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 differ 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 (IRB) of Malaysia, also known as Lembaga Hasil Dalam Negeri or 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 to LHDN, and then register for e-Filing, which is LHDN’s online income tax filing platform. Check out the steps you should take when registering for income tax in Malaysia for the first time – especially now that the LHDN has made it possible for you to complete the whole registration process online.
1. Use e-Daftar and register as a taxpayer online
To kickstart the process of registering as a taxpayer, head on over to the LHDN’s e-Daftar website, where you can conveniently carry out the process online. You’ll need to upload a digital copy of your IC to serve as supporting document, so it would be a good idea to prepare that beforehand.
Of course, you can still opt to visit the LHDN office to register if you prefer, but the board has advised the public to conduct their businesses online wherever possible in light of the current Covid-19 pandemic. If you want to visit the LHDN offices though, remember to check their operating hours and if the branch that you’re headed to is currently open. Also, make sure to bring along a copy of your IC and the latest salary slip or EA form for the process.
If you’re doing your registration online via e-Daftar, then go ahead and click on “Daftar Individu” on the website, followed by “this online registration form”. It will then lead you to the form, which is quite extensive as it requires all the necessary information about yourself as well as your current employer.
Upon submitting your form, you’ll then be assigned an application number. You can use this number to follow up on your application or to submit the required supporting documents (if you did not manage to do so while filling up the form). Just so you know, you can still upload supporting documents online (via the LHDN Customer Feedback site) or fax them to the LHDN within 14 from your date of e-Daftar registration.
From there, you will need to wait for about three days as the LHDN processes and approves your application. Once approved, you will receive an email containing your income tax number. Alternatively, you can check via e-Daftar or give the LHDN a call.
e-Daftar is also accessible through MyTax – a new service portal that was launched by the LHDN so that taxpayers can conveniently access their latest information without having to visit the board’s office.
2. Get a PIN for e-Filing registration
Now that you’re registered as a taxpayer with your own tax file, it’s time to register for e-Filing on the ezHASiL platform! The registration for e-Filing is necessary because this is where you’ll file your returns online as an official taxpayer.
To register or log in to your e-Filing for the first time, you’ll be in need of a PIN – which must be provided by the LHDN. To obtain this, you can choose to either walk in to the nearest LHDN office, or apply for it via the LHDN Customer Feedback website.
If you’re applying for your PIN via the LHDN Customer Feedback website, here are the few steps that you’ll need to take:
- Click on “Application”, followed by “e-Filing PIN Number Application” in the left menu.
- Click on “Form CP55D” and fill in the PDF form.
- Click on “Next” to submit your application.
- Fill in the required information, and don’t forget to upload all the required documents (especially Form CP55D and a digital copy of your IC).
Just like on e-Daftar, you’ll also receive an application number this time round, which you can use to follow up on your application if necessary. Otherwise, you should receive your PIN within seven working days.
Once you have the PIN, head on to the e-Filing website and click on “First Time Login”.
3. Login to e-Filing and complete first-time login
There’ll be a text box to enter your PIN number and your IC number, and upon login, you’ll need to fill a form with details such as full name, address, phone number, and also a password for future logins. After this, you’ll need to verify that your name, IC number, and income tax number listed in the system is correct, and click “Submit”.
Note also that you will need to enter a password to log in to e-Filing. The PIN number is a single-use code only, and is meant for first-time logins – subsequent logins will require a password that users set.
Notice also that you will be required to key in a security phrase. You can keep this empty for now – the system will prompt you with clearer instructions later.
4. Login to e-Filing again
Once you complete the steps above, you should log in again to e-Filing and set up a security phrase. This is a secondary layer of security, designed to prevent unauthorised access. Like before, log in with your IC number, and instead of your PIN, use your freshly-created password. A pop-up message will inform you that you have not yet set up your security phrase.
This phrase will appear the next time you log in after you key in your IC number. This is similar to online banking sites that show a security phrase and/or an image that the user previously selected. For e-Filing, the security phrase must adhere to the following rules:
- Between 8-15 characters
- Alphanumeric characters only; no symbols or special characters are permitted
In addition, users are advised not to use their name or IC number as their security phrase.
This is an important security layer, so the e-Filing platform will not allow you to log out or proceed until you have set up your security phrase. Once that is sorted out, proceed to log out and log in again – you’ll be able to see your security phrase now.
5. File your taxes
Congratulations! You’ve successfully registered as a taxpayer, created an account for e-Filing, and completed the 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 a step-by-step guide for filing your income tax in Malaysia 2021 (YA 2020), so stay tuned! Find more income tax related content in our Income Tax page.