Tax Liabilities for Educational Personnel from income received

Abstract

This paper intends to study and collect data from academic papers, relevant laws and discusses tax ruling of the Revenue Department and related to tax liabilities of educational personnel from their income apart from salary. Some of them might not realize or recognize the importance of tax liabilities from income they received. The examples of Income that the educational personnel received apart from salary are income from research studies, compensation from publication of academic work and revenue from the bookselling received from their university. This includes consultant fees from external agencies which are counted as assessable income for personal income tax’s calculation on a cash basis. Each of these types of income has different classification criteria which effects the deduction of expenses and personal income tax’s calculation.

Educational Personnel as taxpayers need to deeply understand how to prepare self-assessment of total income received from different sources, correctly classify assessable income and know exactly about deduction allowed for tax calculation. These are led to tax planning for getting works, receiving cash, preparing relevant source documents and correct annual personal income tax’ calculation. As the result, it could benefit to them in terms of tax saving and also avoidance of tax penalties.