497 Manufacture of snack: cracker/chips [Example: prawn/fish crackers (keropok), potato/banana/tapioca chips] 

15499 Manufacture of other food products n.e.c. 

Manufacture of beverages 

15510 Distilling, rectifying and blending of spirits; ethyl alcohol production from fermented materials 

15520 Manufacture of wines 

15530 Manufacture of malt liquors and malt 

15541 Manufacture of soft drinks 

15542 Production of mineral waters 

Manufacture of tobacco products 

16000 Manufacture of tobacco products 

Spinning, weaving and finishing of textiles 

17111 Natural fibre spinning; weaving of textiles 

17112 Man-made fibre spinning; weaving of textiles 

17121 Dyeing, bleaching, printing and finishing of yarns and fabrics (excluding batek) 

17122 Batek making 

Manufacture of other textiles 

17210 Manufacture of made-up textile articles except apparel 

17220 Manufacture of carpets and rugs 

17230 Manufacture of cordage, rope, twine and netting 

17291 Handicraft spinning and weaving 

17299 Manufacture of other textiles n.e.c. 

Appendix page - 30



Manufacture of knitted and crocheted fabrics and articles 

17300 Knitted and crocheted fabrics and articles 

Manufacture of wearing apparel except fur apparel 

18101 Manufacturing of clothings 

18102 Custom tailoring and dressmaking 

18109 Manufacture of miscellaneous wearing apparel n.e.c. 

Dressing and dyeing of fur; manufacture of articles of fur 

18200 Dressing and dyeing of fur; manufacture of articles of fur 

Tanning and dressing of leather; manufacture of luggage, handbags, saddlery and harness 

19110 Tanning and dressing of leather 

19120 Manufacture of luggage, handbags and the like, saddlery and harness of leather and leather substitutes 

Manufacture of footwear 

19200 Manufacture of footwear 

Manufacture of wood and of products of wood, cork, straw and plaiting materials 

20100 Sawmilling and planing of wood 

20211 Manufacture of veneer sheets and plywood 

20212 Manufacture of laminboard, particle board and other panels and board 

20220 Manufacture of builders’ carpentry and joinery 

20230 Manufacture of wooden and cane containers 

20291 Manufacture of charcoal 

20299 Manufacture of other products of wood, cane, articles of cork, straw and plaiting materials 

Manufacture of paper and paper products 

21010 Manufacture of pulp, paper and paperboard 

21020 Manufacture of corrugated paper and paperboard and containers of paper and paperboard 

21091 Manufacture of carbon papers 

21092 Manufacture of envelopes, letter cards, correspondence cards or plain postcards 

21093 Manufacture of toilet papers, cleansing tissues, towels, serviettes 

21094 Manufacture of paper articles found about the house (Example : trays, dishes, cups, straws) 

21095 Manufacture of sanitary towels and tampons, disposal napkins and napkin liners for babies 

21096 Manufacture of gummed and adhesive paper in strips or rolls and labels, wallpaper 

21097 Manufacture of effigies, funeral paper goods, joss papers 

21099 Manufacture of other articles of paper and paperboard n.e.c. 

Publishing 

22110 Publishing of books, brochures, musical books and other publications 

22120 Publishing of newspapers, journals and periodicals 

22130 Publishing of recorded media excluding reproduction of recorded media (22300), motion picture and video 

production (92111) and computer software (72200) 

22190 Other publishing 

Appendix page - 31



Printing and service activities related to printing 

22210 Printing 

22220 Service activities related to printing (including binding) 

Reproduction of recorded media 

22300 Reproduction of recorded media [including record, video, computer tapes, software, film excluding 

recording or taping of sound (92492)] 

Manufacture of coke, refined petroleum products and nuclear fuel 

23100 Manufacture of coke oven products 

23200 Manufacture of refined petroleum products 

23300 Processing of nuclear fuel 

Manufacture of chemicals and chemical products 

24111 Manufacture of industrial gases, whether compressed, liquefied or in solid state 

24119 Manufacture of other basic industrial chemicals except fertilizers and nitrogen compounds 

24120 Manufacture of fertilizers and nitrogen compounds 

24130 Manufacture of plastics in primary forms and of synthetic rubber 

Manufacture of other chemical products 

24210 Manufacture of pesticides and other agrochemical products 

24221 Manufacture of paints, varnishes and similar coatings and mastics 

24222 Manufacture of printing ink 

24230 Manufacture of pharmaceuticals, medicinal chemicals and botanical products 

24240 Soap and detergents, cleaning and polishing preparations, perfumes and toilet preparations 

(Example : toothpaste, shampoo, etc.) 

24290 Manufacture of other chemical products n.e.c. 

24300 Manufacture of man-made fibres 

Manufacture of rubber products 

25111 Manufacture of rubber tyres and tubes 

25112 Retreading and rebuilding of rubber tyres 

25191 Rubber remilling and latex processing 

25192 Rubber smokehouses 

25193 Manufacture of rubber gloves 

25199 Manufacture of other rubber products n.e.c. 

Manufacture of plastic products 

25201 Manufacture of plastic blow moulded products 

25202 Manufacture of plastic extruded products 

25203 Manufacture of plastic bags and films 

25204 Manufacture of plastic product rigid fibre reinforced 

25205 Manufacture of plastic foam products 

25206 Manufacture of plastic injection moulded components 

25209 Manufacture of other plastic products n.e.c. 

Appendix page - 32



Manufacture of glass and glass products 

26100 Manufacture of glass and glass products 

Manufacture of non-metallic mineral products n.e.c. 

26910 Manufacture of non-structural non-refractory ceramic ware 

26920 Manufacture of refractory ceramic products 

26930 Manufacture of structural non-refractory clay and ceramic products 

26941 Manufacture of hydraulic cement 

26942 Manufacture of lime and plaster 

26951 Manufacture of ready-mix concrete 

26959 Manufacture of other articles of concrete, cement and plaster 

26960 Cutting, shaping and finishing of stone 

26990 Manufacture of other non-metallic mineral products, n.e.c. 

27100 Manufacture of basic iron and steel products 

27201 Tin smelting 

27209 Manufacture of other basic precious and non-ferrous metals 

27310 Casting of iron and steel 

27320 Casting of non-ferrous metal 

Manufacture of fabricated metal products 

28110 Manufacture of structural metal products 

28120 Manufacture of tanks, reservoirs and containers of metal 

28910 Forging, pressing, stamping and roll-forming of metal; powder metallurgy 

28920 Treatment and coating of metals, general mechanical engineering on a fee or contract basis 

28930 Manufacture of cutlery, hand tools and general hardware 

28991 Manufacture of tin cans and metal boxes 

28992 Manufacture of wire, wire products and metal fasteners 

28993 Manufacture of brass, copper, pewter and aluminium products 

28999 Manufacture of other fabricated metal products n.e.c. 

Manufacture of general purpose machinery 

29110 Manufacture of engines and turbines except aircraft, vehicle and cycle engines 

29120 Manufacture of pumps, compressors, taps and valves 

29130 Manufacture of bearings, gears, gearing and driving elements 

29140 Manufacture of ovens, furnaces and furnace burners 

29150 Manufacture of lifting and handling equipment 

29191 Manufacture of air-conditioning, refrigerating and ventilating machinery 

29199 Manufacture of other general purpose machinery n.e.c. 

Manufacture of special purpose machinery 

29210 Manufacture of agriculture and forestry machinery 

29220 Manufacture of machine tools 

29230 Manufacture of machinery for metallurgy 

29240 Manufacture of machinery for mining, quarrying and construction 

29250 Manufacture of machinery for food, beverage and tobacco processing 

29260 Manufacture of machinery for textile, apparel and leather production 

29270 Manufacture of weapons and ammunition 

29290 Manufacture of other special purpose machinery n.e.c. 

29300 Manufacture of domestic appliances n.e.c. (Example : refrigerator, washing machine, oven, etc.) 

Appendix page - 33



Manufacture of office, accounting and computing machinery 

30001 Manufacture of office and accounting machinery 

30002 Manufacture of computers and computer peripherals 

Manufacture of electrical motors, generators and transformers 

31100 Manufacture of electrical motors, generators and transformers 

Manufacture of electricity distribution and control apparatus 

31200 Manufacture of electricity distribution and control apparatus 

Manufacture of telecommunication cables and wires 

31301 Manufacture of telecommunication cables and wires 

31302 Manufacture of electric power cables and wires 

31309 Manufacture of other insulated wires and cables n.e.c. 

Manufacture of accumulators, primary cells and primary batteries 

31400 Manufacture of accumulators, primary cells and primary batteries 

Manufacture of electric lamps and lighting equipment 

31500 Manufacture of electric lamps and lighting equipment 

31600 Manufacture of domestic appliances 

31900 Manufacture of other electrical equipment n.e.c. 

Manufacture of electronic valves and tubes and other electronic components 

32101 Manufacture of semi-conductor devices 

32102 Manufacture of electronic valves and tubes and printed circuit boards 

32109 Manufacture of other electronic components n.e.c. 

Manufacture of television and radio transmitters and apparatus for line telephony and line telegraphy 

32200 Manufacture of television and radio transmitters and apparatus for line telephony and line telegraphy 

32300 Manufacture of television and radio receivers, sound or video recording or reproducing apparatus, and associated 

goods 

Manufacture of medical appliances and instruments and appliances for measuring, checking, testing, navigating 

and other purposes except optical instruments 

33110 Manufacture of medical and surgical equipment and orthopaedic appliances 

33120 Manufacture of instruments and appliances for measuring, checking, testing, navigating and other purposes, 

except industrial process control equipment 

33130 Manufacture of industrial process control equipment 

Manufacture of optical instruments and photographic equipment 

33201 Manufacture of optical instruments 

33202 Manufacture of photographic equipment 

Appendix page - 34



Manufacture of watches and clocks 

33300 Manufacture of watches and clocks 

Manufacture of motor vehicles 

34100 Manufacture of motor vehicles 

Manufacture of bodies (coachwork) for motor vehicles; manufacture of trailers and semi-trailers 

34200 Manufacture of bodies (coachwork) for motor vehicles; manufacture of trailers and semi-trailers 

Manufacture of parts and accessories for motor vehicles and their engines 

34300 Manufacture of parts and accessories for motor vehicles and their engines 

Ships, locomotives, aircrafts 

35110 Building and repairing of ships 

35120 Building and repairing of pleasure and sporting boats 

35200 Manufacture of railway and tramway locomotives and rolling stock 

35300 Manufacture of aircraft and spacecraft 

Manufacture of transport equipment 

35910 Manufacture of motor cycles 

35920 Manufacture of bicycles and invalid carriages 

35990 Manufacture of other transport equipment n.e.c. 

Manufacture of furniture 

36101 Manufacture of wooden and cane furniture 

36102 Manufacture of metal furniture 

36109 Manufacture of other furniture, except stone, concrete or ceramic 

Manufacturing n.e.c. 

36910 Manufacture of jewellery and related articles 

36920 Manufacture of musical instruments 

36930 Manufacture of sports goods 

36940 Manufacture of games and toys 

36991 Manufacture of brooms, brushes and mops 

36992 Manufacture of pens, pencils, office and artists’ supplies 

36993 Manufacture of umbrella 

36999 Other manufacturing n.e.c. 

Recycling of metal waste and scrap 

37101 Recycling of tin 

37109 Recycling of other metal waste and scrap 

37201 Recycling of textile fibres 

37202 Recycling of rubber 

37209 Recycling of other non-metal waste and scrap 

Appendix page - 35



E 

ELECTRICITY, GAS AND WATER SUPPLY 

40100 Production, collection and distribution of electricity 

40200 Manufacture of gas, distribution of gaseous fuels through mains 

40300 Steam and hot water supply 

41000 Collection, purification and distribution of water 

F 

CONSTRUCTION 

Site preparation 

45101 Demolition or wrecking of buildings and other structures and its clearance work 

45102 Land preparations work 

45103 Preparation of mineral properties and sites except oil and gas sites 

45104 Land reclamation work 

45109 Other site preparations n.e.c. 

Building of complete constructions or parts thereof; and civil engineering 

45201 Residential buildings 

45202 Non-residential buildings 

45203 Construction of roads, bridges, tunnels, viaducts, highways, elevated highways, railways, airfields, 

harbours, etc. 

45204 Construction of dams, irrigation system, drainage and sewage system, pipelines and other water projects 

45205 Communication and power line 

45206 Sports facilities including stadium, golf course, etc. 

45209 Other civil engineering 

Building installation (including repairs) 

45301 Plumbing, sewage and sanitary installation work 

45302 Electrical wiring and fitting work 

45303 Fencing and railing construction work 

45304 Lift and escalator construction work 

45305 Gas fitting construction work 

45306 Fire protection, security alarm and telecommunication systems installation work 

45307 Heating, ventilation, air conditioning and refrigeration work 

45309 Other building installation works n.e.c. 

Building completion (including repairs) 

45401 Building completion works 

45402 Painting and decorating 

45403 Floor sanding, finish carpentry, acoustical work and cleaning of the exterior, etc. 

45409 Other building completion works n.e.c. 

Renting of construction or demolition equipment with operator 

45500 Renting of construction and demolition equipment with operator 

Appendix page - 36



G 

WHOLESALE AND RETAIL TRADE 

Sale of motor vehicles 

50101 Wholesale of cars, vans and 4-wheel drives - new 

50102 Wholesale of cars, vans and 4-wheel drives - used 

50103 Wholesale of industrial and commercial vehicles - new 

50104 Wholesale of industrial and commercial vehicles - used 

50109 Wholesale of other motor vehicles n.e.c. 

50111 Retail sale of cars, vans and 4-wheel drives - new 

50112 Retail sale of cars, vans and 4-wheel drives - used 

50119 Retail sale of other motor vehicles n.e.c. 

Maintenance and repair of motor vehicles 

50201 Maintenance and repair of cars, vans and 4-wheel drives 

50202 Maintenance and repair of industrial and commercial vehicles 

Sale of motor vehicles parts and accessories 

50301 Wholesale of parts and accessories for cars, vans and 4-wheel drives 

50302 Wholesale of parts and accessories for industrial and commercial vehicles 

50303 Retail sale of parts and accessories for motor vehicles 

50401 Wholesale of motorcycles and related parts and accessories 

50402 Retail sale of motorcycles and related parts and accessories 

Retail sale of automotive fuel (petrol and lubricants) 

50500 Retail sale of automotive fuel 

Wholesale on a fee or contract basis 

51100 Wholesale on a fee or contract basis 

Wholesale of agricultural raw materials, livestock, food, beverages and tobacco 

51211 Wholesale of rubber 

51212 Wholesale of palm oil 

51213 Wholesale of livestock 

51214 Wholesale of lumber and timber 

51215 Wholesale of trees, shrubs potted 

51219 Wholesale of other agricultural products n.e.c. 

51221 Wholesale of meat, poultry and eggs 

51222 Wholesale of fish and other seafood 

51223 Wholesale of fruits 

51224 Wholesale of vegetables 

51231 Wholesale of rice, other grains, flour and sugar 

51232 Wholesale of dairy products 

51233 Wholesale of confectionery 

51234 Wholesale of biscuits, cakes, bread and other bakery products 

51235 Wholesale of coffee, tea and other beverages 

Appendix page - 37



51236 Wholesale of soft drinks and mineral water 

51237 Wholesale of beer, wines and spirits 

51238 Wholesale of tobacco, cigars, cigarettes, etc. 

51239 Wholesale of other foodstuffs [Example: mee, kueh teow, mee hoon, wantan skins and related foodstuffs (including 

canned food, cooking oil, sugar, dairy products, etc.)] 

Wholesale of household goods 

51311 Wholesale of textiles, clothing, house linens, towels and blankets 

51312 Wholesale of footwear 

51321 Wholesale of sports goods and athletic goods and equipment 

51322 Wholesale of bicycles and parts thereof 

51323 Wholesale of games and toys 

51324 Wholesale of travelling and leather goods (except leather footwear and clothing) 

51325 Wholesale of handicrafts and artificial flowers 

51326 Wholesale of cut flowers and plants 

51391 Wholesale of pharmaceutical, orthopaedic and medical goods, perfumery, cosmetics and toiletries 

51392 Wholesale of books, newspapers, magazines and stationery 

51393 Wholesale of jewellery, watches, clocks and silverware 

51394 Wholesale of photographic equipment and supplies 

51395 Wholesale of optical goods 

51396 Wholesale of household hardware, kitchenware, chinaware, glassware, ornaments, etc. 

51397 Wholesale of household appliances, radio and television equipment, musical instruments, records and music 

tapes 

51398 Wholesale of furniture, furnishings, wallpaper and floor coverings 

51399 Wholesale of other household goods (Example: cleaning material, fancy goods and other miscellaneous consumer 

goods) 

Wholesale of non-agricultural intermediate products, waste and scrap 

51411 Wholesale of petrol, diesel, lubricants, etc. 

51412 Wholesale of liquified petroleum gas 

51419 Wholesale of other solid, liquid and gaseous fuels and related products (Example: charcoal, kerosene, paraffin, 

firewood, etc.) 

51420 Wholesale of metals, metal ores and fabricated metals 

51431 Wholesale of logs, sawn timber, plywood, veneer and related products 

51432 Wholesale of construction materials, builders’ hardware, plumbing and heating equipment and supplies 

51491 Wholesale of fertilizers 

51492 Wholesale of metal scraps 

51493 Wholesale of non-metal materials 

51499 Wholesale of other intermediate products, waste and scrap n.e.c. 

Wholesale of machinery, equipment and supplies 

51511 Wholesale of telecommunication equipment and accessories 

51512 Wholesale of electrical and electronic components and wiring accessories 

51520 Wholesale of office machinery and business equipment (Example: cash register) 

51530 Wholesale of computer hardware, software and peripherals 

51591 Wholesale of industrial, agricultural, construction and civil engineering machinery and equipment 

51592 Wholesale of lifts, escalators, air conditioning, security and fire fighting equipment 

51593 Wholesale of marine and aircraft equipment and accessories and other transport equipment n.e.c. 

Appendix page - 38



51599 Wholesale of other machinery and equipment n.e.c. 

Other wholesale 

51911 Wholesale trade in aquarium fishes, pet birds and animals 

51912 Wholesale of animal/pet food 

51913 Wholesale of leather and PVC material 

51915 Wholesale trade in paper, cellophane products, packaging materials 

51916 Wholesale of agricultural and farm supplies (Example: nursery stock, seeds, horticultural, orchard supplies, 

etc.) 

51919 Wholesale of other specific commodities n.e.c. 

51920 Non-specialized wholesale stores 

Non-specialized retail trade in stores 

52111 Provision stores 

52112 Supermarket 

52113 Mini market 

52114 Convenience stores 

52191 Department stores 

52192 Department store and supermarket 

52193 News agent and miscellaneous goods stores 

52199 Other retail sale in non-specialized stores n.e.c. 

Retail sale of food, beverages and tobacco in specialized stores 

52211 Retail sale of meat and poultry [fresh or frozen] 

52212 Retail sale of fish and other seafood 

52213 Retail sale of fruits 

52214 Retail sale of vegetables 

52221 Retail sale of rice, flour and other grains 

52222 Retail sale of confectionery (sweets, etc.) 

52223 Retail sale of biscuits, cakes, bread and other bakery products 

52224 Retail sale of beer, wine and spirits 

52225 Retail sale of soft drinks 

52226 Retail sale of tea, coffee and other beverages 

52227 Retail sale of tobacco, cigars and cigarettes, etc. 

52229 Retail sale of mee, kuey teow, mee hoon, wantan skins, and other foodstuffs (including canned food, cooking oil, 

sugar, dairy products, etc.) 

Other retail trade of new goods in specialized stores 

52310 Retail sale of pharmaceutical, medical and orthopaedic goods, perfumery, cosmetic and toilet articles 

52321 Retail sale of textiles, linens, towels, blankets, etc. 

52322 Retail sale of articles of clothing, articles of fur and clothing accessories 

52323 Retail sale of footwear 

52324 Retail sale of leather goods and travel accessories 

52331 Retail sale of household utensils, kitchenware, chinaware, glassware, ornaments, etc. 

52332 Retail sale of electrical household appliances, radio and television equipment 

52333 Retail sale of household furniture and furnishings 

Appendix page - 39



52334 Retail sale of lighting and lighting accessories 

52339 Retail sale of household appliances articles and equipment n.e.c. 

52340 Retail sale of hardware, paint and glass 

52351 Retail sale of sports goods 

52352 Retail sale of bicycles 

52353 Retail sale of games and toys 

52354 Retail sale of musical instruments, music tapes, records, compact discs and video tapes 

52355 Retail sale of aquarium fishes 

52356 Retail sale of pet birds and animals and pet food 

52359 Retail sale of other recreational goods 

52360 Retail sale of computers, computer equipment and supplies, non-customized software and printers 

52370 Retail sale of telecommunication equipment 

52381 Retail sale of photographic equipment 

52382 Retail sale of spectacles and other optical goods 

52383 Retail sale of scientific and precision equipment 

52391 Retail sale of office supplies and equipment 

52392 Retail sale of watches, clocks, jewellery and silverware 

52393 Retail sale of liquified petroleum gas (cooking gas) 

52394 Retail sale of books, magazines, newspapers and stationery 

52395 Retail sale of flowers and other plants 

52399 Other retail sale in specialized stores n.e.c. 

Retail sale of second-hand goods in stores 

52401 Retail sale of second-hand books 

52402 Retail sale of second-hand electrical and electronic goods 

52403 Pawnshops 

52404 Retail sale of antique 

52409 Retail sale of second-hand goods n.e.c. 

Retail sale not in stores 

52511 Retail sale via mail order houses 

52512 Retail sale via direct selling 

52520 Retail sale via stalls and markets 

52590 Other non-store retail sale n.e.c. 

Repair of personal and household goods 

52601 Repair of footwear and other leather goods 

52602 Repair of electrical appliances and electronic goods 

52603 Repair of watches, clocks and jewellery 

52604 Repair of bicycles 

52609 Repair of othe rpersonal and household goods n.e.c. 

H 

HOTELS DAN RESTAURANTS 

55101 Hotels 

Hotels; camping sites and other provision of short-stay accomodation 

Appendix page - 40



55102 Camping sites and other provision of short-stay accomodation 

Restaurants, bars dan canteens 

55211 Restaurants and restaurants cum night clubs 

55212 Fast food restaurants 

55213 Coffee shops 

55214 Cafes, snack bars (includes lunch counters and refreshment stands 

55215 Canteens 

55216 Food caterers 

55217 Pubs, bars, coffee houses, cocktail lounges and karaoke 

55219 Eating and drinking places n.e.c. 

55221 Food stalls/hawkers 

55222 Drink stalls/hawkers 

55223 Food and drink stalls/hawkers 

I 

TRANSPORT, STORAGE AND COMMUNICATIONS 

Transport via railways 

60100 Train service 

Other land transport 

60211 Bus services (stage, mini and ekspress bus service) 

60212 Factory bus service 

60213 School bus service 

60214 Suburban railway passenger transport service (Example: LRT, KTM commuter and monorail) 

60219 Other scheduled passenger land transport n.e.c. 

60221 Taxi, car for hire [with driver] and limousine services 

60229 Other non-scheduled passenger land transport n.e.c. 

60230 Freight transport by road 

Transport via pipelines 

60300 Transport via pipelines (including gas, liquefied) 

Sea and coastal transport 

61101 Passenger transportation by sea-going vessels and ferries 

61102 Freight transportation by sea-going and coastal water vessels 

61103 Towing and pushing services 

61109 Other sea and coastal water transport n.e.c. 

Inland water transport 

61201 Boat and sampan passenger transport service 

61202 Inland water freight transport service 

61209 Other inland water transport n.e.c. 

Scheduled air transport 

62101 Passenger airline services - domestic and international 

Appendix page - 41



62109 Other scheduled air transport n.e.c. (Example: helicopter services) 

Non-scheduled air transport 

62201 Rental services of aircraft with or without operator/aircraft chartering 

62209 Other non-scheduled air transport n.e.c. 

Supporting and auxiliary transport activities; activities of travel agencies 

63011 Stevedoring services 

63019 Other cargo handling services n.e.c. 

63020 Storage and warehousing services 

63031 Railway operation services 

63032 Operation of parking facilities for motor vehicles 

63033 Highway, bridge and tunnel operation services 

63034 Vessel salvage and refloating services 

63035 Port operation services 

63036 Airport operation services (excluding cargo handling) 

63039 Other supporting transport activities n.e.c. 

63041 Travel agency and tour operator services (including tourist guide service) 

63042 Taxi/limousine boking service 

63049 Other activities of travel agencies and tour operators, and tourist assistance activities n.e.c. 

63091 Activities of freight forwarding/forwarding agencies 

63092 Activities of shipping agencies 

63099 Activities of other transport agencies n.e.c. 

Post and courier activities 

64110 National postal service 

64120 Courier activities other than national post activities 

Telecommunications 

64201 Telephone services (public and mobile) 

64202 Television and radio transmission services 

64203 Data communications service (including network operation) 

64204 Paging service 

64209 Other telecommunications services n.e.c. 

J 

FINANCIAL INTERMEDIATION 

Monetary intermediation 

65110 Central banking 

65191 Commercial banks 

65192 Offshore banks 

65193 Merchant banks 

65194 Finance companies 

65195 Discount houses 

65196 Savings institutions (Example: Bank Simpanan Nasional, Housing co-operatives, Lembaga Urusan Tabung Haji) 

65197 Development finance institutions (Example: MIDF, Bank Pembangunan Malaysia, Bank Pertanian Malaysia, 

Bank Industri Malaysia) 

Appendix page - 42



65199 Other finance n.e.c. 

Other financial intermediation 

65910 Financial leasing companies 

65921 Factoring companies 

65922 Credit card services 

65929 Other credit services n.e.c. 

65991 Holding companies 

65992 Investment companies 

65993 Nominee companies 

65994 Unit trusts 

Insurance and pension funding, except compulsory social security 

66010 Life insurance (including life reinsurance) 

66021 Provident funding 

66022 Pension funding 

General insurance (including reinsurance) 

66031 Marine, aviation and transit insurance 

66032 Motor vehicle insurance 

66033 Fire and other property damage insurance 

66034 Accident and health insurance 

66035 Freight insurance 

66039 Other insurance n.e.c. 

Activities auxiliary to finance except insurance and pension funding 

67110 Financial market operational and regulatory service (Example: KLSE, SC, KLOFFE, CDS, KLC) 

67121 Stock, share and bond brokers 

67122 Commodity brokers and dealers 

67123 Gold bullion dealers 

67129 Other financial futures brokers and dealers 

67191 Foreign exchange service 

67192 Financial consultancy service 

67199 Activities auxiliary to finance n.e.c. 

Activities auxiliary to insurance and pension funding 

67201 Insurance brokerage and agency service 

67202 Insurance adjusting service 

67209 Other activities auxiliary to insurance and pension funding n.e.c. 

K 

REAL ESTATE, RENTING AND BUSINESS ACTIVITIES 

Real estate activities with own or leased property 

70101 Real estate development 

Appendix page - 43



70102 Real estate operations 

70200 Real estate activities on a fee or contract basis 

Rental of transport equipment 

71111 Private cars for hire 

71112 Rental of motorcycles 

71113 Rental and leasing of lorries, trucks, trailers and containers 

71114 Rental and leasing of caravans and campers 

71119 Rental of land transport equipment n.e.c. 

71121 Ship and boat leasing (including chartering) 

71129 Rental of water transport equipment n.e.c. 

71130 Rental of air transport equipment 

Rental of other machinery and equipment 

71210 Rental of agricultural machinery and equipment 

71220 Rental of construction and civil engineering machinery and equipment 

71230 Rental of office machinery and equipment (including computer) 

71290 Rental of other machinery and equipment n.e.c. 

Rental of personal and household goods n.e.c. 

71301 Rental of television sets, video cassette recorders and related equipment and supplies 

71302 Rental of furniture 

71303 Rental of video tapes (including compact discs and laser discs) 

71304 Rental of theatrical equipment 

71305 Rental of recreational goods n.e.c. (Example: bicycles, saddle horses, pleasure boats, sports equipment) 

71309 Rental of other personal and household goods n.e.c. 

Computer and related activities 

72100 Hardware consultancy 

72200 Software consultancy and supply 

72300 Data processing service 

72400 Database activities (including database development, data storage and data preparation) 

72500 Maintenance and repair or office, accounting and computing machinery 

72900 Other computer related activities 

Research and experimental development on natural sciences and engineering 

73101 Research and experimental development services on physical sciences 

73102 Research and experimental development services on chemistry and biology 

73103 Research and experimental development services on engineering and technology 

73104 Research and experimental development services on agricultural sciences 

73105 Research and experimental development services on medical sciences and pharmacy 

73109 Research and experimental development services on other natural sciences 

Research and experimental development on social sciences and humanities 

73201 Research and experimental development services on cultural sciences, sociology and psychology 

73202 Research and experimental development services on economics 

73203 Research and experimental development services on law 

Appendix page - 44



73204 Research and experimental development services on linguistics and other languages 

73209 Research and experimental development services on other social sciences and humanities 

Legal, accounting, book-keeping and auditing activities; tax consultancy; market research and public opinion 

polling; business and management consultancy 

74110 Legal services 

74120 Accounting, book-keeping and auditing activities; tax consultancy 

74130 Market research and public opinion polling 

74141 Estate management consultancy services 

74142 General management consultancy services 

74143 Public relations consultancy services 

74144 Project management consultancy services 

74149 Other business and management consultancy services n.e.c. 

Architectural, engineering and other technical activities 

74211 Architectural consultancy services 

74212 Engineering consultancy services 

74213 Land and quantity surveying consultancy services 

74219 Other architectural and engineering activities and related technical consultancy services n.e.c. 

74220 Technical testing and analysis 

Advertising 

74300 Advertising 

Business activities n.e.c. 

74910 Labour recruitment and provision of personnel services 

74920 Investigation and security services 

74931 Building cleaning services 

74932 Disinfecting and exterminating services 

74940 Photographic services (commercial and consumer) 

74950 Packaging services on a fee or contract basis 

74991 Telephone answering services 

74992 Bill collecting, credit rating, direct mailing, mail advertisingand similar activities 

74993 Agency activities for engagements in entertainment or sports attractions 

74994 Duplicating services 

74999 Other business services n.e.c. 

L 

PUBLIC ADMINISTRATION AND DEFENCE; COMPULSORY SOCIAL SECURITY 

Administration of the state and the economic and social policy of the community 

75110 General [overall] public service activities 

75121 Administrative educational services 

75122 Administrative healthcare services 

75123 Administrative housing and local government services 

75124 Administrative recreational, cultural, arts and sports services 

75125 Administrative religious affairs services 

Appendix page - 45



75129 Other community and social affairs services 

75131 Domestic and international trade affairs 

75132 Agriculture and rural development affairs 

75133 Primary industries affairs 

75134 Public works affairs 

75135 Transport affairs 

75136 Energy, telecommunication and postal affairs 

75137 Tourism affairs 

75138 Human resource affairs 

75139 Other regulation of and contribution to more efficient operation of business affairs n.e.c. 

75140 Public service activities 

Provision of services to the community as a whole 

75210 Foreign affairs 

75220 Military and civil defence services 

75231 Police service 

75232 Prison service 

75233 Immigration service 

75234 National registration service 

75235 Judiciary and legal service 

75236 Fire-fighting service 

75239 Other public order and safety affairs related services 

75300 Compulsory social security activities 

M 

EDUCATION 

80101 Nurseries and kindergartens 

80102 Primary schools 

80210 General secondary education 

80211 Primary and secondary schools 

80220 Technical and vocational secondary education 

80301 College and university education 

80302 Commercial and other technical institutes 

80303 Nursing schools 

80901 Driving schools 

80902 Music and dancing schools 

80909 Adult and other vocational education n.e.c. 

N 

HEALTH AND SOCIAL WORK 

Human health activities 

85110 Hospital services 

85121 Medical services; example: private clinics (excluding hospital services and paramedic services such as midwife) 

85122 Dental services 

85191 Nursing home services 

85192 Physiotherapy and occupational therapy services 

85193 Herbalists and homeopathy services 

85194 Ambulance services 

Appendix page - 46



85199 Human health services n.e.c. 

Veterinary activities 

85200 Veterinary services 

Social work activities 

85311 Welfare services for children (Example: orphanage) 

85312 Services of homes for the aged 

85313 Women’s refuge operations 

85314 Juvenile homes services 

85315 Home for the handicapped operations 

85316 Drug rehabilitation homes services 

85319 Other social work with accomodation 

85321 Counseling service 

85322 Alcoholics anonymous society operations 

85324 Voluntary welfare services for the collection and allocation of funds for welfare purposes 

85325 Child day care service 

85329 Other social work activities n.e.c. 

O 

OTHER COMMUNITY, SOCIAL AND PERSONAL SERVICE ACTIVITIES 

Sewage and refuse disposal, sanitation and similar activities 

90001 Sewage, sanitation and similar activities 

90002 Refuse disposal services 

90003 Industrial waste collection and disposal services 

Activities of business, employers and professional organizations 

91110 Activities of business and employers’ organizations 

91120 Activities of professional organizations 

91200 Activities of trade unions 

91910 Activities of religious organizations 

91920 Activities of political organizations 

91991 Civic betterment and community facility support services (including rotary club) 

91992 Special group advocacy services 

91993 Services provided by youth associations 

91999 Other services provided by membership organizations n.e.c. 

MOTION PICTURE, RADIO, TELEVISION AND OTHER ENTERTAINMENT ACTIVITIES 

92111 Motion picture and video production 

92112 Motion picture and video distribution 

92120 Motion picture projection 

92131 Production of radio programmes 

92132 Production of television programmes 

Appendix page - 47



92141 Theatrical producer, singer group band and orchestra entertainment services 

92142 Services provided by authors, composers, sculptors, entertainers and other individual artists 

92149 Ancillary theatrical services n.e.c. 

92191 Circus, amusement park and similar attraction services 

92192 cabarets, discotheques and karaoke lounges 

92199 Other entertainment activities n.e.c. 

News agency activities 

92201 Printed news supply services 

92202 Picture supply services 

92209 Other news agency services 

Library, archives, museums and other cultural activities 

92310 Library and archives activities 

92320 Museum activities and preservation of historical site and buildings 

92330 Botanical and zoological gardens and nature reserves activities 

Sporting and other recreational activities 

92411 Activities of country and golf clubs 

92412 Activities of water sports and recreation clubs except country and golf clubs 

92413 Equestrian clubs 

92414 Sports event promotions and organizations 

92415 Sports facility operations services 

92419 Other sporting services 

92491 Casting activities [motion pictures, television or theatre productions, recording studios] 

92492 Recording or taping of sound 

92493 booking agency activities [in connection with theatrical productions entertainment attractions] 

92494 Recreation park and beach services 

92495 Gambling and betting activities 

92499 Other recreational activities n.e.c. 

Other service activities 

93010 Washing and (dry-) cleaning of textile and fur products 

93021 Men’s hair dressing services 

93022 Ladies’ hair dressing services including services of unisex saloon 

93023 Beauty services 

93030 Funeral and related activities 

93091 Friendship, penpal, matchmaking and dating services 

93092 Services of massage parlours and health centres (Example: spa, sauna baths) 

93093 Social escort services 

93099 Other service activities n.e.c. 

Private households with employed persons 

95000 Private households with employed persons 

Extra-territorial organizations and bodies 

99000 Extra-territorial organizations and bodies 

NOTE : 

n.e.c. - not elsewhere classified 

Appendix page - 48



APPENDIX H: 

DIRECTOR GENERAL’S PUBLIC RULINGS 

No. 

Subject of Public Ruling 

Issued/ 

Updated 

6/2006 Tax Treatment of Legal and Professional Expenses 06/07/2006 

5/2006 Professional Indemnity Insurance 31.05.2006 

4/2006 Valuation of Stock In Trade and Work In Progress 31.05.2006 

Part I 

3/2006 Property Development & Construction Contracts 13/03/2006 

2/2006 Tax Borne by Employers 17.01.2006 

1/2006 & Perquisites from Employment 17.01.2006 & 

Addendum 30/08/2007 

6/2005 Trade Association 08.12.2005 

5/2005 Deduction for Loss of Cash and Treatment of 14.11.2005 

Recoveries 

4/2005 & Withholding Tax on Special Classes of Income 12.09.2005 & 


3/2005 Living Accomodation Benefit Provided for the 11.08.2005 

Employee by the Employer 

2/2005 & Computation of Income Tax Payable by a Resident 06.06.2005 & 

Addendum Individual 06.07.2006 

1/2005 Computation of Total Income for Individual 05.02.2005 

5/2004 Double Deduction Incentive on Research 30.12.2004 

Expenditure 

4/2004 Employee Share Option Scheme Benefit 09.12.2004 

3/2004 & Entertainment Expense 08.11.2004 & 


2/2004, Benefits-In-Kind 08.11.2004, 

Addendum & 

20.05.2005 & 

Second Addendum 07.01.2006 

1/2004 Income from Letting of Real Property 30.06.2004 

2/2003 “Key-Man” Insurance 30.12.2003 

1/2003 & Tax Treatment relating to Leave Passage 05.08.2003 & 


2/2002 Allowable Pre-operational and Pre-commencement 08/07/2002 

of Business Expenses for Companies 

1/2002 Deduction for Bad & Doubtful Debts and Treatment 02.04.2002 

of Recoveries 

Compliance 

Yes No 

Appendix page - 49



No. 

Subject of Public Ruling 

Issued/ 

Updated 

7/2001 Basis Period for Business & Non-Business Source 30.04.2001 

(Companies) 

6/2001 Basis Period for a Business Source (Individuals & 30.04.2001 

Persons other than Companies/Co-operatives) 

5/2001 Basis Period for a Business Source (Co-operatives) 30.04.2001 

4/2001 Basis Period for a Non-Business Source 30.04.2001 

(Individuals & Persons other than Companies) 

3/2001 Appeal against an Assessment 18.01.2001 

2/2001 Computation of Initial & Annual Allowances in 18.01.2001 

respect of Plant & Machinery 

1/2001 Ownership of Plant and Machinery for the Purpose 18.01.2001 

of Claiming Capital Allowances 

8/2000 Wilful Evasion of Tax and Related Offences 30.12.2000 

7/2000 Providing Reasonable Facilities and Assistance 16.06.2000 

6/2000 Keeping Sufficient Records 30.06.2001 

(Revised) (Persons other than Companies or Individuals) 


(Persons other than Companies or Individuals) 


(Revised) (Individuals & Partnerships) 


(Individuals & Partnerships) 


(Revised) (Companies and Co-operatives) 


(Companies and Co-operatives) 

3/2000 Basis Period for a Business Source (Individuals & 01.03.2000 

Persons other than Companies/Co-operatives) 

2/2000 Basis Period for a Business Source 01.03.2000 

(Companies & Co-operatives) 

1/2000 Basis Period for a Non-Business Source 01.03.2000 

Compliance 

Yes No 

Appendix page - 50

Form M Guidebook Cover 2007.pmd - LHDN

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