Are you living and working in Malaysia? If so, you are required to file your income tax returns annually. Filing your tax returns may seem daunting, but it doesn’t have to be. In this guide, we will take you through everything you need to know about filing income tax returns in Malaysia, including the types of income taxes, filing deadlines, and exemptions.

Types of Income Taxes in Malaysia

In Malaysia, there are two types of income taxes:

1. Personal Income Tax

Personal income tax is a tax levied on an individual’s income, which includes employment income, business income, and investment income. The tax rate for personal income tax ranges from 0% to 30%, depending on an individual’s income bracket.

2. Corporate Income Tax

Corporate income tax is a tax levied on a company’s income. The tax rate for corporate income tax in Malaysia is 24%.

Filing Deadlines

It’s important to file your income tax returns before the deadline to avoid penalties. The deadline for filing income tax returns in Malaysia varies depending on the type of income tax you are filing.

1. Personal Income Tax Filing Deadline

The deadline for filing personal income tax returns in Malaysia is 30th April every year. However, if you file your income tax returns online through e-Filing, the deadline is extended to 15th May.

2. Corporate Income Tax Filing Deadline

The deadline for filing corporate income tax returns in Malaysia is six months after the end of the company’s financial year-end.

Exemptions

There are several exemptions available to individuals and companies in Malaysia.

1. Personal Income Tax Exemptions

• Medical expenses for parents
• Lifestyle tax relief
• Disabled spouse relief
• Education tax relief

2. Corporate Income Tax Exemptions

• Income from exports
• Pioneer status tax exemption
• Investment tax allowance

How to File Income Tax Returns in Malaysia

Here’s a step-by-step guide on how to file income tax returns in Malaysia.

1. Register for Taxation

The first step in filing your income tax returns in Malaysia is to register for taxation with the Inland Revenue Board of Malaysia (IRBM). You can do this by visiting any IRBM branch or online through their website.

2. Prepare Your Documents

Next, prepare all the necessary documents required for filing your income tax returns. These documents include:

• EA Form
• Form CP 8/3/5
• Form BE
• Business accounts for self-employed individuals

3. Determine Your Taxable Income

Determine your taxable income by adding up all your sources of income, including salary, business income, and investment income. Subtract any tax reliefs and exemptions to arrive at your net taxable income.

4. Calculate Your Income Tax

Calculate your income tax using the tax rates and brackets provided by the IRBM.

5. File Your Income Tax Returns

Finally, file your income tax returns either through e-Filing or by visiting any IRBM branch.

Conclusion

Filing income tax returns may seem like a daunting task, but with the right knowledge and preparation, it can be straightforward. Remember to file your income tax returns before the deadline to avoid penalties. Don’t forget to take advantage of the available exemptions and tax reliefs to reduce your tax burden.