Taxation - Scope Of Charge
Tax â—? compulsory exaction of money by public authority for public purposes enforceable by law. â—? part of our earning contributed to the Gov to meet expenditure for the benefit of the people. ( construction of roads, school, hospital, etc.
Types of Taxes 1. Direct Taxes ● Paid directly to the Revenue authorities by the taxpayer. ● Example: Income tax, Stamp duty ● Real property gain tax
2. Indirect Taxes ● Paid indirectly to the Revenue authorities by the taxpayer. ● A third party will collect the taxes on their behalf and forward the tax collected to the Revenue authorities. ● Example: Sales tax, Service tax, Import duty, export duty, excise duty.
Sources of Revenue Law â—?
Statute laws ( eg. Income Tax Act, 1967)
Case laws ( Created by the decision of c
Accruing in or derived from 1) Accruing in - coming of income in a passive manner: e.g. interest, rental, dividend 2) Derived from (received)- active involvement in obtaining the income: e.g. employment income
Employment income derived from Malaysia and the salary related to the income is paid to him in Japan ( Income received in Malaysia from outside Malaysia), The subject is not taxable to Malaysian Tax since the year 2004 under Sch.6 Para 28 of ITA.
P.S: i) Foreign income not received in Malaysia is NOT taxable. ii) Foreign income received in Malaysia is NOT taxable due to Sch.6 Para 28 of ITA, 1967.
https://www.youtube.com/watch?v=qGiC2dSzvQs&feature=youtu.be
Tax Administration ● Ministry of Finance: Overall control of Malaysian Taxation ● Inland Revenue Board (IRB): Responsible for assessment & collection of Direct Taxes ( personal & corporate) ● Royal Malaysian Customs & Excise Department: Responsible for assessment & collection of indirect taxes.
S3, ITA, 1967 *An salary impose should be charged for every time of evaluation of any individual gathering in or got from M'sia or got in M S4,ITA.1967 *A tax is chargeable when: ● gains of profits from a business/employment ● dividends, interest or discount ● rents, royalties/ premium ● pension
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