by Caryl Teh

As you probably know, any individual working in Malaysia must register a tax file. Last week we went through a step-by-step guide on how to access your EA form from the ESS. Today, we’ll be covering the main event: how to file your income tax online for the year 2021 in 5 simple steps.

Before we begin, prepare these documents to ease the process:

• Identity card (IC) or international passport
• Marriage certificate (if applicable)
• Tax reference number
• Latest salary statement (EA/EC form)
• Employee Provident Fund (EPF) statement – first-timers, you’ll need this
• Income statement from dividends, rental, pension, royalties
• Receipts to claim relief, rebates or exemptions

Step 0: Register

If you’ve never filed income tax in Malaysia before, then you’ll need to register on the official government website, https://edaftar.hasil.gov.my. Fill out the form, print it and take it to your nearest Lembaga Hasil Dalam Negeri (LHDN) branch. They will give you a first-time login pin.

Step 1: Login to MyTax

Previously, taxes were filed on ez.hasil.gov.my. But from 2021 onwards, LHDN introduced the MyTax website which provides all the same services in addition to some others that we do not need to know for today’s topic.

Login to your MyTax account using your IC and password. First-time users will need to use that first-time login pin from Step 0, and will be prompted to create a new password.

Step 2: Pick Your Form

On the left navigation panel, under “Perkhidmatan ezHasil”, select “e-Filing”. Click on the relevant tax form for this year, ie. “Tahun Taksiran 2021”. You can change the language to English on the top right of your screen, but you might find it easier to stick to Malay as your EA Form is in Malay.The form you need will differ depending on the type of taxpayer you are.Most of us will use the e-BE form for residents who do not carry on business.

Step 3: Fill Your Form

This is where the actual filing happens. Here are some tips for the more common fields:

1. No. Majikan can be found on the top left of your EA Form.
2. No. Pekerja / No. Gaji is in your EA Form Section A item 3.
3. Your income refers to ANNUAL, not monthly income.
4. Your monthly tax deduction (MTD) a.k.a. PCB can be found in Section D of your EA Form.
5. You can claim for COVID tests, both self and professionally-administered.
6. Under the lifestyle (SOCSO) section, you can claim reimbursement for electronic purchases like mobile phones or laptops
7. Employee Provident Fund (EPF) a.k.a. KWSP is in your EA Form Section E item 1.
8. For your Social Security Organisation (SOCSO) a.k.a. PERKESO, refer to your EA Form Section E item 2.

Here’s a more detailed list of things you can claim for:For any exemptions and reliefs you want to claim, KEEP THE RECEIPTS as proof of purchase for at least 7 YEARS from the end of the year of assessment (as required by the Income Tax Act 1987 s82A). This is important as you might be chosen to be audited by LHDN.

Step 4: Check Your Summary

The system will automatically calculate how much tax you need to pay. If it says RM0, don’t worry. You probably fall under the income threshold that is not subject to tax for the year 2021:It is VERY important to check that all the information you have entered is correct! Any intentionally falsified entry on a tax form is punishable with a fine of between RM1,000 – RM20,000 or a maximum of 3 years in prison, or both. You will also need to pay 3 times the amount of tax you tried to avoid (Income Tax Act 1987 s114).

Most of us already deduct our taxes monthly (MTD a.k.a. PCB), you are more likely to have overpaid than underpaid taxes due to the various tax reliefs and exemptions you can claim. If this is the case, LHDN will reimburse any extra payments or tax returns directly to your bank account within approximately 30 days.

Step 5: Declare, Sign and Send

Once you’ve checked that everything is accurate, all you need to do is click the “Sign and submit” button at the bottom of the page.

You will need to provide your identification number and My Tax password to successfully sign your income tax form.