21st March 2023 - 6 min read
They say that in life, you can’t run away from two things: death and taxes. In Malaysia, income tax is compulsory by law, and the income tax you pay is based on your total taxable income for the year. If you’ve just entered the workforce, and have absolutely no idea how all this works, here’s a handy guide on how to file your taxes for the first time.
Before we begin, you should first determine if you are eligible as a taxpayer. According to the Inland Revenue Board (LHDN), a Malaysian individual must register a tax file if they earn an annual employment income of RM34,000 (after EPF deduction).
If your annual employment income is above that figure, you will need to do two things: register yourself as a taxpayer with LHDN, and then register for e-Filing (LHDN’s online income tax filing platform). Here’s a quick infographic that summarises the steps you need to take when registering for income tax in Malaysia as a first-time taxpayer, after which we’ll take you through each step in detail:
To kickstart the process of registering as a taxpayer, head on over to the MyTax website, which now serves as the one-stop portal for all tax-related matters. From there, click on e-Daftar, which will then lead you to an online form. Fill in the required details, and the website will then notify you that you do not have an income tax number (of course, you’re not yet a registered taxpayer).
Click on the e-Daftar link in the text box, and then you’ll be led to the actual online form that you need to register yourself as a taxpayer with LHDN. Note that this form can be quite extensive as it requires a fair bit of necessary information, including about your basic particulars, your spouse’s particulars (if applicable), legal representatives (such as your parents), and your current employer.
As you can see in the image below (provided by LHDN), there are as many as 10 sections for you to go through:
Note that you are allowed to save and continue filling in this form at a later time if you are unable to finish it in one sitting. The next time you come back to the e-Daftar page from the MyTax website, simply key in your details again, and the website will allow you to resume your registration (click on “Update Details” to do so, as you can see in the image below). Also be aware that you will be required to upload a digital copy of your MyKad as a supporting document, so it would be good to prepare that beforehand.
Upon submitting your form, your application may either be immediately approved (in which case, you’ll get your income tax number on the spot), or you’ll receive an acknowledgement receipt and your application number (and your income tax number will be emailed to you within three working days). You can also check via e-Daftar or give LHDN a call to check your application status.
Of course, if you prefer to visit the LHDN office in person to register as a taxpayer, that’s also possible. Simply head on over to the nearest LHDN office, and speak to a personnel to assist you. Also, make sure to bring along a copy of your IC and your latest salary slip or EA form for the process.
Now that you’re registered as a taxpayer with your own tax file, it’s time to register for the e-Filing platform as well! The registration for e-Filing is necessary because this is where you’ll file your returns online as an official taxpayer, and to do so, you’ll need to get a digital certificate and a one-time PIN.
To start the process, head back to MyTax and key in your IC number. You’ll then be informed that your “Digital Certificate does not exist”. Don’t panic, that’s normal! This is because even though you’re already registered as a taxpayer with LHDN, you’ve not actually set up your MyTax account yet, which gives you access to the e-Filing portal (and all the other tax-related services provided by LHDN).
So once you see the message, you’ll be prompted to apply for a digital certificate either via the e-CP55D online form (for MyTax web portal) or e-KYC (for MyTax app). Our guide here will focus on the e-CP55D application as taxpayers are more likely to use this method.
If you click on e-CP55D, you’ll be asked to confirm your registered email address and your personal details (IC number, full name, and email); amend them if necessary, then submit.
Once done, an activation link will be sent to your email, which you must then click to activate your digital certificate (note that this link is only valid for two days, so try to do it as soon as you can!).
Upon clicking the activation link, you’ll be led back to the MyTax website. Go ahead and key in your IC number; this time you should be able to log in, with your PIN number automatically displayed. Fill in the rest of the details required – which involves creating your password and security phrase for MyTax – then click on “Submit”.
A quick note: as you create your password and security phrase, remember that it’s best practice to avoid using your name or IC numbers. You should also utilise a mix of alphanumeric characters, as well as upper and lower caps, to help increase the strength of your password.
Once submitted, you’ll go back to the MyTax website again, and this time, when you log in for the third time, you’ll be able to log in to your MyTax dashboard (third time’s the charm!). More importantly, you’ll now also gain access to the e-Filing service.
And with that, congratulations! You’ve successfully registered as a taxpayer, created an account for MyTax and e-Filing, and completed all first-time login procedures! Now it’s time to file your taxes, and (hopefully) get a tax refund. We’ll be helping you all the way with this step-by-step guide for filing your income tax in Malaysia 2023 (YA 2022), so if you’re ever in doubt, feel free to check! Find more income tax related content in our income tax page as well.
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