Tax Matters

I am not a tax agent, but due to my job in HR/Payroll field, I’ve been exposed to the tax issues almost everyday… especially when the yearly tax submission is almost due.

Here is some information that gathered from LHDN website and other websites as well.. actually this is for my job, but I believe sharing is caring J

Tax Chargeability

Am I taxable?

An individual who earns an annual income of RM25,501.00 (after EPF deduction) has to register a tax file.

If your income from employment has been deducted through Schedular Tax Deduction (STD), your income tax file will be registered automatically without you having to make an application.

Type of Income

In general, a taxpayer is required to pay tax on all kind of earnings, including incomes from: Business or profession Employment Dividends Interest Discounts Rent Royalties Premiums Pensions Annuities Others

An individual who earns an annual income of RM25,501 (after EPF deduction) has to register a tax file.

If your income from employment has been deducted through Schedular Tax Deduction (STD), your income tax file will be registered automatically without you having to make an application.

What should I do if my income is taxable?

Application to register an income tax reference number can be made at the nearest IRBM branch.

Documents Required For Registration

1. A copy of the latest Salary Statement (EA/EC Form) or latest Salary Slip
2. A copy of Identification card (IC) / police IC / army IC / international passport
3. A copy of marriage certificate (if applicable)

You can also register an Income Tax reference number via e-Daftar  at http://ekl.hasil.gov.my/

Non-receipt of Income Tax Return Form (ITRF)

The Return Form for a resident individual with no business income will be issued and posted to all taxpayers every year through the process of 'General Issue'.

If you do not receive the form, you can obtain it from :

1. The nearest IRBM Branch, or
2. Information Processing Department, Pandan Indah, Kuala Lumpur, or
3. Download from IRBM’s website.

Please note that a photocopy of the form is not accepted for submission.

You are encouraged to use our e-filing facility if you do not receive a Return Form. Please contact any IRBM branch or our Customer Service Centre at 1-300-88-3010, for further enquiries on e-Filing.

Customer Service Centre

Service hours:

Monday to Friday
7.30 a.m - 5.30 p.m

Chargeability of Income Tax for Foreigners

If you are a foreigner employed in this country you must give notice of your chargeability to the Non-Resident Branch or the nearest IRBM branch within 2 months of your arrival in Malaysia.

Scope of Taxation

An individual who is resident in Malaysia is taxable on all income accruing in or derived from Malaysia and on income received from outside Malaysia. The scope of taxation of an individual depends on his resident status.

However, with effect from the year of assessment 2004, income received in Malaysia from outside Malaysia is exempted from tax. Hence, an individual, either or non-resident, is taxable only on income accruing in or derived from Malaysia.

Taxpayer Responsibilities

Every taxpayer who is liable to tax is required to declare his income to IRBM. The taxpayer is responsible for:-

a.   Obtaining and forwarding Income Tax Return Form (ITRF):

The taxpayer has to send or submit the ITRF that has been duly completed before 30th April every year to the address below :-

Information Processing Department
Inland Revenue Board of Malaysia
Level 10-18, Tower C
Persiaran MPAJ
Jalan Pandan Utama
Pandan Indah 
55100 Kuala Lumpur

b.   Declaring income and claiming expenses.

c.   Computing income tax payable.

d.   Keeping records for audit purposes.

e.   Paying the income tax payable.

Record Keeping
Taxpayer is required to keep the following documents for 7 years:

a.     EA/EC Form

b.    Original dividend vouchers

c.     Insurance premium receipts

d.    Books purchase receipts

e.     Medical receipts

f.     Donation receipts

g.    Zakat receipts

h.     Children`s birth certificates

i.      Marriage certificate

j.      Other supporting documents

k.     Working sheets (if any)

The calculation of the 7 year period begins from the end of the year in which the ITRF is filed.

How To Register Tax File?

Application to register an income tax reference number can be made at the nearest branch to your correspondence address or at any IRBM branch of your convenience without reference to your correspondence address.

Documents Required For Registration

Please forward the following documents together with the application form to register an income tax reference number:-

 1. A copy of the latest Salary Statement (EA/EC) or latest Salary Slip
 2. A copy of Identification card / police IC / army IC / International passport
 3. A copy of marriage certificate (if applicable)


Application form to register an income tax reference number can be obtained from the nearest IRBM counter; or Register via http://ekl.hasil.gov.my/

How To Do Register Malaysia Income Tax Online

Step 1: Get your PIN number through email. The PIN number is a 16 digit number. Please make sure that you have all the information together so that you no need to do double job:

i)             Tax Reference Number

ii)             Latest Home Address

iii)            Copy of Identification Card (front and back)

iv)            Phone Number

Send your application to pin@hasil.gov.my

Step 2: While waiting for your request PIN Number to be processed, you can try log on to http://ekl.hasil.gov.my/ to register your income tax.

Step 3: Next, click on “Daftar Pembayar Cukai Individu”.

Step 4: After that, fill up all the detail and then click “Hantar”

Step 5: After submit, you will get a “No. Permohonan” and be sure that you must keep your No Permohonan properly. So, you can check your status at http://ekl.hasil.org.my/info.php

Step 6: You can try upload your Identification Card soft copy by clicking “Muat Naik Disini” else your application will not be process. Or you may try to upload later at http://ekl.hasil.org.my/info.php

Step 7: Once you have uploaded, you can access http://ekl.hasil.org.my/info.php and key in your “No. Permohonan”, all your information will be shown there.

Step 8: At the bottom of your information, you can see your “Status: DALAM PROSES”. After several days, it will change to “Status: PERMOHONAN ANDA TELAH DILULUSKAN” if all your information is correct.

Step 9: Then, you can proceed for your 1st time login at e-Filling (https://e.hasil.gov.my) once PIN Number ready.

DETERMINATION OF THE RESIDENCE STATUS

Determination of residence status is provided under the Income Tax Act (ITA)

1967 as follows:

Residence: individuals

7. (1) For the purposes of this Act, an individual is resident in Malaysia for

the basis year for a particular year of assessment if –

(a)   he is in Malaysia in that basis year for a period or periods amounting in all to one hundred and eighty-two days or more;

(b)   he is in Malaysia in that basis year for a period of less than one hundred and eighty-two days and that period is linked by or to another period of one hundred and eighty-two or more consecutive days (hereinafter referred to in this paragraph as such period) throughout which he is in Malaysia in the basis year for the year of assessment immediately preceding that particular year of assessment or in that basis year for the year of assessment immediately following that particular year of assessment: 

Provided that any temporary absence from Malaysia—

(i)      connected with his service in Malaysia and owing to service matters or attending conferences or seminars or study abroad;

(ii)      owing to ill-health involving himself or a member of his immediate family; and(iii) in respect of social visits not exceeding fourteen days in the aggregate, shall be taken to form part of such period or that period, as the case may be, if he is in Malaysia immediately prior to and after that temporary absence;

(c)   he is in Malaysia in that basis year for a period or periods amounting in all to ninety days or more, having been with respect to each of any three of the basis years for the four years of assessment immediately preceding that particular year of assessment either—

(i)       resident in Malaysia within the meaning of this Act for the basis year in question; or

(ii)      in Malaysia for a period or periods amounting in all to ninety days or more in the basis year in question; or

(d)   he is resident in Malaysia within the meaning of this Act for the basis year for the year of assessment following that particular year of assessment, having been so resident for each of the basis years for the three years of assessment immediately preceding that particular year of assessment.

(1A) For the purposes of subsection (1), an individual shall be deemed to be in Malaysia for a day if he is present in Malaysia for part of that day and in ascertaining the period for which he is in Malaysia during any year, any day (within paragraphs 1(a) and (c) for which he is in Malaysia shall be taken into account whether or not that day forms part of a continuous period of days during which he is in Malaysia.

(1B) Notwithstanding subsection (1), where a person who is a citizen and –

(a)   is employed in the public services or service of a statutory authority; and

(b)   is not in Malaysia at any day in the basis year for that particular year of assessment by reason of –

(i)       having and exercising his employment outside Malaysia; or

(ii)      attending any course of study in any institution or professional body outside Malaysia which is fullysponsored by the employer, he is deemed to be a resident for the basis year for that particular year of assessment and for any subsequent basis years when he is not in Malaysia.

e-Filing LHDN 

Easy,Accurate & Safe

e-Filing is an online system introduced by LHDN (Lembaga Hasil Dalam Negeri) that allows you to submit your income tax details online, which is an alternative to the usual manual form submission.

LHDNM e-Filing services allow you to submit your Tax Return Forms electronically via the internet. This service is available for FREE. Initially, this application was introduced to corporate taxpayers in 2003 and later it was expanded to individual taxpayers in 2004.

All Tax Return Forms submitted through the e-Filing application are protected by PKI (Public Key Infrastructure) Technology. E-Filing users may file their Tax Return Forms electronically at any time from any location. This application will assist the users to fill, compute and submit their Tax Returns Forms electronically. Tax repayment will also be processed at an earlier date if Tax Returns are submitted electronically.

What you need to prepare before commencing e-Filing

1. Your IC number or passport number.

2. Your tax reference number (No. rujukan cukai)You should have kept the tax reference number with you. It is also available on your tax form. If you lost it, you can get your tax reference number from the nearest LHDN’s office (go to front desk, call their free toll line at 1-300-88-3010 or email) by providing your IC number or passport number.

3. e-Filing PIN No
By now LHDN would have sent you the tax form (e.g. Borang BE or Borang B) to your designated mailing address (If you have not received it, you can get it from the nearest HASIL office or call 1-300-88-3010 for help).

The e-Filing PIN number can be found on the 2nd page of the form.
Alternatively, you can also get your PIN number from the nearest LHDN’s office by providing your tax reference number, IC number or passport number, latest address and a photocopy of your IC (front and back).

 The basic e-Filing requirements are :

    -Tax reference number
    -PIN Number
    -Pentium III processor or above
    -Internet connections
    -Microsoft Windows 2000 (Latest service pack)
    -Microsoft Windows XP (Latest service pack)
    -IE (Internet Explorer) Ver. 5.0 and above 

The basic steps of e-Filing are :

Or you may refer to the e-Filing User Guide at https://spsd.hasil.gov.my/pki/e/panduan.html

If Form B/BE/M/P/E 2009 is not received by 15.3.2010, kindly please notify the nearest LHDNM Branch Office for verification or issuance of PIN Number.

You may also call our Customer Service Centre at 1-300-88-3010 for assistance.

If you are taxable but have not registered a tax file, kindly do so at the LHDNM Branch Office nearest to your residence. A new PIN Number will be issued upon successful registration of the tax file.

Further information on e-Filing can be found at https://e.hasil.gov.my/