[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:00.47,0:00:02.22,Default,,0000,0000,0000,,Every April (or earlier!)
Dialogue: 0,0:00:02.38,0:00:06.23,Default,,0000,0000,0000,,you’ll probably receive this EA form from your HR department
Dialogue: 0,0:00:06.23,0:00:07.21,Default,,0000,0000,0000,,In this form,
Dialogue: 0,0:00:07.44,0:00:10.98,Default,,0000,0000,0000,,you’ll see all the different types of incomes that you’re taxed on,
Dialogue: 0,0:00:10.98,0:00:13.88,Default,,0000,0000,0000,,as well as some deductions for EPF and SOCSO.
Dialogue: 0,0:00:14.10,0:00:15.79,Default,,0000,0000,0000,,If you’re like most Malaysians,
Dialogue: 0,0:00:15.79,0:00:19.79,Default,,0000,0000,0000,,your income tax has already been deducted from your salary every month.
Dialogue: 0,0:00:19.79,0:00:24.51,Default,,0000,0000,0000,,All you need to do is file your form without worrying about all those terms and numbers.
Dialogue: 0,0:00:24.66,0:00:25.86,Default,,0000,0000,0000,,Easy-peasy.
Dialogue: 0,0:00:26.88,0:00:29.57,Default,,0000,0000,0000,,But what if you’re an independent contractor
Dialogue: 0,0:00:29.57,0:00:32.55,Default,,0000,0000,0000,,or have a part time job on top of your regular job?
Dialogue: 0,0:00:32.55,0:00:34.72,Default,,0000,0000,0000,,How do you calculate your tax?
Dialogue: 0,0:00:34.72,0:00:35.98,Default,,0000,0000,0000,,The truth is,
Dialogue: 0,0:00:35.98,0:00:40.58,Default,,0000,0000,0000,,you should know how this is done even if it’s already automatically calculated.
Dialogue: 0,0:00:40.58,0:00:41.56,Default,,0000,0000,0000,,After all,
Dialogue: 0,0:00:41.56,0:00:42.75,Default,,0000,0000,0000,,it’s your money.
Dialogue: 0,0:00:43.46,0:00:44.49,Default,,0000,0000,0000,,Before that,
Dialogue: 0,0:00:44.49,0:00:47.48,Default,,0000,0000,0000,,it’s useful to know the different tax types out there.
Dialogue: 0,0:00:47.48,0:00:51.48,Default,,0000,0000,0000,,There are one-time taxes like your GST or SST and stamp duty,
Dialogue: 0,0:00:51.51,0:00:54.23,Default,,0000,0000,0000,,as well as annual taxes like income tax,
Dialogue: 0,0:00:54.23,0:00:56.83,Default,,0000,0000,0000,,property Assessment and Quit Rent.
Dialogue: 0,0:00:57.49,0:01:00.71,Default,,0000,0000,0000,,Now let’s get to the fun part: mathematics!
Dialogue: 0,0:01:00.71,0:01:02.04,Default,,0000,0000,0000,,First things first:
Dialogue: 0,0:01:02.04,0:01:05.23,Default,,0000,0000,0000,,you need to know what amount your tax will be levied on.
Dialogue: 0,0:01:05.50,0:01:06.48,Default,,0000,0000,0000,,So let’s say,
Dialogue: 0,0:01:06.57,0:01:12.100,Default,,0000,0000,0000,,‘income’ for personal income tax includes salaries, leave pay, commissions, benefits,
Dialogue: 0,0:01:12.100,0:01:17.77,Default,,0000,0000,0000,,bonuses, gratuities, allowances, and even certain types of compensation;
Dialogue: 0,0:01:17.77,0:01:21.48,Default,,0000,0000,0000,,while ‘income’ for corporate income tax includes earnings,
Dialogue: 0,0:01:21.48,0:01:25.48,Default,,0000,0000,0000,,profits from dividends, interest, royalty and so on.
Dialogue: 0,0:01:26.18,0:01:30.18,Default,,0000,0000,0000,,Quit rent and property assessment are both annual property taxes,
Dialogue: 0,0:01:30.18,0:01:34.60,Default,,0000,0000,0000,,but one is based on the size of your land while the latter is based on your annual rental value.
Dialogue: 0,0:01:34.98,0:01:39.43,Default,,0000,0000,0000,,You can find this information easily by going to the website of your local land office for quit rent,
Dialogue: 0,0:01:40.47,0:01:44.47,Default,,0000,0000,0000,,the Selangor Department of Lands and Mines and local council,
Dialogue: 0,0:01:44.98,0:01:47.44,Default,,0000,0000,0000,,Petaling Jaya Council for assessment tax.
Dialogue: 0,0:01:48.09,0:01:48.86,Default,,0000,0000,0000,,Secondly,
Dialogue: 0,0:01:48.86,0:01:53.67,Default,,0000,0000,0000,,you need to know whether you qualify for any exemptions, tax reliefs, or deductions.
Dialogue: 0,0:01:53.91,0:01:56.90,Default,,0000,0000,0000,,Some individuals may be exempted from paying tax
Dialogue: 0,0:01:56.90,0:01:59.15,Default,,0000,0000,0000,,if their income falls below the minimum,
Dialogue: 0,0:01:59.38,0:02:01.68,Default,,0000,0000,0000,,or if they’re part of a tax exempted group
Dialogue: 0,0:02:01.68,0:02:05.05,Default,,0000,0000,0000,,such as women returning to work after a career break.
Dialogue: 0,0:02:05.16,0:02:06.39,Default,,0000,0000,0000,,For goods and services,
Dialogue: 0,0:02:06.39,0:02:10.70,Default,,0000,0000,0000,,you’ll need to know if what you’re paying for is subject to any consumption tax
Dialogue: 0,0:02:10.73,0:02:14.97,Default,,0000,0000,0000,,or whether it is part of a list of items that are zero rated or tax exempted.
Dialogue: 0,0:02:14.97,0:02:17.14,Default,,0000,0000,0000,,Just like your base value,
Dialogue: 0,0:02:17.24,0:02:21.62,Default,,0000,0000,0000,,you can find these information easily at the royal Malaysian customs departments’ website.
Dialogue: 0,0:02:22.60,0:02:23.96,Default,,0000,0000,0000,,And last but not least
Dialogue: 0,0:02:24.05,0:02:26.54,Default,,0000,0000,0000,,and this is actually the most important part
Dialogue: 0,0:02:26.54,0:02:28.42,Default,,0000,0000,0000,,what is your tax rate?
Dialogue: 0,0:02:28.89,0:02:33.01,Default,,0000,0000,0000,,The amount of tax that is levied on different groups of people also depends
Dialogue: 0,0:02:33.01,0:02:37.01,Default,,0000,0000,0000,,on whether it is a progressive, proportional, or regressive tax.
Dialogue: 0,0:02:38.12,0:02:39.54,Default,,0000,0000,0000,,What does it mean?
Dialogue: 0,0:02:39.54,0:02:40.15,Default,,0000,0000,0000,,Well,
Dialogue: 0,0:02:41.37,0:02:46.43,Default,,0000,0000,0000,,a Progressive tax is one where heavy income earners pay more than low-income earners.
Dialogue: 0,0:02:46.98,0:02:48.60,Default,,0000,0000,0000,,For Malaysian residents,
Dialogue: 0,0:02:48.60,0:02:52.04,Default,,0000,0000,0000,,different income brackets are charged a different percentage,
Dialogue: 0,0:02:52.04,0:02:55.35,Default,,0000,0000,0000,,while those who earn less than the minimum are not taxed at all.
Dialogue: 0,0:02:55.54,0:02:59.54,Default,,0000,0000,0000,,A Proportional tax is one where everyone is charged a fixed rate.
Dialogue: 0,0:02:59.61,0:03:02.35,Default,,0000,0000,0000,,If the income tax rate is 10%,
Dialogue: 0,0:03:02.58,0:03:07.77,Default,,0000,0000,0000,,Person A who earns RM 250,000 will pay RM 25,000;
Dialogue: 0,0:03:07.77,0:03:13.14,Default,,0000,0000,0000,,and Person B who earns RM 25,000 will pay RM 2,500
Dialogue: 0,0:03:13.55,0:03:17.55,Default,,0000,0000,0000,,Most non-residents in Malaysia pay a proportional income tax.
Dialogue: 0,0:03:18.40,0:03:20.96,Default,,0000,0000,0000,,And then there’s Regressive taxes.
Dialogue: 0,0:03:21.29,0:03:21.80,Default,,0000,0000,0000,,Here,
Dialogue: 0,0:03:21.80,0:03:25.80,Default,,0000,0000,0000,,someone who earns less may pay a higher rate than someone who earns more.
Dialogue: 0,0:03:25.91,0:03:27.70,Default,,0000,0000,0000,,Take most sales taxes
Dialogue: 0,0:03:27.97,0:03:31.17,Default,,0000,0000,0000,,everyone pays the same percentage on their purchases.
Dialogue: 0,0:03:31.17,0:03:31.93,Default,,0000,0000,0000,,Let’s say,
Dialogue: 0,0:03:31.93,0:03:36.66,Default,,0000,0000,0000,,person A and person B both buy a RM1,500 laptop,
Dialogue: 0,0:03:36.66,0:03:42.14,Default,,0000,0000,0000,,but Person A earns RM7,500 and Person B earns RM2,000.
Dialogue: 0,0:03:42.56,0:03:45.92,Default,,0000,0000,0000,,If the sales tax rate for their purchases is 6%,
Dialogue: 0,0:03:46.24,0:03:52.48,Default,,0000,0000,0000,,it makes up only 1.2% of Person A’s salary but 4.5% of Person B’s!
Dialogue: 0,0:03:52.95,0:03:56.04,Default,,0000,0000,0000,,The moral of the story? Spend within your means.
Dialogue: 0,0:03:57.31,0:03:57.90,Default,,0000,0000,0000,,Again,
Dialogue: 0,0:03:58.04,0:04:02.88,Default,,0000,0000,0000,,you can find personal income tax rates at the Malaysian Inland Revenue Board’s website.
Dialogue: 0,0:04:03.53,0:04:05.77,Default,,0000,0000,0000,,Now, here’s where the magic happens.
Dialogue: 0,0:04:05.77,0:04:09.77,Default,,0000,0000,0000,,To get your payable tax amount, simply do this calculation.
Dialogue: 0,0:04:11.49,0:04:12.88,Default,,0000,0000,0000,,And there you have it!
Dialogue: 0,0:04:13.24,0:04:16.05,Default,,0000,0000,0000,,There may be slight variations to these formulas,
Dialogue: 0,0:04:16.05,0:04:21.00,Default,,0000,0000,0000,,but with these basics in your back pocket, you’re ready to conquer the world of tax calculations.