Overview
Do I Need to File Taxes?
For Malaysian freelancers, salaried individuals, and gig workers. Enter your details to check.
Individual Tax Declaration in Malaysia
Individual tax declaration in Malaysia is a mandatory annual process where residents and non-residents who earn income in Malaysia must report their income to the Inland Revenue Board of Malaysia (LHDNM). This process ensures compliance with Malaysian tax laws and determines the amount of tax payable or refundable.
Key Points:
- Tax year runs from January 1st to December 31st
- Filing deadline is typically April 30th of the following year
- Both Malaysian residents and non-residents must file if they have Malaysian-sourced income
- Progressive tax rates ranging from 0% to 30%
👨💻Freelancers & Self-Employed
Freelancers and self-employed individuals have different tax obligations compared to salary earners, with more complex income reporting requirements.
Income Sources
- • Project-based income
- • Consulting fees
- • Commission income
- • Online business income
Tax Obligations
- • Must register for business tax
- • Quarterly tax payments (CP204)
- • Detailed expense tracking required
- • Business-related deductions available
Filing Requirements
- • Form B (Business Income)
- • Detailed profit & loss statement
- • Supporting documents for expenses
- • May require professional assistance
👔Salary Earners & Employees
Salary earners typically have simpler tax obligations as their employer handles most of the tax administration through the Monthly Tax Deduction (MTD) system.
Income Sources
- • Employment salary
- • Bonuses and allowances
- • Benefits-in-kind
- • Side income (if any)
Tax Obligations
- • Monthly Tax Deduction (MTD)
- • Employer handles tax payments
- • Standard deductions apply
- • Relatively straightforward process
Filing Requirements
- • Form BE (Employment Income)
- • EA Form from employer
- • Additional income declarations
- • Can often self-file
Important Considerations
⚠️ Penalties for Late Filing
- • 10% penalty on unpaid tax
- • Additional 5% if not paid within 60 days
- • Possible legal action for persistent non-compliance
✅ Available Deductions
- • EPF contributions (up to RM4,000)
- • Life insurance premiums
- • Medical insurance
- • Education expenses
- • Charitable donations