Easy Guide to E-Filing in Malaysia: Personal Income Tax
Here’s your easy guide!
Are you feeling overwhelmed by the prospect of filing your taxes in Malaysia? It’s annoying, I with you, I rambled about it few days ago in my Scribing Moment segment! Don't worry, you're not alone! One thing for sure the process is in better state today, that e-filing has made the process more convenient and accessible than ever before. In this guide, I’ll walk you through the steps to successfully e-file your taxes in Malaysia. The steps are divided into 3 phases and 7 Steps :
Phase 1 : Pre-Filing (Step 0,1, 2)
Phase 2 : Filing (Step 3,4 ,5)
Phase 3: Post-Filing (Step 6)
Pre-Filing
Step 0: Be Mentally Prepared
Before diving into e-filing your taxes in Malaysia, it's crucial to set realistic expectations and mentally prepare for potential challenges. Understand that dealing with the tax department can be challenging, with possible delays in getting through via phone or receiving responses to emails. Be persistent in following up if needed. Plan ahead by starting the process early to avoid last-minute stress. With the right mindset and preparation, you'll navigate this process smoothly. Best of luck!
Real life example of unexpected error on the website
Tips : If you are a first time doing this, follow step 1, otherwise skip to step 2:
Step 1: Register for an E-Filing Account / Login to MyTax
First things first, you'll need to register for an e-filing account on the official website of the Inland Revenue Board of Malaysia (Lembaga Hasil Dalam Negeri, LHDN). Make sure you have your MyKad, passport, or MyPR ready, as well as your latest assessment form. In most cases, employer will help to assisting you with the tax account (Give it a check with your payroll team!)
Reference :
Filing for the first time - Read here
User Manual To First Login - Read here
Link to My Tax (i) Click here (https://mytax.hasil.gov.my/)
Assuming you have your password correctly, and you land yourself on the dashboard, and you can proceed to Step 2 before you proceed to fill up the form.
Step 2: Gather Your Documents
Before you begin e-filing, gather all the necessary documents such as your income statements, receipts, and any relevant deductions or exemptions (eg. zakat receipts, donation receipts etc). This will streamline the process and ensure that you have all the information you need at your fingertips.
#1 Document - List of Tax Reliefs (Expenses Declares & Claims, Tax Deductions & Receipts)
Example as below :
Zakat
NGO Donations e.g Unicef, WWF etc
Insurance
Lifestyle (Gadget, books etc)
Health (Self, others)
Etc - Education, Properties, Electric car
Each year, the government will come up with certain budgeting for tax reliefs. Depending on the economic status, the list of the tax reliefs has / can change from year to year. E.g Domestic tourism expenses (up to RM1000) was available in 2023 due to Covid 19 pandemic issue is no loner available in 2024. Familiarise yourself with tax information, read below :
Reference :
#2 Document - EA Form
Read about EA Form - Click Here
Retrieve your EA Form from your employer. Payroll team usually will get this document ready by March each year (sometimes by end of February)
Example of information you need will be in the following section (depends on your situation) :
Section A - Check all your details (It should be accurate information of your employment details)
Section B - Information of gross salary, see 1 (a)
Section C - I never needed to look at this
Section D - See monthly tax deduction #1, Zakat paid via salary deduction (if any) #2
If you feel stuck and unsure, look for your HR (Payroll team) for support. Good HR will be helpful with this information
Tips: Set a day just to gather all documents before you actually start filing for the tax
Snippet of how I named my sub-folder (Year, 2023/2024) and Files (Excel sheet, Tax Tracker) to keep track of receipts. All kept in a main folder (Master Tax)
In advance, make sure that you have a documentation system. If you don’t have it, refer to my sample below (These is how I normally tag, label and do my filing) :
Decide a platform to keep your folder. I use Google Drive
Create a master folder to keep all your tax related docs. Name the folder as “Master Tax”
Create a sub-folder to keep specific documents fo each tax years. Name of sub-folder as “20XY/20XZ” - This represent year of assessment vs year of e-filing and declaration.
Scan / take photo of all receipts and keep it in a folder. Keep them in the sub-folder “20XY/20XZ”
In your master tax, create an excel sheet to track all your receipts for tax claim/ relief. Name this excel sheet as “Tax Tracker”. You can rename each tab according to the year you are tracking. Eg. Tab name : 2023 - to track spending of previous year to claim for year 2024. Make sure you rename all your soft-copy receipts properly and is key-ed in the excel sheet diligently. This will make your e-filing so much easier, later in step 4!
My tips are just for guidance and example, you can choose what works for you.
Filing
Step 3: Log In and Access e-Filing
Login page on MyTax
Once you have your account, log in to the e-filing portal using your credentials. Look for the e-filing section, usually located prominently on the homepage. It is always showing in Bahasa by default, change it to English as you prefer.
Choose the correct type of taxpayer, for my case is usually “Resident who does not carry on business” - “Form : BE (e-BE)” - “Deadline : Usually April 30th”
If you are unsure which one are you, refer to references listed in Step 2 #1 Document - List of Tax Reliefs dection
Step 4: Fill in the Details
#1 Personal Details | Particular of Individual
Particular of Individual Section
Other Particular Section
Now comes the nitty-gritty. Follow the prompts to input your personal information, income details, deductions, and any other relevant data. Take your time and double-check everything for accuracy. If this is not your first year, you may want to update your details if you need to, especially if you recently got married (or divorced) or etc.
#2 Income details
Statutory Income & Total Income
You will be able to get your accurate salary information from your EA Form. You can refer to tax deduction article to understand more of the deduction.
#3 Tax Relief
This is the most important and stressful column to fill in for me (but stick to half cup’s full mindset while you are at it!). This is how your spending behaviour of the previous year will reflect on how much can you get the reliefs/ rebates/ claims.
If you are unsure, hover your cursor to the green ‘info’ button and find out the additional information for each relief. The yellow badge next to the green badge represents the maximum amount you can claim for each category.
Expenses to declare and claim
Tips :
Info (Green) : Explanation of the relief category
Restricted to RMXXX (Yellow) : Maximum amount you can claim
Refer to the latest approved tax relief provided by Government
Refer to the receipts you have collected in Step 2
Regardless of what you claim, remember to keep the receipts you purchased for at least
Step 5 : Review and Submit
Review your e-filing form carefully to ensure all information is correct. One good thing about the latest user interface (UI) on the website, the system will auto-calculate your taxes and reflect how much of balance or tax payment you need to do / or overpaid.
Tips :
Overpaid means you will likely receive your claims
If you notice you have few balance from current years relief amount, that means you can start planning for a smart spending for next year claims! Once you fill this up, you will get what I meant by this
Check each section once again, cross check the amount your declare with the documentations
Once you're satisfied, hit the submit button. You will then receive a nudge to show you have completed the e-filing process. Congratulations! You've successfully e-filed your taxes.
Post-filing
Step 6: Keep Records
After e-filing and maintain your filing system, make sure to keep copies of your submission and any supporting documents for your records. It's always good to have these on hand for future reference.
In Malaysia, you are required to keep receipts for 7 years from the date of filing (just in case).
Bonus Tips:
Don't wait until the last minute to e-file. Get it done early to avoid any potential issues ~ anticipate there will be issues, because there will be!)
Create a system to keep track of your receipts
Get updated with the latest list of tax deductions every year (e.g Copy and Google this (change the date) "List of Tax Deductions for 20XX for e-Filing 20XX” (assessment year - previous year vs filing year - current year)” / or in Bahasa “Senarai Pelepasan Cukai 20XX Untuk e-Filing 20XX”)
Use the latest tax deduction information for the next year to help you with a smart spending this year!
And there you have it! E-filing your taxes in Malaysia doesn't have to be daunting. With this simple guide, you'll be navigating the e-filing process like a pro in no time. Happy e-filing!
Till next time friends, and remember “Everything is workable!”
