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01
Start with the correct tax return
Malaysian individual income tax is filed annually. Before filing, identify your income type, TIN and correct return rather than relying on one income threshold.
No business income
Generally used by resident individuals with employment, rental, investment or other non-business income.
Business income
Generally used by resident sole proprietors, freelancers and individuals carrying on a business.
Non-resident individual
Non-resident individuals generally use Form M; confirm the applicable deadline in LHDN's latest programme.
TIN registration
Malaysian citizens and permanent residents aged 18 and above generally have a TIN created using JPN data. Others may register through e-Daftar in MyTax. A single “RM10,000 chargeable income†statement is not a universal registration rule; filing depends on the nature of income, deductions, exemptions and LHDN requirements.
Income may include employment, business, rent, interest, royalties, pensions and other taxable receipts. Foreign-sourced income may be exempt where the conditions in force are met, but foreign income remitted to Malaysia is not automatically exempt in every case.
02
Tax residence affects rates and reliefs
Resident individual
- Generally taxed at progressive rates
- May claim qualifying personal reliefs
- Should retain travel and income records
Non-resident individual
- Generally subject to non-resident rates
- Usually not eligible for personal reliefs
- Some income may be taxed differently
Being present in Malaysia for at least 182 days is a common residence test, but section 7 of the Income Tax Act 1967 includes linked-period and other tests. Do not treat “less than 182 days†as the only test.
03
MTD, final tax and the 2% dividend tax
Monthly Tax Deduction (PCB/MTD)
Employers deduct monthly tax from remuneration under the applicable rules. MTD is a prepayment mechanism and does not automatically remove every employee's filing obligations.
MTD as final tax
Only employees meeting LHDN's specified conditions may treat MTD as final tax. Those with additional income, unaccounted reliefs or circumstances outside the criteria may still need to file an ITRF.
2% dividend tax
From YA 2025, individuals with taxable single-tier dividend income above the prescribed threshold may be subject to the 2% dividend tax. The RM100,000 threshold, deductions, exempt dividends and statutory formula must be applied correctly; the tax is not simply 2% of every dividend received.
04
Gather your documents before filing
EA/EC Form, business accounts, rent records, dividend statements and other income documents.
PCB/MTD deductions, CP500 instalments and other payment evidence.
Insurance, EPF, education, medical, lifestyle, SSPN and PRS receipts.
TIN, personal details, bank account and relevant travel records.
Tax documents and records generally need to be retained for seven years. Keep electronic receipts legible and organised by year.
05
File through MyTax
- 1
Sign in to MyTax
Visit mytax.hasil.gov.my and log in using the correct identity type.
- 2
Open e-Filing
Select e-Filing under ezHasil Services and confirm your taxpayer category.
- 3
Select the YA 2025 return
Choose e-BE, e-B or the form applicable to your circumstances.
- 4
Enter income, reliefs and tax paid
Use your supporting documents rather than carrying forward last year's figures.
- 5
Review and submit
Check every section, complete the declaration and retain the acknowledgement receipt.
MyTax menu names and screens may change. Follow the live portal when you file.
06
Paying a balance of tax
If the tax payable exceeds your MTD or other payments, settle the balance by the applicable deadline.
Online banking
Pay through an official MyTax/ByrHASiL channel using the TIN or Bill Number required by the system.
Bill Number
Obtain the payment reference through e-Billing in MyTax.
Telegraphic transfer
Where appropriate, use the Virtual Account Number generated by the e-TT system.
Retain the payment receipt and confirm that the amount has been credited to your MyTax ledger.
07
Common YA 2025 personal tax reliefs
These are headline amounts for resident individuals. Each item has eligibility rules, evidence requirements and possible sub-limits.
Individual and dependants
Individual and dependent relatives relief.
Self-education
Recognised study and qualifying skills or self-enhancement courses.
Medical expenses
Qualifying expenses for self, spouse or child, subject to category limits.
Parents and grandparents
Qualifying medical, dental, special-needs and carer expenses.
Lifestyle
Books, devices, personal internet and qualifying courses.
Sports
Qualifying equipment, facilities, competitions, gym and training fees.
Net SSPN savings
Qualifying net deposits made for a child.
EPF and life insurance
Overall and RM4,000/RM3,000 sub-limits depend on contribution and premium types.
PRS and deferred annuity
Qualifying Private Retirement Scheme and deferred annuity payments.
First-home loan interest
Potential relief for three consecutive YAs, subject to first-home, SPA period and property-price conditions.
Eligibility matters
A receipt cannot necessarily be claimed under more than one category. Check the beneficiary, payer, purpose, date and YA 2025 definition before claiming.
08
Common mistakes and potential consequences
Filing late
Failure to file without reasonable excuse may result in statutory penalties. Do not treat the e-Filing grace period as an indefinite extension.
Paying late
An unpaid balance after the applicable deadline may generally attract a 10% increase. Confirm the due date shown for your return.
Omitted income or incorrect reliefs
An incorrect return may result in additional tax and penalties. Do not claim unsupported or non-qualifying expenses.
Review income, MTD, instalments, reliefs and bank information before submitting, then retain the acknowledgement and computation.
09
Official sources and disclaimer
- LHDN Return Form Filing Programme for the Year 2026
- LHDN MyTax Portal
- LHDN official website
- Income Tax Act 1967 (Act 53)
- Ministry of Finance Budget Portal
This guide is for general educational purposes and is not tax, legal or financial advice. Rates, reliefs, exemptions, forms, deadlines and portal functions can change. Obtain advice based on your facts and refer to LHDN's latest material.