Malaysia Personal Income Tax Guide 2017

Our annual income tax guide is back! Check her for references, list of reliefs, and other important income tax info.

It’s income tax season once again! There is still some time to file your yearly income tax and this is the guide you need to get through your filing. We’ll try our best to cover all the necessary bases when it comes to taxes so you can file and pay yours in a timely manner while saving money at the same time. Let’s get started!

Tax Rates

First things first, you need to know your tax rates. It’s always a percentage of your chargeable income (more on that later). The more you earn, the higher the percentage of tax you need to pay. However, that higher percentage is only applied to the amount that’s higher. So you never end up with less net income after tax even if you earn more.

Let’s look at the tax rates for the Year of Assessment 2016 and see how much you need to pay:

You will notice that the final figures on that table are in bold. That’s because the rates for people who earn on that last two higher brackets have been increased from 25% to 26% and 25% to 28%. If you didn’t earn that much last year, you probably don’t need to worry about that.

It’s important to note also that the table above only applies to resident individuals who make their income in Malaysia. Not sure if that’s you? Well, if you are:

  • in Malaysia at least 182 days of the year,
  • in Malaysia for less than a consecutive 182 days, but the gaps in between those days were spent away on business trips, medical treatment, or social visits (of less than 14 days),
  • in Malaysia for 90 days or more during the year and in any 3 of the 4 previous years,

...then you’re a tax resident. So the rates on the table above would apply to you.

But if you’re non-resident individual earning income in Malaysia, your tax rates are different. It looks more like this:

Some items in bold for the above table deserve special mention. Technical or management service fees are only liable to tax if the services are rendered in Malaysia. While the 28% tax rate for non-residents is a 3% increase from the previous year’s 25%.

No guide to income tax will be complete without a list of tax reliefs. The below reliefs are what you need to subtract from your income to determine your chargeable income.

Chargeable Income

Your chargeable income is best illustrated with an example like so:

Say you are earning a RM40,000 per year salary, you have a RM2,000 local bank interest income as well as RM13,000 from property rental income a year. That's an annual income of RM55,000.

Let's take into account the standard RM9,000 individual tax relief as well as a maximum relief of RM6,000 for EPF contributions.

Assume your EPF contribution is calculated at 11% of RM40,000. That gives you RM4,400, which is still under RM6,000, meaning your EPF earnings are completely exempted.

All local bank interest income is still tax exempted, so that RM2,000 local bank interest income doesn't count either.

By applying these exemptions and reliefs, your chargeable income will actually be:

RM55,000 – RM2,000 – (RM 9,000 + RM4,400) = RM39,600. A much lower figure than you initially thought it would be.

Of course, these exemptions mentioned in the example are not the only ones. Which is why we’ve included a full list of exemptions for the year assessment of 2016 here for your calculation:

Tax Reliefs for Year of Assessment 2016

Now that you have your reliefs and you have your tax rates, you’re ready to calculate your chargeable income right? Not quite. Because there might be forms of income which count towards your chargeable income but is separate from your salary. By which we mean perquisites and benefits-in-kind.

Perquisites

Also referred to as company or employee perks, these items have cash value and are counted as part of your income. Perks include gift vouchers, company credit cards, company insurance premiums, staff discounts, or any other kind of sponsored payment made by the company on your behalf.

A rule of thumb to determine whether or not something is a perk is to think about whether or not you would have to pay (or pay more) for it if you weren’t working for the company. If the answer is yes, that’s a part of your income, and is taxable.

Thankfully, some perquisites are tax exempted by certain amounts:

Another entry in bold for this table refers to the special conditions of the taxable value of travel allowances. If you travel as a heavy part of your work and the company gives you allowance, it’s only exempted up to RM6,000. However, your expenses towards the travel used for work can be deducted from your gross income, provided you keep a record of these expenses.

Benefits-in-Kind

These also count towards part of your income. Think of these as perks, but ones that cannot be directly converted to cash. There are two ways to determine the monetary (thus taxable) value of these benefits:

The Formula Method, which uses this calculation:

Value of asset / Lifespan of asset = Annual value of benefit

and the Prescribed Value Method, which assigns a predetermined value from a list sorted by classification of asset.

We recommend sticking to the formula method for most benefits-in-kind since the prescribed value method isn’t really available for all asset classifications. However, we’ve provided the list of prescribed values here anyway so you can decide for yourself whichever is cheaper for you.

Prescribed Value of Motorcars and Related Benefits

Prescribed Value of Household Furnishings, Apparatus, and Appliances

For a fuller list of prescribed value for benefits in kind, you can check out this official document provided by the Inland Revenue Board of Malaysia.

After calculating your chargeable income from your perks, benefits, and subtracting your tax exemptions and reliefs, you’ve come to your total chargeable income. Which isn’t yet the amount you have to pay, since we haven’t factored in the tax rebates yet!

Tax rebates (or also known as “tax refunds” but done automatically rather than actually refunded to you). Another type of tax rebate, but which is only applicable for Muslim citizens, is the zakat / fitrah. Zakat is a compulsory payment for charity and considered to be compulsory as it is one of the five pillars in Islam. It can be calculated via the Muslim taxpayer’s acquired wealth or income.

Tax Rebate Year of Assessment 2009 onwards (RM)
Self where chargeable income does not exceed RM35,000 400
Separate Assessment for Wife or Husband where the other partner has no total income 400
Zakat / Fitrah Limited to total tax charged

Don’t Forget

The 2016 tax assessment year follows the calendar year, so it is effective from 1st January 2016 to 31st December 2016.

  • For individuals without business source, the due date is on or before 30th April.
  • For individuals with business source, the due date is on or before 30th June.
  • For a non-resident individuals without business source, the due date is on or before 30th April.
  • For non-resident individuals with business source, the due date is on or before 30th June.

If you have any other questions regarding personal income tax for the 2016 assessment year, feel free to drop them in the comments section down below!

0 comments

Agree or disagree with this post? Questions? You also have your word!

  • Tan Mong Huey

    If I have claimed parent's medical treatment, can I also claim the care expenses of parent (1,500)?

    Please advise. Thank you.

    Reply
  • Lim Ken song

    I have only rental income n a non resident. Do I pay 28% or 10% on my rental income.
    Do I less my insurance (6000) bought in malaysis.

    Reply
    • RinggitPlus

      Hi Lim Ken Song,

      Since your income as a non-resident is through property rental, you should pay 10%.
      But we're not quite sure about the 2nd part of your question as far as the insurance is concerned. We recommend contacting LHDN for further clarification.
      Hope this helps!

      Reply
    • Kim

      Hi, can husband claim relief for wife's life insurance premium under the RM6000 relief for EPF n life insurance? Wife is working and husband paid for the premium.

      Reply
      • RinggitPlus

        Hi Kim,

        It does look like you should be able to.
        But if you need further clarification on this matter we recommend contacting your nearest LHDN branch.
        Hope this helps!

        Reply
      • Hanna

        Does the Perquisites and Benefits In Kind apply for a sole proprietor?

        Reply
        • RinggitPlus

          Hi Hanna,

          Unfortunately, if you're a sole proprietor, perks and benefits-in-kind do not apply.
          If you need further clarification we recommend contacting your nearest LHDN branch.
          Hope this helps!

          Reply
        • Edwin

          If I receive an amount of bonus in 2016, and I repayment the bonus back to company in 2016 as well, is it still under taxable income?
          How can I claim it back?

          Reply
          • RinggitPlus

            Hi Edwin,

            Yup, it should still count as taxable income.
            For further clarification, we recommend contacting your nearest LHDN branch.
            Hope this helps

            Reply
          • Noor

            If I'm not wrong FD interest income from local banks not taxable, do I still need to declare in my tax returns? Tq

            Reply
            • RinggitPlus

              Hi Noor,

              You still need to declare it, but it's also still exempted from tax.
              For further clarification, we recommend contacting your nearest LHDN branch.
              Hope this helps

              Reply
            • Forza

              If I started my business in July 2016, do I need to write letter to inform IRB on my business source income or switching to Form B.

              Reply
              • RinggitPlus

                You just need to fill in the forms that apply to how you earn your income. No letters necessary.
                For further clarification on this matter, we recommend contacting your nearest LHDN branch.
                Hope this helps!

                Reply
              • SY Hong

                We are 5 slibings, if 1 of us claim the parents medical treatment, can other (4) claim the Parental care (RM1500/4) ?

                Reply
                • RinggitPlus

                  Hi SY Hong,

                  You claim for how much you paid. So as long as you have receipts to prove that you paid exactly x amount that you claim, you can claim it.
                  Hope this helps!

                  Reply
                • Steve

                  can i ask on the Tax Relief for contribution to Socso? it's usually highlighted in the pay slip. DO we need to report?

                  Reply
                  • RinggitPlus

                    Hi Steve,

                    Yes, you can!
                    Hope this helps

                    Reply
                  • What are the medical expenses that can claim under serious disease? Thanks

                    Reply
                    • RinggitPlus

                      It should be any expense that directly relates to the management of the serious disease.
                      For specifics or further clarification, we recommend contacting your nearest LHDN branch
                      Hope this helps!

                      Reply
                    • ken

                      Hi,
                      I had purchase a second house in year 2010, do I eligible to claim on the interest relief category ?

                      Reply
                      • RinggitPlus

                        Hi Ken,

                        Yes you're eligible as long as the Sales and Purchase agreement was executed between 10th march 2009 and 31st December 2010.
                        For further clarification we recommend contacting your nearest LHDN branch.
                        Hope this helps!

                        Reply
                      • YK

                        If i have claimed the property interest expended relief for the 3 consecutive year in 2011, 2012 and 2013, can I still claim again for year 2016 and the following years?

                        Reply
                        • RinggitPlus

                          Hi YK,

                          That relief is only eligible if the Sale and Purchase Agreement is executed between 10th March 2009 and 31st December 2010 and only given for 3 consecutive years.
                          For further clarification, we recommend contacting your nearest LHDN branch.
                          Hope this helps!

                          Reply
                        • Aira

                          If I received a subsidized interest on housing loan monthly, will that be tax exempted?

                          Reply
                          • RinggitPlus

                            Hi Aira,

                            Yes it will, as long as the full loan amount is less than RM300,000.
                            For further clarification on this, we recommend contacting your nearest LHDN branch.
                            Hope this helps!

                            Reply
                          • yvonne

                            Hi, Can we claim the parental care for mother in-law?

                            Reply
                            • RinggitPlus

                              Hi Yvonne,

                              Unfortunately, you're not able to do that. But your wife can claim for it.
                              For further clarification, we recommend contacting your nearest LHDN branch.
                              Hope this helps!

                              Reply
                            • Hana

                              Does the Perquisites and Benefits In Kind apply for a sole proprietor?

                              Reply
                              • RinggitPlus

                                Hi Hana,

                                Unfortunately, they do not apply to sole proprietors.
                                For further clarification and information, we recommend contacting your nearest LHDN branch.
                                Hope this helps!

                                Reply
                              • Angus

                                Hi... can we get tax relief on interest paid for personal loan and credit card?

                                Reply
                                • RinggitPlus

                                  Hi Angus,

                                  No, there's not relief for interest paid on personal loans or credit cards as far as we know.
                                  If you need a second opinion on this or further clarification, we recommend contacting your nearest LHDN branch.
                                  Hope this helps!

                                  Reply
                                • Madam Wong

                                  My husband was laid off last year. Is there any tax exemptions l can apply for under my own assessment? All these years both of us opted for separate tax assessment. TQ.

                                  Reply
                                  • RinggitPlus

                                    You can claim for spouse relief as much as RM4000.
                                    For further clarification on this, we recommend contacting your nearest LHDN branch.
                                    Hope this helps!

                                    Reply
                                  • SinC

                                    Hi, I learnt that petrol allowance is tax exempted.

                                    My case:
                                    Petrol allowance is stated in my payslip (say amount X). In EA Form, it is stated at column " tip kasar, xxx, elaun-elaun lain'' with amount X also.
                                    Do I need to include the amount X in my Pendapatan Berkanun (Borang BE)? My concern is, is it a must we must fill up Borang BE accordingly based on EA form since I am not going to declare the petrol allowance? Or, it is fine enough to proceed without declaring the petrol allowance?

                                    Thanks.

                                    Reply
                                    • RinggitPlus

                                      You have to declare it even if it's exempted.
                                      If you need further clarification on this matter, we recommend contacting your nearest LHDN branch.
                                      Hope this helps!

                                      Reply
                                    • Angel

                                      If i hv applied a personal loan of RM10,000 last year 2016, do i need to declare ? Thks

                                      Reply
                                      • RinggitPlus

                                        A personal loan is an expense, and not part of your income.
                                        For further clarification on this matter, we recommend contacting your nearest LHDN branch.
                                        Hope this helps!

                                        Reply
                                      • Teoh

                                        for the Perquisites, do we deduct further from the total annual income in the EA form or is it already deducted from the gross income. I can deduct the RM6K from the Travel Allowance further from my gross income?

                                        Reply
                                        • RinggitPlus

                                          Hi Teoh,

                                          Perquisites and Benefits-in-kind are considered part of your taxable income, they are not deductibles by themselves.
                                          You need to add in your perks and benefits together with your gross income to come to your taxable income.
                                          Only then do you start applying your exemptions, reliefs, and deductibles.
                                          For further clarification, we recommend contacting your nearest LHDN branch.
                                          Hope this helps!

                                          Reply
                                        • ken

                                          hi,
                                          I had brought a second hand house in 2010, do i still eligible to claim for the tax relief ?

                                          Reply
                                          • RinggitPlus

                                            As long as the Sale and Purchase Agreement was executed in between 10th March 2009 and 31st December 2010.
                                            For further clarification we recommend contacting your nearest LHDN branch.
                                            Hope this helps!

                                            Reply
                                          • Flo

                                            I just declared tax for year 2016 - 2012 this year to make sure there are no issues in the future. I realized that Year 2013 has a PCB deduction which I have overpaid since my income is less than 40K P.A. Will they refund the overpaid money that were deducted in 2013? BTW, I overlooked when filling up the form the portion where I can declare tax for prior years if I didn't declare accordingly instead I did the e-filling separately according to the years one by one. Will there be any problem?

                                            Reply
                                            • RinggitPlus

                                              Hi Flo,

                                              Your situation is a bit complicated and a little above our capacity to answer, sorry.
                                              We recommend you visit your nearest LHDN branch and clear things out that way.
                                              Hope this helps!

                                              Reply
                                            • HM

                                              Hi, to claim for claim the care expenses of parent (1,500), one of the rule is income not more than rm24k per year. May I know is the pension money from government is considered as income?

                                              Reply
                                              • RinggitPlus

                                                Hi HM,

                                                Yes, pension money is considered income. However, we don't think it should be counted towards the RM24k per year rule for claiming the costs of medical care for parents.
                                                For further clarification on this matter, we recommend contacting your nearest LHDN branch.
                                                Hope this helps!

                                                Reply
                                              • Kennedy Llyod

                                                Hello, I am a little unsure about how the parents tax relief works. Does this apply to only medical expenses? Monthly pocket money given to parents does count as tax relief?

                                                Reply
                                                • RinggitPlus

                                                  Hi Kennedy,

                                                  There's a special relief for parental care which your pocket money can fall into. The relief is up to RM1,500 for each parent. However, once you've claimed for this one, you cannot claim for medical expenses for parents.
                                                  For further clarification on this matter, we recommend contacting your nearest LHDN branch.
                                                  Hope this helps.

                                                  Reply
                                                • Alicia

                                                  Hi,

                                                  In your website below, I understand that "For most residents of Malaysia, the key figure to take note of is about “RM34,001 per year (after EPF deductions)"..." and if you earn below that figure, you do not need to file income tax for that year. As I am a NON-Resident earning Rental and Interest income totaling RM 13,554, can you please confirm that your statement above also applies to me (even though I am a non-Resident) and therefore I do NOT need to file income tax for FY2016?

                                                  https://ringgitplus.com/en/blog/Personal-Finance-News/Malaysia-Personal-Income-Tax-Guide-2017.html

                                                  Thank you.

                                                  Reply
                                                  • RinggitPlus

                                                    Hi Alicia,

                                                    The statement above about not having to pay your income tax if you earn below a certain amount only applies to residents of Malaysia. Since you're a non-resident, it does not apply to you unfortunately.
                                                    The tax rates you should look at is as the blue table above.

                                                    For further clarification, we recommend contacting your nearest LHDN branch.
                                                    Hope this helps.

                                                    Reply
                                                  • Lee Cheng Yong

                                                    Hi, if I will to claim the lastest relief/allowances for parents(which I didn't claim for medical relief). How do we go about it.
                                                    Any receipts to show proof or just monthly allowances which I gave my parents and on top of it CNY red packets which much more than the monthly I gave. Tq

                                                    Reply
                                                    • RinggitPlus

                                                      Hi Lee Cheng Yong,

                                                      You can claim for parental care relief up to RM1,500 for each parent as long as you haven't yet claimed for medical care expenses for parents.
                                                      Any proof of payment can be used.
                                                      If you're still not quite sure, we recommend contacting your nearest LHDN branch.
                                                      Hope this helps!

                                                      Reply
                                                    • Siew Ling

                                                      Hi,
                                                      Would like you advise on this. I have rent out my house at RM1.5 monthly and my monthly loan to bank is RM2k. Do i have to declare this rent income to my income tax since i dont get any profit on this? The rent is legal as we get it stamped at land office. Thanks.

                                                      Reply
                                                      • RinggitPlus

                                                        Hi Siew Ling,

                                                        Since you didn't earn any income (you lost money), the losses you incurred can be carried forward to next year's assessment.
                                                        For further clarification on how this works, we recommend you contact your nearest LHDN branch.
                                                        Hope this helps!

                                                        Reply
                                                      • Low

                                                        Hi RinggitPlus

                                                        May i know what category of form did an employee with part-time insurance income fall into?

                                                        Reply
                                                        • RinggitPlus

                                                          Hi Low,

                                                          If you mean you earn money part-time, you should use the Form B/BT (e-B/e-BT).
                                                          For further clarification, we recommend you contact your nearest LHDN branch.
                                                          Hope this helps!

                                                          Reply
                                                        • KM

                                                          I note that parking fee/ allowance is fully tax exempted. Will the same exemption apply,
                                                          (a) if the parking is provided by the employer(registered) under the company's name and paid by the company.
                                                          (b) an allowance paid by the company to the employee for parking which is under the employee's name/liability
                                                          (c) if the company reimburses the employee for his parking fees.

                                                          Regards

                                                          Reply
                                                          • RinggitPlus

                                                            Hi KM,

                                                            Yes, the exemption still applies in all three cases. As long as it is parking provided by the company (in discounts, allowances, reimbursements, or in-house parking) it counts as a perquisite.
                                                            Fur further clarification on this or other related matters, we recommend contacting your nearest LHDN branch.
                                                            Hope this helps!

                                                            Reply
                                                          • AWChong

                                                            Dear RinggitPlus,

                                                            May I know that regarding Tax Relief for "EPF & Life Insurance" and "Education & Medical Insurance", can I claim as relief if my insurance plan is an "Investment-Link" plan which consist of the benefits of "Life, Medical, Investment & Saving"?

                                                            Thank you in advance for your reply.

                                                            Reply
                                                            • RinggitPlus

                                                              Hi AWChong,

                                                              Yes, you can. But for this one, you must remember to take note of the itemised insurance statement in order to properly know and file which portion of your premium goes towards investments.
                                                              For further clarification, we recommend contacting your nearest LHDN branch.
                                                              Hope this helps!

                                                              Reply
                                                            • Liz

                                                              Hi,
                                                              Is the parental relief of rm1500 a relief claimable without having to show proof of payment to a non-working parent? Or must it come with payment documentation proof?

                                                              Reply
                                                              • RinggitPlus

                                                                It's recommended that you have proof of payment. Otherwise it would be difficult to claim you've spent the money for this cause, don't you think?
                                                                If you need further clarification, we recommend contacting your nearest LHDN branch.
                                                                Hope this helps!

                                                                Reply
                                                              • Kee

                                                                Hello.
                                                                In my EA form, there is a section namely (g) Jumlah Elaun/ Perkuisit / Pemberian / Manfaat yang dikecualikan cukai, amount RM X
                                                                My total income is RM Y in EA form.
                                                                For the income amount declare in BE, should o state amount RMY, or should i declare RM Y minus RM X? Thank you
                                                                Kee

                                                                Reply
                                                                • RinggitPlus

                                                                  Hi Kee,

                                                                  For the income amount to declare, you should put in RMY.
                                                                  For further clarification, we recommend contacting your nearest LHDN branch.
                                                                  Hope this helps!

                                                                  Reply
                                                                • Adrian

                                                                  Can a husband and wife share the rental income of a property under their names? What if the husband income is higher and later to decide all rental income put under his wife income?

                                                                  Reply
                                                                  • RinggitPlus

                                                                    Hi Adrian,

                                                                    Good question. It sounds like you may be able to do this if you split the earnings equally with your spouse. However, we can't be 100% sure if it works this way.
                                                                    We recommend contacting your nearest LHDN branch for further clarification.
                                                                    Hope this helps!

                                                                    Reply
                                                                  • CMF

                                                                    Once we have completed the e-filing for Year Assessment 2016, and there is tax to be paid (CP500 only covered half the amount) is there a deadline for payment of the taxes?

                                                                    Reply
                                                                    • RinggitPlus

                                                                      The deadline is still 30th of April

                                                                      Reply
                                                                    • Ping

                                                                      Hi RinggitPlus,
                                                                      Following your response to Alicia on 25/4/17, I would like to know if I need to file an income tax return. I'm a foreigner but deemed resident for tax purposes. I only have income from local bank deposit below RM30,000 per year, do I need to file an income tax return?

                                                                      Reply
                                                                      • RinggitPlus

                                                                        Hi Ping,

                                                                        You still do need to file your income tax returns even though you don't have to pay it.
                                                                        For further clarification, we recommend you contact your nearest LHDN branch.
                                                                        Hope this helps!

                                                                        Reply
                                                                      • Ping

                                                                        Thanks, RinggitPlus. But I thought the Income Tax Act (S.77(1)) says a person shall file an income tax return if he has a chargeable income. So, is bank deposit interests, while tax exempt, still "chargeable"? Coming from another common law jurisdiction, I'm all confused. Can you enlighten please? Many thanks.

                                                                        Reply
                                                                        • RinggitPlus

                                                                          Hi Ping,

                                                                          It's important to remember that chargeable income is calculated after tax exemptions and tax reliefs.
                                                                          For further clarification on this matter we recommend visiting or contacting your nearest LHDN branch.
                                                                          As the federal body responsible for this area, they would be the best source of the most up to date and prudent information.
                                                                          Hope this helps!

                                                                          Reply
                                                                        • Leena

                                                                          Hi,
                                                                          If my company grant me a study loan while I am still working for them, is the amount taxable?

                                                                          Reply
                                                                          • RinggitPlus

                                                                            A study loan is considered a perquisite and is therefore taxable.
                                                                            For further clarification on this, we recommend you contact your nearest LHDN branch.
                                                                            Hope this helps!

                                                                            Reply
                                                                          • Cheong LP

                                                                            Hi, my income is based on full commission on form CP58. Can I deduct my petrol, toll, parking , mobile, broadband bills and meal expenses? Is it 100% deduction?

                                                                            Reply
                                                                            • RinggitPlus

                                                                              You can deduct all of what you mentioned except for meal expenses. Each item has their own rate of deduction and might not be 100%.
                                                                              We recommend contacting your nearest LHDN branch for further clarification on this matter.
                                                                              Thanks for your question and we hope this helps!

                                                                              Reply
                                                                            • YF

                                                                              Hi, My dad is diagnosed with Dementia 2 years ago. Can I claim for his medicines bills up to Rm1 1900?

                                                                              Reply
                                                                              • RinggitPlus

                                                                                Hi YF,

                                                                                Yes you can, as it falls under medical needs and care expenses for parents and the limit is RM5000.
                                                                                If you need further clarification, we recommend you contact your nearest LHDN branch.
                                                                                Thanks for your question and I hope this helps!

                                                                                Reply
                                                                              • Waik

                                                                                Hi, I do consultancy works operating from home. Can I claim a portion of home expenses such as Unifi, electricity, printer usage, etc as "Use of home as office" expenses. If so, do I keep the all receipts and allocate a percentage or just make a general provision, for example, RM200 per month?

                                                                                Reply
                                                                                • RinggitPlus

                                                                                  Hi Waik,

                                                                                  As long as you can say that these expenses are only incurred in the production of income, then yes.
                                                                                  It's best to keep all receipts rather than make a general provision however.
                                                                                  For further clarification and information we recommend contacting your nearest LHDN branch.
                                                                                  Hope this helps!

                                                                                  Reply
                                                                                • Ashish Rai

                                                                                  Hi,
                                                                                  I am from INDIA. I started working in a IT company in KL on 11th june 2017 and will be going to Thailand in August for 3 days only. Just want to check that i won't be going out anywhere after that and as per the 182 days clause, i will be completing it on 10th Dec. Can i travel back to my country for a social visit on 29th Dec. 2017 and will be there till 14th Jan 2018. I hope my understanding is correct as i will be completing 182 days here and then only i am planning my travel. just read somewhere that there was something related to 31st Dec. and 1st jan of the next year, a person has to be physically present here. Can you please help?

                                                                                  Reply
                                                                                  • RinggitPlus

                                                                                    Hi Ashish,

                                                                                    Your Thailand trip won't be a problem, but your Indian visit however might need a relook.
                                                                                    Since the holiday will be more than 14 days, your date of stay in Malaysia may need to be reset before it can count at as part of you 182.
                                                                                    We recommend you take a shorter holiday to fewer days than 14.
                                                                                    For further clarification, contact your neared LHDN chart :D

                                                                                    Reply
                                                                                  • Tan kim boon

                                                                                    Do I need to declare tax on dividends earned from Singapore stock? I inherited the shares as a gift from parents.

                                                                                    Reply
                                                                                    • RinggitPlus

                                                                                      You need to pay tax on the income as long as you're earning it locally. However, since it's earnings from dividends, that's tax exempted. Enjoy!

                                                                                      Reply
                                                                                    • Wee Beng

                                                                                      Does rental income from property outside Malaysia need to be declared, or is it also considered foreign income and therefore tax free?

                                                                                      Reply
                                                                                      • RinggitPlus

                                                                                        Hi Wee Beng,

                                                                                        If you're earning it locally, you have to pay tax on it.

                                                                                        Reply
                                                                                      • Lee

                                                                                        Hi, my company gives housing allowance about 8,000 RM per month for each foreign expatriots. Should I include this allowance to taxable income?
                                                                                        On the other hand, company also has a complex of temporary cabin to provide accommodation for some foreign expatriots. Each cabin has desk, bed, aircondationer, refridgerator, wardrobe and bathroom. Foods and laundry also provided by workers at the other building in the complex. Is this accommodation BIK applicable?

                                                                                        Reply
                                                                                        • RinggitPlus

                                                                                          Hi Lee,
                                                                                          From how we understand it, those items should count as BIK.
                                                                                          If you need 100% confirmation on this matter however, we suggest you contact your nearest LHDN branch.
                                                                                          Hope this helps and thanks for your question!

                                                                                          Reply
                                                                                        • John

                                                                                          Hi, I under OKU & claim 6K for my personal disable deduction, can my wife further claim the RM3500 under her assessment ? (we have separate tax file)
                                                                                          Thank You.

                                                                                          Reply
                                                                                          • RinggitPlus

                                                                                            As long as you're not claiming anything not meant for you, you should be okay.
                                                                                            If you need more clarification on this matter, we highly recommend contacting your nearest LHDN branch

                                                                                            Reply
                                                                                          • Dan

                                                                                            Hi,
                                                                                            If I'm resident in Malaysia but earning USD from USA online platform under Malaysia sole proprietorship, which tax should I pay?
                                                                                            I am an employee to a local company at the same time. Please advise.

                                                                                            Reply
                                                                                            • RinggitPlus

                                                                                              Since you work from Malaysia, your income is still considered taxable.
                                                                                              If you need further clarification on this matter, we recommend contacting your nearest LHDN branch

                                                                                              Reply
                                                                                            • Tan

                                                                                              Hi, I am a Malaysian and earning my income in Singapore, do I still need to pay income tax in Malaysia?

                                                                                              Reply
                                                                                              • RinggitPlus

                                                                                                Hi Tan,

                                                                                                If you're earning that money in Malaysia, that's taxable

                                                                                                Reply
                                                                                              • Amelia

                                                                                                Do I need to pay income tax when I start working this month? How do I know how much to pay for my income tax?

                                                                                                Reply
                                                                                                • RinggitPlus

                                                                                                  Hi Amelia,

                                                                                                  Your company should already have a Monthly Tax Deduction attached to your payslip. You can ask your HR for further information on this.
                                                                                                  If you're still unsure, we recommend contacting your nearest LHDN branch for even more clarification on this matter.
                                                                                                  Thanks for your question!

                                                                                                  Reply
                                                                                                • Martin

                                                                                                  Hi,

                                                                                                  I have been on the MM2h scheme for the last 2 years. In addition to the mandatory 300k MYR fixed deposits I'm required to keep in Malaysia, I also have an additional approx. 350k MYR in several other fixed deposits of various tenors (max. 100k for a single deposit and 1-3 month tenors). I was previously of the understanding I was not required to submit any tax returns for the FD interest earned, but I'm now concerned that I may need to do so. Can you please help to confirm? Many thanks!

                                                                                                  Reply
                                                                                                  • RinggitPlus

                                                                                                    The answer depends on the length of your stay in Malaysia. Different lengths of stay means you'd be categorised differently. We suggest you contact your nearest LHDN branch for further clarification on this issue.
                                                                                                    Hope this helps!

                                                                                                    Reply
                                                                                                  • Louis

                                                                                                    Are all interest gained from bank savings regardless of how high the total would be, be exempted? Let's say for example a lady deposited 1 million Ringgit into a fixed deposit account, and from then on, she will earn a lot of money from the interest the bank will pay her. Are those also tax exempted?

                                                                                                    Reply
                                                                                                    • RinggitPlus

                                                                                                      Hi Louis,

                                                                                                      There is no limit stated on the tax exemption for interest earnings.
                                                                                                      If you need further clarification on this matter, we recommend contacting your nearest LHDN branch.
                                                                                                      Hope this helps!

                                                                                                      Reply
                                                                                                    • Ding Ding

                                                                                                      Hi there,
                                                                                                      is the child above 18 and is working eligible for child relief?

                                                                                                      Reply
                                                                                                      • RinggitPlus

                                                                                                        Hi Ding Ding,

                                                                                                        Once your child reaches 18 years of age, you are no longer eligible for the child tax relief.
                                                                                                        If you're still unsure or need further clarification on this or any other matter relating to income tax, we recommend contacting your nearest LHDN branch.
                                                                                                        Thanks for your question!

                                                                                                        Reply
                                                                                                      • Kathleen

                                                                                                        What about income from freelancing? How would I calculate that? Since freelancing income fluctuates month to month, I'm not sure how that would work.

                                                                                                        Reply
                                                                                                        • RinggitPlus

                                                                                                          Hi Kathleen,

                                                                                                          It is a little more tricky to tabulate your fluctuating earnings but it's really the only way to do it.
                                                                                                          If it's any consolation, if your earnings are below 34,000 a year you only need to file your taxes, which doesn't take much.
                                                                                                          We wrote an entire article on how to manage income taxes when you're freelancing right here: https://ringgitplus.com/en/blog/Career/How-to-File-Your-Income-Tax-When-Youre-Freelancing.html
                                                                                                          If you need further clarification on taxation matters, we recommend contacting your nearest LHDN branch.
                                                                                                          Hope this helps!

                                                                                                          Reply
                                                                                                        • Mavis

                                                                                                          Hi, Under personal relief, Amount deposited in SSPN for RM6k per annual or restricted to RM6k in total?
                                                                                                          That is, I deposited & claimed RM6k in 2016, then if I deposit another RM6k in 2017, can I claim the RM6k in the year of assessment 2017?
                                                                                                          Thank you

                                                                                                          Reply
                                                                                                          • RinggitPlus

                                                                                                            Hi Mavis,

                                                                                                            It's not 6k total, it's 6k for each time you claim for it.
                                                                                                            Thanks for your question. If you have any further clarification, we recommend contacting your nearest LHDN branch.
                                                                                                            We hope this helps!

                                                                                                            Reply
                                                                                                          • afa

                                                                                                            hi do you have any written guideline on individual who has 2 source of income i.e employed and from business? not sure how to calculate

                                                                                                            Reply
                                                                                                            • RinggitPlus

                                                                                                              Hi Afa,

                                                                                                              You can combine both incomes into one and submit it in one form.
                                                                                                              So if you're already a salaried employee and also earning as a freelancer, you can total those two incomes together under 'salaried employee' with extra income.
                                                                                                              If you're still unsure or need further clarification, we recommend contacting your nearest LHDN branch to find out more.
                                                                                                              Thanks for your question and we hope this helps!

                                                                                                              Reply
                                                                                                            • lim

                                                                                                              hi, i just submit the income tax form but i write the amount for part time job in the keterangan column but i no add in the figures at the column calculation .any problem or not. i already submit.
                                                                                                              thank you

                                                                                                              Reply
                                                                                                              • RinggitPlus

                                                                                                                Hi Lim,

                                                                                                                There might be some little discrepancies if that's the case, but nothing that would get anybody in big trouble.
                                                                                                                What you can do is calculate it right for next time. But if you're still not sure, we recommend contacting your nearest LHDN branch for further clarification on tax matters.
                                                                                                                Thanks for your question!

                                                                                                                Reply
                                                                                                              • Eugenie

                                                                                                                Hi, I would like to inquiry I am a freelancer how can I declare income tax without a slip and bank statement provided? Does IRB request payslip in order to provide source of income? Can I declare annual income what I have earned? First time, I declare income tax. Kindly advice, thank you.

                                                                                                                Reply
                                                                                                              • May

                                                                                                                May i know about Insurance Premium & Insurance Investment Refund is taxable in personal tax 2017 or not??? Have any Public Ruling can refer. Please advise it.

                                                                                                                Thanks & regards,

                                                                                                                Reply
                                                                                                                • RinggitPlus

                                                                                                                  Hi May,

                                                                                                                  Insurance premiums are expenses, and you can't tax those. There are reliefs available though: http://www.hasil.gov.my/bt_goindex.php?bt_kump=5&bt_skum=1&bt_posi=3&bt_unit=1&bt_sequ=1&bt_lgv=2
                                                                                                                  But as for the insurance investment refunds, it might fall under dividends, and are therefore exempt from tax.
                                                                                                                  If you're still unsure or want further clarification, we recommend contacting your nearest LHDN branch for more information.
                                                                                                                  Thanks for your question and we hope this helps!

                                                                                                                  Reply
                                                                                                                • Dave

                                                                                                                  Hi, would like to know regarding investment.. I made some money through cryptocurrency, would that be taxable?

                                                                                                                  Reply
                                                                                                                  • RinggitPlus

                                                                                                                    Hi Dave,

                                                                                                                    Any dealings with cryptocurrencies are currently tax-free, with the official position being that any transactions made with them are not considered legal.
                                                                                                                    We wrote about the legality of cryptocurrencies (specifically bitcoin) here: https://ringgitplus.com/en/blog/Banking-Technology/Is-Bitcoin-Really-the-New-Gold.html
                                                                                                                    If you have further questions about this or need more clarification, we recommend contacting your nearest LHDN branch.
                                                                                                                    Thanks for your question and we hope this helps!

                                                                                                                    Reply
                                                                                                                  • Cindy

                                                                                                                    Hi, if I buy a residential property end of 2017, can I claim the interest relief of rm10k from income tax dept?

                                                                                                                    Reply
                                                                                                                  • Desmond

                                                                                                                    Hi, if I am a fully employed with a side business, do I file the tax separately? As in, my company will be handling the tax related to my salary, while I would just need to file accordingly for my business through Form B?

                                                                                                                    Reply
                                                                                                                  • Jack

                                                                                                                    I’m an American working as a teacher at an international school in Kuala Lumpur. I make an income of 9,000 ringgit (7,500 salary + 1,500 housing allowance) per month. I arrived in Malaysia on August 31st, 2017 and started working on September 5th, 2017. I understand that non-residents pay a flat tax rate of 28% of their income, but I have several questions:

                                                                                                                    1. Since I arrived at the end of August, it’s technically impossible for me to be in Malaysia for 182 days in calendar year 2017, and hence cannot qualify as a resident tax payer for the year. So when do I qualify as a tax resident – on March 1st, 2018 (182 days from the day I entered Malaysia), March 6th, 2018 (182 days from the first day I started working in Malaysia), or July 2nd, 2017 (182 days from the beginning of calendar year 2018)?

                                                                                                                    2. My employer (my school) currently automatically deducts the 28% from my income each month. I lose a whopping 2,520 ringgit every month. When should my school stop deducting 28% and start deducting the resident tax rate only? How would they know when to do that? Do they check my passport to see if I left Malaysia during the first 182 days?

                                                                                                                    3. Will I receive a refund for any of 28% tax I paid, assuming I eventually become a tax resident? (It’s guaranteed I will eventually become a resident, seeing as my work contract is valid for 2 years. I will DEFINITELY be in Malaysia 182 days in calendar year 2018.) If so, what percentage of the 28% will I get back? 50%? 100? Also, when (if ever) should I expect to get any of it back? April 2018 or April 2019 or?

                                                                                                                    4. One of the perks of my job is lots of paid vacation time. I’m a frequent traveler who likes to travel overseas. I have December 16th, 2017 through January 7th, 2018 (23 days) off from work. I’d like to use that time to travel overseas. Seeing as I can’t possibly qualify as a tax resident for calendar year 2017 (but easily can for 2018), will I still somehow be negatively affected if I leave Malaysia for all 23 of these days? Would keeping it to a minimum of 14 days help at all? Does leaving the country for more than 14 days restart the 182 day counter back to zero, or does it not even matter (seeing as I won’t qualify as a tax resident for calendar year 2017 anyways)?

                                                                                                                    5. After I am eventually qualified as a tax resident, how much money should I be paying in taxes every month? My overall income is 9,000 ringgit a month, so what would my net income be after paying the resident tax rate?

                                                                                                                    I’ve lived in many different Asian countries, but Malaysia has by far the most confusing tax system I’ve ever experienced, as well as the highest tax rate of any of the countries I’ve lived in. Any answers you could provide would be greatly appreciated. Thanks in advance.

                                                                                                                    Reply
                                                                                                                    • RinggitPlus

                                                                                                                      Hi Jack,

                                                                                                                      We'll try to answer your questions one by one:

                                                                                                                      1. That would be on March 1st, 2018 (182 days from the day I entered Malaysia)

                                                                                                                      2. If a programme is being used to distribute salary, then the deduction and duration will be automated based on passport and Visa information. However, it is safer to check with your HR department.

                                                                                                                      3. You won't get a refund once you become a tax resident. You just no longer have to pay that rate.

                                                                                                                      4. If you leave the country for medical treatment or the treatment of your immediate family members, or for work related meetings, seminars, conferences etc then the 182 days will be a part of that. For social visits of more than 14 days away from Malaysia, then the 182 day streak will be broken and you have to start again when you come back.

                                                                                                                      5. You should check with your HR, because it might change depending on your field of work. It can range anywhere between 0-25%.

                                                                                                                      Thank you for your question. If you need further clarification, we recommend contacting your nearest LHDN branch for more information.

                                                                                                                      Reply
                                                                                                                    • Alfanti Larasati

                                                                                                                      Hi,
                                                                                                                      For purpose of claiming tax relief from EPF Contribution (max 6,000 ringgit per annum), is it calculated based on solely employee contribution or, combination employee and employer contribution?

                                                                                                                      Reply
                                                                                                                      • RinggitPlus

                                                                                                                        The EPF contribution is taken as a whole

                                                                                                                        Reply
                                                                                                                      • Roci

                                                                                                                        Hi, what the difference between company tax & individual tax? For an instance, Im having a sole proprietor company and my income will be paid to that particular company I registered. My salary will be a portion from my income. My question is, do i need to pay individual taxes? and do i need to pay sole proprietor taxes? or i need to pay both? Fyi, my company is offering engineering services. Thanks for your help

                                                                                                                        Reply
                                                                                                                      • VOONFEI

                                                                                                                        If i owned a sdn bhd but only earn annual income lower than RM30,000 (no epf deduction), shall i declare personal income tax? by the way if i got the personal income tax number already, shall i declare the personal income tax even though no annual income at all(not getting any money from the compamy). what is the minumum annual income amount for a personal/employer to declare income tax?

                                                                                                                        Reply
                                                                                                                      • Jenn

                                                                                                                        Hi, I started to receive commission income and admin support fees (freelancer) since the beginning of 2017. Would like to know whether I should declare my 2017 receipts in Form B instead of Form BE? If yes, which line should I declare (business income or other profits) - not registered with SSM? Can I claim my toll and petrol expenses in Form B? How to make the deductions in Form B? Please advise. Thanks!

                                                                                                                        Reply
                                                                                                                        • RinggitPlus

                                                                                                                          Hi Jenn,

                                                                                                                          We recommend you stick to Form B and put your extra earnings under Other Profits. You can't deduct your expenses this way however.
                                                                                                                          For further clarification on this matter, we recommend you contact your nearest LHDN branch for more information.
                                                                                                                          Thanks for your question!

                                                                                                                          Reply
                                                                                                                        • JERRY

                                                                                                                          Hi , my friend recently discovered that his family personal collection of antiques could fetch high value in international market. How does the tax dept treats income cases liks this since this is inherited items?

                                                                                                                          Reply
                                                                                                                          • RinggitPlus

                                                                                                                            Hi JERRY,

                                                                                                                            Malaysia currently does not have inheritance tax. And a property once transferred to you, becomes yours to do with as you wish. We're sure tax is not something you have to think about when selling these items internationally.
                                                                                                                            However, if you need further clarification on this matter, we recommend contacting your nearest LHDN branch for more information.
                                                                                                                            Thanks for your question!

                                                                                                                            Reply
                                                                                                                          • fc

                                                                                                                            Dear Ringgit Plus,

                                                                                                                            Does the tax exempted perquisite applies to salaried CEO who is also a director of a Sdn Bhd? Thanks.

                                                                                                                            Reply
                                                                                                                            • RinggitPlus

                                                                                                                              Hi fc,

                                                                                                                              We're not quite sure about this. We recommend contacting your nearest LHDN branch for more information and better clarification on the matter.
                                                                                                                              We hope this helps!

                                                                                                                              Reply
                                                                                                                            • Cyndi

                                                                                                                              Hi, I am fully employed in Malaysia with a monthly rental income of rm3600.
                                                                                                                              1. Do I pay the tax based on my total annual income (salary + rental) or rental is taxed differently?
                                                                                                                              2. Are cukai tanah, cukai pintu and agency fee tax exempted?
                                                                                                                              Thanks!

                                                                                                                              Reply
                                                                                                                              • RinggitPlus

                                                                                                                                Hi Cyndi,

                                                                                                                                1. You're meant to pay tax on your total income
                                                                                                                                2. If they're not listed as exemptions on our tables above, then they're not exempted.

                                                                                                                                We recommend you contacting your nearest LHDN branch for further information if you need it.
                                                                                                                                Thanks for your question!

                                                                                                                                Reply
                                                                                                                              • Sumon

                                                                                                                                Hi!
                                                                                                                                If a foreign worker earn 50000rm a year(Under service Visa ) as a warehouse worker then do he need to pay any income tax for that , if so then how many % do he has to pay it’s a SDN BHD company.
                                                                                                                                Thanks.

                                                                                                                                Reply
                                                                                                                                • RinggitPlus

                                                                                                                                  Hi Sumon,

                                                                                                                                  Yes, they need to pay taxes as a non-resident if they qualify for that or as a resident if they fulfill the criteria we've listed out in the article.
                                                                                                                                  If you need further clarification on this matter, we recommend contacting your nearest LHDN branch.
                                                                                                                                  Thanks for your question!

                                                                                                                                  Reply
                                                                                                                                • Chris

                                                                                                                                  Hi,
                                                                                                                                  If my employment income doesn't exceed RM34,000, but my total income (including rent) has exceeded this amount, should I start to file my income? Thank you!

                                                                                                                                  Reply
                                                                                                                                  • RinggitPlus

                                                                                                                                    Hi Chris,

                                                                                                                                    Yes, you do have to file your income tax. Income includes all the money you earn, not just the cash you get from your sole employer.
                                                                                                                                    If you need further clarification on this matter, we recommend you contact your nearest LHDN branch for more information.
                                                                                                                                    Thanks for your question!

                                                                                                                                    Reply
                                                                                                                                  • KF

                                                                                                                                    Hi! If I have 2 children with 2 SSPN accounts; Child 1 has a balance of RM15k and child 2 has a balance of RM3k. In year 2018, I closed Child 1 account with withdrawal of RM15k and deposit RM3k for child 2 account. Can I enjoy tax deduction of RM3k under child 2?

                                                                                                                                    Reply
                                                                                                                                    • RinggitPlus

                                                                                                                                      Hi KF,

                                                                                                                                      That sounds like it should work fine since you still have a child under SSPN. If you're unsure or need further clarification, we recommend contacting your nearest LHDN branch for more information.
                                                                                                                                      Thanks for the question!

                                                                                                                                      Reply
                                                                                                                                    • Nelson

                                                                                                                                      Hi, is my commission considered as chargeable income? Thank you.

                                                                                                                                      Reply
                                                                                                                                      • RinggitPlus

                                                                                                                                        Hi, Nelson.

                                                                                                                                        Yes, your commission is considered as chargeable income. We recommend contacting LHDN for more information.

                                                                                                                                        Thanks for the question and we hope the answer help.

                                                                                                                                        Reply
                                                                                                                                      • Yapfatt

                                                                                                                                        Hi
                                                                                                                                        My employer leased a car for me paying a monthly lease rental of rm4500. No down payment except 2 months lease deposit. No residual value and no option to buy back. At end of 4 yr period return car to seller and lessor return deposit to my employer lesser. Total lease rentals paid over 4 yr period is less than new car price.
                                                                                                                                        Lessor claim CA owner lessor and even road tax is paid by lessor. Appears an Operating lease as Asset is not in books of my employer.
                                                                                                                                        Lease rental 100% deductible by employer and how am I tax?
                                                                                                                                        Thank you

                                                                                                                                        Yapfatt

                                                                                                                                        Reply
                                                                                                                                        • RinggitPlus

                                                                                                                                          Hi, Yap Fatt.

                                                                                                                                          Unfortunately, we're not sure how to answer this. Why not try contacting your nearest LHDN branch for a better clarification on this matter?
                                                                                                                                          Thanks for your question!

                                                                                                                                          Reply
                                                                                                                                        • Manish

                                                                                                                                          Hi RinggitPlus Team,

                                                                                                                                          I'm from India, working here in Malaysia for last 3 years. As I saw, we can show Medical expenses for Parents (upto RM 5000) in Tax Relief. And my parents are in India, and we spend around RM6000 equivalent for my parents medical expenses. So, I want to know whether I can show the expense as tax relief which I spent in India?

                                                                                                                                          Reply
                                                                                                                                        • Mim

                                                                                                                                          Hi,

                                                                                                                                          If I co-own property with my mother and the rental income goes into our joint account, do we split the rental 50% 50% for tax filing purposes if the rental split works out to RM34,001 or more for each of us?

                                                                                                                                          Thanks.

                                                                                                                                          Reply
                                                                                                                                          • RinggitPlus

                                                                                                                                            Hey, Mims.

                                                                                                                                            The first thing you need to do is to know the ratio of your joint ownership. This means knowing whether you and your mother have 50% each on your property or if you have slightly more than your mother like (you 60%) and Your mother (40%) etc. Once you determine the ratio of your joint ownership, both of you need to declare the rental income based on that ratio of joint ownership http://www.liew.my/usr/pagesub2.aspx?pgid=264&lang=en.

                                                                                                                                            We also recommend contacting LHDN for more information and tax-related advice.

                                                                                                                                            Thank you for your question and we hope this helps.

                                                                                                                                            Reply
                                                                                                                                          • Rach

                                                                                                                                            Hi,

                                                                                                                                            I am a non-resident and share property in Malaysia with my mother. The rental comes into our joint account. How do we declare this income should it go over $34001 annually? Do we declare 50% 50%?

                                                                                                                                            Thank you .

                                                                                                                                            Reply
                                                                                                                                            • RinggitPlus

                                                                                                                                              Hey, Rach.

                                                                                                                                              The first thing you need to do is to know the ratio of your joint ownership. This means knowing whether you and your mother have 50% each on your property or if you have slightly more than your mother like (you 60%) and Your mother (40%) etc. Once you determine the ratio of your joint ownership, both of you need to declare the rental income based on that ratio of joint ownership http://www.liew.my/usr/pagesub2.aspx?pgid=264&lang=en.

                                                                                                                                              We also recommend contacting LHDN for more information and tax-related advice.

                                                                                                                                              Thank you for your question and we hope this helps.

                                                                                                                                              Reply
                                                                                                                                            • postdont

                                                                                                                                              "However, with effect from the year of assessment 2004, income received in Malaysia from outside Malaysia is exempted from tax. Hence, an individual, either or non-resident, is taxable only on income accruing in or derived from Malaysia."

                                                                                                                                              Hello, the above statement is valid? can i confirm what does it mean?

                                                                                                                                              Reply
                                                                                                                                              • RinggitPlus

                                                                                                                                                Hey, Postdont

                                                                                                                                                Thank you for your question. Unfortunately, we do not have a clear answer to your question. As such, we recommend contacting LHDN for more information and tax-related advice.

                                                                                                                                                Thank you for your question and we hope this help.

                                                                                                                                                Reply
                                                                                                                                              • Sarah

                                                                                                                                                Hi, I have been out of the workforce for more than 2 years (further studies) and just started working again last May 2017. I noticed that my income hasn't been taxed last year and that this month's salary also haven't been tax. I have called up LHDN last year regarding this issue. They said, my total (annual) income for last year is not enough to be taxed because I just joined the workforce less than 6 months. My question is, will I be taxed this January 2018 onward? or will I only be taxed after my 12th month of working?

                                                                                                                                                Reply
                                                                                                                                                • RinggitPlus

                                                                                                                                                  Hey, Sarah.

                                                                                                                                                  The total annual income is based on the whole calendar year (January 2017 - December 2017). Regardless when you join the workforce, your total income is what you have earned until the end of the year. As such, your taxable income depends on how you earn from January 2017 to December 2017, which will be filed this year. However, how you will be taxed is dependent on how much is your monthly income. You can read more about it here https://ringgitplus.com/en/blog/Personal-Finance-News/Malaysia-Personal-Income-Tax-Guide-2018-YA-2017.html.

                                                                                                                                                  You should also contact LHDN for more clarity and information.

                                                                                                                                                  Thank you for the question and we hope this help.

                                                                                                                                                  Reply
                                                                                                                                                • LW

                                                                                                                                                  Dear Ringgit Plus,

                                                                                                                                                  My father & I have joint account FD as saving. He is now critically ill, and he wish to transfer those FD under my name only. Those income saving have been declared and tax paid under my father's name throughout the years. Will it consider as my personal income after the transfer?

                                                                                                                                                  Reply
                                                                                                                                                • Gary

                                                                                                                                                  Hi! I just want to ask, if on my pay slip, it says "fixed allowance", does that count as tax exempted? Since it does not state Meal allowance etc etc

                                                                                                                                                  Reply
                                                                                                                                                • Serena

                                                                                                                                                  If I am a freelancer and usually freelance in other countries, how to I file for my income tax?

                                                                                                                                                  Reply
                                                                                                                                                • Sufian

                                                                                                                                                  Hi,

                                                                                                                                                  Can I submit my tax income/return for previous years that I didn’t submit before?

                                                                                                                                                  I’m only submitting tax income/return this year.. oooops

                                                                                                                                                  Reply
                                                                                                                                                  • RinggitPlus

                                                                                                                                                    Hi, Sufian.

                                                                                                                                                    If you have not declared any previous years’ income, you need to declare it under the Pendapatan Tahun Kebelakangan Yang Belum Dilaporkan. With that, we also recommend contacting LHDN for more information and clarity.

                                                                                                                                                    Thank you for the question and we hope this help.

                                                                                                                                                    Reply
                                                                                                                                                  • PatrickWong

                                                                                                                                                    Hi RinggitPlus

                                                                                                                                                    I noticed that there is a "Child Relief" of RM 2000.
                                                                                                                                                    But there is no definition of "Child"
                                                                                                                                                    Pls shed some light on the matter (such as age, etc)

                                                                                                                                                    Thanks

                                                                                                                                                    Reply
                                                                                                                                                  • Lee

                                                                                                                                                    hello, RinggitPlus, i have 2 question to ask.
                                                                                                                                                    Q1: My basic salary is RM24000/year, travelling allowance + outstation allowance is RM2800/year. Do i need to declare travelling allowance + outstation allowance in my e-filing?

                                                                                                                                                    Q2: In my appointment letter written that, my basic salary is RM2000/month, Allowance is RM200/month. So in my e-filing, I need to declare RM26,400/year?

                                                                                                                                                    Thanks for reply.

                                                                                                                                                    Reply
                                                                                                                                                    • RinggitPlus

                                                                                                                                                      Hey, Lee.

                                                                                                                                                      Question 1: Travel Allowance and outstation allowance are considered as perquisites. You still need to declare them but they are tax exempted.

                                                                                                                                                      Question 2: That depends on what is stated in the EA form. Most likely your calculation is correct. However, it is important to check the amount with what is stated in the EA form.

                                                                                                                                                      We also recommend contacting LHDN for more information.

                                                                                                                                                      Thanks for the questions and we hope this help.

                                                                                                                                                      Reply
                                                                                                                                                    • Kong Hui Ching

                                                                                                                                                      Hi,

                                                                                                                                                      if a non resident staff's rental was paid by company every month RM8k & parking RM400 every month , is it BIK and need to declare & is it taxable ?

                                                                                                                                                      Reply
                                                                                                                                                    • Yen Yi

                                                                                                                                                      Hi! If I bought a medical insurance for my mother, and I’m the payer, is it claimable ?

                                                                                                                                                      Reply
                                                                                                                                                      • RinggitPlus

                                                                                                                                                        Hey, Yen Yi.

                                                                                                                                                        Based on what we know, the medical insurance tax relief is mainly for yourself, spouse and children. So, your mother's medical insurance may not be claimable under the medical insurance tax relief but it could be claimed under the parental care tax relief. We also encourage you to contact LHDN for more information.

                                                                                                                                                        Thank you for the question and we hope this help.

                                                                                                                                                        Reply
                                                                                                                                                      • EK

                                                                                                                                                        Hi,
                                                                                                                                                        If im taxpayer whose spouse has no income, can i claim the parental care for father in-law?

                                                                                                                                                        Thank you.

                                                                                                                                                        Reply
                                                                                                                                                        • RinggitPlus

                                                                                                                                                          Hi, EK.

                                                                                                                                                          Unfortunately, we do not have a clear answer to this question. As your situation defers from the norm, we recommend contacting LHDN for more information.

                                                                                                                                                          Thanks for the question and we hope this help.

                                                                                                                                                          Reply
                                                                                                                                                        • J

                                                                                                                                                          Hi, I'm a sole proprietor who use my rented house as my office. Can I use the rental as one of my business's expenses(reducing tax) as long as the contract signed with the landlord is using my trade name?And as a sole proprietor, is that ok to hire my sister as my clerk without EPF & SOCSO?
                                                                                                                                                          Thanks!

                                                                                                                                                          Reply
                                                                                                                                                          • RinggitPlus

                                                                                                                                                            Hi, J.

                                                                                                                                                            You can declare rental as a business expense. However, rental income may be taxable. As for your second question, you need to consult an HR lawyer for this. We also recommend contacting LHDN for more information and clarity.

                                                                                                                                                            Thank you for your question and we hope this help.

                                                                                                                                                            Reply
                                                                                                                                                          • Linda

                                                                                                                                                            Hello,
                                                                                                                                                            I was offered VSS in July 2017. I have opted for my previous employer to settle the taxable income from my VSS and they have. I recently received "Surat Pelepasan Cukai" for the said VSS (2017). I am now ready to do my e-filing for 2017 (for income received in Jan -July). My question - Do I still need to declare the VSS (2017) which I have received "surat pelepasan cukai" in my 2017 e-filing?

                                                                                                                                                            Linda H.

                                                                                                                                                            Reply
                                                                                                                                                          • joseph

                                                                                                                                                            Hi,
                                                                                                                                                            For parent medical treatment relief of RM6K, can I claim the hospital fee (which include administrative charge, diagnostic and medication) and consultation and procedure charges by the doctor. Does this include eye treatment.

                                                                                                                                                            Reply
                                                                                                                                                            • RinggitPlus

                                                                                                                                                              Hi, Joseph.

                                                                                                                                                              You can claim those things. You need to have the relevant receipts and invoices for reference. If you are unclear, we recommend contacting LHDN for more information and clarity.

                                                                                                                                                              Thank for the question and we hope this help.

                                                                                                                                                              Reply
                                                                                                                                                            • Jane

                                                                                                                                                              Can I claim my IVF Cost as Medical expenses for serious diseases ?

                                                                                                                                                              Reply
                                                                                                                                                            • Dev

                                                                                                                                                              Hello,
                                                                                                                                                              I've been working Malaysia since 2014. Last year(2017) March i went back to Sri Lanka for my wedding and while i was there i got to know my company got bankrupt.Then i found a new job and came back to Malaysia on April under previous company Visa. Since my new Company didn't have MSC/ICT Status to hire a foreign worker i had to cancel my employment visa and go back to Sri Lanka until that proceedings are done.From there i worked until September and my company paid RM7000 to my Malaysian bank account. 1 5th of September 2017 i came back to Malaysia under new company visa and since then i didn't leave Malaysia.
                                                                                                                                                              I want to know do i have to pay taxes for the period i was in Sri Lanka?

                                                                                                                                                              Reply
                                                                                                                                                              • RinggitPlus

                                                                                                                                                                Hey, Dev.

                                                                                                                                                                We do not have a clear answer to this question. Based on what we know so far, it is at the discretion of LHDN to decide whether you need to pay tax for the things for the period in Sri Lanka. As such, it is in your best interest to contact LHDN for more information and clarity.

                                                                                                                                                                Thanks for the question and we hope this help.

                                                                                                                                                                Reply
                                                                                                                                                              • Matt

                                                                                                                                                                Hi,
                                                                                                                                                                I have just registered as an sole proprietor mid last year. I do not have any fixed salary income for 2017. Do I still file my Tax return for BE or do I file for B for 2017 or I do not need to file for B, just BE with no income?

                                                                                                                                                                And in coming years, do I still need to file my BE if I do not have any fixed monthly salary?

                                                                                                                                                                Or if I do, do I file for both BE and B?

                                                                                                                                                                Thanks.

                                                                                                                                                                Reply
                                                                                                                                                              • AMK

                                                                                                                                                                Hi,
                                                                                                                                                                I set up a Sdn. Bhd. with myself as the sole director mid last year. It is not a sole proprietorship. I was still employed at the time. I have not yet paid myself a salary. Should I fill in Borang B or BE? Sorry, if it's a basic question. Thanks!

                                                                                                                                                                Reply
                                                                                                                                                              • steven

                                                                                                                                                                Hi, If I received a gross rental income of 10K in 2017 but the net yield is less after subtracting the maintenance fee etc. I will only be taxed on the net rental income right? So I input the net rental income into the form, right? Also, I understand that renovations are not tax deductable, right? Thanks

                                                                                                                                                                Reply
                                                                                                                                                                • RinggitPlus

                                                                                                                                                                  Hey, Steven

                                                                                                                                                                  We are not very sure about the net rental income part but here is a resource for your help http://www.liew.my/usr/pagesub2.aspx?pgid=264&lang=en. As for the renovation, you are right. The renovation is not tax deductible.

                                                                                                                                                                  We also recommend contacting LHDN for more information and clarity.

                                                                                                                                                                  Thanks for the question and we hope this help.

                                                                                                                                                                  Reply
                                                                                                                                                                • stephen

                                                                                                                                                                  Hi Ringgit Plus,

                                                                                                                                                                  I have a question for Insurans nyawa dan KWSP terhad for RM6k and Caruman Pertubuhan Keselamatan Sosial (PERKESO) terhad for rm250.
                                                                                                                                                                  In my payslip, got state 2 different figure, 1 is under deduction(EPF_E & SCS_E) and is under contributiondeduction(EPF_Y & SCS_Y).
                                                                                                                                                                  which one should i been use to fill in?

                                                                                                                                                                  Thanks in advance.

                                                                                                                                                                  Reply
                                                                                                                                                                  • RinggitPlus

                                                                                                                                                                    Hi, Stephen

                                                                                                                                                                    We do not have a clear answer to your question as we do not know how your salary slip looks like. If you are a salaried employee, then you claim the 11% employee contribution. We also recommend that you contact LHDN to get more clearer advice on your situation.

                                                                                                                                                                    Thanks for the question and we hope this help.

                                                                                                                                                                    Reply
                                                                                                                                                                  • Lex

                                                                                                                                                                    Hi Ringgit Plus,

                                                                                                                                                                    My company gives a fixed monthly car allowance of RM1800 instead of travel allowance. Can I deduct up to a maximum of RM6000 as it is used for work purpose? How do I fill it in the Borang BE, can I just deduct RM6000 from the Penggajian secition e.g. yearly salary minus RM6000?

                                                                                                                                                                    Reply
                                                                                                                                                                    • RinggitPlus

                                                                                                                                                                      Hi, Lex.

                                                                                                                                                                      Car allowance is not the same as travel allowance. Car allowance is considered as a Benefit in Kind, therefore it is taxable. We also encourage you to contact LHDN for more information.

                                                                                                                                                                      Thanks for the question and we hope this help.

                                                                                                                                                                      Reply
                                                                                                                                                                    • Michel

                                                                                                                                                                      Hi

                                                                                                                                                                      I bought a brand new car recently and am wondering if the expense is tax deductable? Be it deposit or monthly payment of loan. Please advise. Thanks

                                                                                                                                                                      Reply
                                                                                                                                                                    • Lee

                                                                                                                                                                      Hi Ringgit Plus,
                                                                                                                                                                      I started to work on May 2017 and I managed to earn around RM12,600 till December 2017. Should I register and declare the turnover in Form BE ?

                                                                                                                                                                      Reply
                                                                                                                                                                    • Sergey

                                                                                                                                                                      I live in Malaysia under MM2H visa conditions . I earned some interest from a local bank . The Q is shall I pay a tax on this earned interest ?
                                                                                                                                                                      Shall I pay a tax on any other income earned from overseas

                                                                                                                                                                      Reply
                                                                                                                                                                    • CCY

                                                                                                                                                                      Hi Ringgit Plus

                                                                                                                                                                      i am a Malaysian citizen but now i am working and living in Singapore as a PR. I still own a property in KL and am currently renting it out. Questions:
                                                                                                                                                                      1) under which category do I declare my income now? non-resident of Malaysia?
                                                                                                                                                                      2) my rental income that i declare, it should be net of the income deductible expenses such as loan interest amount, quit rent, assessment fees, management fees, etc?

                                                                                                                                                                      Reply
                                                                                                                                                                      • RinggitPlus

                                                                                                                                                                        Hi, CCY

                                                                                                                                                                        Based on what we know, you might need to declare it as a non-resident given that you are living in Singapore. As for the rental income, LHDN has created some guidelines http://lampiran1.hasil.gov.my/pdf/pdfam/M2009_ExplanatoryNotes_2.pdf. We also encourage you to contact LHDN for more information.

                                                                                                                                                                        Thanks for the question and we hope this help.

                                                                                                                                                                        Reply
                                                                                                                                                                      • Reny Rao

                                                                                                                                                                        Hi! I have a small query. I was working as an individual under employment for 5 months in a company and then left to be part of a partnership for about 6 months and then returned back to my previous company during the last month of last year. Since I have mixed income, when do I have to submit my income tax? Is it 30th June, 2018 since I have source of income from business. I have asked LHDN and they said since I didn't change my personal income tax from individual to employer, I have to submit by 30th April but the Accountant from my previous partnership says 30th June.

                                                                                                                                                                        Reply
                                                                                                                                                                      • Kev

                                                                                                                                                                        I need clarification on what exactly is the Self & Dependent relief for RM 9K covers. Also on the relief for parent amounting to RM1.5k per parent what does that cover?

                                                                                                                                                                        Reply
                                                                                                                                                                        • RinggitPlus

                                                                                                                                                                          Hi, Kev

                                                                                                                                                                          The "self" tax relief is for yourself and any dependent family members. Parental care tax relief is for any expenses you incurred for taking care of your parents.

                                                                                                                                                                          Thanks for the question and we hope this help.

                                                                                                                                                                          Reply
                                                                                                                                                                        • Roselin

                                                                                                                                                                          I have a MaxisOne plan of RM128.00 per month. Can I claim this amount (128 x 12) RM1536/- for tax relief under
                                                                                                                                                                          lifestyle.

                                                                                                                                                                          Reply
                                                                                                                                                                          • RinggitPlus

                                                                                                                                                                            Hi, Roselin

                                                                                                                                                                            Yes, you can claim. Make sure you have the receipts for the broadband/ internet subscription plan.

                                                                                                                                                                            Thanks and we hope this help.

                                                                                                                                                                            Reply
                                                                                                                                                                          • Andrew

                                                                                                                                                                            Hi, I am a fresh graduate who started working in Dec 2016 until end of 2017. So for my case, do I have to report the Dec 2016 salary in YA2017? or is there a column for me to report the Dec income? Appreciate your clarification on this. Thx

                                                                                                                                                                            Reply
                                                                                                                                                                            • RinggitPlus

                                                                                                                                                                              Hi, Andrew.

                                                                                                                                                                              This part depends on when you joined in December. If you join early or mid-December, you need to contact your employer include the income as part of the income in 2017. If you start working the last week of Dec, then it may not need your concern as you may not work long enough to be issued an EA form.

                                                                                                                                                                              We also need you to contact LHDN for more information and advice.

                                                                                                                                                                              Thanks for the question and we hope this help.

                                                                                                                                                                              Reply
                                                                                                                                                                            • Mich

                                                                                                                                                                              if i got married at the end of December 2017, do i fill in my 2017 Tax Form as married or single. thanks.

                                                                                                                                                                              Reply
                                                                                                                                                                              • RinggitPlus

                                                                                                                                                                                Hi, Mich

                                                                                                                                                                                Since you are legally married last year, you should declare yourself as married in your income tax form. However, since you are married at the end of December 2017. you need to contact LHDN to determine whether you should fill in as married or you have the option of filling in as single since LHDN allows people who are married to use the same tax reference number when you are single http://lampiran1.hasil.gov.my/pdf/pdfam/FAQBEENG2010_01042011_1.pdf.

                                                                                                                                                                                Thanks for the question and we hope this help.

                                                                                                                                                                                Reply