Part (A) Notes on Malaysia Income Tax submission (individuals with employment income)
Before you start, gather ALL the documents – where applicable – as follows (Note: below list only contains typical items for a typical employed person; for the full listing please see the actual form in the website at Part (C)). You may need more time to gather these documents, so don’t wait till “last minute”:
1. EA forms from employer, covering the whole year. This will contain info on EPF contributions & PCB or tax deducted from salary during the year.
2. Dividend vouchers.
3. Receipts for donations; only those that are “tax deductible”. Check here to confirm this: http://www.hasil.org.my/c446index.php?kump=2&skum=6&posi=1&unit=8&sequ=3
4. Receipts for medical bills for PARENTS
5. Receipts for allowable Educational fees, subscriptions, etc.
6. Receipts for MEDICAL CHECK-UP for SELF/WIFE/CHILDREN(“dependents”)
7. Receipts for purchase of BOOKS/PUBLICATIONS.
8. Receipts for purchase of PC (allowed: once every 3 years)
9. Net deposit in Skim Simpanan Pendidikan Nasional
10. Purchase of sports equipment for any sports activity as defined under the Sports Development Act 1997
11. Receipts for “Broadband service” – deductible for tax for Assessment Years 2010, 2011, 2012 only
12. Interest statement for the year for house loan (ONLY ONE house allowed)
13. Total payments for alimony to former wife
14. Insurance statements for the year. From these add up the total amounts for each of the following classes of premiums separately: “LIFE”, “MEDICAL”. (Other types of premiums are not helpful from an Income Tax perspective)
15. Payments for zakat or fitrah
Note on interest income: Interest on bank deposits are tax exempt with effect from 30 Aug 2008. See IRB Malaysia’s website, section on Tax Exemption: http://www.hasil.gov.my/goindex.php?kump=5&skum=1&posi=2&unit=5000&sequ=3
Once you have all the relevant docs, then you can start. Read each item, follow the step by step process, fill in the figures carefully. Click SAVE & CONTINUE at each page. If you delay too long on a page, the system logs out automatically, unfortunately.
Upon completion of the form, print all the “Cetak” steps. With a whole string of buttons on screen, click one by one from left to right, to save ALL the files. Perhaps easier to save all (in default pdf format), and print out later.
If PCB deducted from salary is MORE THAN your tax payable, then you have to wait for a refund from LHDN.
If PCB deducted from salary is LESS THAN your tax payable, that means you owe the LHDN… Payment has to be made by way of credit card. Otherwise, if you wish to dispute the amount computed, save the whole thing, and bring it along to ask the tax officer at IRB. They are generally quite helpful.
Part (B) Detailed notes on online submission (source: a 3rd party’s blog)
(Note: there may be some repetition of matters in Part A, since below is supposed to be comprehensive) Acknowledgement of source: http://www.financesentral.com/2011/08/submit-lhdn-income-tax-form-via-e.html
E-Filing is an alternative method of submitting your Income Tax Return Form (ITRF). If done properly, it’s more convenient and faster than the usual manual submission method.
What is e-Filing?
An application on filling and filing Income Tax Return Form (ITRF) electronically through internet for the following tax forms:
Form name Description
Form B Business Income
Form BE Non-Business Income
Form P Partnership
Form M (e-M) Non-resident Individual
Form E (e-E) Employer
Form C (e-C) Company
Form R (e-R) 108 statement for company
e-Estimated (e-CP204) An online Estimate Tax Payable Form submission for company/ co-operative society/ trust body
Below are the steps needed for you to start using e-Filing to submit your income tax return form online. Step 1 and 2 are a must if you are a first time user.
1. Get the PIN
This step is only applicable if this is your first time using e-Filing. You can get the PIN number using one of the following methods:
- Get it from the ITRF (Income Tax Return Form) sent to you by LHDN/IRBM.
- Visiting the nearest IRBM/LHDN office.
- Apply through telephone/ letter/ fax (a copy of identity card is required for verification).
2. Register digital certificate
This step is also for first time user only.
- Go to e-Hasil’s “First Time Login”.
- Enter the PIN and your IC number to proceed with registering a digital certificate.
- Fill in your name, IC number, tax reference number etc. as required. You will also need to supply a password. This password will be required when you want to login to your e-Form later and each time afterwards.
- Click “Setuju” button and wait until a popup appears to inform that your digital certificate has been registered successfully.
3. Fill the tax return form
- Go to e-Hasil’s “e-Form Login” and choose the appropriate form.
- Enter your IC number and password.
- Proceed with filling in your tax return form. The form is divided into 7 sections:
- Maklumat Individu (Individual Information)
- Maklumat Isteri (Wife Information)
- Pendapatan Berkanun & Jumlah Pendapatan (Statutory Income & Total Income)
- Tuntutan Pelepasan (Deductions)
- Tuntutan Rebat/ Tolakan Cukai/ Pelepasan Cukai (Tax rebate/ deduction/ relief)
- Rumusan Cukai (Tax summary)
- Akuan & Tandatangan (Declaration & Signature)
Make sure you update the form after completing each section by clicking the “Simpan & Teruskan” button at the bottom of each section.
- After completing the whole form, click “Tandatangan & Hantar” to digitally sign and submit it.
- The form receipt acknowledgement will be displayed. Save and/ or print the acknowledgement by pressing the “Simpan & Cetak Pengesahan”.
- You can also save or print the submitted form by pressing the “Simpan & Cetak e-BE”.
- Don’t forget to keep the print outs as your tax record.
Source: Inland Revenue Board (IRB) / Lembaga Hasil Dalam Negeri (LHDN) Malaysia.
Part (C) the website of Malaysia IRB
Part (D) Specific tax queries answered (Caution: this page is dated March 2009)
Acknowledgement of source: http://thestar.com.my/news/story.asp?file=/2009/3/22/focus/3527810&sec=focus
- The statements, views and opinions presented here are those of the author and are not endorsed by anyone.
- The author does not warranty or guarantee the correctness of the information provided or its fitness for any purpose.
- Use of any instructions, guidance or other information within this page is strictly at your own risk.