The Inland Revenue Board (LHDN) has reminded taxpayers to submit their e-Filing and settle any tax payments on time to avoid penalties and enforcement action.

The e-Filing season for the Year of Assessment 2025 will begin on March 1, 2026.

Taxpayers Advised To Prepare Documents Early

In an interview with Bernama Radio, LHDN Corporate Services Department officer Nur Azureen Ismail said taxpayers should start preparing their supporting documents ahead of the opening date.

She encouraged taxpayers to submit their returns and make payments promptly once e-Filing opens.

Timely submission and payment can help taxpayers avoid late payment penalties, additional assessments, and enforcement measures.

Warning Against Fraud And Non Payment

Nur Azureen also cautioned against falsifying documents or making fraudulent claims.

She said that if a taxpayer is audited and found guilty of submitting false information, substantial penalties may be imposed. Failure to settle outstanding taxes could also result in travel restrictions or other legal action under existing tax laws.

Higher Relief For Child With Disabilities

For the Year of Assessment 2025, several tax reliefs have been enhanced. The relief for a child with disabilities has been increased from RM6,000 to RM8,000.

This adjustment may lower the chargeable income of eligible taxpayers who support children with disabilities.

Sports Lifestyle Relief Doubled

The sports lifestyle relief has been raised from RM500 to RM1,000.

The relief covers the purchase of sports equipment, entry fees for sports facilities, competition participation fees, and gym memberships. It has also been expanded to include expenses incurred for oneself, a spouse, children, and parents.

Expanded Medical Treatment Relief Scope

The scope of medical treatment relief has been broadened to include parents and biological grandparents residing in Malaysia.

Eligible expenses include medical and dental treatment, full medical check-ups including vaccinations, and caregiver costs, subject to the stipulated conditions. The relief is capped at RM8,000 per year.

What This Means For Taxpayers Preparing For YA 2025

Under Malaysia’s self assessment system, taxpayers are responsible for ensuring that their returns are accurate and submitted within the prescribed deadlines.

With e-Filing opening on 1 March 2026, preparing documents early can help reduce errors and last minute issues. This includes gathering EA forms, receipts for tax relief claims, and supporting documents for the enhanced reliefs introduced for the Year of Assessment 2025, such as the increased sports lifestyle relief and the expanded medical treatment relief.

Filing early also allows time to review calculations before the deadline. Any outstanding tax balance that is not paid by the stipulated due date may be subject to a 10 per cent late payment penalty under existing rules.

Taxpayers can refer to Public Ruling 7/2025 on LHDN’s website for detailed guidance on eligibility criteria and claim requirements, particularly for newly expanded relief categories.

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