Form M 2009 Notes - Pin 6.11.2009 - Hasil

1 - 1 - 2009 M2009 Hasil M 2009 Explanatory Notes M 2009 Explanatory Notes M 2009 Explanatory Notes M 2009 Explanatory Notes NON-RESIDENT INDIVIDUAL INCOME TAX AMENDMENTS TO THE INCOME TAX ACT 1967 Item Subject Page - New subsection 7(1B) of ITA 1967 2 - Status of Tax 2 A8a Carry-back of Current Year Loss (election) 3 A14 Website / Blog Address 4 - Employee Share Option Scheme (ESOS)

2 7 - Market value of shares listed on any stock exchange - Tax exempt allowances / perquisites / gifts / 7 benefits received by employee from employer - Value of Living Accommodation Benefit in relation to 11 ESOS D2a Tax rate reduced from 28% to 27% - E2 Instalments / Schedular Tax Deductions Paid For 19 2009 Income Part F Income of Preceding Years Not Declared 19 - Bonus or Directors fees H1a Balance from Current Year Losses 20 - Amount Carried Back - Balance Carried Forward H3e Section 109F 21 - Section 130 tax relief (deleted with effect from year 2 of assessment 2009) - refer to new subsection 7(1B) - 2 - A non-resident individual is required to fill out Form M.

3 He is considered not resident in Malaysia if he does not qualify for residence status under the provision of section 7 of the Income Tax Act (ITA) 1967. Refer to Public Ruling No. 2/2005 (issued on 6 June 2005) regarding the determination of residence status. If resident under section 7 or deemed to be resident under subsection 7(1B) * for a particular year of assessment, he is required to make an early request for either: Form B (for those who carry on business) OR Form BE (for those who do not carry on any business) meant for resident individuals so that it can be filled out and furnished to Lembaga Hasil Dalam Negeri Malaysia (LHDNM) within the stipulated period.

4 * Subsection 7(1B) Deemed to be a Resident Where a person who is a citizen and (a) is employed in the public services or service of a statutory authority; and (b) is not in Malaysia at any day in the basis year for that particular year of assessment by reason of (i) having and exercising his employment outside Malaysia; or (ii) attending any course of study in any institution or professional body outside Malaysia which is fully-sponsored by the employer, he is deemed to be a resident for the basis year for that particular year of assessment and for any subsequent years when he is not in Malaysia.

5 Husband and wife are required to fill out separate return forms if each of them has income accruing in or derived from Malaysia. This Explanatory Notes is intended to provide assistance in completing the Form M for Year of Assessment (Y/A) 2009. Read this with care so that the return form and declarations made therein are complete and correct. Working sheets, records and documents need not be furnished together with the Form M EXCEPT where there is a tax refund as per item D11, in which case the following (whichever applies) have to be furnished:- (i) Working Sheet HK-3 (enclosed) in respect of the claim for tax deduction pursuant to section 51 of the Finance Act 2007 (dividends); (ii) Working Sheet HK-6 pertaining to the claim for section 110 tax deduction (others); (iii) Working Sheet HK-9 regarding the foreign tax deducted in the country of origin.

6 All working sheets, records and documents must be retained for a period of seven (7) years after the end of the year in which the return is furnished. GENERAL Use BLACK INK pen. Complete the return form using BLOCK LETTERS. Write WITHIN the BOXES provided. Leave the box(es) blank if not applicable. Working sheets / appendices are available from the Guidebook at the LHDNM website: Only original return forms issued by LHDNM are acceptable. Return forms furnished via fax to LHDNM will not be accepted. The following illustrates the method for filling amounts in boxes of which some require the indication of sen and others which don t:- Example 1: If the amount of employment income for item C10 is RM68, Example 2: If the tax payable for item D10 is RM8, Only significant items are illustrated / explained in this Notes .

7 C10 Employment * / Director s feesTAX PAYABLE ( D5 D9 ) D10 <>_>>_>>_>>?, , , 6 8 4 8 0->>_>>_>>_>? , , , . 8 1 3 6 9 0 - 3 - BASIC PARTICULARS Item Subject Explanation 2 Reference No. Example: If the tax reference number is SG 00123456080, enter as follows:- 9 Last Passport No. Registered with LHDNM This refers to the last passport number filed with LHDNM prior to the current passport. STATUS OF TAX To facilitate the processing of return forms, non-resident individuals are advised to complete this section correctly based on the tax computed until Part E on page 7 of Form M 2009.

8 Enter X in one relevant box only. PART A: PARTICULARS OF INDIVIDUAL A2 Country of Residence / Domicile Refer to page 22 of this Notes or the full list in Appendix E of the Form M Guidebook for the relevant country code. Example: If the country of residence / domicile is Australia, enter its country code AU in the box provided. A5 Date of Marriage / Divorce / Demise This is only relevant if the marriage, divorce / separation (according to any law) or demise occurred in the current year.

9 A6 Type of Assessment Enter 1 if the wife elects for joint assessment to be raised in the name of her husband; OR 2 if the husband elects for joint assessment to be raised in the name of his wife. The individual who elects for joint assessment need not fill in items C35 and C36 of Part C; as well as Parts D and E of his / her Form M. OR Enter 3 if the individual and spouse elect for separate assessment to be raised in their respective name. OR Enter 4 if the individual is single / a divorcee / a widow / a widower / a deceased person; or married with a spouse who has income which is tax exempt or no source of income.

10 A7 Compliance with Public Rulings Public Ruling is a guide for the public which sets out the interpretation of the Director General of Inland Revenue in respect of a particular tax law, policy and procedure that are to be applied. Refer to Appendix H of the Form M Guidebook for the list of Public Rulings. Details of each Public Ruling are available at the LHDNM website. Enter 1 for full compliance or 2 for non-compliance with any Public Ruling. A8 Record-keeping This refers to the keeping of sufficient records as required under the provision of ITA 1967.