Estimate or Revised Estimate of Tax Payable
Section
107B of Income Tax Act 1967
Under the Self Assessment System for individuals earning business income, the Director General of Inland Revenue (DGIR) will make an estimate of their tax payable and issue a direction to them to make payment by instalments. However, if taxpayers are aggrieved by the DGIR’s estimate of tax payable, an application to vary the excessive instalment scheme may be made to the DGIR before 30 June of the current year.
If actual tax payable exceeds the estimate (if no revised estimate is furnished) or the revised estimate of tax payable by an amount of more than thirty per cent (30%) of the actual tax payable, a ten per cent (10%) increase of tax will be imposed on the difference.
For example:
|
|
RM |
RM |
|
Estimate of tax payable (ETP) |
10,000 |
10,000 |
|
Revised estimate of tax payable (RETP) |
13,000 |
17,000 |
|
Actual tax payable (ATP) |
20,000 |
24,000 |
|
ATP – RETP |
7,000 |
7,000 |
|
30% of ATP |
6,000 |
7,200 |
|
Excess |
1,000 |
Nil |
|
10% increase of tax |
100 |
Nil |
Source : Inland Revenue Board, Malaysia
