How to Prepare for 2024 Tax Season: Employees Edition in Malaysia

In a blink of an eye, another year has come and gone. But as always, three things remain constant for (almost) all of us: life, death, and taxes. We've previously covered what employers need to do for tax season in 2024 — today's guide is designed to help Malaysian employee who are preparing for the upcoming 2024 tax season. If this is your first time doing your taxes (or even your 10th time), the world of tax regulations in Malaysia may seem daunting, but good preparation and awareness can make the filing process smoother.

Here are 4 things you need to know for employees preparing for tax season in Malaysia for 2024.

1. Deadline for tax returns filing

First things first. Depending on the type of tax form that you’re filing — which is determined by whether you’re a salaried employee, someone who carries on a business, whether you’re a resident/non-resident, and a number of other categories, your deadlines to file tax returns vary.

For many of you, you’ll be filing your tax returns via Form BE (residents who do not carry on business), which has a deadline of the 30th of April 2024. You get a grace period of 15 days if you submit your file via e-Filing, which effectively means that the final deadline for Form BE submissions is the 15th of May 2024.

2. Who needs to file for income tax in Malaysia?

As per the Lembaga Hasil Dalam Negeri (LHDN), individuals earning a minimum annual income of at least RM34,000 after EPF deductions must register a tax file with the tax department.

To make things easier, look at your monthly payslip. If you're taking home at least RM2,833 after EPF deductions, you're eligible to be taxed by the tax authorities.

This income requirement shouldn’t simply be limited to the income you draw from your “main” job — you should also declare money earned from part-time or freelance work as well.

3. Make sure you have your EA forms ready

The EA Form (or Borang EA) should be given to you by all employers over the course of the Year of Assessment 2023. This means that if you've worked multiple jobs across the period, you will have multiple EA forms to cumulatively include.

Read this article for more info on that front: How to File Your Taxes in Malaysia if You Changed Jobs Last Year

Meanwhile, according tot the LHDN, all employers must issue EA forms to their present and former employees who worked for them during the year of assessment by the 28th of February of the following year. This means that for YA 2023, you should have already received your EA from your employers by the 29th of February 2024.

4. Understand tax reliefs

it's important to be aware of the tax reliefs you're entitled to for each year of assessment ahead of time. Be sure to check if certain purchases you make in 2023 is eligible for relief when filing your tax returns in 2024.

There are some small changes, notably the removal of the relief for domestic tourism, as well as an expansion of lifestyle relief to include fees for improvement courses. Meanwhile, the EV tax relief has been extended.

For the full and official breakdown, read LHDN's article here.