SME Info: Understanding TAX (Part 1)
Year Assessment (YA)
Income is assessed on a current year basis. The YA is the year coinciding with the calendar year, for example, the YA 2017 is the year ending 31 December 2017.
The basis period for a company, co-operative or trust body is normally the financial year ending in that particular YA. All income of persons other than a company, co-operative or trust body, are assessed on a calendar year basis.
In general, a taxpayer is required to pay tax on all kinds of earning, including incomes from:
a) Business or Profession b) Employment c) Dividends d) Interest e) Discounts f) Rent g) Royalties h) Premiums i) Pensions j) Annuities k) Others
Thus, gains or profits from carrying on a business are subject to tax.
Tax computation starts from your business income statement that has been prepared in accordance with Malaysia Accounting Standard. For a company, an audited report must be available before the computation of tax.
In deriving to chargeable income, Section 5 of the Act, has set up the scope of chargeable income, begins with the determination of basis period, ascertainment of gross income, adjusted income, statutory income, aggregate income, total income till chargeable income.
--To Be Continued
(Credit to Understanding Tax - Tax Act 1967, SMEinfo)