B2005 Guidebook 2

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LEMBAGA HASIL DALAM NEGERI MALAYSIA
Guidebook
Form B 2005
Income Tax Of An Individual
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Self Assessment System
MESRA MEMBANTU MEMUASKAN
Form B Guidebook Self Assessment System
CONTENTS OF GUIDEBOOK
ITEMS Page
Foreword 1
What Is Form B Guidebook? 1
Reminder Before Filling Out The Form 3
Part 1 — Form B
Basic Information 6
Part A : Particulars of Individual 6
Part B : Particulars of Husband / Wife 8
Part C : Statutory Income and Total Income 8
Part D : Deductions and Chargeable Income 14
Part E : Tax Payable 19
Part F : Summary of Tax and Payments 22
Part G : Preceding Years’ Income Not Declared 22
Part H : Disposal of Shares in a Real Property Company and Disposal of 23
Real Property Subject to Real Property Gains Tax Provision
Part J : Particulars of Executor of the Deceased Person’s Estate 23
Part K : Particulars of Business Income 23
Part L : Special Deduction, Further Deduction and Double Deduction 25
Part M : Incentive Claim / Exempt Income 26
Part N : Financial Particulars of Individual 27
Declaration 29
Particulars of Tax Agent who Completes this Return Form 29
Reminder 29
Part 2 — Working Sheets

HK-1 – Computation of Statutory Income from Business 30
HK-1B – Computation of Statutory Income from Partnership Business 34
HK-1C – Computation of Statutory Business Income for the Individual 34
Entitled to Claim Schedule 7A Allowance
HK-1D – Computation of Statutory Business Income for the Individual 34
Entitled to Claim Increased Exports Allowance for Qualifying
Services
HK-1E – Computation of Statutory Income from Pioneer Business 35
HK-1.1 – Computation of Mining Allowances 35
HK-1.2 – Summary of Capital Allowances 35
HK-1.3 – Adjustment of Losses for Business and Partnership 35
HK-1.4 – Adjustment of Losses for Pioneer Business 36
HK-2 – Computation of Statutory Income from Employment 36
HK-2.1 – Receipts under Paragraph 13(1)(a) 39
HK-2.2 – Computation of Taxable Gratuity 40
i
ITEMS Page
HK-2.3 – Computation of Tax Allowance 40

HK-2.4 – Benefits-In-Kind (BIK) [Paragraph 13(1)(b)] 40
HK-2.5 – Benefit/Value of Accomodation Provided [Paragraph 13(1)(c)] 41
HK-2.6 – Refund from Unapproved Pension or Provident Fund, 42
Scheme or Society
HK-2.7 – Computation of Taxable Compensation 42
HK-3 – Tax Deduction under Section 110 (Dividends) 42
HK-4 – Particulars of Properties/Assets and Total Rental 42
HK-5 – Computation of Statutory Income from Interest/Royalties 42
HK-6 – Tax Deduction under Section 110 (Others) 43
HK-7 – Not Applicable to Form B (Not Enclosed) -
HK-8 – Income from Countries which have Avoidance of Double Taxation 43
Agreement with Malaysia and Claim for Section 132 Tax Relief
HK-9 – Income from Countries Without Avoidance of Double Taxation 43
HK-10 – Instalments/Schedular Tax Deductions Paid 43
HK-11 – Basis Year Payments to Non-Residents (Withholding Tax) 44
HK-13 – Deduction for Maintenance of Unmarried Children 44
HK-14 – Life Insurance Premiums/Contributions to Approved Provident or Pension 44
Fund, Education and Medical Insurance; and EPF Annuity Insurance
CONTENTS OF WORKING SHEETS

(Paper Marked Blue)
Series Working Sheet
Page
HK-1 – Computation of Statutory Income from Business 1

HK-1B – Computation of Statutory Income from Partnership Business 4
HK-1C – Computation of Statutory Business Income for the Individual 6
Entitled to Claim Schedule 7 A Allowance
HK-1D – Computation of Statutory Business Income for the Individual 10
Entitled to Claim Increased Exports Allowance for Qualifying
Services
HK-1E – Computation of Statutory Income from Pioneer Business 14
HK-1.1 – Mining Allowances 18
HK-1.1A – Summary of Mining Allowances 20
HK-1.2 – Summary of Capital Allowances 21
ii
Series Working Sheet

Page
HK-1.2.1 – Agriculture Allowances 22
HK-1.2.1A – Summary of Agriculture Allowances 24
HK-1.2.2 – Forest Allowances 25
HK-1.2.2A – Summary of Forest Allowances 27
HK-1.2.3 – Industrial Building Allowances 28
HK-1.2.3A – Summary of Industrial Building Allowances 30
HK-1.2.4 – Plant and Machinery Allowances 31
HK-1.2.4A – Summary of Plant and Machinery Allowances 33
HK-1.2A – Summary of Capital Expenditure 34
HK-1.3 – Adjustment of Losses for Business and Partnership 35
HK-1.4 – Adjustment of Losses for Pioneer Business 36
HK-2 – Computation of Statutory Income from Employment 37
HK-2.1 – Receipts under Paragraph 13(1)(a) 39
HK-2.2 – Computation of Taxable Gratuity 40
HK-2.3 – Computation of Tax Allowance 41
HK-2.4 – Benefits-In-Kind (BIK) [Paragraph 13(1)(b)] 42
HK-2.5 – Benefit/Value of Accomodation Provided [Paragraph 13(1)(c)] 43
HK-2.6 – Refund from Unapproved Pension or Provident Fund, 45
Scheme or Society
HK-2.7 – Computation of Taxable Compensation 46
HK-3 – Tax Deduction under Section 110 (Dividends) 47
HK-4 – Particulars of Properties/Assets and Total Rental 49
HK-5 – Computation of Statutory Income from Interest/Royalties 51
HK-6 – Tax Deduction under Section 110 (Others) 52
HK-8 – Income from Countries which have Avoidance of Double Taxation 53
HK-9 – Income from Countries Without Avoidance of Double Taxation 54
HK-10 – Instalments/Schedular Tax Deductions Paid 55
HK-11 – Basis Year Payments to Non-Residents (Withholding Tax) 56
HK-13 – Deduction for Maintenance of Unmarried Children 57
HK-14 – Life Insurance Premiums/Contributions to Approved Provident or Pension 59
iii
CONTENTS OF APPENDICES
(Paper Marked Brown)
Series 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 2
tax computation for the business
Appendix B1 - Gratuity 4
Appendix B2 - Tax Allowance 7
Appendix B3 - Benefits-In-Kind (BIK) [Paragraph 13(1)(b)] 9
Appendix B4 - Benefit/Value Of Accomodation Provided [Paragraph 13(1)(c)] 13
Appendix B5 - Compensation for Loss of Employment 17
Appendix C - Foreign Currency Exchange Rates (Yearly Average) 18
Appendix D - Claim Codes 19
Appendix E - Country Codes 20
Appendix F - Avoidance of Double Taxation Agreements (DTA) 25
Appendix G - Business Codes 27
Appendix H - Director General’s Public Rulings 48
iv
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 respective 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 B Guidebook?
The following are contents of the Form B Guidebook :
1. A complete guide on how to fill out the Form B.
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-1B - Computation of Statutory Income from Partnership Business
HK-1C - Computation of Statutory Business Income for the Individual Entitled to Claim Schedule 7A Allowance
HK-1D - Computation of Statutory Business Income for the Individual Entitled to Claim Increased Exports
Allowance for Qualifying Services
HK-1E - Computation of Statutory Income from Pioneer Business
HK-1.1 - Mining Allowances
HK-1.1A - Summary of Mining Allowances
HK-1.2 - Summary of Capital Allowances
HK-1.2.1 - Agriculture Allowances
HK-1.2.1A - Summary of Agriculture Allowances
HK-1.2.2 - Forest Allowances
HK-1.2.2A - Summary of Forest Allowances
HK-1.2.3 - Industrial Building Allowances
HK-1.2.3A - Summary of Industrial Building Allowances
HK-1.2.4 - Plant and Machinery Allowances
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
1
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 - Benefit/Value of Accomodation Provided [Paragraph 13(1)(c)]
HK-2.6 - Refund from Unapproved Pension or Provident Fund, Scheme or Society
HK-2.7 - Computation of Taxable Compensation
4. Ten (10) 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 - Computation of Statutory Income from Interest/Royalties
HK-6 - Tax Deduction under Section 110 (Others)
HK-7 - Not Applicable to Form B (Not Enclosed)
HK-8 - Income from Countries which have Avoidance of Double Taxation
HK-9 - Income from Countries Without Avoidance of Double Taxation
HK-10 - Instalments/Schedular Tax Deductions Paid

HK-11 - Basis Year Payments to Non-Residents (Withholding Tax)
HK-12 - Not Applicable to Form B (Not Enclosed)
HK-13 - Deduction for Maintenance of Unmarried Children
HK-14 - Life Insurance Premiums/Contributions to Approved Provident or Pension
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
2
7. The following are other appendices to enable the entry of required information in the Form B:
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 and 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 as a guide to filling in the code for the type
of business carried on by the individual
Appendix H - List of Director General’s Public Rulings for guidance in computing the income as provided
under the Income Tax Act (ITA) 1967
Reminder Before Filling Out The Form
Please take note of the following :

(1) An individual who carries on a business is required to fill out the Form B.
(2) Married individuals who elect for separate assessment are required to fill out separate tax forms (B/BE) ie.
one for the husband and one for the wife.
(3) In the case of a married individual who elects for joint assessment and has total income to be aggregated and
assessed in the name of the spouse, both are still reguired to fill out separate tax forms (B/BE).The husband
or wife whose income is to be assessed in the name of the spouse, shall be required to enter “0” for item C32B.
Items C33a and C33b have to be filled in also. The amount of instalment payments or tax deduction made in
his/her own name has to be transferred to item F3 Form B/BE of the spouse on whom the tax is to be raised.
Example :
The wife has a total income of RM60,000 and elects to be assessed in the name of her husband. Her schedular tax
deductions (STD) amounted to RM3,000 for the year 2005. Part C of her Form B has to be filled in as follows:
C32B TOTAL INCOME ( C32 + C32A )

C32B
, , , 0
OR
C33 INCOME AND CREDITS TRANSFERRED TO HUSBAND/WIFE
TOTAL INCOME TRANSFERRED TO

C33a HUSBAND/WIFE ( C32 + C32A ) C33a , , 6 0, 0 0 0
C33b
INSTALMENTS/DEDUCTIONS TRANSFERRED C33b
, , 3 , 0 0 0 .0 0
TO HUSBAND/WIFE
3
The husband’s Form B/BE is as follows:
Total income RM76,463

Tax payable in the name of the husband RM20,000.00
Instalments paid RM10,000.00
Part C
C18a (Form BE)

7 6
or TOTAL INCOME - SELF
, , ,4 6 3
C34a (Form B)
C18b (Form BE)

TOTAL INCOME TRANSFERRED
, 6 0, 0 0 0
or FROM HUSBAND/WIFE ,
C34b (Form B)
C18c (Form BE)

or TOTAL INCOME , ,1 3 6 4 6 3
,
C34c (Form B)
Part F
2 0 ,0 0 0 0 0
F1 Tax payable (from E16) F1
, , .
Less:
F2 Instalments/Schedular Tax Deductions paid - Self

, , .
1 0 ,0 0 0 0 0
Instalments/Schedular Tax Deductions
F3
transferred from HUSBAND/WIFE , , 3 ,0 0
.
0 0 0
F4 Balance of tax payable ( F1 - F2 - F3 ) F4

, , 7 ,0 0 0 0 0
.
F5 OR : Tax paid in excess ( F2 + F3 - F1 ) F5
, , , .
The wife does not have to fill in Parts D, E and F of her Form B.
Please take note that the tax computation should be done separately for the husband and wife when using relevant working
sheets. Record of separate tax computations for the husband and wife must be properly kept for reference/audit by Lembaga
Hasil Dalam Negeri Malaysia.
(4) General Rules for Filling out the Form B
i. Part A : Particulars of Individual

Fill in relevant information only.
ii. Part B : Particulars of Husband/Wife

4
iii. Part C : Statutory Income and Total Income

This part has to be completed.
In the case of joint assessment, the individual who elects to be assessed in the name of the spouse is required
to enter “0” for item C32B. Enter the total income for item C33a and instalments/deductions (if any) for item
C33b. Items C34a to C34c need not be filled.
iv. Part D : Deductions and Chargeable Income

This part has to be completed. The individual who elects for joint assessment to be raised in the name of the
spouse does not have to fill in this section.
v. Part E : Tax Payable

vi. Part F : Summary of Tax Payable and Payments

vii. Part G : Preceding Years’ Income Not Declared

viii. Part H : Disposal of Shares in a Real Property Company and Disposal of Real Property Subject to
Real Property Gains Tax Provision
ix. Part J : Particulars of Executor of the Deceased Person’s Estate

x. Part K : Particulars of Business Income

xi. Part L : Special Deduction, Further Deduction and Double Deduction

xii. Part M : Incentive Claim / Exempt Income

xiii. Part N : Financial Particulars of Individual

Fill in relevant information only. Boxes not filled in are deemed inapplicable to you.
xiv. Declaration
This part has to be completed. If the form is not affirmed and duly signed, it will be returned to you and deemed
not received by Lembaga Hasil Dalam Negeri Malaysia
xv. Particulars of Tax Agent who Completes this Return Form

5
Part I - Form B
BASIC INFORMATION
Item Subject Explanation Working Appendix

Sheet
1 Name Name as per identity card. - -
2 Tax Reference Income tax reference number. - -

No.
Enter SG or OG followed by the reference number 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 81
For reference no. SG 10234567081
Example III :
SG/OG
!!
O G !!!!!!!!!!!
1 2 3 4 5 6 7 80 90
For reference no. OG 12345678090
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 Passport No. Passport number as per passport book. - -
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 provisions under section 7 of ITA 1967 to - Appendix E

Residence/ determine the residence status in Malaysia and Appendix E
Domicile for the country code.
A3 Sex Enter “1” for male or “2” for female. - -
A4 Status Enter “1” for unmarried, “2” for married, “3” for a divorcee/ - -
widow/widower or “4” for deceased.
6

Sheet
A5 Date of Marriage If married in the basis year, enter the date of marriage - -
according to the sequence : day, month and year.
A6 Date of Divorce/ If divorced/separated in accordance with any law or - -
Demise deceased in the basis year, fill in the date according
to the sequence : day, month and year.
A7 Type of Assessment Enter “1” if election is made for joint assessment - -

or “2” for separate assessment.
This item need not be filled if:
1. the individual is single/ divorcee/ widow/ widower; or
2. the spouse of the individual does not have any source of income.
A8 Assessed in Complete this item if the married individual elects for joint - -
the Name of assessment.
Enter “1” if the wife elects for joint assessment to be raised in
the name of her husband. She does not have to fill in items C34a
to C34c of Part C, Part D, Part E and Part F of her Form B.
Or
Enter “2” if the husband elects for joint assessment to be
raised in the name of his wife. He does not have to fill in items
C34a to C34c of Part C, Part D, Part E and Part F of his Form B.
A9 Compliance with Refer to Appendix H for the list of Director General’s - Appendix H
Public Rulings Public Rulings and the LHDNM website for details.
Enter “1” for full compliance with Public Rulings or “2”
if one or more rulings are not complied with.
A10 Correspondence Address to be used for any correspondence with LHDNM. - -

Address
A11 Residential Address where the individual/executor of the deceased - -

Address of person’s estate resides.
Individual/
Executor of the
Deceased
Person’s Estate
A12 Address of Address where the main business is carried on. - -
Business
Premise
A13 Name of Name of employer. - -
Employer
A14 Staff No./ Staff/Payroll number. - -

Payroll No.
A15 Employer’s No. Enter the employer’s E file reference number. - -
Example : E 1023456708
A16 Telephone No. Telephone number of office/tax agent’s firm/residence/ - -

handphone.
A17 Employer’s Telephone number of employer. - -

Telephone No.
A18 e-mail e-mail address (if any). - -
A19 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.
7

Sheet
A20 Bank Account No. Your account number at the bank concerned. - -
A21 Address of Bank Address of the bank concerned. - -
PART B : PARTICULARS OF HUSBAND/WIFE

Sheet
B1 Name of Name of the husband/wife as per identity card. - -
Husband/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 number in the
boxes provided.
B3 New Identity New identity card number of the husband/wife. - -

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

Card No.
B5 Police No. Police number of the husband/wife (if any). - -
B6 Army No. Army number of the husband/wife (if any). - -
B7 Passport No. Passport number of the husband/wife as per passport book. - -
Note : Where there is more than one (1) wife, please furnish the information as per format B1 to B7 by using attachment(s) and
submit together with the Form B.
PART C : STATUTORY INCOME AND TOTAL INCOME

Sheet
C1 Statutory Income If there is only one business, use the boxes provided for
From Business : Business 1. - -
Business 1 With effect from the year 2004, this business shall be
known as “Business 1”until the business ceases. Other
businesses shall be known as “Business 2” and so forth.
Business Code Refer to Appendix G for the business code of business 1. - Appendix G
Amount Transfer amount from item J5 Working Sheet HK-1/ item N HK-1,HK-1C, Appendix A1
from Working Sheet HK-1C / itemL from Working Sheet HK-1D,HK-1.1
HK-1D to this box. to
HK-1.2A
C2 Business 2 See the explanation for item C1. As per As per

C1 C1
8

Sheet
C3 Business 3 + 4 See the explanation for item C1. As per As per
and so forth If there are more than three (3) businesses, enter the sum of C1 C1
statutory income from Business 3 and so forth in this box.
List out Business 3 and so forth as per format C1 and C2 for
each business by using attachment(s) and submit together
with the Form B.
C4 Statutory Income Partnership 1 as designated. - -

From Partnership -
Partnership 1
Tax Reference No. State the income tax reference number of the partnership - -
concerned.
Example : D 1234567709
Amount Amount from item E/G/J Working Sheet HK-1B. HK-1B -
C5 Partnership 2 See the explanation for item C4. HK-1B -
C6 Partnership 3 + 4 See the explanation for item C4. HK-1B -

and so forth If there are more than three (3) partnership businesses, enter
the sum of statutory business income from Partnership 3
and so forth in this box. List out Partnership 3 and so forth as
per format C4 and C5 for each partnership business by using
attachment(s) and submit together with the Form B.
C7 Aggregate statutory Sum of amounts from items C1 to C6. - -

income from
businesses
C8 Business losses Business losses not absorbed by income of the previous HK-1.3 -
brought forward year of assessment.
Amount from item B Working Sheet HK-1.3.
If amount in C8 exceeds amount in 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 P4 Working Sheet HK-2. HK-2 Appendix B1-B5
C11 Dividends Amount from item C(iii) Working Sheet HK-3. HK-3 -
C12 Interest and Interest - Interest is taxable EXCEPT: HK-5 -

Discounts (i) Interest/bonus from any savings account with Bank
Simpanan Nasional or Lembaga Tabung Haji.
(ii) Interest/gains from deposits up to RM100,000 in any savings
account with a bank/finance company licensed under the
Banking and Financial Institutions Act 1989, Islamic Banking
Act 1983, Bank Pertanian, Malaysia Building Society Bhd.,
Borneo Housing Mortgage Finance Bhd., registered co-operative
society and other institutions approved by the Minister.
(iii) Interest/gains from deposits up to RM100,000 in any fixed
deposit account/investment account for a period of less
than 12 months placed with the institution/bank as in
paragraph (ii).
9

Sheet
(iv) Interest/gains from fixed deposits account/investment account
for a period of 12 months or more placed with the institution/
bank as in paragraph (ii).
Resident individuals need not declare interest which has been
subjected to a withholding tax of 5%.
Amount from iten E Working Sheet HK-5.
Discounts - These relate to earnings from discounting transactions - -
such as dealings in treasury bills.
C13 Rents, royalties Rents - These are rental received in respect of houses, HK-4 -
and premiums shophouses, land, plant, machines, furniture and other
similar assets.
Amount from item D Working Sheet HK-4.
Royalties - Royalties received in respect of the use of HK-5 -
copyrights/patents are taxable if they exceed the following
exemption limits:
Type of Royalty Exemption (RM)
(i) Publication of artistic works/recording
discs/tapes 6,000
(ii) Translation of books/literary works 12,000
(iii) Publication of literary works/original
paintings/musical compositions 20,000
Example:
Amount received in respect of the publication of RM 10,000
artistic works
Less : exemption RM 6,000
RM 4,000
Enter RM4,000 in item F Working Sheet HK-5
Amount from item H Working Sheet HK-5.
C14 Pensions, annuities Pensions – Pensions derived from Malaysia and paid to a - -
and other periodical person on reaching the age of 55 years/compulsory age of
payments retirement or if the retirement is due to ill-health, are tax exempt
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 have
to be reported.
Amount of pension to be taxed is as per the annual pension
statement.
Example :
Public service pension (approved fund) RM35,000
Political pension RM55,000
Total RM90,000
Amount of taxable pension RM35,000
Annuities – These are sums of money received in accordance

with a will or investment of money or contract entitling the
annuitant to a series of payments, whether or not received
regularly or for a limited period only.
Periodical payments – These refer to recurring payments

received at fixed times.
10

Sheet
C15 Other gains or Other income such as payments received for part-time/ - -
profits occasional broadcasting, lecturing, writing and so forth as
well as income from Real Estate Investment Trust (REIT)
and Property Trust Funds (PTF). Working Sheet HK-6 and
original vouchers must be submitted with the return form
if an individual is entitled to a tax refund in respect of income
from REIT or PTF.
C16 Additions pursuant The following earnings/proceeds are deemed income and - -
to paragraph must be taken into account as aggregate income:
43(1)(c) ❑ Earnings/proceeds in relation to:
● Expenditure on prospecting operations under
Schedule 4 ITA 1967.
● Qualifying farm expenditure under Schedule 4A
ITA 1967.
❑ The earnings/proceeds can be taken into account in
the tax computation if claims for such expenditure
had previously been made.
❑ Refer to paragraph 43(1)(c), paragraph 16 of Schedule 4
and paragraph 7 of Schedule 4A for computing the
amount of income to be included as aggregate income.
❑ Computations must be properly kept for examination.
❑ Enter the amount computed in this box.
C17 Aggregate statutory Sum of amounts from items C10 to C16. - -

income from other
sources
C18 Aggregate Income Sum of amounts from items C9 and C17. - -
C19 Current year Current year losses from business can be deducted from HK-1, HK-1C, -
business losses the same year’s aggregate income. HK-1D & HK-1.3
Example : Business losses of the year 2005 can be deducted
from the aggregate income of the year 2005.
Adjustment of losses for business (if any) should be done
on Working Sheet HK-1.3.
Adjusted business loss is to be computed based on the
format in Working Sheet HK-1/HK-1C/HK-1D. Total up all
the adjusted losses if there are losses from more than one
(1) business and enter the amount in item D Working Sheet
HK-1.3.
Amount from item E Working Sheet HK-1.3
Amount in C19 is restricted to the amount in C18. If amount
in C19 exceeds the amount in C18, enter the amount as per
item C18 in this box.
C20 Total C18 minus C19 - -
C21 Qualifying Refer to paragraph 44(1)(b) and Schedule 4 ITA 1967 to - -

prospecting determine the eligibility.
expenditure Refer to paragraph 5 of Schedule 4 on the method of
computation.
Retain the computation for examination.
Enter the amount of claim (unclaimed balance from previous
years and current year claim) in this box. However, this amount
is restricted to the amount in C20.
The balance not absorbed by item C20 (if any) is to be entered
in item M3.
11

Sheet
C22 Qualifying farm Refer to paragraph 44(1)(b) and Schedule 4A ITA - -

expenditure 1967 to determine the eligibility.
Refer to paragraphs 2, 3 and 4 Schedule 4A ITA 1967
on the method of computation.
Refer to the explanation for item C21
The balance not absorbed by item C20 (if any) is to be

entered in item M4.
C23 Total C20 minus ( C21 plus C22 ). Enter “0” if value is negative. - -
C24 Gift of money to Monetary gifts made to the Government, State Government, - -
the Government, a local authority or an institution/organisation approved by the
State Government, Director General of Inland Revenue.
local authorities Subsection 44(6)
or approved
institutions and
organisations
C25 Gift of artefacts, Gift of artefacts, manuscripts or paintings to the Government - -

manuscripts or will be based on the value determined by the Director General
paintings of National Museum or the Director General of National Archives.
Subsection 44(6A)
C26 Gift of money for the Gift of money not exceeding RM20,000 for the provision of - -
provision of library library facilities to public libraries or libraries of schools/
facilities or to institutions of higher learning.
libraries Subsection 44(8)
C27 Gift of money or An amount equal to the value of any gift of money or contribution - -
contribution in in kind for the provision of public facilities for the benefit of disabled
kind for the persons, will be determined by the relevant local authority.
provision of Subsection 44(9)
facilities in public
places for the
benefit of disabled
persons
C28 Gift of money or Gift of money or medical equipment not exceeding RM20,000 - -
medical equipment in value given by an individual to any healthcare facility
to any healthcare approved by the Ministry of Health.
facility approved Subseksyen 44(10)
by the Ministry
of Health
C29 Gift of paintings An amount equal to the value of any gift of paintings to the - -
to the National National Art Gallery or any state art gallery, will be determined
Art Gallery or by the National Art Gallery or any state art gallery.
any state art Subsection 44(11)
gallery
C30 Total donation Sum of amounts from items C24 to C29. - -

and gift
12

Sheet
C31 Other allowable Other deductions (if any). - -

deductions under
Income Tax Act 1967
C32 Total C23 minus ( C30 plus C31 ). Enter “0”, if the result of the - -
computation is negative.
C32A Taxable pioneer Pioneer status is a tax incentive as defined in section 5 HK-1E -
income to section 25 of the Promotion of Investments Act (PIA)
1986. When granted 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.
C32B Total income C32 plus C32A - -

Joint Assessment
If the wife elects for assessment to be raised in the
name of her husband, she has to enter “0” in this box
and proceed to item C33.
Or
If the husband elects for assessment to be raised in
the name of his wife, he has to enter “0” in this box
and proceed to item C33.
C33 Income And This section is to be filled in by the individual who - -

Credits Transferred elects for joint assessment to be raised in the name
To Husband/Wife of the spouse.
C33a Total Income If the assessment is to be raised in the name of the - -

Transferred To husband, the wife is required to enter the amount C32
Husband/Wife plus C32A in this box and transfer it to either item C34b
Form B or C18b Form BE of her husband.
Or
If the assessment is to be raised in the name of the
wife, the husband is required to enter the amount C32
plus C32A in this box and transfer it to either item C34b
Form B or C18b Form BE of his wife.
C33b Instalments/ If the wife elects for joint assessment to be raised in - -

Deductions the name of her husband, the amount of instalment
Transferred To payments made for the relevant year of assessment or
Husband/Wife Schedular Tax Deductions (STD) as per her annual
statement of income (EA / EC), has to be entered in this box.
The same amount is to be transferred to item F3 Form B/BE
of her husband.
Or
If the husband elects for joint assessment to be raised in - -
the name of his wife, the amount of instalment payments
made for the relevant year of assessment or Schedular
Tax Deductions (STD) as per his annual statement of income
(EA / EC), has to be entered in this box.
The same amount is to be transferred to item F3 Form B/BE
of his wife.
13

Sheet
THIS SECTION HAS TO BE FILLED IN BY THE INDIVIDUAL IN WHOSE NAME THE JOINT ASSESSMENT IS TO BE RAISED
C34a Total income - Amount from item C32B. - -

Self
C34b Total income Amount from item C33a Form B or C17a Form BE of the spouse. - -
transferred from
husband/wife
C34c Total Income Sum of amounts from items C34a and C34b. - -
PART D: DEDUCTIONS AND CHARGEABLE INCOME

Sheet
D1 Individual and Relief of RM8,000 for an individual in respect of himself - -

dependent and his dependent relatives is granted automatically.
relatives Paragraph 46(1)(a)
D2 Medical Medical expenses incurred on parents are limited to RM5,000. - -

expenses Paragraph 46(1)(c)
for parents
D3 Basic supporting The purchase of any supporting equipment for use by a - -

equipment disabled individual, husband, wife, child or parent, may be
claimed up to a maximum of RM5,000.
Paragraph 46(1)(d)
D4 Disabled An individual will be allowed an additional personal relief - -

person of RM6,000 if he is a disabled person.
Paragraph 46(1)(e)
D5 Education fees An amount limited to a maximum of RM5,000 is deductible - -

for approved in respect of fees expended on any course of study up
courses (self) to tertiary level in any institution in Malaysia recognised
by the Malaysian Government, for the purpose of acquiring
technical, vocational, industrial, scientific or technological
skills or qualifications.
Paragraph 46(1)(f)
14

Sheet
D6 Medical Medical expenses on serious diseases includes the treatment - -

expenses on of acquired immune deficiency syndrome (AIDS), Parkinson’s
serious disease, cancer, renal failure, leukaemia, and other similar
diseases diseases such as heart attack, pulmonary hypertension, chronic
liver disease, fulminant viral hepatitis, head trauma with
neurological deficit, brain tumour or vascular malformation,
major burns, major organ transplant and major amputation
of limbs. Amount expended on ownself, husband/wife or child
is limited to a maximum of RM5,000.
Paragraph 46(1)(g)
D7 Complete Complete medical examination refers to thorough examination. - -

medical Amount expended on ownself, the spouse or child is
examination deductible up to a maximum of RM500 but the total of both
deductions (D6 and D7) is limited to a maximum of RM5,000.
Paragraph 46(1)(h)
D8 Purchase of An amount limited to a maximum of RM700 is deductible in respect - -

books/magazines of the purchase of books, magazines, journals or other similar
publications (except newspapers and illegal publications) for
enhancing the knowledge of an individual, husband / wife or child.
Paragraph 46(1)(i)
D9 Housing loan Relief on loan interest is given in respect of Sales and Purchase - -
Intetrest pursuant Agreement signed on or after 1 June 2003 but not later than
to the provision 31 May 2004 for the first residential property which costs from
of section 46A RM100,000 to RM180,000 inclusive, from a housing developer,
statutory body or co-operative society.
The deduction allowed is as follows:-

Year of assessment 2004 - restricted to RM3,000
Year of assessment 2005 - restricted to RM2,000
Where:
two or more individuals are each entitled to claim
deduction for the relevant year for interest expended
in respect of the same residential property; and
the total amount of interest expended by those
individuals in the basis year for that relevant year
exceeds the amount of deduction allowable for
that relevant year, the deduction allowed for each
of those individuals shall be computed as follows:-
Total amount of Total interest expended

deduction allowed by that individual
for the relevant x
Total interest expended by
year all such individuals
Section 46A
15

Sheet
D10 Wife Relief of RM3,000 is given in respect of a wife living - -

together in the basis year provided that she has no income/
total income or has elected for joint assessment.
Paragraph 47(1)(a)
D11 Payment of Payment to a former wife is also deductible provided - -

alimony to that the total of both deductions (D10 & D11) does not
former wife exceed RM3,000.
Subsection 47(2) and 47(3)
D12 Husband Relief of RM3,000 is given in respect of a husband living - -

together in the basis year provided that he has no total
income or has elected for joint assessment.
Section 45A
D13 Disabled Additional deduction of RM3,500 is given in respect of - -

husband/ a disabled husband/wife living together with the individual.
wife Paragraph 47(1)(b) & section 45A
D14 Child 100% Eligibility HK-13 -

This part has to be filled in by the individual who is
entitled to claim the whole of the allowable deduction.
50% Eligibility
Where two or more individuals (not husband and wife
living together) are each entitled to claim a deduction
for payment made in respect of the same child, each
of those individuals is entitled to claim 50% of that
whole deduction.
Subsection 48(4)
Refer Working Sheet HK-13 for computation.
D14a Child - Under Child relief of RM1,000 is allowed if the individual pays - -
the age of 18 for the maintenance of each unmarried child under the
years age 18 years at any time in that year.
Paragraph 48(1)(a) & 48(2)(a)
Example:
Mr. A claimed deduction for children in respect of the following:
The eldest child studying at Sekolah Rendah Taman Desa is
seven (7) years old while the second child who is five (5) years
old is studying at Tadika GCC.
Computation of child relief:
No. Eligible Rate

100% 50%
2 2 x 1,000 = 2 ,0 0 0 x 500 = ,
16

Sheet
D14b Child - Relief for each unmarried child of 18 years and above who - -
18 years & is receiving full-time education is RM1,000.
above Paragraph 48(1)(b) & 48(2)(a)
and studying
Relief for each unmarried child of 18 years and above who
is receiving further education in Malaysia is imited to a
maximum of RM4,000* (excluding matriculation/preparatory
courses).
Subparagraph 48(3)(a)(i)
Relief for each unmarried child of 18 years and above who

is receiving further education which commenced outside
Malaysia during the following period is:
(i) 01.01.1994 - 16.10.1997 RM2,000*
Subparagraph 48(3)(a)(iii)
(ii) on or after 17.10.1997 RM1,000
Paragraphs 48(1)(b) & 48(2)(a)
*If the amount expended is more than the qualified amount,
the deduction is limited to the qualified amount only.
Example:
Mr. A claimed child relief for the following:
The eldest child studying at UiTM is 21 years old and the
amount expended in the year 2005 is RM12,000.
An amount of RM2,400 has been expended on the second

child who is 20 years old and studying at UKM.
Mr. A and his former wife claimed a deduction of 50% each

on the expended amount in respect of the third child who
is 19 years old and studying at Sekolah Menengah Wangsa
Maju.
Computation of child relief:
Eligible Rate
100% 50%
4 ,0 0 0 ,
2 ,4 0 0 ,
, ,5 0 0
, ,
, ,
D14c Child - Relief allowed for a disabled child is RM5,000. - -

Disabled Paragraph 48(1)(d)
child
17

Sheet
D15 Insurance and Insurance premiums paid for policies taken on HK-14 -
provident fund the life of an individual, husband or wife are
allowable deductions. Insurance premiums
on the life of the child does not qualify.
Contributions to the Employees Provident Fund or
other provident funds or pension schemes approved
by the Director General of Inland Revenue.
Total relief for the payment of life insurance premiums
and contributions to the Employees Provident Fund
(EPF) or other approved schemes is limited to RM6,000
each for the individual and his wife who are assessed
separately. If the husband or wife elects for joint
assessment, the deduction for insurance premiums and
EPFcontributions is limited to RM6,000.
Paragraphs 49(1)(a)/ 49(1)(b)/ 49(1)(c)/ subsection 49(1A)
Refer to Working Sheet HK-14 for computation.
Example:
The taxpayer elects for joint assessment and the insurance
premiums paid are RM300 for the husband and RM6,500
for the wife. The allowable deduction is limited to RM6,000
and not RM6,800.
In situations where the husband has no total income and the
wife is assessed separately as an individual, any expenditure
on insurance premium incurred by the husband shall be deemed
to have been paid by the wife and is allowable up to the limited
amount only.
However, if the husband has no total income but contributes
to EPF, the wife is not allowed to claim a deduction from
her own income in respect of the husband’s EPF contribution.
Likewise if the wife has no total income.
Subsections 50(2) and 50(3)
D16 Education and A relief not exceeding RM3,000 is available on insurance HK-14 -
medical insurance premiums paid in respect of education or medical benefits
for an individual, husband, wife, or child.
Subsection 49(1B)
D17 EPF annuity Separate relief up to a maximum of RM1,000 is available HK-14 -

premium for an individual on premiums paid for an annuity purchased
under the annuity scheme sponsored by EPF.
Subsection 49(1C)
D18 Other allowable Other reliefs (if any). - -

deductions under
Income Tax Act 1967
D19 Total relief Sum of amounts from items D1 to D18 - -
D20 Chargeable C32B minus D19 - -

income Or
C34c minus D19 (For the individual in whose name the joint
assessment is to be raised). Enter “0” if value is negative.
18
PART E: TAX PAYABLE

Sheet
E1 Chargeable Amount from D20 - -

income
E2 INCOME TAX Refer to the tax schedule and example of computation provided - -
COMPUTATION below.
TAX SCHEDULE
CATEGORY RANGE OF COMPUTATION RATE TAX

CHARGEABLE RM % RM
INCOME (b) (c) (d)
(a)
A 0 - 2,500 First 2,500 0 0
B 2,501-5,000 Next 2,500 1 25
C First 5,000 25
5,001-10,000 Next 5,000 3 150
D First 10,000 175

10,001-20,000 Next 10,000 3 300
E First 20,000 475

20,001-35,000 Next 15,000 7 1,050
F First 35,000 1,525

35,001-50,000 Next 15,000 13 1,950
G First 50,000 3,475

50,001-70,000 Next 20,000 19 3,800
H First 70,000 7,275

70,001-100,000 Next 30,000 24 7,200
I First 100,000 14,475

100,001-150,000 Next 50,000 27 13,500
J First 150,000 27,975

150,001-250,000 Next 100,000 27 27,000
K First 250,000 54,975

Exceeding 250,000 For every next ringgit 28 ...............
19

Sheet
E2a Tax on the Income tax computation - -
first Match the chargeable income from item E1 of the Form B
with the range of chargeable income as provided in the
tax schedule.
E2b Tax on the Example I - -

balance Chargeable income as per E1: RM 5,500
Use category C of the tax schedule to compute as follows:
Tax on the first RM5,000 RM 25.00

Tax on the balance RM500 @ 3% RM 15.00
Total income tax RM 40.00
Fill in items E2a and E2b of the Form B as shown below:
Tax on the first

5 0
, 0 0 2
.
5 0 0
Tax on the balance At Rate (%)
,5 0 0 3 1
.
5 0 0
Example II :
Chargeable income as per E1: RM 60,000
Use category G of the tax schedule to compute as follows:
Tax on the first RM 50,000 RM 3,475.00

Tax on the balance RM 10,000 @ 19% RM 1,900.00
Total income tax RM 5,375.00
Enter in items E2a and E2b of the Form B as shown below:
Tax on the first

5 0
,0 0 0 3 ,4 7
.
5 0 0
Tax on the balance At Rate (%)

1 0 ,0 0 0 1 9 1 9 0 0
.0 0
E3 Total income E2a plus E2b - -

tax
E4 Tax rebate A rebate of RM350 is granted to an individual whose - -

for individual chargeable income does not exceed RM35,000.
Paragraph 6A(2)(a)
E5 Tax rebate A rebate of RM350 is granted to an individual whose - -

for husband/ chargeable income does not exceed RM35,000 and
wifel where he/she has been allowed a deduction of RM3,000
for the spouse.
Paragraph 6A(2)(b) / 6A(2)(c)
E6 Zakat or A rebate is granted for payments of any zakat, fitrah - -

fitrah or other obligatory Islamic religious dues in the
basis year. Subsection 6A(3)
20

Sheet
E7 Purchase of A rebate of RM500 is granted to a resident individual who - -
personal has purchased a personal computer. This rebate is available
computer only once in 5 years. No rebate will be granted if the computer
is used for business purpose or if the rebate has already
been given to the wife or husband.
Subsection 6A(3A)
E8 Fees (Levy) A rebate is given in respect of any fee paid to the Malaysian - -
Government under the Fees Act 1951 for the issue of an
Employment Pass, Visit Pass (Temporary Employment) or
Work Pass.
Section 6C
E9 Total rebate Sum of amounts from items E4 to E8 - -

Amount in E9 is restricted to the amount in E3.
E10 Total tax E3 minus E9 - -

charged
E11 Tax deduction Use Working Sheet HK-3 for computation. Please submit HK-3 -
under section 110 original dividend vouchers and Working Sheet HK-3 if you
(dividends) are entitled to a tax refund.
Amount from item D Working Sheet HK-3
E12 Tax deduction Compute the tax deducted under section 110 by using Working HK-6 -
under section 110 Sheet HK-6 in respect of other income such as interest,
(others) royalties, section 4 A income, income from trust bodies and
distribution of income from Real Estate Investment Trust
(REIT) and Property Trust Funds (PTF). Please submit
original relevant documents and Working Sheet HK-6 if
you are entitled to a tax refund.
Amount from item B Woring Sheet HK-6
E13 Section 132 tax Relief from double taxation on foreign income brought HK-8 Appendix F
relief into Malaysia. Refer to Appendix F (Guidebook B)
for the list of countries which have Avoidance of
Double Taxation Agreements (DTA) with Malaysia.
Refer to Schedule 7 of ITA 1967 and Working Sheet HK-8
to compute the amount of credit.
E14 Section 133 tax Relief from double taxation on foreign income brought HK-9 -
relief into Malaysia. These countries do not have Avoidance
of Double Taxation Agreements (DTA) with Malaysia.
Refer to Schedule 7 of ITA 1967 and Working Sheet
HK-9 to compute the amount of credit.
E15 Total deduction Sum of amounts from items E11 to E14 - -

and relief
E16 Tax Payable E10 minus E15 - -
E17 Tax Repayable E15 minus E10. HK-3/HK-6 -

This item is applicable if the amount in E15 exceeds the HK-8/HK-9
amount in E10.
Submit Working Sheet HK-3/HK-6/HK-8/HK-9 together
with the Form B.
21
PART F : SUMMARY OF TAX PAYABLE AND PAYMENTS
The tax payable and tax paid (through the instalment or Schedular Tax Deduction scheme) are set-off in this section.

Sheet
F1 Tax payable Amount from item E16 - -
Payment need not be made if the tax payable (E16) is less
than RM25.00 as it is waived in accordance with subsection
95(1) ITA 1967.
Enter “0” in this box if:
(i) amount E16 is less than RM25.00; or
(ii) entitled to a tax refund as per item E17.
F2 Instalments/ Use Working Sheet HK-10 for computation. HK-10 -

Schedular Tax This excludes payments made in respect of outstanding
Deductions paid - tax for previous years of assessment.
SELF Transfer the amount from item E of Working Sheet
HK-10 to this item.
F3 Instalments/ FOR THE INDIVIDUAL IN WHOSE NAME THE JOINT - -

Schedular Tax ASSESSMENT IS TO BE RAISED
Deductions
transferred Amount from item C33b Form B or C17b Form BE
from HUSBAND / of the husband/wife.
WIFE
F4 Balance of tax F1 minus ( F2 plus F3 ) - -

payable
The balance of tax payable must be paid within the stipulated
period. Use the Remittance Slip (CP501) provided with the
Form B when making payment at the LHDNM payment counter.
Payment can also be made at the counters of Bumiputra-
Commerce Bank Berhad (BCB) and Public Bank Berhad
(PBB) by using the payment slip provided by the bank.
If the sum of amounts in F2 and F3 exceeds the amount in
F1, enter “0” in this item.
F5 Tax paid in excess F2 plus F3 minus F1 - -
PART G : PRECEDING YEARS’ INCOME NOT DECLARED

Sheet
G1 Employment Enter the employment income received in respect of - -
any earlier year not declared (fill in the relevant
year).
Example: Payment of salary/bonus in arrears.
G2-G3 Fill in the type of income and gross amount received in

respect of any earlier year not declared. - -
Use attachment(s) as per format G1 to G3 in case of
insufficient writing space.
22
PART H : DISPOSAL OF SHARES IN A REAL PROPERTY COMPANY AND DISPOSAL OF REAL PROPERTY
SUBJECT TO REAL PROPERTY GAINS TAX PROVISION

Sheet
H1 Any disposal of Enter “1” in the box provided if there is any disposal of shares/ - -
shares and/or real land/buildings or “2” if none.
property?
H2 Has the disposal Enter “1” if the disposal has been declared to LHDNM or - -
been declared “2” if not.
to LHDNM?
Contact the Real Property Gains Tax Unit at the LHDNM
branch which handles your income tax file if the disposal
of shares and/or real property has not been declared.
This item need not be filled if not applicable.
PART J : PARTICULARS OF EXECUTOR OF THE DECEASED PERSON’S ESTATE

Sheet
J1 Name of the Name of the appointed executor of the deceased - -
Administrator person’s estate.
J2 New Identity New identity card number of the executor. - -

Card No.
J3 Old Identity Old identity card number of the executor. - -

Card No.
J4 Police No. Police number of the executor (if any). - -
J5 Army No. Army number of the executor (if any). - -
J6 Passport No. Passport number of the executor as per passport - -

book.
PART K : PARTICULARS OF BUSINESS INCOME

Sheet
K1a Balance from Current year’s business/partnership losses not HK-1.3 -
current year absorbed.
losses Amount from item F Working Sheet HK-1.3
K1b Balance from Balance from previous years’ business/partnership HK-1.3 -

previous years’ losses not absorbed.
losses Amount from item C Working Sheet HK-1.3
23

Sheet
K1c Losses carried K1a plus K1b HK-1.3 -

forward Or
Amount from item G Working Sheet HK-1.3
K1d Pioneer loss Pioneer business loss can only be absorbed by income HK-1.4 -
from other pioneer business. Hence, its accounts must be
kept separate from that of non-pioneer business.
Amount absorbed Enter the amount of pioneer loss that has been absorbed HK-1.4 -
in this item.
Amount from item D Working Sheet HK-1.4
Balance carried Enter the amount of unabsorbed balance of pioneer loss HK-1.4 -
forward in this item.
Amount from item E Working Sheet HK-1.4
K2 Capital Claim for capital allowances in the computation of statutory - -

allowances income from business.
K2a 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 or HK-1C/
Amount from item Q5 Working Sheet HK-1C or HK-1D
Amount from item N5 Working Sheet HK-1D
Balance carried Amount from item K6 Working Sheet HK-1 or HK-1/ -

forward Amount from item Q6 Working Sheet HK-1C or HK-1C/
Amount from item N6 Working Sheet HK-1D HK-1D
K2b Business 2 See the explanation for item K2a As per K2a -
K2c Business 3 + 4 See the explanation for item K2a As per K2a -
and so forth
K2d Partnership 1 This refers to Partnership 1 in item C4. - -
Allowance absorbed Capital allowance absorbed in the current year for HK-1B -
Partnership 1.
Amount from item D / K4 Working Sheet HK-1B
Balance carried Amount from item K5 Working Sheet HK-1B HK-1B -

forward
K2e Partnership 2 See the explanation for item K2d As per K2d -
K2f Partnership 3 + 4 See the explanation for item K2d As per K2d -
and so forth
24

Sheet
K3a 107A Withholding tax under section 107A HK-11 -
Total Gross Amount Paid

Gross income in respect of services under a contract
paid to a non-resident contractor pursuant to section 107A
Tax withheld and remitted to LHDNM

10 % of gross amount [paragraph 107A(1)(a)]
Plus
3% of gross amount [paragraph 107A(1)(b)
(Regulations and procedures for payment set out by the

Collections Branch must be complied).
K3b 109 Withholding tax under section 109 - tax rate is according HK-11 Appendix F
to Part II Schedule 1 of ITA 1967 except rates which differ
according to the Avoidance of Double Taxation Agreements.
(Refer to Appendix F)

Total gross amount paid before any deduction.
K3c 109A Withholding tax under section 109A - 15% HK-11 -

See the explanation for item K3b.
K3d 109B Withholding tax under section 109B - tax rate is according HK-11 Appendix F
to Part V Schedule 1 of ITA 1967 except rates which differ
according to the Avoidance of Double Taxation
Agreements. (Refer to Appendix F)

See the explanation for item K3b.
PART L : SPECIAL DEDUCTION, FURTHER DEDUCTION AND DOUBLE DEDUCTION

Sheet
L1 to CLAIM CODE Use the claim code provided in Appendix D. - Appendix D

L4
L5 TOTAL CLAIMED Sum of amounts from items L1 to L4. -

-
25
PART M : INCENTIVE CLAIM / EXEMPT INCOME

Sheet
M1 Schedule 7A This incentive is given in respect of a project HK-1B, HK-1C -
allowance undertaken by an individual in transforming his
business of rearing chicken and ducks from an
opened house to a closed house system.
Refer to section 133A and paragraph 1C Schedule 7A
ITA 1967 to determine the eligibility; paragraph 1 and
paragraph 3 Schedule 7A ITA 1967 on the method of
computation.
Retain original documents pertaining to the qualifying
capital expenditure, application form and detailed
computation of the allowance for examination.
Use Working Sheet HK-1B/HK-1C to compute the statutory
income and adjust the claim for Schedule 7A allowance.
Amount claimed Transfer the amount of Reinvestment Allowance claimed

i.e. amount from item L4 Working Sheet HK-1B / P4 Working
Sheet HK-1C to this item.
Balance carried Transfer the balance of unabsorbed Reinvestment

forward Allowance (balance carried forward) i.e. amount from
item L5 Working Sheet HK-1B / P5 Working Sheet HK-1C
to this item.
Enter “0” if there is no balance.
M2 Increased exports Refer to paragraphs 2, 3 and 6 Income Tax (Exemption) HK-1B, HK-1D -
allowance for (No.9) Order 2002 to determine the eligibility.
qualifying services Use Working Sheet HK-1D to compute.
Amount claimed Transfer amount from item M4 Working Sheet HK-1B / M7

Working Sheet HK-1D to this item.
Balance carried Transfer the balance of unabsorbed allowance (balance

forward carried forward) i.e. amount from item M5 Working Sheet
HK-1B / M8 Working Sheet HK-1D into this item. If there
is no balance, enter “0”.
M3 Schedule 4 Refer to the explanation for item C21. - -

qualifying Any balance of claim not absorbed in item C21 is
expenditure carried forward by entering the amount in this item.
Enter “0” if there is no balance to be carried forward.
M4 Schedule 4A See the explanation for item C22. - -

qualifying Any balance of claim not absorbed in item C22, is carried
expenditure forward by entering the amount in this item.
Enter “0” if there is no balance.
M5 Pioneer Income Enter the amount/portion of income which is tax exempt HK-1E -
(Amount Exempted) from item M4 Working Sheet HK-1E in this item.
26
PART N : FINANCIAL PARTICULARS OF INDIVIDUAL

Sheet
N1 Business code Enter the business code (refer to Appendix G) for the main - Appendix G
business only. If there is more than one (1) main business,
enter the code for the business with the highest turnover.
N2 Sales or Gross amount including accrued income from sales, fees - -

Turnover and other receipts.
N3 Opening stock Opening stock of finished goods as per Trading Account. - -
N4 Purchases and ● Gross amount of purchases minus discounts/rebates - -

cost of production received pertaining to the main business.
● Cost of production as per Manufacturing Account.
N5 Closing stock Closing stock of finished goods as per Trading Account. - -
N6 Cost of sales N3 plus N4 minus N5. Enter “0” if none. - -
N7 Gross profit/ N2 minus N6 or N6 minus N2 if loss. - -

loss
N8 Other business Sum of gross income from businesses other than N1. - -
income
N9 Dividends Sum of gross income from dividends. HK-3 -

Amount from item C(i) Working Sheet HK-3.
N10 Interest and Sum of gross income from interest/discounts. HK-5 -

discounts Amount from item A Working Sheet HK-5.
N11 Rents, royalties Rent - Amount from item B1 Working Sheet HK-4. HK-4 -
and premiums Royalties - Amount from item F Working Sheet HK-5. HK-5 -
N12 Other income Sum of gross income from other non-business sources not - -
mentioned above.
N13 Total Sum of amounts from items N8 to N12. - -
N14 Loan interest Total expenditure on interest excluding interest on - -

hire-purchase/lease.
N15 Salaries and wages Amount as per Profit and Loss Account. - -
N16 Rental/Lease Amount as per Profit and Loss Account. - -
N17 Contracts and Amount as per Profit and Loss Account. - -

subcontracts
N18 Commissions Amount as per Profit and Loss Account. - -
N19 Bad debts Amount as per Profit and Loss Account. - -
N20 Travelling Amount as per Profit and Loss Account. - -
N21 Other expenses Total amount of other expenses not listed in items from - -
N14 to N20.
27

Sheet
N22 Total expense Sum of amounts from items N14 to N21. - -
N23 Net profit/ Net profit or loss as per Profit and Loss Account. - -
loss
N24 Non-allowable Amount from item F1 Working Sheet HK-1, HK-1C or HK-1 / HK-1C / -
expenses HK-1D HK-1D
N25 Land and Net book value as per Balance Sheet. - -

buildings
N26 Plant and Net book value as per Balance Sheet. - -

machinery
N27 Motor vehicles Net book value as per Balance Sheet. - -
N28 Other fixed assets Net book value as per Balance Sheet. - -
N29 Total fixed asset Sum of amounts from items N25 to N28. - -
N30 Investments Cost of investments and fixed deposits. - -
N31 Stock Closing stock of finished goods as per Balance Sheet. - -
N32 Trade debtors Trade debtors as per Balance Sheet. - -
N33 Other debtors Other/Sundry debtors as per Balance Sheet excluding - -

drawings by proprietor.
N34 Cash in hand Amount as per Balance Sheet. - -
N35 Cash at bank Amount as per Balance Sheet. - -
N36 Other current Current assets other than N31 to N35. - -

assets
N37 Total current asset Sum of amounts from items N31 to N36. - -
N38 Total asset Sum of amounts from items N29, N30 and N37. - -
N39 Loans Amount as per Balance Sheet. - -
N40 Trade creditors Trade creditors as per Balance Sheet. - -
N41 Other creditors Other/Sundry creditors as per Balance Sheet. - -
N42 Total liability Sum of amounts from items N39 to N41. - -
28

Sheet
N43 Capital Account Amount as per Balance Sheet. - -
N44 Current account Current account balance carried forward from last year, - -
balance brought excluding capital.
forward
N45 Current year Amount as per Profit and Loss Account. - -

profit/loss If loss, indicate ‘X’ in the box provided.
N46 Net advance/ Takings of cash, stock in trade, etc. from the business by - -
drawings the proprietor for personal use/advance of cash.
N47 Current account Sum of amounts from items M44 to M46. - -

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 Enter “1” if this return form is signed by the individual himself. - -
behalf
This return form is Enter “2” if this return form is signed by a representative of the - -
made on behalf of individual.
the above individual
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 Form B.
b Address of Firm Corresponding address of the tax consultancy firm. - -
c Telephone No. Telephone number of the tax consultancy firm. - -
d Handphone No. Handphone number of the tax agent. - -
e e-mail e-mail address of the tax agent. - -
f Tax Agent’s This item is to be filled in only by a tax agent approved under - -
Approval No./ the provision of paragraphs 153(3)(b) and 153(3)(c) ITA 1967 or
Audit Licence No. who has a valid audit licence.
Please take note of the reminder on page 11 of the Form B before signing it. Fill in the date and designation clearly.
29
Part 2 - Working Sheets
This working sheet is prepared to assist you in the computation of statutory income from business.
HK-1 : COMPUTATION OF STATUTORY INCOME FROM BUSINESS
Use separate Working Sheet HK-1 for each business source.

Sheet
A Balance as per Transfer the balance from the Profit and Loss Account to - -
Profit and Loss this box.
Account
Separation of Extract any non-business income which has been included - -

income according in the Profit and Loss Account and enter it in the appropriate
to class box provided.
B Total non-business This is the sum of all non-business income from sources - -
income such as dividends, rents, royalties, interest and others.
C Total business A minus B - -

income
D1 Non-allowable Examine and extract non-allowable losses from the Profit - -

losses and Loss Account. Indicate the type of loss in the space
provided if not listed and fill in the amount.
Example :
Loss on disposal of motor vehicle WGA 2001 RM4,000
Loss on disposal of cutting machine RM3,000
D2 Surplus recovered Amount from item A Working Sheet HK-1.1A HK-1.1A -

expenditure
(mining)
D3 Total D1 plus D2. - -
D4 Non-taxable gains/ Examine the Profit and Loss Account and extract the profits which - -
income entered in are not taxable as business income. Enter the amount in the box
the profit and loss provided.
account
Example :
Profit on disposal of motor vehicle WHU 9001 RM5,000
Profit on disposal of sewing machine RM2,000
D5 Total D3 minus D4 - -
E Business income C plus D5. - -
F Adjustment of Non-allowable expenditure must be adjusted in accordance - -

business expenditure with income tax provisions.
1.1 Depreciation Provision made on the use of business assets. - -

Paragraph 39(1)(b)
30

Sheet
1.2 Own salary, Remuneration payable to ownself. - -

allowances, Paragraph 39(1)(a)
bonus, EPF
1.3 Entertainment Entertainment includes the provision of food, drinks, - -

recreation or hospitality of any kind (unless for the
benefit of own employees).
Paragraph 39(1)(l)
1.4 Gifts Expenditure on gifts except for own employees. - -

Paragraph 39(1)(b)
1.5 Donations Donations include those made to approved institutions/ - -

organisations under the provision of subsection 44(6).
Donations claimed and approved are deductible from the
aggregate income in item C30 Form B or C14 Borang BE.
Paragraph 39(1)(b)
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 - -
stock in trade account at market value.
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 General provision for bad/doubtful debts is disallowed unless - -
bad/doubtful it is specific.
debts Subsection 34(2)
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.
Paragraph 39(1)(b)
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.
Subsection 33(2).
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 - -
off written off.
Paragraph 39(1)(b)
31

Sheet
1.16 Personal Domestic or private expenses. - -

expenditure Paragraph 39(1)(a)
(a) Travelling/ Allowances/Reimbursements to ownself or own employees in - -

Accomodation respect of travelling/accomodation unrelated to the business.
(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 charged to the - -

benefits business.
Example :
Water and electricity bills, quit rent, assessment, rental, loan
interest, renovation and maintenance.
(d) Telephones Personal calls charged to the business. - -
(e) Fees/ Fees/Subscriptions paid to associations and clubs such as - -

Subscriptions entrance fees and membership subscriptions.
Example :
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.
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 income tax provisions. - Appendix D
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.
Refer to Appendix D to determine the type of incentive you
qualify for.
F5 Total Sum of amounts from items F2, F3 and F4. -

-
32

Sheet
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.
If the computed figure is negative (-), which is adjusted loss,

proceed to item H.
H Adjusted loss Refer to the above explanation. HK-1.3 -

Transfer the amount to item D1 Working Sheet HK-1.3.
J1 Adjusted income Amount from item G. - -
Enter “0” in the box provided if it is an adjusted loss.
J2 Balancing charge Adjustment of profit on disposal of assets transferred HK-1.2 -

from HK-1.2
Enter “0” if not relevant.
J3 Total J1 plus J2. - -
J4 Capital allowance Amount as per item K4 (restricted to the amount in item J3). - -
absorbed
J5 Statutory income J3 minus J4 - -

Transfer this amount to item C1 / C2 / C3 Form B.
K1 Balance brought Balance of capital allowances from previous years not - -

forward absorbed.
K2 Balancing Residual expenditure of business assets which ceased to be HK-1.2 -

allowance 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 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
K6 Balance carried K4 minus K5. - -

forward This amount arises if the amount in item K4 is not fully
absorbed by the amount in item J3.
This balance shall be the amount for item K1 in the following

year of assessment.
33
HK-1B: COMPUTATION OF STATUTORY INCOME FROM PARTNERSHIP BUSINESS
Use separate working sheet HK-1B for each partnership business source.
Sheet
A Adjusted Enter the sum of amounts from items A13 and A19 of the CP30. CP 30 -
income from
partnership
business
B Balancing charge Enter the sum of amounts from items A14 and A20 of the CP30. CP 30 -
C Total A plus B. - -
D Capital allowance Amount of capital allowance that can be absorbed CP 30 -

absorbed (restricted to the amount in item C).
E Statutory income C minus D - -
F - G Schedule 7A These items are relevant if you are entitled to claim - -

allowance Schedule 7A allowance.
H - J Increased exports These items are applicable if you are entitled to claim - -
allowance for increased exports allowance for qualifying services.
qualifying services
K Adjustment of the
balance of capital
allowance
1. Balance brought Previous years’ capital allowances not absorbed. - -
forward
2. Balancing Enter the sum of amounts from items A15 and A21 CP 30 -
allowance and of the CP 30.
capital allowance
3. Total Sum of amounts from items K1 and K2. - -
4. Claim absorbed Amount as per item D. - -
in the current
year
5. Balance carried K3 minus K4. - -
forward
L - M Adjustment of the These items are relevant if you are entitled to claim - -
balance of Schedule Schedule 7A allowance and increased exports allowance
7A allowance & for qualifying services.
Increased exports
allowance for
qualifying services
HK-1C: COMPUTATION OF STATUTORY BUSINESS INCOME FOR THE INDIVIDUAL ENTITLED TO CLAIM
SCHEDULE 7A ALLOWANCE
This working sheet is prepared for use in the computation of Schedule 7A allowance.
HK-1D: COMPUTATION OF STATUTORY BUSINESS INCOME FOR THE INDIVIDUAL ENTITLED TO CLAIM
INCREASED EXPORTS ALLOWANCE FOR QUALIFYING SERVICES
This working sheet is provided for use in the computation of increased exports allowance for qualifying services.
34
HK-1E: COMPUTATION OF STATUTORY INCOME FROM PIONEER BUSINESS
This working sheet is provided for use in the computation of statutory income from pioneer business. Use separate working sheet
for each pioneer business.
HK-1.1 : COMPUTATION OF MINING ALLOWANCES &

HK-1.2 : 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 ALLOWANCES 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 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 allowances claim for a year of assessment so that
the final computed figure can be entered in Working Sheet HK-1/HK-1C/HK-1D/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 is to be used as a summary of capital expenditure made and has
to be kept as long as the business still operates.
HK-1.3 : ADJUSTMENT OF LOSSES FOR BUSINESS AND PARTNERSHIP

Sheet
A Previous years’ Balance of previous years’ losses from business/ - -
losses brought partnership not absorbed.
forward
B Previous years’ losses Amount as per item C8 Form B. - -

absorbed by current
year’s statutory
income
C Balance from A minus B - -

previous years’
losses not absorbed
D Current year losses :

1. Business Amount from item H Working Sheet HK-1/ HK-1C/ HK-1D HK-1/ HK-1C/ -
HK-1D
2. Partnership Sum of amounts from items A13 and A19 of the CP 30. CP 30 -
35

Sheet
E Losses absorbed Amount as per item C19 Form B. - -
by current year’s
aggregate income
F Balance from D minus E - -

current year losses
not absorbed
G Losses carried C plus F - -

forward
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 Amount from item H Working Sheet HK-1E. HK-1E -

adjusted loss
C Total Sum of amount from items A and B. - -
D Losses absorbed Amount from item N3 Working Sheet HK-1E. HK-1E -
E Losses csrried C minus D - -

forward
HK-2 : COMPUTATION OF STATUTORY INCOME FROM EMPLOYMENT
This working sheet is prepared for the purpose of computing the statutory income from employment.
Use separate working sheet HK-2 for each employment source.

Sheet
A Receipts under
paragraph 13(1)(a)
1. Cash receipts Monetary receipts in respect of having or exercising an HK-2.1 -
employment include:
Gross salary Fees Perquisites

Wages Commissions Awards/rewards
Leave pay Bonuses Allowances
Overtime pay Gross tips
Amount from item Q Working Sheet HK-2.1.

Benefits or Receipts such as shares given free or offered
amenities at lower than market price by the employer.
convertible
into money
36

Sheet
2. Gratuity Refer to the explanation in Appendix B1 HK-2.2 Appendix B1
Amount from item E4(vi) Working Sheet HK-2.2.
3. Tax allowance/ Refer to the explanation in Appendix B2 HK-2.3 Appendix B2

Tax borne by
the employer Amount from item C7 Working Sheet HK-2.3.
4. Allowances Allowances deemed wholly expended includes:- - -

deemed wholly ‘Imbuhan Tetap Perumahan/Perumahan Khas/Perumahan
expended Wilayah, Imbuhan Tetap Khidmat Awam, Elaun Bekalan
Elektrik dan Air Percuma, Bayaran Insentif Singapura,
Bayaran Tambahan Insentif Singapura, Elaun Khas
Mengendalikan Reaktor, Elaun Bayaran Lesen Memandu,
Imbuhan Tetap Keraian, Elaun Bantuan Menyenggara
Rumah, Elaun Bantuan Orang Gaji dan Drebar.’
5. Total Sum of amounts from items A1 to A4. - -
B Benefits-in-kind Refer to the explanation in Appendix B3 HK-2.4 Appendix B3
Amount from item K Working Sheet HK-2.4.
C Value of living Refer to the explanation in Appendix B4 HK-2.5 Appendix B4

accomodation
benefit Amount Z from item J1 / 2.1 / 2.2 / 2.3 / 3.1 / 3.2
(whichever applies) Working Sheet HK-2.5.
D Refund from Amount as reported by the employer in the Form EA / EC. HK-2.6 -
unapproved Amount to be taxed shall be the amount paid out from the
Pension or, employer’s contribution in such fund, scheme or society to the
Provident Fund employee.
Scheme or
Society Example :
Amount received from an unapproved pension scheme :-
Employer’s contribution RM24,000
Employee’s contribution RM30,000
Total RM54,000
Taxable amount is RM 24,000

Enter the employer’s contribution in this box.
Amount from item A Working Sheet HK-2.6.
E Compensation Refer to the explanation in Appendix B5 HK-2.7 Appendix B5

for loss of
employment Amount from item D Working Sheet HK-2.7.
F Total gross Sum of amounts from items A to E. - -

employment
income
G Subscriptions Compulsory membership subscriptions paid to professional - -

to professional bodies to ensure the continuance of a professional standing
bodies and practice such as those paid by those in the medical and
legal profession.
37

Sheet
H Entertainment Entertainment includes the provision of : - -

expenditure
1. food, drinks, recreation or hospitality of any kind ; or
2. accomodation or travel in connection with or for the

purpose of facilitating entertainment of the kind mentioned
in (1) above.
Section 18
Deduction is allowed if incurred in the discharge of official
duties but shall not exceed the amount of entertainment
allowance included as part of the gross employment
income.
Section 38A
Example :
Salary RM30,000
Entertainment allowance RM 8,000
Amount expended in respect of entertainment is RM10,000.

Deduction allowed is restricted to RM8,000.
J Travelling Travelling expenditure wholly and exclusively incurred in the - -

expenditure production of gross employment income is deductible.
1. The full amount of allowance must be included in the gross

employment income irrespective of whether this expenditure
is wholly or partly deductible.
2. Reimbursements received from the employer in respect

of travelling is neither liable to tax nor deductible.
3. Travelling expenditure is not deductible 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 Expenses deemed Amount as per item A4. - -

wholly incurred
L Expenditure Expenditure paid by an employee in respect of the living HK-2.5 Appendix B4

related to the accomodation provided by his employer, is deductible such as :
living accomodation 1. Rental (accomodation and furniture).
provided by 2. Quit rent, assessment and insurance.
the employer 3. Repairs/Maintenance of the premise.
(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 38(1)(b)
38

Sheet
M Total Sum of amounts from items G, H, J, K and L5 - -
N Statutory income F minus M - -

from employment
P SUMMARY OF - -
STATUTORY
INCOME FROM
EMPLOYMENT
1. Employment 1 Enter the amount from items N for Employment 1.

4. Total Sum of amounts from items P1 to P3.
Transfer the amount from items P4 to item C1 Form BE /
C10 Form B.
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. - -
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. - -
E Fees Fees received as per Form EA / EC. - -
F Commissions Commissions received as per Form EA / EC. - -
G Bonuses Bonuses received as per Form EA / EC. - -
H Gross tips Tips received from customers. - -
J Perquisites Benefits convertible into money received from the - -

employer/third parties in respect of having or
exercising the employment.
K Awards/Rewards Awards/Rewards received from the employer. - -
L Allowances Allowances received may be of various types such as - -

motor vehicle allowance and housing allowance.
39

Sheet
M Household telephone If the telephone is subscribed by the employee, the benefit - -
bills paid by the to be taxed shall be the actual cost of the employee’s private
employer bills paid by his employer.
N Recreational club Where the type of the membership is for individual, 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 ang term membership.
P Other receipts Other payments received for work/services rendered. - -
Q Total Sum of amounts from items A to P. HK-2 -

Transfer the amount from item Q to item A1 Working Sheet HK-2.
HK-2.2 : COMPUTATION OF TAXABLE GRATUITY

Sheet
A - E Taxable gratuity Refer to the explanation in Appendix B1. - Appendix B1
F Transfer the amounts from items E4(i) to E4(v) for the - -

preceding years of assessment to Part G Form B/BE.
G Transfer the amount from item E4(vi) to item A2 Working HK-2 -

Sheet HK-2.
HK-2.3 : COMPUTATION OF TAX ALLOWANCE

Sheet
A - C Tax allowance Refer to Appendix B2 for further explanation. - Appendix B2
HK-2.4 : BENEFITS-IN-KIND (BIK) [PARAGRAPH 13(1)(b)]

Sheet
A - F Benefits-in-kind Enter the amount according to the type of benefit received. - Appendix B3
Refer to Appendix B3 for further explanation.
K Total Transfer this amount to item B Working Sheet HK-2. HK-2 -
40
HK-2.5 : BENEFIT / VALUE OF LIVING ACCOMODATION PROVIDED [PARAGRAPH 13(1)(c)]

Sheet
A Job status Enter “ X ” according to the current job status. - -
B Type of Enter “ X ” according to the type of accomodation provided. - -

accomodation
C Share of Enter “ X “ in the relevant box. - -

accomodation
If shared - Indicate your share of the accomodation provided
and the accomodation provided as a whole.
Example :
If your share of the accomodation provided = 1/4
Enter :
Share of accomodation (X)
!1 (Y) 4
!
If the 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 accomodation provided.
Example :
If your share of the accomodation provided = 1/2
Enter :
Share of accomodation (X)
!
1 (Y) 2
!
D Period for which State the length of the period for which the accomodation is - -
the accomodation provided (indicate in number of months).
is provided
E Length of State the length of employment in the current year (indicate - -

employment in number of months).
in the current
year
F Defined value Enter the annual value of the accomodation provided. - -
G Receipts under Transfer the amount from item A5 Working Sheet HK-2 HK-2 -
paragraph 13(1)(a)
H 1. 30% of G Enter the result of G x 30/100 in this box. - -
2. 3% of G Enter the result of G x 3/100 in this box.
J1-3.2 Value of living Select the appropriate category, compute and enter the HK-2 Appendix B4
accomodation amount derived in the box provided.
subject to tax Refer to Appendix B4 for further explanation.
Transfer the amount from item Z to item C Working Sheet HK-2.
41
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
C Total Sum of amounts from items A and B. - -
HK-2.7 : COMPUTATION OF TAXABLE COMPENSATION

Sheet
A - D Compensation Refer to Appendix B5 for further explanation. HK-2 Appendix B5
Transfer the amount from item D to item E Working Sheet HK-2.
HK-3 : TAX DEDUCTION UNDER SECTION 110 (DIVIDENDS)

Sheet
A - D Tax deduction This working sheet is provided for the purpose of computing the - -
under section 110 gross income from dividends and the tax to be deducted under
(dividends) section 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-5 : COMPUTATION OF STATUTORY INCOME FROM INTEREST / ROYALTIES

Sheet
A - H Interest/Royalties This working sheet is provided for the purpose of computing the - -
statutory income from interest/royalties.
42
HK-6 : TAX DEDUCTION UNDER SECTION 110 (OTHERS)

Sheet
A - G Tax deduction Use this working sheet to compute the gross income and tax to - -
under section 110 be deducted under section 110 in respect of interest/royalties/
(others) special classes of income under section 4A and income from
trust bodies and distribution of income from Real Estate
Investment Trust (REIT) and Property Trust Funds (PTF).
HK-8 : INCOME FROM COUNTRIES WHICH HAVE AVOIDANCE OF DOUBLE TAXATION AGREEMENT WITH
MALAYSIA AND CLAIM FOR SECTION 132 TAX RELIEF

Sheet
A - H Section 132 Use this working sheet to compute the income from countries - -
tax relief with avoidance of double taxation agreement and claim for tax
relief under section 132.
HK-9 : INCOME FROM COUNTRIES WITHOUT DOUBLE TAXATION AGREEMENT WITH MALAYSIA AND
CLAIM FOR SECTION 133 TAX RELIEF

Sheet
A - H Section 133 Use this working sheet to compute the income from countries - -
tax relief without avoidance of double taxation agreement and claim for
tax relief under section 133.
HK-10 : INSTALMENTS / SCHEDULAR TAX DEDUCTIONS PAID

Sheet
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. - -
43

Sheet
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 F2 Form B/BE.
HK-11 : BASIS YEAR PAYMENTS TO NON-RESIDENTS (WITHHOLDING TAX)

Sheet
Basis year Use this working sheet to report the details of payments made - -
payments to in the basis year to non-residents which involve withholding
non-residents tax.
(withholding tax)
HK-13 : DEDUCTION FOR MAINTENANCE OF UNMARRIED CHILDREN

Sheet
Deduction for This working sheet is provided for the computation of claim for - -
maintenance of deduction under section 48.
unmarried children
HK-14 : LIFE INSURANCE PREMIUMS / CONTRIBUTIONS TO APPROVED PROVIDENT OR PENSION FUND,

EDUCATION AND MEDICAL INSURANCE; AND EPF ANNUITY INSURANCE

Sheet
Life insurance Use this working sheet to compute the claim for deduction of - -
premiums /EPF, life insurance premiums/contributions made to an approved
education and medical Provident or Pension Fund, insurance on education or for
insurance and EPF medical benefits and EPF annuity insurance.
annuity insurance
44
HK-1: COMPUTATION OF STATUTORY INCOME FROM BUSINESS
Name
Tax Reference No. I/C No.

Business Registration No.
1 2 3 4 5
Business Year Of Assessment
▲ Enter “X” in the relevant box.
Type Of Business Business Code
Item Amount
+ –
A. BALANCE AS PER PROFIT
AND LOSS ACCOUNT
LESS : SEPARATION OF INCOME ACCORDING TO 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 loss
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 HK-1.3 before proceeding to items
J and K for computing 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
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 THE BALANCE OF CAPITAL ALLOWANCE (if relevant)
1. Balance brought forward

ADD :
2. Balancing allowance
3. Capital allowance
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-1B : COMPUTATION OF STATUTORY INCOME FROM PARTNERSHIP BUSINESS
Name

1 2 3 4 5
Partnership Business 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 M 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 K3 but restricted to the amount in item C)
E. STATUTORY INCOME (C - D)
Or
*IF ENTITLED TO CLAIM SCHEDULE 7A ALLOWANCE, PROCEED TO COMPUTE AS FOLLOWS:
LESS:
F. Schedule 7A allowance
(Restricted to 70% of the statutory income in item E)
G. STATUTORY INCOME AFTER DEDUCTION OF

SCHEDULE 7A ALLOWANCE (E - F)
Or
*IF ENTITLED TO CLAIM INCREASED EXPORTS ALLOWANCE FOR
QUALIFYING SERVICES, PROCEED TO COMPUTE AS FOLLOWS:
LESS:
H. Increased Exports Allowance For Qualifying Services claimed

(Restricted to 70% of the statutory income in item E)
J. STATUTORY INCOME AFTER DEDUCTION OF INCREASED EXPORTS

ALLOWANCE FOR QUALIFYING SERVICES (E - H)

K. ADJUSTMENT OF THE BALANCE OF CAPITAL ALLOWANCE (if relevant)
ADD :
2. Balancing allowance and capital allowance

(Amount from items A15 and A21of the CP30)
3. TOTAL (K1 + K2)
LESS :
4. Claim absorbed in the current year

(Amount as per item D)
5. Balance carried forward (K3 - K4)
L. ADJUSTMENT OF THE BALANCE OF SCHEDULE 7A ALLOWANCE (if relevant)
ADD :
2. Current year’s Schedule 7A allowance

3. TOTAL (L1 + L2)
LESS :
4. Claim absorbed in current year (Amount as per item F)
5. Balance carried forward (L3 - L4)
M. ADJUSTMENT OF THE BALANCE OF INCREASED EXPORTS ALLOWANCE FOR QUALIFYING

SERVICES (if relevant)
ADD :
2. Current year’s Increased Exports Allowance for Qualifying Services

3. TOTAL (M1 + M2)
LESS :
4. Claim absorbed in current year (Amount as per item H)
5. Balance carried forward (M3 - M4)

HK-1C: COMPUTATION OF STATUTORY BUSINESS INCOME FOR THE
INDIVIDUAL ENTITLED TO CLAIM SCHEDULE 7A ALLOWANCE
Name

1 2 3 4 5
Item Amount
+ –
AND LOSS ACCOUNT
Dividend income
Rental income
Royalty income
Interest income
Other income
C. TOTAL BUSINESS INCOME (A - B)
ADD :
.................................................
.................................................
TOTAL
2. Surplus recovered expenditure

(mining)
3. TOTAL (D1 + D2)

LESS :
.................................................................
.................................................................
TOTAL
5. TOTAL (D3 - D4)
E. BUSINESS INCOME
(C + D5)
ADD :
1.1 Depreciation
1.3 Entertainment
1.4 Gifts
1.5 Donations
1.8 Cash drawings
1.12 Legal fees
(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)

(F1 - F5)
Or
If H - (Adjusted Loss), transfer the amount of adjusted loss to item D1 HK-1.3 before proceeding
to items J and Q for computing the balance of capital allowance to be carried forward.

1. ADJUSTED INCOME
3. TOTAL

(Amount as per item Q4 below but restricted to the
amount in item J3)
5. STATUTORY INCOME (J3 – J4)
K. COMPUTATION OF CLAIM FOR SCHEDULE 7A ALLOWANCE
1. % x =
(qualifying capital expenditure)
ADD
2. Balance of allowance brought forward
3. TOTAL (K1 + K2)
L. RESTRICTION LIMIT OF
STATUTORY INCOME % x
(J5)
M. SCHEDULE 7 A ALLOWANCE (K3 OR L whichever is lower)
N. TAXABLE STATUTORY INCOME (J5 - M)

P. ADJUSTMENT OF THE BALANCE OF SCHEDULE 7A ALLOWANCE
ADD:
2. Current year claim
3. TOTAL
LESS :
4. Claim absorbed in current year (amount as per item M)
5. Balance carried forward (P3 - P4)
Q. ADJUSTMENT OF THE BALANCE OF CAPITAL ALLOWANCE (if relevant)
ADD :
4. TOTAL
LESS :
5. Claim absorbed in the current year (amount as per item J4)
6. Balance carried forward (Q4 - Q5)

HK-1D : COMPUTATION OF STATUTORY BUSINESS INCOME FOR THE INDIVIDUAL ENTITLED
TO CLAIM INCREASED EXPORTS ALLOWANCE FOR QUALIFYING SERVICES
Name

1 2 3 4 5
Item Amount
+ –
A. BALANCE AS PER PROFIT AND
LOSS ACCOUNT
Dividend income
Rental income
Royalty income
Interest income
Other income
C. TOTAL BUSINESS INCOME

(A - B)
ADD :
.....................................................
.....................................................
TOTAL

LESS :
.................................................................
.................................................................
3. TOTAL (D1 - D2)
E. BUSINESS INCOME
(C + D3)
ADD :
1.1 Depreciation
1.3 Entertainment
1.4 Gifts
1.5 Donations
1.8 Cash drawings
1.10 Initial/Termination of business expenditures
1.12 Legal fees
(f) Seminars
(g) Medical

(Please specify ................)
TOTAL (1.1 to 1.17)

LESS :
2. Further deductions
2.1 .....................................................
2.2 .....................................................
2.3 .....................................................
TOTAL (2.1 to 2.3)

(F1 - F2)

Or
If H - (Adjusted Loss), transfer the amount of adjusted loss to item D1 HK-1.3 before proceeding
to items J and N for computing the balance of capital allowance to be carried forward.

1. ADJUSTED INCOME
3. TOTAL

(Amount as per item N4 below but restricted to the
amount in item J3)
5. STATUTORY INCOME (J3 – J4)
K. COMPUTATION OF CLAIM FOR INCREASED EXPORTS

ALLOWANCE FOR QUALIFYING SERVICES
1. 70% x Statutory Income (Restriction) =
2. Eligible claim for Increased Exports Allowance

For Qualifying Services (Amount from item M6)
3. Increased Exports Allowance For Qualifying Services absorbed

(Amount K1 or K2 whichever is lower)
L. TAXABLE STATUTORY INCOME (J5 - K3)
M. ADJUSTMENT OF THE BALANCE OF INCREASED EXPORTS ALLOWANCE FOR QUALIFYING SERVICES

1. Balance of Increased Exports Allowance For Qualifying Services
brought forward
2. Current year income from Exports Of

Qualifying Services
LESS :
3. Previous year’s income from Exports Of
Qualifying Services

4. Value of Increased Exports Of Qualifying Services
(M2 - M3)
5. Increased Exports Allowance For Qualifying Services (M4 x 50%)
6. TOTAL (M1 + M5)

(Transfer this amount to item K2)
7. Increased Exports Allowance For Qualifying Services absorbed

(Amount as per item K3)
8. Balance carried forward (M6 - M7)
N. ADJUSTMENT OF THE BALANCE OF CAPITAL ALLOWANCE (if relevant)

ADD :
4. TOTAL
LESS :
5. Claim absorbed in the current year (Amount as per item J4)
6. Balance carried forward (N4 - N5)
QUALIFYING SERVICES
1. Legal
2. Accounting
3. Architecture
4. Marketing
5. Business consultancy
6. Office services
7. Construction management
8. Building management
9. Plantation management
10. Private health care
11. Private education
12. Publishing services
13. Information technology and communication (ICT) services

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

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
1 2 3 4 5
▲ Enter ‘X’ in the relevant box.
Item Amount
+ –

AND LOSS ACCOUNT
LESS: SEPARATION OF INCOME BY CLASS
Dividend income
Rental income
Royalty income
Interest income
Other income
C. TOTAL BUSINESS INCOME ( A - B )

ADD:
1. Non-allowable losses:
Foreign exchange losses
.................................................
.................................................
TOTAL
LESS:
2. Non-taxable gains/income entered in the profit and loss account:
..................................................
..................................................
TOTAL
3. TOTAL ( D1 - D2 )
E. BUSINESS INCOME ( C + D3 )

ADD:
1. Non-allowable expenditure and charges:
1.1 Depreciation
1.3 Entertainment
1.4 Gifts
1.5 Donations
1.8 Cash drawings
1.12 Legal fees

1.16 Personal expenditure:
(f) Seminars
(g) Medical

(Please specify ............................................)
TOTAL ( 1.1 to 1.17 )
LESS:
2. Further deductions:
2.1 .....................................................
2.2 .....................................................
2.3 .....................................................

( 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.
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 THE BALANCE OF CAPITAL ALLOWANCE (if relevant)

ADD:
4. TOTAL (N1 + N2 + N3)

LESS:
5. Claim absorbed in the current year

(amount as per item J4)
6. Balance carried forward (N4 - N5)

HK-1.1: MINING ALLOWANCES
Year Of Assessment
Name
Tax Reference No.

A B C D E F G H J K L
Residual Surplus Surplus Residual
Residual life Development Total Recovered Total Mining
Item Class expenditure residual recovered expenditure
of the mine expenditure (C+D) expenditure (E-F) allowance
b/f expenditure expenditure c/f
1
2
3
4
5
6
7

8
9
10
11 TOTAL
(Transfer the amounts from items H, J and K to HK- 1.1A)

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.
Expected Life of the Mine : 1. Total acreage of deposits available for dredging or other mining operations
Expected acreage to be dredged, etc., annually
= X years
OR
2. Total estimated deposits in tons/piculs
= X years
HK-1.1
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)
= X years
Expected acreage to be dredged, etc., annually (M)
T
Or = X years
M
2. Total estimated deposits in tons/piculs (P)

= X years
Expected rate of annual production in tons/piculs (K)
Or P
= X years
K

HK-1.1A : SUMMARY OF MINING ALLOWANCES
Year Of Assessment
Name
Tax Reference No.
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]
ATTACHMENT 1
ATTACHMENT 2
ATTACHMENT 3
ATTACHMENT 4
ATTACHMENT 5
TOTAL
(Transfer this amount (Transfer this amount (Transfer this amount

to item D2, HK-1/ to item F2, HK-1/ to item F3, HK-1/
HK-1C) HK-1C) HK-1C)

HK-1.2: SUMMARY OF CAPITAL ALLOWANCES
Year Of Assessment
Name
Tax Reference No.
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, HK-1/ J2, HK-1C/ J2, HK-1D/ J2, HK-1E)
B. BALANCING ALLOWANCE

3. TOTAL
(Transfer this amount to item K2, HK-1/ Q2, HK-1C/ N2, HK-1D/ N2, 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, HK-1/ Q3, HK-1C/ N3, HK-1D/ N3, HK-1E)

HK-1.2.1: AGRICULTURE ALLOWANCES
Year Of Assessment
Name
Tax Reference No.
A B C D E F G H J K L M N
Date of Residual Residual

Date of Year of Rate Annual Grant/ Agriculture Agriculture Accumulated
Item Class expenditure Cost expenditure expenditure
disposal assessment % allowance Subsidy charge allowance allowance
incurred b/f c/f
1
2
3
4
5
6

7
8
9
10
11 TOTAL
12 AGRICULTURE CHARGE (11K + 11L) (Transfer this amount to HK-1.2.1A)
13 AGRICULTURE ALLOWANCE (11M) (Transfer this amount to 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).
HK-1.2.1
* “Y” is the number of years of assessment for which the agriculture allowances were given to the business.
AGRICULTURE ALLOWANCE INDEX
Annual Allowance
Reference
Class Type Of Asset (Schedule 3)
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
Year Of Assessment
Name
Tax Reference No.
A B
Agriculture Agriculture
Charge Allowance
ATTACHMENT 1
ATTACHMENT 2
ATTACHMENT 3
ATTACHMENT 4
ATTACHMENT 5
TOTAL
(Transfer this amount (Transfer this amount

to item A1, HK-1.2) to item C1, HK-1.2)

HK-1.2.2 : FOREST ALLOWANCES
Year Of Assessment
Name
Tax Reference No.
A B C D E F G H J K L
Date of Date of Year of Rate Residual Forest Residual Forest Accumulated

Item Class expenditure disposal Assessment % Cost expenditure allowance expenditure charge forest
incurred b/f c/f allowance
1
3
4
6
7

8
9
10
11 TOTAL
12 FOREST CHARGE (11K) (Transfer this amount to HK-1.2.2A)
13 FOREST ALLOWANCE (11H) (Transfer this amount to 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)
HK-1.2.2
* “Y” is the number of years of assessment for which the forest allowances were given to the business.
FOREST ALLOWANCE INDEX
Annual Allowance
Class Type Of Asset Reference
(Schedule 3) Reference
Rate (%)
(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
Year Of Assessment
Name
Tax Reference No.
A B
Forest Forest
Charge Allowance
ATTACHMENT 1
ATTACHMENT 2
ATTACHMENT 3
ATTACHMENT 4
ATTACHMENT 5
TOTAL
(Transfer this amount (Transfer this amount

to item A2, HK-1.2) to item C2, HK-1.2)

HK-1.2.3: INDUSTRIAL BUILDING ALLOWANCES
Year Of Assessment
Name
Tax Reference No.
A B C D E F G H J K L M N
Date of
Residual Residual
purchase/ Date of Year of Rate
Item Class completion of Cost expenditure Initial Annual expenditure Disposal Balancing Balancing
disposal assessment %
b/f allowance allowance c/f value charge allowance
construction
2
3

6
8
9
10
11 TOTAL
12 BALANCING CHARGE (11M) (Transfer this amount to HK-1.2.3A)
13 BALANCING ALLOWANCE (11N) (Transfer this amount to HK-1.2.3A)
14 INDUSTRIAL BUILDING ALLOWANCE (11H + 11J) (Transfer this amount to HK-1.2.3A)

HK-1.2.3
INDUSTRIAL BUILDING ALLOWANCE INDEX
Reference Initial Allowance Annual Allowance
Class Type Of Industrial Building [Schedule 3 Rate Reference Rate Reference
and P.U.(A)] (%) [Schedule 3 & P.U.(A)] (%) [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)
h Building for the welfare or living accomodation
of persons employed in the working of a farm 10 Paragraph 12 3 Paragraph 16
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 Culture, Paragraph 37F
Arts and Tourism
o Airport Paragraph 37G
p Approved motor racing circuit Paragraph 37H
q Public road and ancillary structures on which Paragraph 67A
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 Building for :
– School Paragraph 42B NIL Paragraph 42B 10 Paragraph 42B
– Approved educational institution
d 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

HK-1.2.3A : SUMMARY OF INDUSTRIAL BUILDING ALLOWANCES
Year Of Assessment
Name
Tax Reference No.
A B C
Balancing Balancing Industrial
Charge Allowance Building
Allowance
ATTACHMENT 1
ATTACHMENT 2
ATTACHMENT 3
ATTACHMENT 4
ATTACHMENT 5
TOTAL

to item A3, HK-1.2) to item B1, HK-1.2) to item C3, HK-1.2)

HK-1.2.4: PLANT AND MACHINERY ALLOWANCES
Year Of Assessment
Name
Tax Reference No.
A B C D E F G H J K L M N P
First year of Residual Residual

Date of Date of Rate Qualifying Instalment Initial Annual Disposal Balancing Balancing
Item Class assessment expenditure expenditure
purchase disposal % expenditure payments allowance allowance value charge allowance
which qualifies b/f c/f
3
4
5
6

7
9
10
11 TOTAL
12 BALANCING CHARGE (11N) (Transfer this amount to HK-1.2.4A)
13 BALANCING ALLOWANCE (11P) (Transfer this amount to HK-1.2.4A)
14 CAPITAL ALLOWANCE (11J + 11K) (Transfer this amount to HK-1.2.4A)
Note: Balancing charge (M - G) = Disposal value (M) exceeds the residual expenditure (G) at the date of disposal.
HK-1.2.4
Balancing allowance (G - M) = Residual expenditures (G) at the date of disposal exceeds the disposal value (M).
PLANT AND MACHINERY ALLOWANCE INDEX
Initial Allowance Annual Allowance

Class Type Of Asset
Rate Reference Rate Reference
(%) [Schedule 3 and P.U.(A)] (%) [Schedule 3 and P.U.(A)]
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 NIL Paragraph 13A 20 P.U(A)52/2000
provisions under paragraphs 2A, 2B and 2C
Schedule 3
E2 Plant and machinery :

e. Plant and machinery subject to provisions under NIL Paragraph 13A 14 P.U.(A)52/2000
paragraphs 2A, 2B and 2C Schedule 3
E3 Others :
e. Others subject to provisions under paragraphs NIL Paragraph 13A 10 P.U.(A)52/2000
2A, 2B and 2C Schedule 3
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 40 P.U.(A)505/2000 20 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 20 P.U.(A)349/2003
e. Special plant and machinery subject to provisions NIL Paragraph 13A 20 P.U.(A)52/2000
under paragraphs 2A, 2B and 2C Schedule 3
f. Purposes of a qualifying project under Schedule 7A 40 P.U.(A)506/2000 20 P.U.(A)506/2000
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
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.

HK-1.2.4A : SUMMARY OF PLANT AND MACHINERY ALLOWANCES
Year Of Assessment
Name
Tax Reference No.
A B C
Balancing Balancing Capital
Charge Allowance Allowance
ATTACHMENT 1
ATTACHMENT 2
ATTACHMENT 3
ATTACHMENT 4
ATTACHMENT 5
TOTAL

to item A4, HK-1.2) to item B2, HK-1.2) to item C4, HK-1.2)

HK-1.2A : SUMMARY OF CAPITAL EXPENDITURE
Year Of Assessment
Name
Tax Reference No.
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

1 2 3 4 5
▲ Enter “X” in the relevant box
A. Previous years’ losses brought forward
LESS :
B. Previous years’ losses absorbed by current year’s aggregate

statutory income from business and partnership
C. Balance from previous years’ losses not absorbed (A - B)
D. Current year losses :

1. Business
(Amount from item H, HK-1/HK-1C/HK-1D)
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

1 2 3 4 5
▲ Enter ‘X’ in the relevant box.
A. Losses brought forward
ADD:
B. Current year’s adjusted loss
C. TOTAL ( A + B )
LESS:
D. Losses absorbed
E. Losses carried forward ( C - D )

HK-2 : COMPUTATION OF STATUTORY INCOME FROM EMPLOYMENT
Name

1 2 3 4 5
Employment Year Of Assessment
▲ Enter ‘X’ in the relevant box
Item Amount
A. Receipts under paragraph 13(1)(a):

1. Money/Benefits or amenities convertible into money
2. Gratuity
3. Tax allowance/Tax borne by the employer
4. Allowances deemed wholly expended
5. TOTAL (A1 to A4)
B. Benefits-in-kind (BIK) [paragraph 13(1)(b)]
C. Value of living accomodation benefit [paragraph 13(1)(c)]
D. Refund from unapproved Pension or Provident Fund, Scheme

or Society [paragraph 13(1)(d)]
(amount attributable to employer’s contribution only)
E. Compensation for loss of employment [paragraph 13(1)(e)]
F. TOTAL GROSS EMPLOYMENT INCOME (A to E)
LESS:
G. Subscriptions to professional bodies
H. Entertainment expenditure
(restricted—section 38A)
J. Travelling expenditure
K. Expenses deemed wholly incurred

(amount from item A4)

L. Expenditure related to the living accomodation provided by the employer
1. Benefit of living accomodation taken into account:
(a) 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)]
(b) Value of living accomodation benefit

[amount as per item C – subsection 32(2)]
(c) TOTAL [L1(a) + L1(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 premise
[paragraph 38(1)(b)]
4. TOTAL PAYMENT (L2 + L3)
5. Deductible expenditure:
L1(c) or L4 whichever is lower
[subsection 38(3)]
M. TOTAL (G, H, J, K and L5)
N. Statutory Income from Employment (F - M)
P. SUMMARY OF STATUTORY INCOME FROM EMPLOYMENT
1. Employment 1 (amount N from Employment 1)
4. TOTAL

HK-2.1 : RECEIPTS UNDER PARAGRAPH 13(1)(a)
Name
Year Of Assessment
MONEY / BENEFITS OR AMENITIES CONVERTIBLE INTO MONEY
Item Amount
A. Gross salary/remuneration
B. Wages
C. Leave pay
D. Overtime pay
E. Fees
F. Commissions
G. Bonuses
H. Gross tips
J. Perquisites
K. Awards/Rewards
L. Allowances
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 amount Q to item A1 Working Sheet HK-2)

(HK-2.2 Pin.1/2005)
HK-2.2 : COMPUTATION OF TAXABLE GRATUITY
Name
Year Of Assessment
A. Total gratuity RM
B. Date of payment – –
Day Month Year
C. Length of continuous – – – – = year(s) month(s)
to
service Day Month Year Day Month Year
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 *
3. Method 3
Divided into 6 (six) years *
RM
(a) Total gratuity (amount from item A)
(b) LESS : Exempted gratuity RM6,000 x completed years of service =
(c) Taxable gratuity [ (a) - (b) ]
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)
OR
Method 3 : D3(c) 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 item E4(vi) for the current year of assessment to item A2 Working Sheet HK-2.

HK-2.3 : COMPUTATION OF TAX ALLOWANCE
Name
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)
7 Total [ C1 to C6 ]
(Transfer amount 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 is a type of 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 boxes 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 : BENEFITS-IN-KIND (BIK) [PARAGRAPH 13(1)(b)]
Name
Year Of Assessment
BENEFITS-IN-KIND (BIK)
Item Amount
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
Year Of Assessment
* Enter ‘X’ in the relevant box.
A. JOB STATUS *
1. Officer of a government/statutory body
2. Employee (other than officer of a government/statutory body) or service director
3. Director of a controlled company
B. TYPE OF LIVING ACCOMODATION *
1. Ordinary residential premise
2. Hotel, hostel, government quarters,

premise on a plantation/ or in the forest; or other similar premise
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 A5 Working Sheet HK-2)
H. 1. 30% of G ( G x 30/100 ) RM
2. 3% of G ( G x 3/100 ) RM

J. VALUE OF ACCOMODATION SUBJECT TO TAX
1. An officer of a government/statutory body provided with accomodation (B1 or B2) and an employee/
service director provided with accomodation of type B2
Amount H2 x n/m Value of accomodation Z

Transfer amount Z to item C Working Sheet HK-2 (Enter “0” if amount is negative)
2.1 An employee and a service director provided with accomodation of type B1 and the share of accomodation
is C1.
Amount H1 or F (whichever is lower) x n/m Value of accomodation Z

(Transfer amount Z to item C Working Sheet HK-2) (Enter “0” if amount is negative)
2.2 An employee and a service director company provided with accomodation of type B1 and the share of
accomodation is C2.
Amount H1 or F x X/Y (whichever is lower) x n/m Value of accomodation Z

2.3 An employee and a service director provided with accomodation of type B1 and the share of accomodation
is C3.
Amount H1 or F x X/Y (whichever is lower) x n/m Value of accomodation Z

3.1 A director (not a service director) of a controlled company provided with accomodation of type B1 and the
share of accomodation is C1.
Amount F x n/m Value of accomodation Z

3.2 A director (not a service director) of a controlled company provided with accomodation of type B1 and the
share of accomodation is C2.
Amount F x X/Y x n/m Value of accomodation Z


HK-2.6 : REFUND FROM UNAPPROVED PENSION OR PROVIDENT FUND,
SCHEME OR SOCIETY
Name
Year Of Assessment
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.
RM
A. Employer’s contribution
B. Employee’s contribution
C. TOTAL ( A + B )
Transfer amount A to item D Working Sheet HK-2

HK-2.7 : COMPUTATION OF TAXABLE COMPENSATION
Name
Year Of Assessment
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 amount D to item E Working Sheet HK-2)
* Examples on computation of completed years:
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

Year Of Assessment
A. List of dividend income
Gross Dividend Tax Deducted

No. Date Of Warrant No./
Name Of Company Net Dividend
Payment Serial No. RM RM cents RM
10
TOTAL :
Amount Regrossed :
X Y
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) = Net dividend x [ 1/(1-Z*)]

Enter the amount of regrossed dividend in column X under Gross Dividend.
(ii) Tax deemed deducted (Y) = X x Z *
* Where Z is the current year’s tax rate for corporations.

C. Computation Of Statutory Income From Dividends
(i) Gross Dividend (X)
Less :
(ii) Interest on loan employed in the
production of gross dividend income
(iii) Statutory Income
D. Tax deduction under section 110 (Dividends)

(as per amount Y above)
Submit this Working Sheet and the original dividend vouchers if entitled to a tax refund

HK-4 : PARTICULARS OF PROPERTIES / ASSETS AND TOTAL RENTAL
Name

Year Of Assessment
A. LIST OF PROPERTIES RENTED / ASSETS LEASED
Date Of Total Gross Rental / Lease

No. Type Of Property/Asset Address Of The Property/ Commencement Of Payments Received In The
Lessor Of The Asset The Rental / Lease Year Of Assessment (RM)
10
Note : 1. Properties refer to houses, factories, land and other immovable properties.
2. Assets refer to plant, machineries, furniture and other than those mentioned above.

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) Interest on loan employed

in the production of gross
rental income
(ii) Assessment
(iii) Quit rent
(iv) Insurance
Other revenue expenditure:
(v) Repairs and maintenance

(vi) Renewal of tenancy agreement
.........................................................
.........................................................
.........................................................
.........................................................
.........................................................
.........................................................
.........................................................
.........................................................
.........................................................
2. Total Expenditure (i to vi)
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-5 : COMPUTATION OF STATUTORY INCOME FROM INTEREST / ROYALTIES
Name

Year of Assessment
INTEREST
RM
A. Gross Interest
LESS :
B. Interest on loan employed in the production

of gross income from interest
C. Statutory Income ( A - B )
D. Total Gross Income from Interest

(Amount from item C Working Sheet HK-6)
E. TOTAL STATUTORY INCOME FROM INTEREST ( C + D )
ROYALTIES
F. Gross Royalty
G. Total Gross Income from Royalties

(Amount from item D Working Sheet HK-6)
H. TOTAL STATUTORY INCOME FROM ROYALTIES ( F + G )

HK-6 : TAX DEDUCTION UNDER SECTION 110 (OTHERS)
Name

Year Of Assessment
A. List out : interest/royalty income subject to the provision under section 109;
payments subject to the provision under section 109 B ITA 1967;
income from trust bodies as per CP 30A and other relevant income.
(note: - Income Code : 3 = interest, 5 = royalties, 6 = section 4 A income,

7 = income from trust body,
8 = other relevant income.)
No. *Code Name Of Payer/ Gross Tax Deducted Date Of Receipt

Trust Body Income (RM) RM cents Payment No.
10
TOTAL
(Z)
B. Total tax deducted/credit claimed under section 110 (Z)
C. Total gross income from interest (income code = 3)
D. Total gross income from royalties (income code = 5)
E. Total gross income under section 4 A (income code = 6)
F. Total income from trust bodies (income code = 7)
G. Total gross income from other sources (income code = 8)

HK-8: INCOME FROM COUNTRIES WHICH HAVE AVOIDANCE OF DOUBLE TAXATION
AGREEMENT WITH MALAYSIA AND CLAIM FOR SECTION 132 TAX RELIEF
Name

Year Of Assessment
A. List of Income
(note: *Income code: 1 = business, 2 = dividend, 3 = interest, 5 = royalty, 6 = section 4A income
7 = income from trust body, 8 = other relevant income)
Tax Deducted In The
No. *Code Gross Amount
Foreign Country
1
2
3
4
5
6
7
8
9
10
Total
(X) (Y)
The relief due is amount Y or amount U, where amount U is computed using the following formula:
Total X
x Tax chargeable before = U
Total income from all sources set off or relief
B. Relief claimed (U or Y whichever is the lower)
C. Total gross dividends (income code = 2)
D. Total gross interest (income code = 3)
E. Total gross royalty (income code = 5)
F. Total gross income under section 4 A (income code = 6)
G. Total income from trust bodies (income code = 7)
H. Total gross income from other sources (income code = 8)

NOTE: 1. Use the exchange rate provided in Appendix C if there is no other rate of exchange at the time the
income was first received or credited.
2. Submit this Working Sheet together with documents pertaining to the foreign tax deducted if entitled
to a tax refund.
HK-9: INCOME FROM COUNTRIES WITHOUT AVOIDANCE OF DOUBLE TAXATION
AGREEMENT WITH MALAYSIA AND CLAIM FOR SECTION 133 TAX RELIEF
Name

Year Of Assessment
A. List of Income
(note: *Income code: 1 = business, 2 = dividend, 3 = interest, 5 = royalty, 6 = section 4A income
7 = income from trust body, 8 = other relevant income which is applicable)
Tax Deducted In The
No. *Code Gross Amount
Foreign Country
1
2
3
4
5
6
7
8
9
10
Total
(X) (Y)
Y/2=
(Z)
The relief due is amount Y or amount U, where amount U is computed using the following formula:
Total X
x Tax chargeable before = U
Total income from all sources set off or relief
B. Relief claimed (U or Y whichever is the lower)
C. Total gross dividend (income code = 2)
D. Total gross interest (income code = 3)
E. Total gross royalty (income code = 5)
F. Total gross income under section 4 A (income code = 6)
G. Total income from trust bodies (income code = 7)
H. Total gross income from other sources (income code = 8)

NOTE: 1. Use the exchange rate provided in Appendix C if there is no other rate of exchange at the time the
income was fist received or credited.
2. Submit this Working Sheet together with documents pertaining to the foreign tax deducted if entitled
to a tax refund .
Helaian Kerja ms - 54
HK-10 : INSTALMENTS / SCHEDULAR TAX DEDUCTIONS PAID
Name

Year Of Assessment
A. Deductions made by the employer in the current year
1 2 3 4 5
Period Schedular Tax Deductions For
No. Employer’s E No. Of Deduction Deductions [STD] CP38 Deductions Zakat
i E
ii E
iii E
iv E
v E
TOTAL
B. Schedular Tax Deductions made by the employer in the current

year in respect of previous years’ income
1 2 3
Year/Period Schedular Tax
No. Employer’s E No. Of Income Deductions [STD]
i E
ii E
iii E
iv E
v 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 PAYMENTS TO NON-RESIDENTS (WITHHOLDING TAX)
Name

Year Of Assessment
Enter “X” in the relevant box. Choose 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
[for paragraph
107A(1)(b) only
(3%)]
10
11
12
TOTAL

HK-13 : DEDUCTION FOR MAINTENANCE OF UNMARRIED CHILDREN
Year Of Assessment
Name
Tax Reference No.

Commencement date of Actual amount Eligible
Name of school / college / education in the institution of Amount of
Date of contributed for the rate *
No. Name of child university / institution of higher education relief
birth child’s education
higher education claimed
In Malaysia Outside Malaysia or maintenance 100% 50%
CHILD - BELOW THE AGE OF 18 YEARS
1
2
3
4
5
6
7
8
9
10
TOTAL ( 1 to 10 )

CHILD - 18 YEARS OF AGE AND ABOVE; AND RECEIVING EDUCATION
1
2
3
4
5
TOTAL ( 1 to 5 )
CHILD - DISABLED
1
2
3
4
5
TOTAL ( 1 to 5 )
HK- 13
* Enter ‘X’ in the relevant box.

Use attachment(s) in case of insufficient writing space.
NOTE:
CHILD RELIEF
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) & 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)
❑ Relief for each unmarried child over the age of 18 years who is receiving further education
in Malaysia, is restricted to RM4,000 * (excluding matriculation/pre-university level).
Subparagraph 48(3)(a)(i)
❑ Relief for each unmarried child over the age 18 years who commences further education
outside Malaysia during the following period:-
(i) 01.01.1994 – 16.10.1997 RM2,000*
Subparagraph 48(3)(a)(iii)
(ii) Beginning from 17.10.1997 RM1,000
Paragraphs 48(1)(b) & 48(2)(a)
* If the amount expended exceeds the amount of allowable deduction, the amount
claimed shall be restricted to the amount of allowable deduction only.
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) & 48(2)(b)

HK-14 : LIFE INSURANCE PREMIUMS / CONTRIBUTIONS TO APPROVED
PROVIDENT OR PENSION FUND, EDUCATION AND MEDICAL
INSURANCE; AND EPF ANNUITY INSURANCE
Name

Year Of Assessment
A. LIFE INSURANCE / PROVIDENT AND PENSION FUND

Name of Policy No. / On Own Life or Contributions /
No. Insurance Company / Provident Fund No. Life of Husband / Premiums Paid in
Provident and Pension Fund Wife / Wives the Current Year (RM)
TOTAL ( 1 to 5)
B. EDUCATION AND MEDICAL INSURANCE

On Self or
Name of Premiums Paid in the
No. Policy No. Husband / Wife
Insurance Company Current Year (RM)
or Child
TOTAL ( 1 to 5)
C. EPF ANNUITY PREMIUM
Name of On Self or Husband / Premiums Paid in the

No. Policy No.
Insurance Company Wife / Wives Current Year (RM)
TOTAL ( 1 to 5)

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.
Paragraphs 49(1)(a), 49(1)(b), 49(1)(c) and subsection 49(1A)
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.
Subsection 49(1B)
C. EPF ANNUITY PREMIUM

Deduction for an individual who has utilized any amount standing to his credit in the
EPF to purchase an insurance policy determined by the EPF Board shall not exceed
RM1,000.
Subsection 49(1C)

APPENDIX A1
1. Gross Business Income
Legal Provision Subject Matter
12 Gross business income derived from Malaysia.
22(2)(a)(i) 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.
22(2)(a)(ii) Sums receivable or deemed to have been received under a contract of indemnity.
22(2)(b) Compensation for loss of income from that source.
24(1) Credit sales.
24(2) Market value of the stock in trade at the time of its withdrawal for personal use.
30(1)(a) Recovered bad debts.
30(1)(b) Specific provision for doubtful debts no longer required.
30(4) Debts discharged under subsection 33(1) [ including paragraphs 33(1)(a), (b) or (c)].
– Income other than the above.
2. Allowable Expenses
Legal Provision Subject Matter
33(1) Outgoings and expenses wholly and exclusively incurred in the production of gross income.
33(1)(a) 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).
33(1)(b) Rent payable in respect of any land or building or part thereof occupied for the purpose of producing
gross income from that source.
33(1)(c) 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.
34(6)(a)/(b) Amount of payroll tax/turnover tax paid.
34(6)(d) 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
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 dan 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) Payments 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.
Appendix page - 2
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
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 IRB 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
Reference no. of the IRB 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 IRB 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 IRB guideline : LHDN.01/35/(S)/42/51/224-36.2
❏ Guideline on the tax treatment of remisiers
Reference no. of the IRB guideline : LHDN.01/35/(S)/42/51/84
❏ Guideline on Reinvestment Allowance under Schedule 7A ITA 1967 for qualifying projects
Reference no. of the IRB guideline : EPS/PP/1/1997 and ITR 1998/1
Reference no. of application form : LHDN/BT/RA/2005
❏ Claim for exemption of income for value of increased export of services under:
(i) Income Tax (Exemption) (No. 2) Order 2001 - P.U. (A) 154/2001; and
(ii) Income Tax (Exemption) (No. 9) Order 2002 - P.U. (A) 57/2002
Reference no. of application form : LHDN/BT/EX/AIES/2003-1
❏ Double deduction claim under Income Tax (Deduction For Promotion Of Export Of Professional Services) Rules
2003 - P.U. (A) 124/2003
Reference no. of application form : LHDN/BT/DD/POE/PS/2003-1
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
Appendix page - 3
APPENDIX B1: GRATUITY

A. Gratuity
Gratuity is a gift for past services rendered. Gratuities are liable to tax except those listed in item C.
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. (See 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. (See Example II)
OR
Method 3
This method is applicable to the situation in item C1(c).
The amount of taxable gratuity after a deduction of RM6,000 for each completed year of service shall be apportioned
equally for the last six (6) years of assessment. (See Example III)
Example I
Period of continuous employment is less than five (5) years before the commencement of the basis period in which the
employment ceased.
Period of employment : Commencement 01.07.2003
Cessation 30.06.2005
Amount of gratuity : RM6,000
Length of service is 731 days. Use Method 1.
Basis Period for the year ending 31.12.2003 (01.07.2003 - 31.12.2003) = 184 days
Total 731days
Apportionment of gratuity according to the Year of Assessment
1 2 3 4 5
(year) (days/year) RM Assessment
(i) 2003 184 days 184/731 x 6,000 1,510 2003
(ii) 2004 365 days 365/731 x 6,000 2,996 2004
(iii) - - - - -
(iv) - - - - -
(v) - - - - -
(vi) 2005 182 days 182/731 x 6,000 1,494 2005
❏ Transfer amount 4(vi) for the current year of assessment to item A2 Working Sheet HK-2.
Appendix page - 4
Example II
Period of employment : Commencement - 01.01.1994

Cessation - 30.06.2005
Age when ceased employment : 45 years old
Length of service is more than five (5) years before the commencement of the basis period in which the
employment ceases. Use Method 2
Year Of Assessment
Basis Period for the year ending 31.12.2000 2000 (STTS)
Basis Period for the year ending 31.12.2001 2001
Note: STTS = “Sistem Taksiran Tahun Semasa” (assessment on current year basis)
1 2 3 4 5
(year) (months/year) RM Assessment
(i) 2000 1 year 1/6 x 25,000 4,167 2000 (STTS)
(ii) 2001 1 year 1/6 x 25,000 4,167 2001
(iii) 2002 1 year 1/6 x 25,000 4,167 2002
(iv) 2003 1 year 1/6 x 25,000 4,167 2003
(v) 2004 1 year 1/6 x 25,000 4,166 2004
(vi) 2005 1 year 1/6 x 25,000 4,166 2005
Example III
An employee compulsorily retires at the age of 50 pursuant to a contract of employment after a service of 10 years 3 months with
the same employer. Use Method 3
Period of employment : Commencement - 01.07.1995

Cessation - 30.09.2005
No. of completed years of service : 10 years
Exempted gratuity (RM6,000 x 10) : RM60,000
Taxable gratuity (RM108,000 - RM60,000) : RM48,000
Appendix page - 5
1 2 3 4 5
(year) (months/year) RM Assessment
(i) 2000 1 year 1/6 x 48,000 8,000 2000 (STTS)
(ii) 2001 1 year 1/6 x 48,000 8,000 2001
(iii) 2002 1 year 1/6 x 48,000 8,000 2002
(iv) 2003 1 year 1/6 x 48,000 8,000 2003
(v) 2004 1 year 1/6 x 48,000 8,000 2004
(vi) 2005 1 year 1/6 x 48,000 8,000 2005
C. Exempted Gratuity
1. Retirement gratuity (a) The Director General 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 10 years
continuous employment with the same employer or companies
within the same group
Or
(c) 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 10 years with the same employer or with
companies in the same group:-
Provided that the sum shall not exceed an amount ascertained

by multiplying the sum of RM6,000 by the number of completed
years of service in that employment.
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 to a contract officer Gratuity paid out of public funds to a contract officer on termination
of a contract of employment 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
Tax borne by an employer is TAX ALLOWANCE which is chargeable to tax pursuant to the provision of paragraph 13(1)(a) ITA 1967.
Method of computing this allowance for a continuous employment differs from that for an employment which ceases in a particular
year of assessment (Y/A).
Continuous Employment
Tax borne by an employer in respect of income for a particular year of assessment shall be taken into account as tax allowance for
the following year of assessment. Tax borne by an employer in respect of employment income for the year 2004 (Y/A 2004) is taken
into account as tax allowance for the year 2005 (Y/A 2005) because the amount of tax payable is determined in the year 2005.
Example I
Salary for the period from 01.01.2004 - 31.12.2004 - RM150,000
Taxpayer is single and only entitled to claim relief in respect of himself and his dependent relatives.
Tax computation for Y/A 2004 to determine the tax allowance for Y/A 2005
RM
Income for the year 2004 150,000
Less: Relief for individual and dependent relatives 8,000
Chargeable Income 142,000
Tax on the first RM100,000 14,475.00

Tax on the balance RM42,000 @ 27% 11,340.00
Tax payable 25,815.00 (A)
Tax for the year 2004 is assessed on 31.05.2005 and paid by the employer. The tax payable of RM25,815.00 is the tax allowance to
be taken into account as part of his income for the year 2005.
Transfer amount A to item A3 Working Sheet HK-2.
Additional tax raised for a particular year of assessment shall be taken into account for the year of assessment in which the notice
of additional assessment is issued. For example, where the notice of additional assessment in respect of additional income for
Y/A 2003 is issued in the year 2005, this additional tax shall be taken into account as tax allowance for Y/A 2005.
Example II
Income for the year 2004 including tax allowance [Y/A 2003 (original)] - RM150,000
Income for Y/A 2003:

Original income for the year 2003 - RM120,000
Additional income (bonus) for the year 2003 (received in the year 2004) - RM 30,000
Appendix page - 7
Tax computation for Y/A 2003 to determine the tax allowance for the year 2005 as the notice of additional assessment for 2003 is
issued in the year 2005 (on 30.06.2005)
RM
Original income for the year 2003 120,000
Bonus (additional) for the year 2003 30,000
Total 150,000
142,000

Total 25,815.00
Tax previously assessed 17,715.00
Additional tax 8,100.00 (B)
Tax allowance for Y/A 2005 is:
Tax for the year 2004 25,815.00 (A)

Additional tax for the year 2003 (additional assessment) 8,100.00 (B)
Total 33,915.00 (C)
Transfer amount C to item A3 Working Sheet HK-2.
Cessation Of Employment
Tax for 2 years of assessment for an employment which ceases in or at the end of a year of assessment shall be taken into account
in that year of assessment. For example, the tax allowance for Y/A 2005 of a foreign employee who ceases employment on 30.6.2005
is the total tax payable for Y/A 2004 and Y/A 2005.
Example III
Income for the year 2004 is as per example I.

Income for the year 2005 is RM70,000.
Tax computation for Y/A 2005:

RM
Income for the year 2005 70,000
Tax allowance ( Y/A 2004) 25,815
Total 95,815
87,815

Tax payable 11,550.60 (D)
Tax allowance for Y/A 2005 :
Amount A (from example I): 25,815.00

Amount D (from example III): 11,550.60
Total 37,365.60
Transfer this amount to item A3 Working Sheet HK-2.
Appendix page - 8
APPENDIX B3: BENEFITS-IN-KIND (BIK) [PARAGRAPH 13(1)(b)]
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 the employee’s Statement of Remuneration and in the Form E for employer,
all values of the BIK provided to his employee.
(iii) The value of the BIK determined according to Public Ruling No. 2/2004 and its Addendum (issued on 8 November 2004 and
20 May 2005) is to be taken as part of the employee’s gross employment income. This Public Ruling supercedes the
Income Tax Ruling ITR 1997/2 issued on 25 August 1997.
VALUATION OF BIK
(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
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 employee enjoys the benefit of motorcar and free petrol, the value of the BIK on petrol depends on the method of
computing the value of the BIK on 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.
There is no abatement on the value of the BIK provided to the employee for business usage.
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 Annual Prescribed

Benefit of: 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
Appendix page - 9
(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 A is provided with a motorcar leased by his employer from a leasing company. The cost of the
motorcar when new is RM90,000. His employer paid a monthly lease rental of RM3,000 for 48 months.
The annual value of BIK taxable as part of the gross employment income is RM3,600. 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. However, the value of the BIK in respect of petrol remains
unchanged.
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 RM840

or bedroom
(b) Semi-furnished with furniture as in 5(i)(a) above and one RM1,680

or two of the following:- air-conditioners, curtains and
alike, carpets
(c) Fully-furnished with benefits as in 5(i)(a) and 5(i)(b) RM3,360
above plus one or more of kitchen equipment, crockery,
utensils and appliances
(d) Service charges and other bills such as water and Service charges and bills
electricity 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 above have been provided. If an employee has been provided with all
except those in item 5(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 is provided. If an
employee is provided with the benefit as per item 5(i)(a) from 01.04.2005, then the value of benefit for the period
01.04.2005 - 31.12.2005 to be assessed for the year of assessment 2005, 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 5(iii) above. If the benefit is shared equally with
another employee, the value of the benefit for the year of assessment 2005 will be RM315 ( RM630
x 1/2 ).
(v) Fans and water heaters are treated as part of the residential premise and therefore disregarded.
Appendix page - 10
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: Where the telephone is subscribed by the employee, the actual bills paid by the employer is the benefit to be
taxed be under paragraph 13(1)(a) ITA 1967
(b) Gardener RM3,600 per gardener
(c) Household servant RM4,800 per servant
(d) Recreational club membership: (i) Entrance fee : Not taxable
Type of membership - Corporate (ii) Monthly/Annual membership subscription fees
for club membership paid by the employer is
the prescribed value to be taxed
Note:
Type of membership - (1) Entrance fee
Individual (2) Monthly/Annual membership Amount paid or reimbursed by
subscription fees employer is taxed under
(3) Term membership paragraph 13(1)(a) ITA 1967
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
= Annual value of the benefit
Prescribed average life span* of the asset
* 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 to value the BIK in respect of the private usage of telephone, the calculation of the
benefit is as follows:
(a) Mobile phone
(i) In relation to the benefit of the hardware:
Cost of the asset (telephone)
Prescribed average life span of the asset
= Annual value of the benefit
(ii) In respect of the private usage of telephone bills:
Actual cost of the employee’s private bills paid by the employer
(b) House telephone subscribed by the employer
Actual cost of the employee’s private bills paid by the employer.
4. Where a motorcar and its related benefits are provided

(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:
Cost of the motorcar
x 80% = Annual value of benefit of the motorcar
8 (Prescribed average life span)
Appendix page - 11
(ii) The value of the benefit in respect of petrol is the actual value of petrol provided by the employer irrespective of whether
a motorcar is provided or not.
(iii) Under this method, NO ABATEMENT IS AVAILABLE if the motorcar provided is more than five (5) years old.
(iv) However, a reduction in the value of the benefits can be made if the:
(a) motorcar is used partly for business purposes; or/and
(b) employee is required to pay a sum of money to his employer for the benefits provided.
Example: Employee B is provided with a 6-year old motorcar with free petrol throughout the year 2005. The motorcar was
purchased at a cost of RM200,000. The total mileage of the motorcar in the year 2005 is 36,000 km. of which
12,000 km. is in respect of private usage. His employer has expended RM8,400 on petrol in respect of this
motorcar. B is required to pay his employer RM1,200 to subsidize the cost of petrol. The cost of the motorcar
when new was RM280,000.
The annual value of BIK for the year of assessment 2005 is computed as follows:
MOTORCAR : RM6,667 (RM200,000/8 x 80% x 12,000/36,000)
PETROL : RM1,600 [(RM8,400 x 12,000/36,000 ) - RM1,200]
5. OTHER ASSETS
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.
6. PRESCRIBED AVERAGE LIFE SPAN OF VARIOUS ASSETS PROVIDED BY EMPLOYERS TO EMPLOYEES:
Category Assets PrescribedAverage
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
crockery, rice-cooker, electric kettle, toaster, coffee
maker, gas cooker, cooker hood, oven, dish-washer,
washing machine, dryer, food processor
(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) Medical, dental benefit or child-care benefit;
(b) Leave passage for travel (confined only to the cost of fares for the employee and members of his immediate family):
- within Malaysia not exceeding 3 times in any calendar year; or
- outside Malaysia not exceeding one passage in any calendar year, is limited to a maximum of RM3,000;
(c) The benefit is used by the employee solely for purposes of performing his employment duty;
(d) Goods and services offered at discounted prices;
(e) Food and drinks provided free of charge;
(f) Free transportation between pick-up points or home and the place of work (to and fro);
(g) Insurance premiums which are obligatory for foreign workers as a replacement to SOCSO contributions;
(h) Group insurance premium to cover workers in the event of an accident.
Appendix page - 12
APPENDIX B4 : BENEFIT / VALUE OF ACCOMODATION PROVIDED [PARAGRAPH 13(1)(c)]
COMPUTATION OF THE VALUE OF LIVING ACCOMODATION BENEFIT
Where an employer provides living accomodation for the use or enjoyment by his employee, the value of this benefit determined
according to Public Ruling No. 3/2005 (issued on 11 August 2005) is to be taken as part of his employee’s gross employment
income under the provision of paragraph 13(1)(c).
The value of the living accomodation benefit 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 [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 / service director / officer of a Government or Statutory Body
Living accomodation provided in a:

- Hotel, hostel or similar premise;
- Government quarters;
- Premise on a plantation, in a forest or any premise which although in a rateable area, is not subject to public rates.
Value of the living accomodation is 3% of the gross employment income [Paragraph 13(1)(a)]
Example I
- Gross employment income [Paragraph 13(1)(a)] RM36,000 (T)

- Period for which the living accomodation is provided 12 months (n)
- Length of employment in the current year 12 months (m)
Computation of the value of living accomodation provided
Value of the living accomodation (Z) = 3% x T x n/m

= 3/100 x 36,000 x 12/12
= RM1,080
The taxable value of living accomodation benefit (Z) = RM1,080
Transfer amount Z to item C Working Sheet HK-2
Appendix page - 13
Example II
If the living accomodation is provided for less than 12 months in a year, the value of the living accomodation is calculated based
on the period the living accomodation is provided.
- Gross employment income [paragraph 13(1)(a)] RM150,000 (T)

Computation of the value of living accomodation provided :

Value of the living accomodation (Z) = 3% x T x n/m
= 3/100 x 150,000 x 7/9
= RM3,500

CATEGORY 2: Living accomodation provided for employee (other than officer of a Government/Statutory Body) or
service director
Value of the living accomodation = 30% x Gross employment income

OR
The defined value
(whichever is lower)
Example I: Living accomodation is not shared with any other employee

- Rental of the living accomodation provided RM2,000 per month
- Defined value [2,000 x 12 months (m)] RM24,000 (F)
Computation of the value of living accomodation provided:

30% x T
= 30/100 x 150,000
= RM45,000 whichever is lower
OR = F
= RM24,000
Value of the living accomodation (Z) = 24,000 x n/m

= 24,000 x 12/12
= RM24,000

Appendix page - 14
9
Example II: 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 150,000
= RM45,000 whichever is lower
OR = F x X/Y
= 27,000 x 1/2
= RM13,500

= 13,500 x 9/9
= RM13,500
Example III: Part of the living accomodation provided is for official use
- 1/3 is for official use - Portion of living accomodation provided 2 (X)
- Living accomodation provided as a whole 3 (Y)
Computation of the value of living accomodation benefit:

30% x T
= 30/100 x 100,000
= RM30,000
whichever is lower
OR = F x X/Y
= 48,000 x 2/3
= RM32,000

= 30,000 x 9/12
= RM22,500

Appendix page - 15
CATEGORY 3: Living accomodation provided for directors of controlled companies
For the director of a controlled company, the 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.
Example I: Living accomodation is not shared

Value of the living accomodation (Z) = F x n/m

= 30,000 x 9/10
= RM27,000
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)
Value of the living accomodation (Z) = 36,000 x X/Y x n/m

= 36,000 x 1/2 x 12/12
= RM18,000

Appendix page - 16
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. EXEMPTED COMPENSATION
❏ Compensation received is due to ill-health Full exemption is granted
❏ Compensation received due to reasons other Exemption of RM6,000 is granted for each
than the above completed year of service with the same
employer or companies in the same group
3. TAXABLE COMPENSATION
❏ Compensation received by a director The whole amount is subject to tax

(not a service director) of a controlled
company (Transfer this amount to item E Working Sheet HK-2)
Example :
The service of an employee has been terminated under a Voluntary Separation Scheme (VSS).
A. Length of Service :-
1. Date of commencement 01.04.1998
2. Date of cessation 30.06.2005
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 - 17
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
Form B Guidebook
1995 1.9178 6.9677 1.7168 1.9272 - - - - 0.3401 0.0839 0.0012 0.0257

1996 1.8680 6.6620 1.7720 1.8300 - - - - 0.3248 0.0779 0.0011 0.0269
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 (py) 2.4748 10.0800 2.2626 2.5810 0.4633 - - - 0.4942 0.0891 0.0005 0.0338
2000 (cy) 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
YEAR OF 1 WON $1 NEW 1 RUPEE 1 PESO $1 1 RUPEE 1 FRANC $1 BAHT £1 $1 1
Appendix page - 18
ASSESSMENT SOUTH KOREA ZEALAND PAKISTAN PHIL. S’PORE SRI LANKA SWITZERLAND TAIWAN THAI UK USA EURO
1995 - 1.5574 0.0864 0.0998 1.7168 0.0535 - 0.0994 0.1044 4.0213 2.6267 -
1996 - 1.5131 0.0801 0.0983 1.7720 0.0496 - 0.0950 0.1008 3.9683 2.5116 -
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 (py) 0.0032 2.0310 0.0746 0.0982 2.2626 0.0542 2.5579 0.1188 0.1014 6.2044 3.8000 -
2000 (cy) 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
APPENDIX C
Self Assessment System
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/contributions to libraries not exceeding RM100,000 Paragraph 34(6)(g)
104 Expenditure on public welfare/amenities 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 for sponsoring any approved :
- local arts/cultural activity performed in and outside Malaysia not exceeding RM300,000
- arts/cultural activity from outside Malaysia performed in Malaysia not exceeding RM200,000 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)
120 Investment in a venture company P.U.(A) 212/2001
2. Further Deductions
201 Premiums 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 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 for 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

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
304 Cost of leave passage for travel within Malaysia provided to employees for the period
1 June 2003 to 31 May 2004 P.U.(A) 350/2003
305 Salaries paid for the employment of unemployed graduates registered with the Economic
Planning Unit for years of assessment 2004 and 2005 only P.U.(A) 266/2004
306 Expenditure incurred for the promotion of export of professional services P.U.(A) 124/2003
Appendix page - 19
APPENDIX E: COUNTRY CODES
No. Name of Country Country No. Name of Country Country

Code Code
1 Afghanistan AF 29 Botswana BW
2 Aland Islands AX 30 Bouvet Island BV
3 Albania AL 31 Brazil BR
4 Algeria DZ 32 British Indian Ocean Territory IO
5 American Samoa AS 33 Brunei Darussalam BN
6 Andorra AD 34 Bulgaria BG
7 Angola AO 35 Burkina Faso BF
8 Anguilla AI 36 Burundi BI
9 Antarctica AQ 37 Cambodia KH
10 Antigua and Barbuda AG 38 Cameroon CM
11 Argentina AR 39 Canada CA
12 Armenia AM 40 Cape Verde CV
13 Aruba AW 41 Cayman Islands KY
14 Australia AU 42 Central African Republic CF
15 Austria AT 43 Chad TD
16 Azerbaijan AZ 44 Chile CL
17 Bahamas BS 45 China CN
18 Bahrain BH 46 Christmas Island CX
19 Bangladesh BD 47 Cocos (Keeling) Islands CC
20 Barbados BB 48 Colombia CO
21 Belarus BY 49 Comoros KM
22 Belgium BE 50 Congo CG
51 Congo, The Democratic Republic CD
23 Belize BZ
of the
24 Benin BJ 52 Cook Islands CK
25 Bermuda BM 53 Costa Rica CR
26 Bhutan BT 54 Cote D’ivoire CI
27 Bolivia BO 55 Croatia (local name: Hrvatska) HR
28 Bosnia and Herzegovina BA 56 Cuba CU
Appendix page - 20

Code Code
57 Cyprus CY 86 Greece GR
58 Czech Republic CZ 87 Greenland GL
59 Denmark DK 88 Grenada GD
60 Djibouti DJ 89 Guadeloupe GP
61 Dominica DM 90 Guam GU
62 Dominican Republic DO 91 Guatemala GT
63 East Timor TP 92 Guinea GN
64 Ecuador EC 93 Guinea-Bissau GW
65 Egypt EG 94 Guyana GY
66 El Salvador SV 95 Haiti HT
67 Equatorial Guinea GQ 96 Heard and McDonald Islands HM
68 Eritrea ER 97 Honduras HN
69 Estonia EE 98 Hong Kong HK
70 Ethiopia ET 99 Hungary HU
71 Falkland Islands (Malvinas) FK 100 Iceland IS
72 Faroe Islands FO
101 India IN
73 Fiji FJ
102 Indonesia ID
74 Finland FI 103 Iran Islamic Republic of IR
75 France FR 104 Iraq IQ
76 France, Metropolitan FX 105 Ireland IE
77 French Guiana GF 106 Israel IL
78 French Polynesia PF 107 Italy IT
79 French Southern Territories TF 108 Jamaica JM
80 Gabon GA 109 Japan JP
81 Gambia GM 110 Jordan JO
82 Georgia GE 111 Kazakhstan KZ

83 Germany DE 112 Kenya KE
84 Ghana GH 113 Kiribati KI
85 Gibraltar GI 114 Korea, Democratic People’s KP

Republic of
Appendix page - 21

Code Code
115 Korea, Republic of KR 144 Mongolia MN
116 Kuwait KW 145 Montserrat MS
117 Kyrgyzstan KG 146 Morocco MA
118 Laos People’s Democratic Republic LA 147 Mozambique MZ
119 Latvia LV 148 Myanmar MM
120 Lebanon LB 149 Namibia NA
121 Lesotho LS 150 Nauru NR
122 Liberia LR 151 Nepal NP
123 Libyan Arab Jamahiriya LY 152 Netherlands NL
124 Liechtenstein LI 153 Netherlands Antilles AN
125 Lithuania LT 154 New Caledonia NC
126 Luxembourg LU 155 New Zealand NZ
127 Macao MO 156 Nicaragua NI

128 Macedonia, The Former MK
Yugoslav Republic of 157 Niger NE
129 Madagascar MG 158 Nigeria NG
130 Malawi MW 159 Niue NU
131 Malaysia MY 160 Norfolk Island NF
132 Maldives MV 161 Northern Mariana Islands MP
133 Mali ML 162 Norway NO
134 Malta MT 163 Oman OM
135 Marshall Islands MH 164 Pakistan PK
136 Martinique MQ 165 Palau PW
137 Mauritania MR 166 Palestinian Territory, Occupied PS
138 Mauritius MU 167 Panama PA
139 Mayotte YT 168 Papua New Guinea PG
140 Mexico MX 169 Paraguay PY
141 Micronesia, Federated States of FM 170 Peru PE
142 Moldova, Republic of MD 171 Philippines PH
143 Monaco MC 172 Pitcairn PN
Appendix page - 22

Code Code
173 Poland PL 201 St. Helena SH
174 Portugal PT 202 St. Pierre and Miquelon PM
175 Puerto Rico PR 203 Sudan SD
176 Qatar QA 204 Suriname SR
177 Reunion RE 205 Svalbard and Jan Mayen Islands SJ
178 Romania RO 206 Swaziland SZ
179 Russian Federation RU 207 Sweden SE
180 Rwanda RW 208 Switzerland CH
181 Saint Kitts and Nevis KN 209 Syrian Arab Republic SY
182 Saint Lucia LC 210 Taiwan, Province of China TW
183 Saint Vincent and the Grenadines VC 211 Tajikistan TJ
184 Samoa WS 212 Tanzania, United Republic of TZ
185 San Marino SM 213 Thailand TH
186 Sao Tome and Principe ST 214 Timor - Leste TL
187 Saudi Arabia SA 215 Togo TG
188 Senegal SN 216 Tokelau TK
189 Serbia and Montenegro CS 217 Tonga TO
190 Seychelles SC 218 Trinidad and Tobago TT
191 Sierra Leone SL 219 Tunisia TN
192 Singapore SG 220 Turkey TR
193 Slovakia (Slovak Republic) SK 221 Turkmenistan TM
194 Slovenia SI 222 Turks and Caicos Islands TC
195 Solomon Islands SB 223 Tuvalu TV
196 Somalia SO 224 Uganda UG
197 South Africa ZA 225 Ukraine UA
198 South Georgia and the South GS 226 United Arab Emirates AE
Sandwich Islands
199 Spain ES 227 United Kingdom GB
200 Sri Lanka LK 228 United States US
Appendix page - 23

Code Code
229 United States Minor Outlying Islands UM 237 Virgin Islands (U.S.) VI
230 Uruguay UY 238 Wallis And Futuna Islands WF
231 Uzbekistan UZ 239 Western Sahara EH
232 Vanuatu VU 240 Yemen YE
233 Vatican City State (Holy See) VA 241 Yugoslavia YU
234 Venezuela VE 242 Zambia ZM
235 Vietnam VN 243 Zimbabwe ZW
236 Virgin Islands (British) VG
Appendix page - 24
APPENDIX F : AVOIDANCE OF DOUBLE TAXATION AGREEMENTS (DTA)

AND WITHHOLDING TAX RATES ON PAYMENTS TO
NON-RESIDENTS AS AT 24TH NOVEMBER 2005
Fees for
No. Country Interest Royalty Technical Services
% % %
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 Canada 15 10 10
9 China 10 10 10
10 Croatia 10 10 10
11 Czech Republic 12 10 10
12 Denmark 15 10 10
13 Egypt 15 10 10
14 Fiji 15 10 10
15 Finland 15 10 10
16 France 15 10 10
17 Germany 15 10 NIL
18 Hungary 15 10 10
19 India 15 10 10
20 Indonesia 15 10 10
21 Iran** 15 10 10
22 Ireland 10 8 10
23 Italy 15 10 10
24 Japan 10 10 10
25 Jordan 15 10 10
26 Krygyz Republic** 10 10 10
27 Lebanon 10 8 10
28 Luxembourg 10 8 8
29 Malta 15 10 10
30 Mauritius 15 10 10
31 Mongolia 10 10 10
32 Morocco** 10 10 10
33 Myanmar** 10 10 10
Appendix page - 25
Fees for
No. Country Interest Royalty Technical Services
% % %
34 Namibia** 10 5 5
35 Netherlands 10 8 8
36 New Zealand 15 10 10
37 Norway 15 10 10
38 Pakistan 15 10 10
39 Papua New Guinea 15 10 10
40 Philippines 15 10 10
41 Poland 15 10 10
42 Romania 15 10 10
43 Russia 15 10 10
44 Saudi Arabia* 15 10 10
45 Seychelles** 10 10 10
46 Singapore 15 10 10
47 South Korea 15 10 10
48 Sri Lanka 10 10 10
49 Sudan** 10 10 10
50 Sweden 15 10 10
51 Switzerland 10 10 10
52 Thailand 15 10 10
53 Turkey 15 10 10
54 United Arab Emirates 5 10 10
55 United Kingdom 10 8 8
56 United States of America* 15 10 10
57 Uzbekistan 10 10 10
58 Vietnam 10 10 10
59 Zimbabwe** 10 10 10
Notes:
1. There is no withholding tax on dividends paid by Malaysian companies.
2. Payments of approved royalties or approved industrial royalties and interest on approved loan and long-term loan to non-
residents are usually tax exempt.
3. Where the rate of tax of the above payment is not specifically stated in the respective DTA, the applicable rate of tax as stated
in the ITA 1967 is inserted in.
4. Where the rate of tax as stated in the ITA 1967 is lower than the maximum rate of tax as mentioned in the respective DTA, the
lower rate of tax shall apply and is inserted herein.
5. As for Taiwan, double taxation relief was given to Taipei Economic and Cultural Office in Malaysia by way of Income Tax
Exemption Order.
(i) P.U.(A) 201 (1998)
(ii) P.U.(A) 202 (1998)
* Limited DTA
** Gazetted (not effective yet)
Appendix page - 26
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 - 27
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 - 28
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 - 29
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 - 30
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 - 31
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 - 32
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 - 33
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 - 34
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 - 35
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 - 36
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.
51599 Wholesale of other machinery and equipment n.e.c.
Appendix page - 37
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
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
Appendix page - 38
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
Hotels; camping sites and other provision of short-stay accomodation
55101 Hotels
55102 Camping sites and other provision of short-stay accomodation
Appendix page - 39
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

62109 Other scheduled air transport n.e.c. (Example: helicopter services)
Appendix page - 40
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)
65199 Other finance n.e.c.
Appendix page - 41
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

70102 Real estate operations
70200 Real estate activities on a fee or contract basis
Appendix page - 42
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
73204 Research and experimental development services on linguistics and other languages
73209 Research and experimental development services on other social sciences and humanities
Appendix page - 43
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
75129 Other community and social affairs services
75131 Domestic and international trade affairs
Appendix page - 44
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
85199 Human health services n.e.c.
Appendix page - 45
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
92141 Theatrical producer, singer group band and orchestra entertainment services
92142 Services provided by authors, composers, sculptors, entertainers and other individual artists
Appendix page - 46
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 - 47
APPENDIX H : DIRECTOR GENERAL’S PUBLIC RULINGS
Issued/ Compliance
No. Subject of Public Ruling Updated Yes No
2/2006 Tax Borne By Employers 17.01.2006
1/2006 Perquisites From Employment 17.01.2006
6/2005 Trade Association 08.12.2005
5/2005 Deduction for Loss of Cash and Treatment of Recoveries 14.11.2005
4/2005 Withholding Tax on Special Classes of Income 12.09.2005
3/2005 Living Accomodation Benefit Provided for the Employee by the Employer 11.08.2005
2/2005 Computation of Income Tax Payable by a Resident Individual 06.06.2005
1/2005 Computation of Total Income for Individual 05.02.2005
5/2004 Double Deduction Incentive on Research Expenditure 30.12.2004
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 17.01.2006
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
1/2002 Deduction for Bad & Doubtful Debts and Treatment of Recoveries 02.04.2002
7/2001 Basis Period for Business & Non-Business Source (Companies) 30.04.2001
6/2001 Basis Period for a Business Source (Individuals & Persons other than
Companies/Co-operatives) 30.04.2001
5/2001 Basis Period for a Business Source (Co-operatives) 30.04.2001
4/2001 Basis Period for a Non-Business Source
(Individuals & Persons other than Companies) 30.04.2001
3/2001 Appeal against an Assessment 18.01.2001
2/2001 Computation of Initial & Annual Allowances in respect of Plant & 18.01.2001
Machinery
1/2001 Ownership of Plant and Machinery for the Purpose of Claiming Capital 18.01.2001
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)
5/2000 Keeping Sufficient Records (Individuals & Partnerships) 01.03.2000
(Revised) Companies and Co-operatives)
4/2000 Keeping Sufficient Records (Companies and Co-operatives) 01.03.2000
3/2000 Basis Period for a Business Source (Individuals & Persons other than 01.03.2000
Companies/Co-operatives)
2/2000 Basis Period for a Business Source (Companies & Co-operatives) 01.03.2000
1/2000 Basis Period for a Non-Business Source 01.03.2000
Appendix page - 48

B2005 Guidebook 2

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Part 2 — Working Sheets

HK-2.3 – Computation of Tax Allowance 40

CONTENTS OF WORKING SHEETS

HK-1 – Computation of Statutory Income from Business 1

Series Working Sheet

Appendix A1 - 1. Gross Business Income 1

What is Form B Guidebook?

The following are contents of the Form B Guidebook :

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

HK-1.4 - Adjustment of Losses for Pioneer Business

4. Ten (10) other Working Sheets are as follows :

HK-10 - Instalments/Schedular Tax Deductions Paid

Reminder Before Filling Out The Form

Please take note of the following :

C32B TOTAL INCOME ( C32 + C32A )

C33 INCOME AND CREDITS TRANSFERRED TO HUSBAND/WIFE

TOTAL INCOME TRANSFERRED TO

The husband’s Form B/BE is as follows:

Total income RM76,463

C18a (Form BE)

C18b (Form BE)

C18c (Form BE)

F2 Instalments/Schedular Tax Deductions paid - Self

F4 Balance of tax payable ( F1 - F2 - F3 ) F4

(4) General Rules for Filling out the Form B

i. Part A : Particulars of Individual

ii. Part B : Particulars of Husband/Wife

iii. Part C : Statutory Income and Total Income

iv. Part D : Deductions and Chargeable Income

v. Part E : Tax Payable

vi. Part F : Summary of Tax Payable and Payments

vii. Part G : Preceding Years’ Income Not Declared

ix. Part J : Particulars of Executor of the Deceased Person’s Estate

x. Part K : Particulars of Business Income

xi. Part L : Special Deduction, Further Deduction and Double Deduction

xii. Part M : Incentive Claim / Exempt Income

xiii. Part N : Financial Particulars of Individual

xv. Particulars of Tax Agent who Completes this Return Form

Item Subject Explanation Working Appendix

2 Tax Reference Income tax reference number. - -

3 New Identity Card New identity card number. - -

4 Old Identity Card Old identity card number. - -

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

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

7 Passport No. Passport number as per passport book. - -

PART A : PARTICULARS OF INDIVIDUAL

Item Subject Explanation Working Appendix

A2 Country of Refer to the provisions under section 7 of ITA 1967 to - Appendix E

A3 Sex Enter “1” for male or “2” for female. - -

Item Subject Explanation Working Appendix

A7 Type of Assessment Enter “1” if election is made for joint assessment - -

A10 Correspondence Address to be used for any correspondence with LHDNM. - -

A11 Residential Address where the individual/executor of the deceased - -

A14 Staff No./ Staff/Payroll number. - -

A16 Telephone No. Telephone number of office/tax agent’s firm/residence/ - -

A17 Employer’s Telephone number of employer. - -

A18 e-mail e-mail address (if any). - -

Item Subject Explanation Working Appendix

A21 Address of Bank Address of the bank concerned. - -

PART B : PARTICULARS OF HUSBAND/WIFE

Item Subject Explanation Working Appendix

B3 New Identity New identity card number of the husband/wife. - -

Relief for each unmarried child of 18 years and above who