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Malaysia Tax Filing Guide— Frequently Asked Questions

Posted LnCoadmin

Many individuals believe that only business owners or high-income earners are required to file taxes.
In reality, in Malaysia, anyone who earns income may have a tax filing obligation.

This guide provides an overview of key tax concepts, filing procedures for beginners, and important reminders.

A Must-Read for Malaysia Taxpayers

What is Tax Filing?

Tax filing refers to the process of declaring your income earned during a year of assessment to
Lembaga Hasil Dalam Negeri (LHDN)
and submitting your personal income tax return.

Is Tax Filing the Same as Paying Tax?

No, they are different.

  • Tax Filing
    Refers to declaring income and submitting a tax return.
  • Tax Payment
    Occurs when your chargeable income exceeds the tax exemption threshold and tax must be paid according to applicable rates.

What is Paying Tax?

If your taxable income exceeds the government’s exemption threshold, you must pay income tax according to the applicable rates.

Who Needs to Pay Income Tax?

An individual is required to pay income tax when their chargeable income exceeds the tax exemption threshold set by the government.

Generally:

  • After deducting EPF contributions and eligible personal tax reliefs
  • If chargeable income is approximately above RM34,000

→ income tax payment may be required

If the income is below this threshold:

  • Individuals are usually still required to file a tax return
  • However, actual tax payment may not be necessary

Who Needs to File Taxes?

The following individuals are generally required to declare their income to
Lembaga Hasil Dalam Negeri (LHDN):

  • Malaysia tax residents
  • Foreigners who derive income in Malaysia
  • Individuals who receive taxable or reportable income within a year of assessment

Benefits of Filing Taxes

  • Establishes a proper tax record
  • Improves personal financial credibility
  • Increases the likelihood of loan approval

Do I Still Need to File Taxes if PCB Has Been Deducted?

Yes.

After filing your tax return, the tax authority will recalculate your total annual tax liability:

  • If PCB was over-deducted → you may receive a tax refund
  • If PCB was under-deducted → additional tax payment may be required

 

Consequences of Late Filing or Tax Evasion

Application Steps

STEP 1

Browse MyTax official website (https://mytax.hasil.gov.my/), choose your ID type, and key in your ID No.

STEP 2-3

If you haven’t applied for e pin yet, the system will show “Digital Certification not exist”, click the “e-CP55D” below.

 

After that, it might appear 2 situations.

  • Situation 1, it will show your registered e-Mail.
  • Situation 2, you doesn’t have any registered e-Mail.

Click “Yes” for both situation to continue.

 

STEP 4-5

Situation 1, please confirm your ID No., your name and your registered e-Mail, then click the “Submit” below.

Situation 2, please confirm your ID No. and your name, then key in your e-Mail address, and upload a color copy of your ID or passport.

Then click the “Submit” below.

 

After the submission, LHDN will send the Activation Link to your e-Mail. Click the activation link to activate your MyTax account.

  • You might need to wait for a few days to receive activation link and the link is only valid for two days.

 

STEP 6-7

Choose ID type and key in ID No., then click the “Submit” below.

Fill in the password and security phrase, then checked agree at the terms and conditions. After that, click “Submit” and complete the registration.

Tax Filing Deadline for YA 2026 

Taxpayers should take note of the filing deadline and prepare the necessary documents early to avoid penalties or delays.

Personal Tax Relief for YA 2025

Various tax reliefs are provided annually, such as:

  • Individual relief
  • Medical expenses
  • Education-related relief
  • Insurance and EPF contributions

Taxpayers are advised to retain supporting documents for claim purposes.