Are you wondering which income tax return form to submit if you have both employment and business income? Are there any deductions allowed? Is there any capital allowance that you are entitled to claim? In this article, we will highlight the key things you need to know when filing your income tax return for your business income.   

Imagine you're an employee of a company as well as an entrepreneur who has just wrapped up another successful year of business. Your profits are soaring, your customer base is expanding, and your hard work is paying off. Now, it’s tax season, and you need to ensure you are in compliance with tax regulations.      

Common Questions & Answers: 

• Should I file both Form BE and Form B if I have both employment and business income?  
• Can I file Form B if I only have employment income?  
• What kind of expenses are deductible under business income? 
• Can I claim capital allowance for my business?   

It is important to note that Form B is the income tax return form for individuals with business income, which is due by 30 June or 15 July (with the grace period). If you only have employment income, you should file Form BE instead, which is due by 30 April or 15 May (with the grace period). However, if you have both employment and business income, you only need to file Form B, as it includes fields for both types of income.   

Deductible Expenses and Capital Allowance 

• Deductible Expenses:  
  Business-related expenses incurred wholly and exclusively in the production of gross income are deductible. However, there are certain expenses, like entertainment expenses that could be only partially deductible.  
• Capital Allowances:  
  Capital allowances can be claimed for qualifying assets used in the business, such as plant and machinery, furniture and fittings, motor vehicles, etc, at a specified rate.   
• Donation / Gifts / Contributions / Relief / Incentive Claim:  
  For detailed information, click here.  

It is crucial to compute your tax accurately and file the appropriate forms to avoid any penalties. Properly managing your tax obligations will not only keep you in good standing with the Inland Revenue Board of Malaysia but also help you maintain a clear financial picture for your business's continued success.