Malaysia Personal Income Tax Guide 2018 (YA 2017)

Calculating personal income tax in Malaysia does not need to be a hassle especially if it’s done right. Read on to learn all you need to know about filing your 2018 personal income tax.

As the clock ticks for the Malaysian personal income tax deadline - like gainfully employed Malaysians - you may have started visiting LHDN to do your E-Filing as both a proactive and precautionary measure. After all, there’s no harm in early tax filing as you will be getting first dibs on the tax refunds (know which deductible expenses you qualify for to get a head-start on your claims!), or avoiding the tax penalty for exceeding the deadline.

No matter what your reason may be, we have you covered starting from the creation your tax file (for first-time personal income tax filing individuals!) to understanding what are the newest tax incentives and reliefs announced from the Malaysian Budget 2018 (for seasoned taxpayers).

Here’s a guide that you can refer to for filing personal income tax claims for the Year of Assessment 2017. But before you proceed with doing so, you want to know…

Do I Need to Pay Income Tax?

If you are a resident of Malaysia earning :

  • Above RM34,000 per year (after EPF deductions) or RM2,833. 33 per month (after EPF deductions)
  • Above RM38,202.25 per year (before EPF deductions) or RM3,183.52 per month (before EPF deductions)

While taking all benefits, allowances, bonuses, overtime and commissions into consideration, then the answer is yes. Apart from that, here are the other things that you need to observe:

  1. You have been in Malaysia for at least 182 days in a calendar year

  2. You have been in Malaysia for a period of less than 182 days during the year but that period is linked to a period of physical presence of 182 or more consecutive days in the following or preceding year.

In the situation that you have been temporarily absent from Malaysia due to the following reasons, it will be counted as part of the consecutive days. The reasons are as listed below:

a. Business trips

b. Health treatment for illness

c. Social visits not exceeding 14 days

Answering yes to reasons listed above means that it is compulsory for you to file your income tax. If it’s anywhere below RM34,0000/ RM2,833. 33 per month (after EPF deduction) or RM38,202.25 per year / RM3,183.52 per month (before EPF deductions), then you will have the option to do away with tax filing.

However, you may be missing out on all the extras that you stand to gain from filing your returns once you have made sense of all that tedious paperwork. In short, it’s up to you to decide what’s best for your personal income tax filing needs. So if you have already made your decision, the next question on your mind is…

How Do I File My Income Tax?

Once you have ascertained your income bracket, it’s time for find out which income tax rate does your income fall under.

Not sure how tax rates work? Just remember that before you start your filing, you need to know your tax rates. It’s always a percentage of your chargeable income. 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.

The next thing you would need to note is taxable income consists of the sum of the income you earn that is taxable. Taxes are levied only on your chargeable income, the portion of your taxable income after taking into account tax exemptions and tax reliefs. To find out if your tax has been deducted properly, an income tax calculator can help you to do just that.

Here are the Malaysian tax rates for the Year of Assessment 2017 that you use as a reference to find out the amount your tax that you will need to pay according to your chargeable income.

Chargeable Income (RM) Calculation (RM) Rate (%) Tax (RM)
0 - 2,500 On the first 2,500 0 0
2,501 - 5,000 On the next 2,500 0 0
5,001 - 20,000 On the first 5,000 - 0
- On the next 15,000 1 150
20,001 - 35,000 On the first 20,000 - 150
- On the next 15,000 5 750
35,001 - 50,000 On the first 35,000 - 900
- On the next 15,000 10 1,500
50,001 - 70,000 On the first 50,000 - 2,400
- On the next 20,000 16 3,200
70,001 - 100,000 On the first 70,000 - 5,600
- On the next 30,000 21 6,300
100,001 - 250,000 On the first 100,000 - 11,900
- On the next 150,000 24 36,000
250,001 - 400,000 On the first 250,000 - 47,900
- On the next 150,000 24.5 36,750
400,001 - 600,000 On the first 400,000 - 84,650
- On the next 200,000 25 50,000
600,001 - 1,000,000 On the first 600,000 - 134,650
- On the next 400,000 26 104,000

How Does Year of Assessment 2017 compare to Year of Assessment 2018?

As announced by the Prime Minister at Budget 2018, the M40 incentive consists of a 2-point tax rate reduction which is aimed to help approximately 2.3 million Malaysians earning between RM20,001 and RM70,000.

For Year of Assessment 2018, the rates for lower brackets earners have been decreased from 5% to 3%, 10% to 8%, and 16% to 14% for the year of assessment 2018. These new rates will apply for those who have accumulated their income from January 2018 to December 2018 and are filing their taxes from March – April 2019.

Those in the brackets above have their tax rates unchanged so now, the next thing you will need to do is to calculate your chargeable income. But before you can proceed further, you will need to ensure that you have registered for ez-HASiL e-Filing to complete your Income Tax Return Form (ITRF).

Malaysia E-Filing for First-Timers

If this is your first time filing your income taxes, you will first need to register yourself as a taxpayer. Much like how the government uses your MyKad number to know who you are, so do they need an income tax number to know how much you’ve been earning. Get your income tax number by dropping by your nearest LHDN branch. Don’t forget to bring along a copy of your MyKad and recent payslip.

Apart from that, you can also do this via e-Daftar by filling in an online form and emailing them a scanned copy of the same documents. Upon successful registration, you will receive your income tax number in the mail within 7-14 working days.

Another way for you to check on your application is that you can give them a call and ask them if your number is ready by using your application number (given when you apply) for reference. Here's an illustration to help you get started on getting your Malaysian income tax pin for E-Filing.

E-Filing 2018 - Filing Taxes For The First Time

I Received My Income Tax Number. What Do I Do Next?

Now you need to register for ezHASiL e-Filing by:

  1. Visiting your nearest LHDN branch with your MyKad. You will receive a PIN number that you should note down and keep somewhere safe.

  2. Then, you need to go to ez.hasil.gov.my and click through to “First Time Login”.

  3. Fill up your PIN number and MyKad number on the page and click “Submit”.

  4. Review the information shown on the screen and make sure it’s correct. Click the “Agree” and “Submit” buttons.

  5. Once this is done, your e-Filing account and digital certificate will be registered and you are now ready to proceed with filling in the Income Tax Return Form through ezHASiL.

Here's an illustration to help you understand how the process of first-time registration for LHDN E-Filing works:

Filing Income Tax for Individuals Who Has Experienced Recent Change of Employment

Switched jobs recently? Fret not, here’s what you need to do:

Where Should You Start?

Firstly, you need to remember and note these things: the date you left the company and the tenure you have worked at the previous employer (This is crucial later on). The next thing you need to do is to contact your previous employer and ask them about the EA form for the previous year.

If You Have Received Your EA Form From Your Previous Employer

You can proceed to file your taxes with e-filing as usual. If you change jobs any time last year, LHDN states that you would need to combine the total amount of income, EPF contribution and SOCSO contribution from the EA forms of both the previous and current employers during your e-filing.

If you change job at the start of this year (January to May), you just need to file your taxes usual without the need to combine both incomes and other components from both employers. Having said that, you would need to remember to request for the EA form from your previous employer for the upcoming year to file for your taxes for YA 2018.

If You Have Not Received Your EA Form From Your Previous Employer

You would need to be proactive and find out the status of your EA form, as in whether it has been sent out, under process or if they haven’t worked on it yet. If they have sent out your EA form, inquire them about the channel which they send it.

Some channels like courier service could have a delay in schedule or would not deliver the form to the address without your (or your authorised receiver's) presence. Also, it is important to make inquiries from the courier service and get the previous employers to ensure the form is sent to you.

If you are not very patient or if there is little time left, you could to get the previous employer to send the EA form by e-mail.

In The Meantime…

You can start your pseudo tax filing by gathering all your salary slips from your previous employers and calculate the total income, EPF contribution and SOCSO contribution based on the length of time you have worked at that same year.

For example, you worked in the previous company for six months in 2017 before you join your new company on July 1, 2017. Your previous company pays you about RM1, 900 in net salary, with RM 99 for EPF contribution and RM1 for SOCSO contribution. Based on the six-monthly pay slips, you combined the total income, EPF contribution, and SOCSO, which amounts to Income (RM11, 400), EPF contribution (RM594) and SOCSO contribution (RM6).

However, the amount of net salary, EPF and SOCSO contribution for the last month of your work with the previous employer varies according to the date of your departure. If you leave at the last working day of the last month working at the previous employer, then this is not much of an issue. If you leave at any random date during your last working month at the previous employer, things that you would need to pay attention to includes your income amount, EPF contribution and SOCSO contribution. This is paramount for you to avoid any mistakes when you file your taxes.

It Is March and I Have Yet To Receive My EA Form. What Should I Do?

It is always important to note that it is always in the best interest of the employers to furnish the EA form to all employees, including the resigned staffs. In fact, it is their legally binding duty to do so according to the Income Tax Act.

That said, it is also your duty and best interest to inquire about the EA form from your employer and in the situation that you did not receive any form of updates related to your EA form, it would be best to consult with a representative from your nearest LHDN office to find out what are the actions that you can take to address this issue.

You Are Entitled to An EA Form Even If You Are..

  • A part-time worker
  • On Probation
  • A freelancer

So long as you have worked for more than 7 days and receive payment for it, then yes, it is compulsory for your employers to provide you an EA form. Having said that, it is not compulsory for them to give you an EA form if you have signed an agreement in which you are to be employed as a contract worker. It is optional for your employer to provide you an EA form if this is the case.

What Happens If Your Previous Employer Goes Bankrupt?

It is the responsibility of every employer to furnish the EA form to all of their employees regardless of the company's condition. Likewise, it is also your duty to notify and follow up on the status of your EA form from your former employer. Failure to do so may result in heavy repercussions in the coming months in which there will be penalties that you will be liable for such as...

Penalties for Employer and Employee

As mentioned before, both you and your employers have the responsibilities to file tax returns respectively. Depending on the severity of your offence, you may be fined and imprisoned and the same goes for your employers too as they can be penalised for not providing you your EA Form. They can be slapped with either a fine of RM20, 000, imprisonment or both. You can read more on what happens if you don’t file your income tax here.

How Can I Find Out My Chargeable Income?

Chargeable income refers to the portion of your income that is taxable after deducting tax reliefs and tax exemptions. The formula which will be used to calculate your chargeable income is:

Chargeable income = Taxable income - Tax exemptions - Tax reliefs

For instance, Jill, a 38-year-old marketing executive earned RM54,000 in the tax year of 2017. She does not have any tax exemptions and other tax reliefs beyond the basic ones, meaning her chargeable income would be calculated as follows:

Taxable income: RM54,000

Tax relief: RM9,000 in individual tax relief + RM5,940 in EPF contribution tax relief (11% of RM54,000, which is RM5,940)

Combining both taxable income and tax reliefs together, the amount will arrive at:

Chargeable income = RM54,000 (Taxable Income) – RM9,000 (Individual Tax Relief) – RM5,940 (EPF contribution tax relief) = RM39,060

Her chargeable income would fall under the 35,001 - 50,000 bracket. She would need to pay RM600 on the first RM35,000 and 8% on the remaining RM4,060 (RM324.80) which totals to RM924.80.

Her tax for the tax assessment year of 2017 would be RM924.80.

What Are the 2018 Income Tax Personal Reliefs Available for Residents? (YA 2017)

Personal reliefs for resident individuals in Malaysia

Types of relief YA 2017 (RM)
Self 9,000
Disabled individual – additional relief for self 6,000
Husband/Wife/Alimony Payments 4,000 (Limited)
Disabled spouse – additional spouse relief 3,500
Ordinary child,(below 18 years old) 2,000
Unmarried child of 18 years and above who is receiving full-time education ("A-Level", certificate, matriculation or preparatory courses) 2,000
Unmarried child of 18 years and above receiving full-time instruction of higher education in respect of diploma level and above in Malaysia; or degree level and above in Malaysia, OR serving under article of indentures in a trade or profession in Malaysia 8,000
Per physically/mentally disabled child 6,000
Per physically/mentally disabled child receiving full-time instruction at institution of higher education in respect of diploma level and above in Malaysia; or degree level and above outside Malaysia OR serving under articles or indentures in a trade or profession in Malaysia 8,000
Life insurance premiums and EPF contributions 6000^
Private Retirement Scheme contributions and Deferred annuity scheme premium (YA 2012 to YA 2021) 3000^
Insurance premiums for education or medical benefits 3000^
Expenses on medical treatment, special needs or carer expenses for parents (evidenced by medical certification) OR parental care relief (until YA2020) for father and mother 5000^ or 1500 per parent
Employee’s contribution to Social Security Organisation (SOCSO) 250^
Medical expenses for self, spouse or child suffering from a serious disease (including fees of up to RM500 incurred by self, spouse or child for complete medical examination) 6000^
Complete medical examination for self, spouse, child 500
Fee expended for any course of study up to tertiary level other than a degree at Masters or Doctorate level, which includes Law, Accounting,Islamic Financing,Technical,Vocational,Industrial,Scientific or Technological Skills 7000^
Purchase of supporting equipment for self (if a disabled person) or for disabled spouse, child or parent 6000^
Lifestyle relief consolidated with the following: purchase of books, journals, magazines, printed newspaper and other similar publications for the purpose of enhancing knowledge, purchase of personal computer, smartphone or tablet, purchase of sports equipment and gym memberships, and, internet subscription 2500
Purchase of breastfeeding equipment 1000^
Fees paid to child care and kindergarten 1000^
Deposit for child into Skim Simpanan Pendidikan 1Malaysia account established under Perbadanan Tabung Pendidikan Tinggi Nasional Act 1997 (until YA 2020)** 6000^

^ Maximum relief

** Previously known as Skim Simpanan Pendidikan Nasional where the tax relief is up to YA 2017

What Are the 2018 Income Tax Rebates

Moving on to tax rebates, here are the ones that you stand to gain as resident individuals.

Types of Rebate RM
Individual’s chargeable income does not exceed RM35,000 400
If husband and wife are separately assessed and each chargeable income does not exceed RM35,000 400 (each)
If husband and wife are jointly assessed and the joint chargeable income does not exceed RM35,000 800
Rebate for Zakat, Fitrah, or other Islamic religious dues paid Actual amount expended

The above rebate granted is deducted from the tax charged and any excess is not refundable.

On the other hand, these are the tax rates that will apply to you if you a non-resident individual working in Malaysia.

Types Of Income Rate (%)
Business, trade or profession, employment, dividends and rents 28
Public Entertainer and interest 15
Royalty 10
Payments for services in connection with the use of property or installation, operation of any plant or machinery purchased from a non-resident 10
Payments for technical advice, assistance or services rendered in connection with technical management or administration of any scientific, industrial or commercial undertaking, venture, project or scheme 10
Rent or other payments for the use of any movable property 10

*In general, only services rendered in Malaysia by non-resident individuals are liable to tax. Do note that from 17 January 2017 to 5 September 2017, certain services rendered in and outside of Malaysia are still liable to tax.

EzHASiL – What You Need to Do

• Make sure you’re logged in before you proceed with these steps:

• Under the e-Filing section, click on “e-Borang”, which will take you to the e-Filing tax forms.

• Choose the income tax form e-BE if you do not have business income from other sources), and choose the current assessment year.

• On the other hand, if you do have business income from other sources, you would need choose the income tax form e-B instead and choose the current assessment year.

• Ensure the details are up to date and correct them if necessary.

• Key in the details of your income according to the relevant categories.

• Don’t forget to fill in the total of your monthly tax deductions (potongan cukai bulanan, or PCB), if applicable.

• If you have undeclared income from previous years, you need to declare them under the “Pendapatan Tahun Kebelakangan Yang Belum Dilaporkan”.

• Remember to fill in your tax reliefs, rebates, and exemptions wherever applicable.

• After you’ve filled in all the details, the system will automatically calculate your taxes and show you how much you owe in taxes (or how much they owe you in rebates).

The last step after this is to:

• Read through the final statement and verify that all the information on it is true.

• You then need to electronically sign the form and send it in.

What Are Types of Employment Income That Are Taxable?

Here is a table to help you understand what type of employment income is taxable:

Type of employment income Taxable Value
Cash remuneration, e.g salary, bonus, allowances/perquisites Total amount paid by employer. Certain allowances/ perquisites are exempted from tax.
Benefits-in-kind, e.g motorcar and petrol, driver, gardener and more Based on formula or prescribed value method. Certain benefits are,exempted from tax.
Housing accommodation (unfurnished) for employee or service director Lower of 30% cash of remuneration* or defined value of accommodation
Hotel accommodation for employee or service director 3% of cash remuneration*
Withdrawal from unapproved pension fund Employer’s contribution
Compensation for loss of employment Total amount paid by employer. Exemption is available under specified conditions.

Do note that the taxable value of employment income includes the output tax paid under GST and this will be borne by the employer.

With effect from June 1, 2018, the GST charges of 6% will be reduced to zero percent as per government directives.

How Do I File A Tax Rebate for Zakat?

Do note that Zakat, Fitrah, or other Islamic religious dues paid are only applicable to Muslim Malaysian citizens.

If you are a Muslim taxpayer, you would need to make payments levied on the same source of income every year, namely income tax and Zakat. The amount of Zakat will be applied to your tax payable as a tax rebate.

For example:

Azreen’s income tax in 2017: RM500 (let’s call it IT)

Azreen’s has made a zakat contribution in 2017: RM300 (let’s call it ZC)

(IT) – (ZC) = Amount of Income Tax that Azreen would need to pay

As zakat is a tax rebate, Azreen’s income tax in 2017 is RM200.

What Are the Perquisites (Perks) Given to Employees?

Moving on, here are the types of perquisites that are given to employees:

*Exemptions are not extended to directors of controlled companies, sole proprietors and partnerships.

Here is an example of perquisite that are given:

Perquisites Taxable Value
Petrol card/petrol or travel allowances and toll rates. Total amount paid by employer. Exemption available up to RM6,000 per annum (allowances/perquisites are for official duties*)
Childcare subsidies/allowances Total amount paid by employer. Exemption available up to RM2,400 per annum*
Parking fees/allowances Fully exempted
Meal allowances Fully exempted
Interest on loan subsidies Loans totaling RM300,000 for housing/passenger motor vehicles and education*
Income tax borne by employer Total amount paid by employer
Award Total amount paid by employer. Exemption available up to RM2,000 per annum for the following types of award such as long service (more than 10 years of employment with the same employer),past achievement,service excellence, innovation, or productivity award

Travel Allowance

If you would need to head out of the office for work frequently, you may have received a travel allowance from your employer. Your employer will either provide you with a set amount of funds which you will use to pay for the expenses that you have incurred for work-related purposes.

These amounts paid are perquisites which are tax-exempted up to RM6,000 annually. Having said that, work-related travel expenses can be deducted from your gross income so do make sure you keep a record of these expenses.

Example: Julia is an account manager who travels frequently for work. Her company provides her with a monthly travel allowance of RM500 and as the amount does not exceed RM6000, it’s tax exempted.

However, the same type of perquisite could not be applied if she’s not working for an employer, and that she assumes the role of a business partner, director or sole proprietor of the company. Suffice to say, if she’s working for herself, these tax exemptions would not be valid.

For more information about perquisites, you can refer to the Perquisites From Employment that’s provided by LHDN.

What are Benefits-in-Kind (BIK) and How is It Distributed to Employees?

Benefits in Kind (BIK) refers to any non-cash benefit of monetary value that is given by the employer to the employee. As such, if you are an employer, you would oversee the provision of benefits to your employees.

On the other hand, if you are an employee, you may note that these benefits may be given to you under other names such as notional pay, fringe benefits or perks. BIK have monetary value so in short, they must be treated as taxable income. Even then, it is important to take note that BIK is not convertible into money, even though they have monetary value.

The phrase not convertible into money means that when the benefit is provided to the employee, that benefit cannot be sold, assigned or exchanged for cash either because of the employment contract or due to the nature of the benefit itself

There are 2 methods which are used to determine the value of the BIK provided to an employee. The formulas are as follows:

  • formula method
  • prescribed value method

How Does the Formula Method work?

For the formula method, the annual value of BIK provided to an employee is computed using the following formula:

Cost of the asset provided as a benefit or amenity/ Prescribed average life span of the asset = Annual Value of the benefit

And an example below to compute with the formula:

John is a top salesman who is provided with a LED TV by his employer for his stellar work performance. The cost of the LED TV is RM2,100 and the prescribed average life span of the asset is 7 years.

Based on the above formula, the annual value of the BIK for LED TV is:

RM2,100/7 = RM300

The amount of RM300 will be a part of John’s gross income from employment and this amount should be reported by his employer in John’s CP8A (EA) / CP8C (EC).

The calculation of the prescribed average life span of the assets formula method stays the same regardless whether the asset is new or second-hand.

So yes, even if John is gifted a second-hand LED TV, the prescribed average life span of the TV is still an estimated 7 years even if you may feel that the cost of the LED TV should be lower because it’s a used asset and the nature of used assets is that it has a shorter lifespan.

How Does Prescribed Value Method works?

On the other side of the coin, the value of BIK is based on a predetermined value that have been assigned from a list of assets that have been sorted into their respective categories. For prescribed value method, the asset’s value can be reduced if the BIK is:

(a) Provided for less than a year, or/and (b) Shared with another employee

Having said that, there will be instances that there will be no reduction in value of the BIK via prescribed value method. This is the case if the BIK is used for business.

What is the Prescribed Average Life Span Of Various Assets Provided By Employers To Employees?

What is the Prescribed Value Of Motorcar And Its Related Benefits?

Cost Of Motorcar (RM) Annual Prescribed Benefit Of Motorcar (RM) Annual Prescribed Benefit Of Petrol (RM)
Up to 50,000 1,200 600
50,001-75,000 2,400 900
75,001-100,000 3,600 1,200
100,001-150,000 5,000 1,500
150,001-200,000 7,000 1,800
200,001-250,000 9,000 2,100
250,001-350,000 15,000 2,400
350,001-500,000 21,250 2,700
500,001 and above 25,000 3,000

What is the Prescribed Value of Household Furnishings, Apparatus and Appliances?

Malaysia Income Tax General FAQ

Here is a list of commonly asked questions that we have compiled for your perusal.

What Is Employment Income?

Employment income in general constitutes of a situation whereby an employee is subjected to Malaysian tax by:

  • Being employed in Malaysia
  • Is on paid leave which is attributable to the exercise of an employment in Malaysia
  • Performs duties outside Malaysia which are incidental to the exercise of an employment in Malaysia
  • Is a director of a company resident in Malaysia; or
  • Is employed to work on board an aircraft or ship operated by a person who is resident in Malaysia

However, there are exemptions for employment income if you are a short-term employee. To check if you fall under the category of a short-term employee, here are the qualities that you would need to take note of:

  • If the aggregate of the period of periods of employment in Malaysia does not exceed 60 days in a calendar year or
  • where the total period of employment which overlaps 2 calendar years does not exceed 60 days

How is Income Tax Assessed in Malaysia?

Income is assessed on a current year basis. The year of assessment is the year coinciding with the year calendar. For instance, let’s say that the year of assessment for 2017 is the year ending for 31 December 2017. In this case scenario, since you are a person and not a company, limited liability partnership or a cooperative, your income will be assessed on a calendar year basis. In Malaysia, a self-assessment system is applied so that means you, as a taxpayer, have the responsibility to determine the correct tax liability.

What Are the Classes of Income that is Tax Chargeable?

Income tax is chargeable on these classes on income:

  • Gains or profits from a business
  • Gains or profits from an employment
  • Dividends, interests or discounts
  • Rents, royalties or premium
  • Pensions, annuities or other periodical payments not falling under any of the foregoing clauses
  • Gains or profits not falling under any of the foregoing clauses

I Do Not Have A Business Anymore but I Am Still Receiving A B Form. What Should I Do?

In this situation, since you do not have a business anymore but you are still receiving a B form, you can choose to either:

  • Use the form to declare income received by filling in the relevant columns; or
  • Change to BE Form at the nearest LHDN branch.

At some point in 2017, I was Retrenched from My Job. How Do I File for My Taxes?

As per LHDN's website, compensation for the loss of employment is a payment made by an employer to his employee before or after the date of termination, and a certain amount of this payment is exempted from tax.

This compensation is exempted from tax if compensation received is due to ill health, and the other cases:

Termination before July 1, 2008 – exemption of RM6,000 for every completed year of service with the same employer or with companies in the same group.

Termination on or after July 1, 2008 – exemption of RM10,000 for every completed year of service with the same employer or with companies in the same group.

I Have Opted for Early Retirement Due to my Illness. Do I Need to File for Income Tax?

In this situation, you would need to notify LHDN about your situation and your situation will be assessed in accordance to the taxation guidelines set by the Director General of Inland Revenue (DGIR).

Here’s an example that you can refer to:

Samy, an architect, had worked for his employer for 22 years. In 2016, he met with an accident which left him with a serious health problem. The accident has forced him to stop working and opt for early retirement at the age of 49 on 1.1.2017.

Samy’s employer accepted his request for early retirement based on the medical report from the company’s panel of doctors and paid him RM200,000 as retirement gratuity in accordance with the company’s policy.

Samy is entitled for a full tax exemption on the retirement gratuity that he has received as he was able to prove that his early retirement was due to ill health.

How Do I File My Income Tax if I Am Working in a Malaysian Company Abroad?

According to Section 13(2)(c) of the Act, the salary earned from working abroad would not be taxable unless the income received is incidental to the Malaysian employment. Having said that, you would need to notify LHDN that you are working abroad as this will help avoid the possibility of you getting penalised for not filing your taxes.

I Am an Expat Employed In Malaysia. How Is Income Tax in Malaysia for Expats ?

In general, if you are a non-Malaysian but are resident in Malaysia for tax purposes (see above 'Do I need to pay income tax?'), you will pay income tax as a resident.

However, for certain Non-Malaysian citizens who are based in Malaysia working in Operational Headquarter (OHQ) or Regional Office (RO), or International Procurement CIPC), or Regional Distribution Center (RDC) or Treasury Management Center (TMC) status companies, your employment income will be taxable based on the number of days you are employed in Malaysia.

I Am a Muslim Revert. How Do I File for My Income Tax and Make My Zakat Contributions?

First off, you would need to keep the original receipts that you have received when you have made your zakat contribution. For example, if you have made a zakat contribution in 2017, it can be claimed as the tax rebate on the income tax return form for the year assessment 2017. Always remember that in order to receive approval for tax rebates, the payment must be made in the basis year.

However, it is important to know that the amount is subject to the maximum of tax charged (limited amount of total tax charged).

How About Employment Insurance Scheme?

When you start your work this year, you might note that your salary slip now has a section for Employee Insurance Scheme (EIS). The Employee Insurance scheme is a compulsory financial scheme to help employees who lost their jobs. The scheme will support the affected employee while they are searching for new jobs. You can get more info on EIS here.

I Have Submitted my E-Filing and Wanted to Make Changes. What Do I Do?

According to LHDN, income tax form submission made via e-filing cannot be modified online. To avoid penalties imposed, you will need to submit your appeal for amendments on / before 30 April 2018.

Here are the steps that you will need to take: -

(a) Print your e-form and make corrections in the wrong space (a brief signature next to the correction). Next, make the tax calculation manually up to the "Tax Paid" level. In the event of any balance due, the balance shall be paid on/before 30 April 2018.

(b) Attach a letter of appeal that explains the changes you wish to make along with a copy of your e-form and all original documents and receipts to confirm income, all claims and tax deductions. Once you have done that, you will need to send it to the branch that you have registered with.

Do note that LHDN will go through each error appeal as a part of the audit process and the time taken for the amendment will depend on the information and documents submitted

When Will I Get My Tax Refund?

If you have overpaid in taxes and is entitled to a refund, it will be credited to the account automatically to the taxpayer within 30 working days after the submission of income tax return form. However, if you do not receive your refund you can forward your application to the Collections Unit of the branch where your file is completed and submit it via LHDN’s Feedback Form.

Apart from that, you can also try inquiring via their toll-free number at 1-800-88-5436 (LHDN)

What Are the Benefits of Early Tax Form Submission?

Can I Submit an Appeal for Income Tax?

There are various situations where you can choose to submit an appeal for your income tax. You can submit an appeal if:

• You are not satisfied with the way in which your income has been assessed.

• Personal reliefs have not been appropriately given.

• You have forgotten to claim certain expenses or reliefs.

• There is an error in the assessment issued by the LHDN office.

I Have Received a Notice of Assessment from LHDN and I Want to Submit An Appeal. What Do I Do?

Firstly, you can submit an appeal by writing to the LHDN branch which issued the assessment within 30 days from the date of the notice. For this, you are required to fill in Q Form which is available at your LHDN branch. Your LHDN branch will oversee the handling your appeal and from here, your appeal will be forwarded to the Special Commissioners of Income Tax.

In the situation (for a valid reason) that you could not submit an appeal within the 30-day period, you can apply for an extension of time to submit the appeal using N Form which is to be forwarded for decision by the Special Commissioners of Income Tax. The Special Commissioners of Income Tax consists of an independent tribunal of panel members appointed by the Yang Di-Pertuan Agong to handle tax appeals.

However, do note that you still have to pay your tax liabilities even though you have made an appeal.

Documents required:

• Letter stating the type of mistakes/expenses claimed/deductions/exemptions

• Supporting documents for expenses claimed/deductions/reliefs

Apart from that, LHDN may request for other documents that are not listed above as well if the information received is insufficient to proceed with the amendment of assessment. After receiving the results of your appeal, should you feel dissatisfied with the decision made by the Special Commissioners of Income Tax, you can appeal further to the High Court and the Court of Appeal.

One Last Tip….

As you know, the 2017 tax assessment year follows the calendar year, so it is effective from 1st January 2017 to 31st December 2017. Once you have outlined what are the tax reliefs, deductions, and rebates that you can submit claims for, it is time to submit your income tax return form for the year of 2017. The due date for the manual submission of return forms are as follows:

1) Employers (Form E)- 31 March 2018

2) Residents and non-residents with non-business income (Form BE and M) is 30 April 2018

3) Residents and non-residents with business income (Form B and M) is 30 June 2018

4) Partnerships (Form P ) is 30 June 2018

On the other hand, here are the due dates that you will need to note if you are submitting your tax return form via E-Filing:

1) Residents and non-residents with non-business income (Form BE and M) is 15 May 2018

2) Residents and non-residents with business income (Form B and M) is 15 July 2018

^Do note that these files are only for reference, you will still need to visit LHDN's site for your tax submission.

Done with your income tax submission? That’s great but don’t chuck out all your receipts and it’s duplicates yet! Do make it a habit to must keep records for 7 years from the date of filing so don’t throw away any receipts or evidence of tax reliefs, keep them in a file sorted by tax year.

What do you feel about the income tax filing for the year of assessment 2017? Let us know in the comment section below.

0 comments

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

  • Shaun

    What about the travel allowance for commuting to and from work? Does this perquisite still have a tax exemption of up to RM2400 this year?

    Reply
  • Gavin

    Hi sir, your guide really helps so as not to pay more tax than required. What is the income tax to be paid in the year of assessment if I work for 200 days in Malaysia, and the balance in Brunei?

    Reply
    • RinggitPlus

      Hi, Gavin

      Thanks for the question. We do not a clear answer to this question. We recommend contacting a tax advisor to determine the amount of income tax you need to. You need to also contact LHDN regarding the income you obtained in Brunei.

      Thanks again and we hope this help.

      Reply
    • Ying

      Hi Shane,

      How if im salaries employed but i do entertain client in own pocket? Can this be claim as tax deduction? thanks

      Reply
      • RinggitPlus

        Hi Ying

        As far as we know, you can't claim tax relief for entertaining client. Please also consult LHDN for more information.

        Thanks for the question and we hope this help.

        Reply
      • Jo

        Hi,

        I'm taking the ACCA Professional papers locally. Are the exam fees and annual subscription fees paid to ACCA UK under education tax relief? I have also attended lecturer courses locally (paid to local college) , is the course fees under education tax relief?

        TQ!

        Reply
        • RinggitPlus

          Hi, Jo

          You can claim tax relief for the course that you take in the local college. As for the examination, it is subjected to LHDN's discretion. As such, you should contact LHDN for more information and clarity.

          Thanks for the question and we hope this help.

          Reply
        • CK Ong

          I have a friend who do not know how to file his income tax because he is working in Singapore earning Singapore dollars but residing in Johor bahru travelling to and fro to Singapore everyday. He is a Malaysian.

          Reply
          • RinggitPlus

            Hi, CK Ong

            Your friend needs to contact LHDN as they determine the procedures and documentation required for filing tax of this nature.

            Thanks for the question and we hope this help.

            Reply
          • Jo


            May I know if Masters fee is only for Malaysian university or can use for overseas university too (example, I go for MBA in Japan). Thanks ya

            Reply
          • Rizal


            Hi, I am rizal. Working as manager with salary rm2500.00 per month (epf=rm288.00 per month). At the same time run a business with own company (sole prop). Busines income rm 10000 per month. How do and how much I need to pay income tax.. please guide me. This is becoz I facing difficulty while appy personal loan using my business bank statement becoz there is no EA document. Thank you

            Reply
            • RinggitPlus

              Hi, Rizal.

              We would say that depends on your total income. You can try using our income tax calculator to find out the amount you need to pay https://ringgitplus.com/en/calculator/income-tax/. In the meantime, we also recommend contacting LHDN for more information.

              Thanks for the question and we hope this help.

              Reply
            • Win

              Hi Ringgit Plus,

              If a person currently under employment, at the same time he owns a business. How is he going to declare his income tax?
              Thank you.

              Reply
            • Koay

              Hi I want to submit the income for the rental that I collected. However, my rental actually is cannot cover my instalment. Wondering which session I should get the deduction?

              Reply
              • RinggitPlus

                Hi, Koay.

                This part depends on how much is your rental income. If your rental income is lower than RM2,000 per month, then you are eligible for the 50% tax exemption. You can read more about it and its application here http://dnh.com.my/budget-2018-tax-exemption-for-rental-income/.

                Thanks for the question and we hope this help.

                Reply
              • Tan Teow Khoon

                I have not received my EA form for 2017 by post
                How?
                Please advise

                Reply
                • RinggitPlus

                  Hi, Tan Teow Khoon

                  At this rate, you need to contact LHDN and explain the situation to them. Present the proof of your situation like email communications etc to show that you have continuously been requesting the EA form. http://www.yycadvisors.com/form-e-submission-in-2017.html

                  Thanks for the question and we hope this help.

                  Reply
                • Sharon Lai

                  i heard that the rental income no need to declare in Form B/BE wef YR2017, isn't correct?

                  Reply
                • AB Gooi

                  HI, In 2016, I started a partnership with a friend. The partnership business is running at a loss. Does the loss from the partnership set off the taxes I have paid
                  via PCB (Potongan Cukai Bulanan) from my employment income? Do I get a refund if the partnership loss is more than the PCB?

                  Reply
                  • RinggitPlus

                    Hi, AB Gooi

                    This part depends on the context (your situation). If you are a salaried worker with the partnership as a side business, the losses you will need to fill in the Borang BE will not have any effect on the PCB. If the partnership is the main source of business, then the losses of the partnership should be reflected on the Borang B and it is at LHDN's discretion to determine whether there will be a reduction in tax. We also encourage you to contact LHDN for more information and clarity.

                    Thanks for the question and we hope this help.

                    Reply
                  • Carena

                    I've purchased a smartphone for personal use by telco promo installment plan but not under my name. Can I still claim it under lifestyle tax relief?

                    Reply
                    • RinggitPlus

                      Hi, Carena

                      Unfortunately, you cannot do so in a separate assessment. As the plan is not registered under your name, it will be hard to justify to LHDN that you are the purchaser. If you opt for a joint assessment wiht your spouse, then you can claim it under lifestyle.

                      Thanks for the question and we hope this help.

                      Reply
                    • Larry

                      Hi there, How about I freelence for a foreign company (it's not registered in Malaysia and have no office here whatsoever) and is the payment from them taxable?

                      Reply
                    • Dess

                      Do I Need to Pay Income Tax?

                      If you are a resident of Malaysia earning :

                      Above RM34,000 per year (after EPF deductions) or RM2,833. 33 per month (after EPF deductions)
                      Above RM38,202.25 per year (before EPF deductions) or RM3,183.52 per month (before EPF deductions)

                      Hi, my gross income is RM3,000 per mth. It shouldn't have any tax to pay. However, the tax table provided and the tax calculator shows that I have to pay income tax for RM293 a year. Please explain. Thank you:)

                      Reply
                      • RinggitPlus

                        Hi, Dess.

                        We are working on this as we speak. We do apologise for the inconvenience. Thanks for the feedback. As always, please contact LHDN for more information.

                        Reply
                        • RinggitPlus

                          Hi Dess,

                          Just letting you know that you do not need to pay income tax for 2017 as the amount that you have stated is qualified for a rebate. There is indeed a tax calculated amount but this is exempted for those who are qualified. We apologise for the inconvenience caused.

                          Reply
                      • Jon

                        Hi, I'm a commission based dental associate at a clinic. I do not get epf or socso. Do I fill in BE or B form? Thanks

                        Reply
                      • JH Tan

                        Hi, thank you for this useful guide. Thinking of being a freelance consultant (as I am not employed) and was wondering how would the money earned be reported/filed? Under Form BE as an individual? Or does one have to register and set up a company (sole proprietorship) first and then file as a business. Thanks.

                        Reply
                      • horace ang

                        How do you assess and report the rental income if the rent was between mates and there is no rental documentation to begin with?

                        Reply
                        • RinggitPlus

                          Hi, Horace

                          You need to start documenting it. Even a simple rental agreement of how much per month is a document for LHDN to cross-check the income. You should also contact LHDN for more advice on this matter.

                          Thanks for the question and we hope this help.

                          Reply
                        • Emlyn

                          Hi,

                          I'm an expat. My previous company already manually filed my return for 2017 with all income and taxes up until my employment with them (Jan-Sept). But towards last quarter of 2017, I got hired in another company here in Malaysia. Question is, shall I still file combined? I saw in my e-filing account that out of the total taxes paid for 2017, deducting the manually filed by my previous employer, I still need to declare the remaining. If I file consolidated, won't it duplicate the tax assessment? Thanks.

                          Reply
                          • RinggitPlus

                            Hi, Emlyn

                            The first thing you need to do is check if there is any deduction for the last quarter of the previous year. If there is a deduction for that period but not reflected in the e-filling account, then you need to report to LHDN. However, if there is no deduction at all, then you need to declare the income from that period and you may need to pay extra in deduction.

                            We also encourage you to contact LHDN for more information and further action.

                            Thanks for the question and we hope this help.

                            Reply
                          • Jenn

                            HI I have children above 18 years old studying overseas. Do I claim child relief of RM2000 or RM8000?

                            Reply
                          • Jenn

                            Hi I purchased a laptop for my daughter from a company supplier. The supplier tax invoice written company name not my name although I paid for it from my bank account. Can I submit as lifestyle tax relief?

                            Reply
                            • RinggitPlus

                              Hi, Jenn

                              This is where things are a little complicated. You can try to claim the laptop expense under the Lifestyle Tax relief but it will be decided by LHDN on approving it. As the company's name is written on the invoice, it may be hard for LHDN to approve it unless you produce the bank statement to prove you are the one who pays for the laptop or the company provide a written notice/ letter to state you are the purchaser.

                              Thanks for the question and we hope this help.

                              Reply
                            • Chin YM

                              Hi, thank you for this write-up. I am a freelance in tourism sector and do not have a fixed employer, meaning, I work with whoever gives me an assignment. I have been filling up Borang BE all this while. This was also advised by an officer from LHDN state department who advised me to continue with Borang BE as long as I don't have a shop. I am confused now as some of my friends mentioned that it should be Borang B that I should be filing up. Please advise. Thanks!

                              Reply
                              • RinggitPlus

                                Hi, Chin

                                You should follow LHDN's advice and fill up the Borang BE since you do not have a business.

                                Thanks for the question and we hope this help.

                                Reply
                              • Albert

                                Hi, my annual income is RM50k, my wife's is 10k. Should I file seperate or joint filing. Thank you

                                Reply
                                • RinggitPlus

                                  Hi, Albert.

                                  Based on the gross annual income of both your's and your wife's, it is in your best interest to opt for a separate assessment. A joint assessment may lead you to pay even more for tax despite the addition of a tax relief for married couples.

                                  For example:
                                  - Separate assessment: RM50,000 (Gross Income) - 5,500 (EPF) - 9,000 (self) - 237 (SOCSO) = 35,263 (chargable income)/ 926.30 (Tax to be paid)
                                  RM10, 000 (Gross Income) - 1,100 (EPF) - 9,000 (self) - 51 (SOCSO) = 0 (chargeable income) / 0 (Tax to be paid)

                                  - Joint assessment RM60,000 (Both) - 6000 (EPF) - 3,000 (alimony) - 9000 (self) - 250 (SOCSO) = 41, 750 (chargeble income)/ 1,575 (Tax to be paid)

                                  As you can see, you need to pay RM600 more on taxes when you do a joint assessment, even with the alimony tax relief. As such, it is in your best interest to go for separate assessment.

                                  Thanks for the question and we hope this help.

                                  Reply
                                • Foo Hor Kiow horkiow@hotmail.com

                                  I am retired age 70years. I do have a shoplot collecting rental of about 20K annually, Do I still need to submit income tax?

                                  Reply
                                • Anne Lim

                                  Hi! Anne here. Can you please clarify when is the due date to pay income tax for individuals this year? Used to be April 30 every year but since LHDN extended the E-filing declaration due date to May 15 this year, should the payment date be May 15 as well? Any idea?...cos I can't see it anywhere in black & white. Thx!

                                  Reply
                                  • RinggitPlus

                                    Hi, Anne.

                                    Thanks for the question. Based on what has been stated, those who file their tax manually must submit the form and payment on April 30. What this means is if you are one of those declare their tax in a physical BE form and submit them over the counter in any LHDN branch must do so by today and pay the taxes also today.

                                    If you file your tax via e-filing, then you have until May 15 to file and pay the tax. https://www.thestar.com.my/news/nation/2018/04/29/irb-dont-forget-to-file-tax-returns/ However, we advise you to file your tax as early as possible to avoid any further complication.

                                    Thanks for the question and we hope this help.

                                    Reply
                                  • Vincent Lim

                                    How do I declare if I have income from two different company?

                                    Reply
                                    • RinggitPlus

                                      Hi, Vincent

                                      It is hard for to provide clear advice as this part depends on context. If receiving income from two different company means you changed job in the middle of the year of assessment, then you need to combine both incomes together and declare them and fill in your current employer's tax number in the BE-form.

                                      If your income from two companies means having one of them as a side income, then you need to declare them separately as "Other Profits or Gains". Again, we also recommend contacting LHDN for more information since we do not know the context of the income from two companies.

                                      Thanks for the question and we hope this help.

                                      Reply
                                    • Michael L

                                      Hi, can we claim a bicycle purchase under the Lifestyle Relief (Sports Development Act)?

                                      Reply
                                      • RinggitPlus

                                        Hi, Michael

                                        Yes, you can claim tax relief for the bicycle you recently purchased. We also encourage you to contact LHDN for more information.

                                        Thanks for the question and we hope this help.

                                        Reply
                                      • Steven

                                        Hi, I had monthly transport allowance from company for my car petrol & car park purposes. But the allowance was included in the EA form total gross salary as well as reflected in the monthly salary tax. should it be tax exemption for petrol allowance right? eventhough mine is so call transport allowance, but it is for petrol. I wondering how can i do now to include it into tax exemption in my BE form. Any advice?

                                        Reply
                                        • RinggitPlus

                                          Hi, Steven.

                                          This part is pretty subjective. You are right about travel allowance being tax exempted. At this stage, you need your monthly salary slip/ allowance claims slips to prove the existence of the travel allowance for proof. You need to contact LHDN to state your situation and let them consult you.

                                          Thanks for the question and we hope this help.

                                          Reply
                                        • Cindy L

                                          Hi. Previously I had purchase books online with local merchant. The invoice name is not under mine, but i paid using my own credit card. Do I still able to get the claim under Lifestyle Tax relief?

                                          Reply
                                          • RinggitPlus

                                            Hi, Cindy L.

                                            If you can prove that you are the one who pays for the book via credit card statements, then you can claim the tax relief. This is because LHDN requires documentation for cross reference and checks to be sure that you have indeed bought the item.

                                            Thanks for the question and we hope this help.

                                            Reply
                                          • Audrey Gan

                                            Hi, just to ask :-
                                            1. Parent care relief only can claim for one of the family is it ? If parents still got work, son still can claim rm3000/= ( for father and mother)
                                            2. Saving insurance can claim under the tax relief or not ?
                                            3. For own housing instalment, the interest can claimable ? If yes, how to claim ?
                                            4. If I have buy one private retirement scheme from Prudential, type of assurance : retireGuard(SP)can I claim from tax relief ? If yes, how to claim ?

                                            Reply
                                            • RinggitPlus

                                              Hi, Audrey Gan

                                              1) Parental care tax relief can be claimed with the maximum of RM3,000 for two parents. You can claim even if they are still working but they must be 60 years old and above and each parent must no have an annual income that exceeds RM24,000 https://home.kpmg.com/xx/en/home/insights/2015/11/flash-alert-2015-134.html.

                                              2) Saving insurance is not tax deductible unless What you mean by saving insurance is actually life insurance.

                                              3) Housing Installment interest is no longer tax deductible for this year of assessment.

                                              4) Yes, You can claim tax relief for PRS. You need to produce a PRS statement from your PRS provider (In this case, Prudential). You claim up to a maximum of RM3,000

                                              Thanks for the question and we hope this help.

                                              Reply
                                            • CL

                                              Hi,If family got apply the BR1M, at PELEPASAN / REBAT / TOLAKAN CUKAI / PELEPASAN CUKAI -> Individu dan saudara tanggungan-> ATAU Ibu dan bapa(Terhad 1,500 bagi hanya seorang ibu,Terhad 1,500 bagi hanya seorang bapa) -> the Columns : Can/Need update?

                                              Reply
                                              • RinggitPlus

                                                Hi, CL

                                                This part is rather hard to say. We recommend contacting LHDN for more information.

                                                Thanks for the question and we hope this help.

                                                Reply
                                              • Laxmi

                                                Hye, i am laxmi here. Can i pay my this year income tax next year? Is that i will get fine if i pay next year? Thanks ya

                                                Reply
                                                • RinggitPlus

                                                  Hi, Laxmi.

                                                  We would not recommend this. Yes, you will be charged with a 10% interest for not paying your tax before April 30.

                                                  Thanks for the question and we hope this help.

                                                  Reply
                                                • Kim

                                                  Hi, how do I deduct the travel allowance RM6K in the BE form? Do i deduct directly from the gross salary?

                                                  Reply
                                                  • RinggitPlus

                                                    Hi, Kim.

                                                    Based on what we know, it is better to declare the allowance under the gross income and provide proof of the allowance in your filing. However, you should also contact LHDN for more accurate tax filling information.

                                                    Thanks for the question and we hope this help.

                                                    Reply
                                                  • dennis

                                                    I have monthly fixed 'transportation allowance' declare under under EA B-1C (tip kasar, perkuisit, elaun) by my employer. do i need to declare full amount of just partial exempt of it ?

                                                    Reply
                                                    • RinggitPlus

                                                      Hi, Dennis

                                                      You need to declare the exact amount that you received for the whole year. LHDN will be looking at the documentation for proof.

                                                      Thanks for the question and we hope this help.

                                                      Reply
                                                    • Bryan

                                                      Hi,
                                                      I'm just start worked on 04 May 2018, my income 15000 RM/month. How much I need to pay tax per month to government? And Can I submit my married certificates for relief my tax per month? And also document need to stamp from embassy ? Please let me know thank you

                                                      Reply
                                                      • RinggitPlus

                                                        Hi, Bryan.

                                                        This depends on the total annual income you received in the Year of Assessment (In this case, it is 2017). If you just started to work this year, then you may not have an EA form to declare the income and file tax. If you did work last year, then you should have an EA form to declare your income. Besides that, we also recommend you to contact LHDN for more information.

                                                        Thanks for the question and we hope this help.

                                                        Reply
                                                      • Su Zy

                                                        Hi sir/madam,

                                                        My company has given Vision allowance for many years, but last year they stated as taxae income in EA form for our claimed vision fees. Is this allowance exempted? Why was other company not taxable on this benefit?

                                                        Reply
                                                      • Erica

                                                        Thanks for the article, it's very useful. I would like to ask if there is any appeal for late tax submission for personal income tax. I am hospitalized for illness and have just regained consciousness a few days ago. what is the penalty to pay if there's no appeal allowed?

                                                        Reply
                                                      • SL

                                                        Hi!
                                                        My daughter 20 yrs old (not married) - studying ACCA Professional paper in local university college, so for my Tax relief for children is RM2000 or RM8000 ??

                                                        Reply
                                                        • RinggitPlus

                                                          Hi, SL.

                                                          You should claim the RM8,000 tax relief since your daughter is not doing any preparatory course like a CAT, A-Levels or Matriculation. You can always contact LHDN for more information.

                                                          Thanks for the question and we hope this help.

                                                          Reply
                                                        • LHB

                                                          Hi,

                                                          If husband is foreigner, can wife submit the tax for joint assessment? is that join assessment only applicable for Malaysia Citizen?
                                                          1. Wife holding a sole proprietor income
                                                          2. Wife income higher, husband assists wife's sole pro business with no salary.
                                                          3. Can wife claim husband relief? husband insurance/unifi/purchase of tablet /medical checkup can combined to claim under joint assessment?

                                                          Reply
                                                          • RinggitPlus

                                                            Hi, LHB

                                                            Joint Assessment is only applicable for Malaysian citizen regardless. If you have any doubts, you can contact LHDN for more information and advice.

                                                            Thanks for the question and we hope this help.

                                                            Reply
                                                          • LWT

                                                            Hi,

                                                            For Insurance agent , how to file income tax return ?
                                                            Form B part H - Financial Particular of Individual (main business only) , is it can skip this part ?

                                                            Thank you very much

                                                            Reply
                                                            • RinggitPlus

                                                              Hi, LWT.

                                                              Firstly, you need to make sure you have a CP 58 form, which declares monetary and non-monetary incentive payment. Then, you need to declare your income with Borang B. As for part H, it depends on LHDN's discretion given the fact that income derived as an independent insurance agent is considered as a business income. As such, you need to contact LHDN to get more information and advice.

                                                              Thanks for the question and we hope this help.

                                                              Reply
                                                            • Joyce

                                                              Hi, I am a Borang 'B' tax payer. My adult son is still in uni so I am entitled to RM8,000 tax relief. I also employ him on a part time basis to help me with admin, filing, etc work for my business. Can I also deduct what I pay him under P&L? thanks

                                                              Reply
                                                              • RinggitPlus

                                                                Hi, Joyce.

                                                                This part is a little bit hard for us to advise you as this part concerns Human Resources. You are right to claim tax relief for your son who is in university but it is up to LHDN to decide whether you can deduct the wages you give to your son. As such, it is in your best interest to contact an HR lawyer or LHDN for this matter.

                                                                Thanks for the question and we hope this help.

                                                                Reply
                                                              • HESHAM SHEBL

                                                                Hi, what are the documents required for medical expenses for serious illness relief ? Thank you

                                                                Reply
                                                                • RinggitPlus

                                                                  Hi, HESHAM SHEBL

                                                                  You will need your medical report, receipt and doctors letters to show that you indeed have a serious illness and that you have received treatment for it. Besides this, you should contact LHDN for more information.

                                                                  Thanks for the question and we hope this help.

                                                                  Reply
                                                                • Cheong

                                                                  Hi,
                                                                  Thanks for your sharing. If showing "TOTAL TAX EXEMPT ALLOWANCES / PERQUISITES / GIFTS / BENEFITS " with figure at my EA form.....where should i put the figure in at borang B for my tax submission online?

                                                                  Is that necessary to put the amount at items F at EA form? Thank you.

                                                                  Reply
                                                                  • RinggitPlus

                                                                    Greetings, Cheong

                                                                    Unfortunately, we could not give you a straight answer to this question. As such, we would advise you to contact LHDN for more tax-related advise.

                                                                    Thanks for the question and we hope this help.

                                                                    Reply
                                                                  • Ms Lau

                                                                    Hi ringgitplus,
                                                                    I hv a full time employment and at the same time I have a partnership which I only get commission but not sharing profit and loss. How shld I declare my income beside salaried income, Form B or BE? Shld the partnership issue me Form CP30 or CP58?
                                                                    Hope to have some advise from you on these.
                                                                    Thank you.
                                                                    Rgds,
                                                                    Ms. Lau

                                                                    Reply
                                                                    • RinggitPlus

                                                                      Hi, Ms Lau

                                                                      AS long as you have a registered business (sole proprietorship, partnership etc), you need to use the Form B to declare your income. Since you are in a partnership, the partnership needs to issue the CP30 form to you as well regardless of whether you receive income or not from the partnership.

                                                                      Besides that, we also recommend contacting LHDN for more information and tax-related advice.

                                                                      Thanks for the question and we hope this help.

                                                                      Reply
                                                                    • Lim S C

                                                                      If my income below 25k per year, did i still need to fill my e-filling to LHDN, Thanks

                                                                      Reply
                                                                    • Chris

                                                                      I have scoured the LHDN site but cannot find a clarity on the following point. Would mobilisation/repatriation costs for shipping of household effects be considered a benefit in kind?

                                                                      Reply
                                                                      • RinggitPlus

                                                                        Hi, Chris

                                                                        We can see that you have tried your best to get answers. However, we would need more context about the mobilisation cost, like whether this is for the company. As such, it is in your best interest that you contact LHDN for this matter.

                                                                        Thanks for the question and we hope this help.

                                                                        Reply
                                                                      • TT

                                                                        Hi. When is the due date for e-filing for business owners?

                                                                        Reply
                                                                      • Faizah Osman

                                                                        Hello, I am an expat on work assignment in Singapore and I am opting to retire in Malaysia once I turn 55 in November. Upon retirement I am eligible for retirement gratuity. I am made to understand that in order to enjoy full tax exemption on my retirement gratuity, I need to return to my Malaysian employer (under the same parent company) at least one month before my retirement date. Kindly confirm this. Are there any issues regarding Malaysia/Singapore double taxation issues that I need to be aware of? My tax submission has been prepared by a tax consultant hired by my employer. Thank you in advance.

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                                                                        • RinggitPlus

                                                                          Hi, Faizah Osman

                                                                          We apologise for the late reply. Yes, retirement gratuity is tax exempted with conditions. However, the first thing that you need to take note is whether you are eligible for it given that you are an expat. Since you mentioned that your employer's tax consultant has submitted the application, it is in your best interest that you contact your tax consultant on this matter and cross-reference his/her advice with that of LHDN.

                                                                          Thanks for the question and we hope this helps.

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                                                                        • WE

                                                                          Hi, CP58 received and stated commission income for 2017 is RMxxx. Actual receipt of the commission happened in February 2018, after the deal completion (started in early 2017). Therefore, this commission should be declared as 2017 income or 2018 income?

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                                                                          • RinggitPlus

                                                                            Hi, WE

                                                                            The commission that needs to declare in the CP58 form and tax filing is the commission that you earn in 2017. If you need further clarification on this matter, you could contact LHDN for more information and advice.

                                                                            Thanks for the question and we hope this helps.

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