Malaysian Personal Income Tax Guide 2016. This series of guides will provide you an explanation of the basics and set you up on the journey of filing your taxes.

1. Personal Income Tax
2016 Guide
PART 1

2. What Is Chargeable Income?
 First of all, you need to know what is considered income
by Lembaga Hasil Dalam Negeri (LHDN).
 Is it just the monthly salary you get from your employer,
or does it also include other types of income?
 With effect from year 2015, an individual who earns an
annual employment income of RM34,000 (after EPF
deduction) has to register a tax file.

3. These are the types of income
that are taxable:
 Business or profession
 Employment
 Dividends
 Interests (except bank deposit
interests)
 Discounts
 Rent collected
 Royalties
 Premiums
 Pensions
 Annuities
 Perquisites, which includes bill
claims, company credit cards,
loans from company,
sponsored club memberships,
sponsored child tuition fee,
personal driver and any
benefits offered by your
employer that could be
converted into cash.

4. Now that you have your total annual income, you need to find out what
your chargeable income is.
Chargeable income, also known as taxable income, is your total annual
income minus all the tax exemptions and tax reliefs you are entitled for.
Here’s an example of how to derive your total income:

5. *Special relief
• Special relief of
RM2,000 is given
to tax payers
earning up to
RM8,000 per
month (up to
RM96,000
annually). This
relief is
applicable for
Year Assessment
2015 (tax filed in
2016) only.

6. Thank You…
SOURCE : WWW.IMONEY.MY/ARTICLES/INCOME-TAX-2016/WHAT-
IS-CHARGEABLE-INCOME
PART 2 COMING SOON