Tax Individuals Self Assessment

Tax Individuals Self Assessment

As many are aware, since 2004, individuals have started to perform a Tax Individuals Self Assessment of their tax liability. This includes employees, sole proprietors carrying on business, and individual partner in partnership. Under the self-assessment regime, an individual will assume to bear the primary duty to revise his tax, compute his income tax liability, and account for his tax payable in the current year as well as the final balance at the time when he submits his return (Form B or BE) to LHDN in the following year.


Section 82 of the Act requires an individual carrying on a business to keep and retain in safe custody sufficient records for a period of seven years from the end of the relevant year in relation to the business income. Taxpayer is required to keep the following documents for 7 years:

  1. EA/EC Form
  2. Original dividend vouchers
  3. Insurance premium receipts
  4. Books purchase receipts
  5. Medical receipts
  6. Donation receipts
  7. Zakat receipts
  8. Children`s birth certificates
  9. Marriage certificate
  10. Other supporting documents
  11. Working sheets (if any)

Printed receipt with serial number is also required if the sales of goods exceed RM150,000 or the provision of services exceeds RM100,000.

Section 82(9) defines the word “records” to include:
(a) Books of account recording receipts and payments or income and expenditure
(b) Invoices, vouchers, receipts, and such other documents necessary to verify the entries in any books of account; and
(c) Any other records as specified by the Director General

In relation to an individual having employment income or investment income, a new Section 82A is legislated, imposing such individual to keep and retain in safe custody sufficient documents for a period of seven years from the end of the relevant year for the purposes of ascertaining his chargeable income and tax payable. Documents mean statement of income and expenditure, invoices, vouchers, receipts, and other documents necessary to verify the particulars in a tax return.

Failure to keep the records without reasonable excuse shall be guilty of an offence and shall, on conviction, be liable to a fine of not less than RM300 and not more than RM10,000 or to imprisonment for a term not exceeding one year, to both (S119A)

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