We are right in the middle of Income Tax filing month now. If you are a working individual, with a net annual salary exceeding RM34,000 after EPF and SOCSO deductions, then you are required to pay income tax. If you still haven’t filed your income tax, waste no time. Failing to meet the deadline means paying a penalty.
Generate form E/EA with JustLogin
Are your documents tally for the tax filing? JustLogin is certified compliant with the Malaysian Government’s Potongan Caruman Bulanan (PCB) or Monthly Tax Deduction (MTD) requirements. You can generate all the reports that comply with tax requirements on a monthly or yearly basis. JustLogin is a complete HR platform you can trust as it streamlines your HR processes by fully integrating your people, payroll, leave, attendance and expense management. Rest assured that you will be up to date with the latest changes in tax rates and generate all the files you need easily with JustLogin – be it for PCB, EPF, SOCSO or EIS.
Online submission
The easiest way to submit your income tax is through e-filing, the online submission option. Whether it’s Form e, BE, M, BT, MT, TF or TP, e-Filing can be accessed through the MyTax portal on Lembaga Hasil Dalam Negeri (LHDN) website. If you are a first-time user of e-Filing, you need to get a PIN by easily filling in a feedback form on LHDN’s website. Once you obtain the PIN, log-on to your MyTax account, tap on “ezHasil services”, followed by “eFiling” and start the tax filing process. If you have used the e-filing service before and forgot your password, fret not. Just reset it online through the email or mobile number registered with LHDN.
Tax reliefs and rebates
In filing their taxes, everyone looks forward to as many tax deductions, reliefs and rebates they are eligible for. This helps to reduce the amount of tax charged, which means you try to minimise your tax payment as much as possible. For a list of all the tax deductions, reliefs and rebates, head to https://www.hasil.gov.my/individu/kitaran-cukai-individu/lapor-pendapatan/pelepasan-cukai/
Here’s some good news for this year: In addition to the tax relief of up to RM2,500 for lifestyle equipment purchases for yourself, your spouse, or children, this year, you get an additional RM2,500 in lifestyle relief if you’ve purchased a personal computer, smartphone, or tablet within Year of Assessment 2021 as children’s classes went online in 2021 due to the many Movement Control Orders (MCOs). There’s also an extra RM500 tax relief for sports activities.
Also, get a relief of RM1,000 for domestic travel expenses if you had booked hotel stays or tourism packages through local travel agencies registered with the Ministry of Tourism, Arts, and Culture. This applies for travel and tours done between 1 March 2020 and 31 December 2022.
Foreign workers
Foreigners who have worked in Malaysia for more than 182 days (considered residents) will also have to pay their taxes while non-residents (those who have stayed for less than 182 days and employed for at least 60 days) will also need to pay a flat based rate between 10-30% based on their type of income.
Deadlines
The deadline for filing income tax in Malaysia also varies according to the type of form you are filing. For the BE form (resident individuals who do not carry out a business), the deadline is 30 April 2022 manual submissions and May 15 2022 via e-Filing. Deadline for Form B (resident individuals who carry out a business), is 30 June 2022 (manual filing) and 15 July 2022 (e-Filing).
Penalty
If you fail to meet the deadline of your income tax submission, a penalty of 10% will be imposed on the balance of tax unpaid. And if you fail to pay this penalty within 60 days, a further penalty of 5% will be imposed on the amount owed. However, you can appeal by writing to LHDN within the 30 days of receiving your Notice of Increased Assessment. The penalty, however, has to be paid first and you will be refunded if your appeal is granted.
For guidance regarding the submission of the Tax Return Form, taxpayers can refer to the Return Form Filing Programme for the Year 2022 which can be accessed and downloaded via these links:
ttps://phl.hasil.gov.my/pdf/pdfam/ProgramMemfailBN_2022_1.pdf (Bahasa Melayu version)
https://phl.hasil.gov.my/pdf/pdfam/ProgramMemfailBN_2022_2.pdf (English version)
Any inquiries and related feedback can be submitted to the LHDN through its careline at 03-8911 1000 / 603-8911 1100 (overseas); HASiL live chat and feedback form on LHDN’s official portal. As of March 31, LHDN had received 1,163,444 tax return forms via e-filing and manually from taxpayers who do not carry out any business.