Form M 2010 Guidebook - Cover - Hasil

1 Guidebook NON-RESIDENT INDIVIDUAL INCOME TAX 2010 ADDITIONS & AMENDMENTS ITEM EXPLANATION A6 Type of Assessment A9 Approved by the Minister as a Knowledge Worker A9a Date of Approval by the Minister C11 Dividends D2a Chargeable Income subject to Part XIV of Schedule 1 - Only for Knowledge Workers approved by the Minister D2b Chargeable Income subject to Part I of Schedule 1 - Tax rate reduced from 27% to 26% - Appendix G - New Business Codes (MSIC 2008) with effect from 15 February 2011 PAGE 8 9 9 14 19 19 Appendix page - 31 iForm M 2010 Guidebook Self Assessment SystemCONTENTS OF GUIDEBOOKITEMPageForeword1 What Is Form M Guidebook ?

2 1 Reminder Before Filling Out The Return Form2 Part 1 Form MBasic Information7 Part A :Particulars of Individual7 Part B :Particulars of Husband / Wife10 Part C :Statutory Income and Total Income11 Part D :Tax Payable / Repayable19 Part E :Status of Tax For Year of Assessment 201022 Part F :Income of Preceding Years Not Declared22 Part G :Particulars of Executor of the Deceased Person s Estate23 Part H :Particulars of Losses, Capital Allowances and Withholding Taxes23 Part J :Special Deduction, Further Deduction and Double Deduction26 Part K :Incentive Claim / Exempt Income26 Part L :Financial Particulars of Individual26 Declaration29 Particulars of Tax Agent who Completes this Return Form29 Reminder29 Part 2 Working SheetsHK-1 Computation of Statutory Income from Business30HK-1A Not applicable to non-resident individuals (not enclosed)-HK-1B1 Computation of Statutory Income from Partnership Business33HK-1C Not applicable to non-resident individuals (not enclosed)-HK-1D Not applicable to non-resident individuals (not enclosed)-HK-1E Computation of Statutory Income from Pioneer Computation of Mining Summary of Capital Adjustment of Losses for Business and Adjustment of Losses for Pioneer Business35HK-2 Computation of Statutory Income from Receipts under Paragraph 13(1)(a)

3 Computation of Taxable Computation of Tax Benefits-In-Kind (BIK) [paragraph 13(1)(b)] Value of Living Accommodation Benefit [paragraph 13(1)(c)]41 Form M 2010 Guidebook Self Assessment Refund from Unapproved Pension or Provident Fund, Schemeor Computation of Taxable Compensation42HK-3 Tax Deduction under Section 51 of Finance Act 2007 (Dividends)43HK-4 Particulars of Properties / Assets and Total Rental43HK-5 Not applicable to non-resident individuals (not enclosed)-HK-6 Tax Deduction under Section 110 (Others)43HK-8 Not applicable to non-resident individuals (not enclosed)-HK-9 Claim for Section 133 Tax Relief - Income from CountriesWithout Double Taxation Agreement43HK-10 Instalments / Schedular Tax Deductions Paid44HK-11 Basis Year Payment to Non-residents (Withholding Tax)44 CONTENTS OF WORKING SHEETS(Paper marked blue)SeriesWorking SheetPageHK-1 Computation of Statutory Income from Business1HK-1A Not applicable to non-resident individuals (not enclosed)-HK-1B1 Computation of Statutory Income from Partnership Business4HK-1C Not applicable to non-resident individuals (not enclosed)-HK-1D Not applicable to non-resident individuals (not enclosed)

4 -HK-1E Computation of Statutory Income from Pioneer Mining Summary of Mining Summary of Capital Agriculture Summary of Agriculture Forest Summary of Forest Industrial Building Summary of Industrial Building Plant and Machinery Summary of Plant and Machinery Summary of Capital Adjustment of Losses for Business and Adjustment of Losses for Pioneer Business27HK-2 Computation of Statutory Income from Receipts under Paragraph 13(1)(a) Computation of Taxable Computation of Tax Allowance32iiiForm M 2010 Guidebook Self Assessment SystemCONTENTS OF APPENDICES(Paper marked brown)SeriesAppendixPageAppendix A1-1. Gross Business Income12. Allowable Expenses1 Appendix on the need to keep record of adjustments and3tax computation for the businessAppendix B1-Gratuity5 Appendix B2-Tax Allowance8 Appendix B3-Benefits-In-Kind (BIK) [paragraph 13(1)(b)]10 Appendix B4-Value of Living Accommodation Benefit [paragraph 13(1)(c)]15 Appendix B5-Compensation for Loss of Employment19 Appendix C-Foreign Currency Exchange Rates (Yearly Average)20 Appendix D-Claim Codes22 Appendix E-Country Codes23 Appendix F-Double Taxation Agreements (DTA) and Withholding TaxRates on Payments to Non-residents28 Appendix G-Business Codes (MSIC 2008)31 Appendix H-Director General s Public Benefits-In-Kind (BIK) [paragraph 13(1)(b)] Value of Living Accommodation Benefit [paragraph 13(1)]

5 (c)] Refund from Unapproved Pension or Provident Fund, Schemeor Computation of Taxable Compensation37HK-3 Tax Deduction under Section 51 of Finance Act 2007 (Dividends)38HK-4 Particulars of Properties / Assets and Total Rental40HK-5 Not applicable to non-resident individuals (not enclosed)-HK-6 Tax Deduction under Section 110 (Others)42HK-8 Not applicable to non-resident individuals (not enclosed)-HK-9 Claim for Section 133 Tax Relief - Income from CountriesWithout Double Taxation Agreement43HK-10 Instalments / Monthly Tax Deductions Paid44HK-11 Basis Year Payment to Non-Residents (Withholding Tax)45 Form M 2010 Guidebook Self Assessment System1 FOREWORDL embaga Hasil Dalam Negeri Malaysia (LHDNM) expresses its appreciation towards individuals who have consistently performedtheir duty as responsible taxpayers in the settlement of their annual income tax.

6 Their tax contributions have assisted in thedevelopment and improvement of the national socio-economic expedite and facilitate the performance by taxpayers of their respective tax responsibility, the government has entrustedits faith in them to assess and settle their income tax with the introduction of the Self Assessment System commencing fromthe year of assessment 2004 for individuals and non-corporate forms with explanations and guides on how to fill out those forms and compute the chargeable income and incometax have been prepared to assist IS FORM M Guidebook ?The following are contents of the Form M complete guide on how to fill out the Form A series of Working Sheets (series HK-1 .. ) for computing the statutory income and loss from business:HK-1-Computation of Statutory Income from BusinessHK-1A-Not applicable to non-resident individuals (not enclosed)HK-1B1-Computation of Statutory Income from Partnership BusinessHK-1C-Not applicable to non-resident individuals (not enclosed)HK-1D-Not applicable to non-resident individuals (not enclosed)HK-1E-Computation of Statutory Income from Pioneer of Mining of Capital of Agriculture of Forest Building of Industrial Building and Machinery of Plant and Machinery of Capital of Losses for Business and of Losses for Pioneer series of Working Sheets (series HK-2.)

7 For computing the statutory income from employment:HK-2-Computation of Statutory Income from under Paragraph 13(1)(a) of Taxable of Tax (BIK) [paragraph 13(1)(b)] of Living Accommodation Benefit [paragraph 13(1)(c)] from Unapproved Pension or Provident Fund, Scheme or of Taxable CompensationForm M 2010 GuidebookSelf Assessment System2 REMINDER BEFORE FILLING OUT THE RETURN FORMP lease take note of the following:1.(a)A non-resident individual is required to fill out Form M. He is considered not resident in Malaysia if he doesnot qualify for residence status under the provision of section 7 ITA 1967. Refer to Public Ruling No. 2/2005(issued on 6 June 2005) on the determination of residence status.(b)If he is resident by virtue of section 7 or deemed to be resident under subsection 7(1B) * for a particular yearof 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 a resident individual so that it can be completed and furnished to LHDNM within the Working Sheets are as follows.

8 HK-3-Tax Deduction under Section 51 of Finance Act 2007 (Dividends)HK-4-Particulars of Properties / Assets and Total RentalHK-5-Not applicable to non-resident individuals (not enclosed)HK-6-Tax Deduction under Section 110 (Others)HK-8-Not applicable to non-resident individuals (not enclosed)HK-9-Claim for Section 133 Tax Relief - Income from CountriesWithout Double Taxation AgreementHK-10-Instalments / Schedular Tax Deductions PaidHK-11-Basis Year Payment to Non-residents (Withholding Tax) series of Appendices (series A ..) to explain and give guidance in computing the business income:Appendix A1-1. Gross business income 2. Allowable expensesAppendix on the need to keep record of adjustments and tax computation for the series of Appendices (series B.)

9 To serve as a guide in the computation of employment income:Appendix B1-Explanation on GratuityAppendix B2-Explanation on Tax Allowance / Tax Borne by the EmployerAppendix B3-Explanation on Benefits-In-Kind or Amenities arising out of EmploymentAppendix B4-Explanation on Living Accommodation provided by the EmployerAppendix B5-Explanation on Income from following are other appendices to enable the entry of required information in the Form M:AppendixC-Foreign Currency Exchange Rates (Yearly Average)AppendixD-Claim DeductionsAppendix E-List of countries with their respective code for the individual to fill in the code of the country wherehe is resident / a citizenAppendix F-List of countries with which Double Taxation Agreements have been signedAppendix G-List of codes for various types of businesses carried on by the individualAppendix H-List of Director General s Public Rulings as guidelines for computing the income according tothe provision of the Income Tax Act (ITA) 1967 Form M 2010 Guidebook Self Assessment System3*Subsection 7(1B) - Deemed to be a ResidentWhere a person who is a citizen and -(a)

10 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 subsequentyears when he is not in Malaysia.(c)Husband and wife are required to fill out separate return forms if each of them has income accruing in orderived from Malaysia.(d)Working sheets, records and documents need not be furnished with the Form M except in the followingcases:-If the individual is entitled to a tax refund as per item D11 (Form M), he is required to furnish:(i)Working Sheet HK-3 in respect of the claim for tax deduction under section 51 of Finance Act 2