Tax Filing for Side Income

[oof_what]

Hi All, I have some questions regarding my side income and how to go about income tax filing.

Context

• Recently I've started a modest side income whereby I buy / refurbish / sell items for a profit Carousel / FB Marketplace.
• Average monthly income is RM1-3K.
• Majority of sales are done via Bank Transfer into personal bank account.
• I have been filing taxes for my main corporate job.

Questions

1. Can I file this additional income under borang e-BE?
2. If I must file under e-B, do I have to register a SSM or can I file without doing so?
3. Since the transfers are mostly done via Bank Transfer (often mixed with personal transactions), how can I differentiate the business transactions for accounting / audit purposes? There are a lot of transactions
4. To address point (3), would it better to open a Current Account in order to simplify all records of business transactions under a single account?
5. If I register with e-B, does that mean I need to file with e-BE and e-B every year moving forward?

 

[blurredcontours]

@oof_what

Can I file this additional income under borang e-BE?

You can and you should.

If I must file under e-B, do I have to register a SSM or can I file without doing so?

You cant file under borang B unless you actually have a business (sole prop or greater)

Since the transfers are mostly done via Bank Transfer (often mixed with personal transactions), how can I differentiate the business transactions for accounting / audit purposes? There are a lot of transactions

You can't. This is why you need to open a sole prop or Sdn Bhd and have a business account.

To address point (3), would it better to open a Current Account in order to simplify all records of business transactions under a single account?

Opening a current account as an individual doesn't change anything much. You can only file under borang BE because you don't have a sole prop or Sdn Bhd. It might make your book keeping a bit easier to manage. That's about it.

If I register with e-B, does that mean I need to file with e-BE and e-B every year moving forward?

I'm not sure about sole props, but if you start a Sdn Bhd then yes you would have to file two. One for the company and one for you as an individual.

I think your income from your side hustle isn't worth starting a Sdn Bhd due to the overhead costs. A sole proprietorship would be advised, though I'm not an expert on this.