Wednesday, March 12, 2008

I got the answer peep!

Finally I got the answer why I have the extra income tax to pay in 2005. I just received my EA statement in 2007 this morning and discussed with a good friend of mine about this.

The answer is simply about the ESOS, the ESOS was offered in 2005 but I only exercise it in 2007. LHDN recalculate my tax according my annual income in 2005 + my ESOS return , and the balance amount that I have to pay is RM294.68.

I really understand this. When we cannot assume that we got the whole return when the investment says the return is XX%.
We shall calculate in this way the real rate of return : Return- Infation rate - Income Tax rate.

The real formula will be shared to you soon as I left the formula at home. So please note, the important note is inflation erodes the real rate of return (that is, the return less the inflation rate) from an investment.

I simply love the day, I learn something.


mardhiah12 said... Reply To This Comment

farra, just nak comment previous entry
wa, aku ni bernasib 'baik' untuk kena audit dgn LHDN. kena korek resit dari tahun 2004 lagi..nasib baik everything is in place, aku siap bind, buat macam buku hantar kat LHDN balik...huhuhu

Farra said... Reply To This Comment

bagus2..tapi kalau excercise esos tu for sure kene recalculate balik

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