Filing Your Taxes for the First Time in Malaysia? Read This First (YA 2021)

Disclaimer: This article should not be considered to be legal advice, and altHR is not liable for any actions taken based on this article. As of 1 July 2023, altHR no longer offers a Payroll module.

Tax season is here! For many of us, the annual drudgery of filing our tax returns isn’t something we look forward to — it can be a rather tedious process, particularly if you run your own business with complicated expenses and benefits to work out in your taxes. Of, if you’re an employee that changed jobs midway through the year of assessment, the process might be slightly different this time round.

But for those of you that are filing your taxes for the very first time in Malaysia, this might be an even more intimidating task. What do you need to pay? Who do you need to pay? Why, you might ask, do you even need to pay your taxes? 

We can’t really answer all of these questions (especially the final one) — but if you’re looking for a guide on how to file your tax returns for the very first time, you’ve come to the right place. Here’s what first-time taxpayers need to know for the Year of Assessment 2021 (YA 2021). 

Who needs to create an income tax file in Malaysia?

The Lembaga Hasil Dalam Negeri (LHDN) provides a fairly straightforward answer to this question, especially if you’re a salaried employee receiving the entirety of your income from your full-time job. 

Individuals in Malaysia earning a minimum annual income of RM34,000 after EPF deductions must register a tax file with the tax department — this comes up to approximately RM2,833 after deductions on your monthly payslip. 

Do note that this minimum income applies to all forms of income, so if you have other jobs or businesses, take this into account during your calculations. 

When do you need to file your tax returns in 2022 (for YA 2021)?  

Many of you will be submitting your tax returns via Form BE (residents who do not carry on business). For taxpayers not carrying on a business, the due date for your tax submissions is the 30th of April 2022, although you have a grace period of 15 days after the due date if you file your tax returns via e-Filing. This effectively means that those of us utilising the e-Filing method have until the 15th of May 2022 for YA 2021 tax returns.

Speaking of deadlines, you should also have already received your EA form for the Year of Assessment 2021 (YA 2021), with companies having until the 28th of February 2022 to issue documents out to employees. If you worked for more than one company in 2021, click here to find out what you should do. 

How to register your tax file for the first time 

Start off by registering yourself on the e-Daftar website (or you can head over to the nearest LHDN branch). Click on Daftar Individu, fill in your details on the subsequent online form, and upload a digital scan of your IC — make sure it’s a clear, readable copy as this supporting document will be used for verification purposes.

Once you’ve submitted the form, you should receive an application number, which you’ll need to save in case you need to follow up on your application or upload any additional documents. For the latter, you’ll have an additional 14 days to upload any other files required — so be sure to save this application number. 

Then, you should receive an email within three working days. This will have your Income Tax Number, which will remain attached to you as long as you have a tax file in Malaysia. 

How to register for e-Filing

You also need to register for e-Filing — it’s simply a simpler process to undertake compared to traditional alternatives, while it also appears to be a mandatory requirement today, according to the official LHDN website.

To do so, you’ll need your e-Filing PIN, which can be obtained at physical LHDN branches. However, an easier alternative during the current situation is to simply head over to LHDN’s Customer Service Portal, and follow these steps: 

1. Select “Application” 
2. On the next page, click on  “e-Filing PIN Number Application” under the “Application” tab on the menu on the left
3. Click on “Form CP55D” to download the PDF, and fill in the necessary details
4. Then, click “Next” at the bottom of the form on the website
5. Fill in further details required, and upload supporting documents again (including your IC copy and the completed Form CP55D)
6. Submit
   

Save your application number (just in case), and you should receive your PIN number within the next 7 working days. 

Where to file your taxes in Malaysia

Finally, you’re ready for the fun bit. Head over to the ezHASIL website or MyTax, LHDN’s one-stop platform for all things tax-related. Click on “Login”, and select “First Time Login”. Then, fill up the required fields — including your new PIN number — and submit. Set a secure password, security phrase, and confirm your information. 

Then, you’re ready to fill in, and submit your Form BE tax returns! Be sure to refer to your EA Form, as mentioned above, and click here to find out more about tax-exempt benefits. If you’ve worked for more than one employer in the past year, click here to find out how to handle your tax filings.