Tax updates: Monthly Tax Deductions ("MTD") as a final tax

Taxpayers has an option to not submit tax return (i.e. Form BE or Form M) via e-filing or manually. If taxpayers elect Monthly Tax Deductions ("MTD") as a final tax, the taxpayers are not required to file a tax return.

MTD as a final tax has been enforced starting from year of assessment 2014.

Criteria for qualification are as follows:

• Employees with only employment income (including benefits-in-kind and living accommodation);
• Employees whose MTD have been deducted according to Income Tax Rules;
  
• Employees employed by same employer in that year of assessment;
  
• Employees’ MTD are not borne by their employers for that year of assessment; and
  
• Employees who have not elected for a joint assessment.

If an individual do not file any tax return for the year of assessment, this will imply that:

• Individual is deemed to have elected not to file a return; and
  
• Total MTD deducted shall be deemed to be the amount of final tax

If you need further clarification or information, please contact us.

Source:
http://www.hasil.gov.my/bt_goindex.php?
bt_kump=5&bt_skum=5&bt_posi=6&bt_unit=1&bt_sequ=1
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