Checklist for Personal Income Tax Relief, Know more about Income Tax

Income Tax, what is it?

Income Tax is a type of tax which government impose on income earned by personal or business, such as monthly salary and business income. According to the law, taxpayers must submit and commit their income tax return annually to determine their income tax.

Income Tax in Malaysia

Range of Malaysia income tax rate fall between 0% to 30% vary according to your salary gain. In YA 2021, All of the resident in Malaysia shall pay his/her income tax rate based on the table as shown below:

Taxable Income (RM)Income Tax Rate
First 5,0000%
From 5,000 to 20,0001%
From 20,000 to 35,0003%
From 35,000 to 50,0008%
From 50,000 to 70,00013%
From 70,000 to 100,00021%
From 100,000 to 250,00024%
From 250,000 to 400,00024.5%
From 400,000 to 600,00025%
From 600,000 to 1,000,00026%
From 1,000,000 to 2,000,00028%
From 2,000,000 onwards30%

For Malaysia’s resident, we are able to perform income tax deduction by lower our taxes with some of the ‘spending’ and under certain ‘circumstances’, for example purchasing children needs, person with disability, insurance, medical expense, personal lifestyle and more.

A non-resident individual subject to be taxed at a flat rate of 30% on all taxable income.

Salary Deduction & Income Tax

For Malaysia employee, each of the employee required to contribute EPF, SOSCO and EIS before getting the net paid for the paycheck. Each of the deduction such as EPF, SOSCI and EIS may vary according to the employee income. However, both EPF and SOSCO contributions are able to perform tax deduction (personal) up to a certain limit.

Malaysia 2021 Income Tax update

Malaysia Income tax update every year and then, thus, all Malaysia taxpayer’s personal deduction (YA 2021) had been changed to the accordingly:

Income Tax 2021 Personal Tax relief
Income Tax 2021 Personal Tax deduction

Make sure that you submit the right amount of tax deduction for your income tax in 2021!

How to file income tax in Malaysia?

After you perform the deduction for your income tax, do you know that where are you able to submit your income tax?

First of all, what form?

You have to get to know that which form you are going to fill, also each type of forms validity (deadline) are different to each other’s. So what you should know about income tax form?

  • Resident individuals who do not carry on a business will submit the BE form.
  • Resident individuals who do carry on a business will submit the B form
  • Non-Resident individuals will submit the M form.

Deadline submission for each income tax form

  • BE form, for those resident individual who don’t carry on a business shall submit their form manual filling or e-filling before 30 April and 15 May respectively.
  • B from, for those resident individual who carry a business shall submit their form manual filling or e-filling before 30 June and 15 July respectively.

Learn more of the different types of income tax form from the LHDN website here.

I am the first time for paying income tax, what should I do?

No worries! Before you submit your income tax form, you need to get ready two of your personal income tax requirements which are your personal income tax number and your PIN number.

How to get your income tax number?

Income tax number can be easily register as a taxpayer via e-Daftar.

How to get your income tax PIN number?

Income tax PIN number can be easily get while visiting LHDN branch or through online (browsing LHDN website). This one-time PIN number is to allow you by first time registering and setup your LHDN account, after that you may use your own password instead of this PIN number.

Finding a quicker solution for solving or calculating your income tax?

iFlexiHRMS is a HR solution that allow you to one click generate each employee EA form for tax submission.

Learn more about iFlexiHRMS here.

Contact us for more information about personal income tax updates!

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