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'Tis the Season To File Your Taxes Again So We Thought We'd Help You Out With E-Filing

It's really not that complicated!


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'Tis the Season To File Your Taxes Again So We Thought We'd Help You Out With E-Filing

It’s that time of the year again for taxpayers!

We're not surprised to hear sighs and grunts everywhere because we understand how much of a hassle it can be to fill up the Income Tax Return Form (ITRF) every year, especially for those of us who just absolutely hate highly dislike numbers.

The good news is the Inland Revenue Board or Lembaga Hasil Dalam Negeri (LHDN) now allows your to file your taxes online via e-Filing.

Now there's even an option for individual taxpayers to submit your forms using your smart phones or tablets! You can download the m-Filing (Mobile Filing) application to your device and submit anytime, anywhere.

Let's begin your tax filing for the Year of Assessment 2017. Remember, even though you’re filing anytime between 1 March or 30 April 2018 (this is the deadline, btw), you will be filing for your income and expenses for the year 2017 only. 
 
Before proceeding, you may want to cross check the amount of tax you need to pay against your chargeable income. Chargeable income doesn't mean your total annual salary or income. The amount is calculated after tax exemptions and tax reliefs (more on this below).

Here's a table provided by LHDN to help you out:

Chargeable Income Calculations (RM) Rate % Tax (RM)
0 - 5,000 On the First 2,500 0 0

5,001 - 20,000
On the First 5,000 
Next 15,000

1
0
150

20,001 - 35,000
On the First 20,000
Next 15,000

5
150
750

35,001 - 50,000
On the First 35,000 
Next 15,000

10
900
1,500

50,001 - 70,000
On the First 50,000 
Next 20,000

16
2,400
3,200

70,001 - 100,000
On the First 70,000 
Next 30,000

21
5,600
6,300

100,001 - 250,000
On the First 100,000 
Next 150,000

24
11,900
36,000

250,001 - 400,000
On the First 250,000 
Next 150,000

24.5
47,900
36,750

400,001 - 600,000
On the First 400,000 
Next 200,000

25
84,650
50,000

600,001 - 1,000,000
On the First 600,000 
Next 400,000

26
134,650
104,00

Exceeding 1,000,000
On the First 1,000,000 
Next ringgit

28
238,650
..........
 

So every working individual in Malaysia has to file their income tax?

The answer is no. As long as you earn above RM34,000 per year (after EPF deductions), including benefits, allowances, bonuses, overtime and commissions, you are required to file your taxes. But if you earn less than that, then the good news is you don't have to go through that trouble. Pros and cons for both groups of people, ey? 

Here are the basic steps of how to do your income tax e-Filing:

Now, let us walk you through each of the steps required with more details.

Step 1: Register as a taxpayer with LHDN



If you're a first-time user, whether you just started your first job or you're finally earning a higher salary, you can register for a Malaysian tax reference number online at http://edaftar.hasil.gov.my. Click on Pendaftaran Individu (Individual Registration) and Borang Pendaftaran Online (Online Registration Form) to continue the process.
 

Fill in the required details and upload a copy of your Malaysian identification card (MyKad) or passport to complete your registration. Only the front side of your identification document will do.

You will then see an application number after you submit your registration form. This number is for you to check on your application status after registering. If all goes well, you will receive an email from e-Daftar LHDN with your tax reference number. The number should start with the letters 'SG', followed by 11 digits. 
 
Alternatively, you may also visit the nearest LHDN branch office and submit your application there. Remember to bring along the following documents for verification purposes:
  • A copy of your latest salary slip
  • A copy of MyKad or passport
  • A copy of marriage certificate (if applicable)

Step 2 & 3: Register for e-Filing and get your PIN number

If you registered using e-Daftar, you should be able to check your e-Filing PIN nunber using the e-Daftar application. Otherwise, you can also head to the nearest LHDN office to obtain your PIN number. To do so, you gotta bring along your tax reference number and a copy of your MyKad or passport because the good people at LHDN can't help you if you can't provide your identification details!

Step 4: Find out which Income Tax Return Form (ITRF) applies to you

There's quite a number of different forms to choose from so be sure to select the correct one. Assuming most of us here are individual hardworking taxpayers, so you should be filling in a BE form.
 
Type of ITRF Form Description
Form B/BT (e-B/e-BT) Resident Who Carry On Business/Knowledge/Expert Worker
Form BE (e-BE) Resident Who Does Not Carry On Business
Form P (e-P) Partnership Return Form
Form M/MT (e-M/e-MT) Return Form of a Non-Resident Individual/Knowledge Worker
Form E (e-E) Return form of An Employer
Form C (e-C) Return Form of A Company
Form R (e-R) Statement of Revised 108 Balance
e-Estimated (e-CP204, CP204A-Amendment 6, CP204A-Amendment 9) For Company/Co-operative Society/Trust Body 


Step 5: Log in to ezHASIL website


First-time users need to activate their PIN number on the ezHASIL website before proceeding. Start by clicking on Login Kali Pertama (First Time Login). Then fill in your PIN number and MyKad number without the dashes and submit. Enter a password for you to access your online form later, just like how you register an account with every other website. Once you're done, your e-Filing account and digital certificate will be registered and you may proceed to complete the ITRF via ezHASiL e-Filing.
 

For returning users who may have forgotten your password (this happens to all of us so don't feel bad), click Terlupa Kata Laluan (Forgotten Password), which leads you to another page where you fill in your MyKad number and email address registered with LHDN. You will then receive a password reset link via email and from there you can create a new password. Let's try not to forget it this time!
 
Also, make sure you disable the pop-up blocker on your web browser, otherwise you might miss out on filling in some important details.

Step 6: Go to e-Borang


This step is pretty straight-forward. Just access the online form or e-Borang under the e-Filing section.

Step 7: Go to e-BE


Choose the applicable income tax form and select the Tahun Taksiran (Assessment Year) you wish to submit. You should be selecting on 2016 for last year’s assessment. You may also select up to five years from the previous assessment years in case you happened to forget doing so last year.

Step 8: Check your personal details


Make sure that all your individual details displayed are correct because you wouldn't want any mistake that could jeopardise your tax file. If it doesn't display your latest information, whether it is a change of home address or bank account, edit it right away. You can also change the language between English or Bahasa Melayu according to your preference and move on from there.

Step 9: Fill in income details


Now, you should already have an EA form provided by your company in hand in order to fill in this section (check with your HR department if you don’t!). Here's how an EA form should look like:


This highlighted section is where your company should already provide the amount and details. You would need the amount of your total annual income as well as your total month tax deduction. Follow the numbers in your EA form and fill in your income details according to the required categories.
 
If you haven't declared your income from the previous years, you will need to do so in this section. 

Step 10: Fill in tax reliefs, rebates and exemptions


This is where it gets a little bit tricky because you’d want to find out the tax reliefs available for you and see which one applies to you. This will help you to save on your income tax and encourage you to spend wisely!

But of course, you need the proof of purchase for the items you’re claiming for, a.k.a. receipts. Did you know that you can save these receipts for claiming for up to seven years? So for those of you who love clearing your bags or wallets and throwing out ‘unnecessary’ receipts, you may want to check that habit again.
 


Tax relief basically means an amount that can be deducted for your annual income to reduce the tax paid. To put it simply, it reduces your chargeable income.

For a clearer picture of the kind of items that you can identify with for tax relief, refer to this table below:
 
No. Individual Relief Types Amount (RM)
1 Self and Dependent 9,000
2 Medical expenses for parents
OR
Parent
Limited 1,500 for only one mother 
Limited 1,500 for only one father
5,000 (Limited)

OR
3000 (Limited)
3 Basic supporting equipment 6,000 (Limited)
4 Disabled Individual 6,000
5 Education Fees (Individual) 7,000 (Limited)
6 Medical expenses for serious diseases 6,000 (Limited)
7 Complete medical examination 500 (Limited)
8 Purchase of books, journals, magazines and publications 1,000 (Limited)
9 Purchase of personal computer (once in every 3 years) 3,000 (Limited)
10 Net saving in SSPN's scheme (with effect from year assessment 2012 until year assessment 2017) 6,000 (Limited)
11 Purchase of sport equipment for sport activities 300 (Limited)
12 Interest expended to finance purchase of residential property. Relief of up to RM10,000 a year for three consecutive years from the first year the interest is paid.
Subject to the following conditions:
(i) the taxpayer is a Malaysian citizen and a resident;
(ii) limited to one residential unit;
(iii) the sale and purchase agreement is signed between 10th March 2009
and 31st December 2010; and
(iv) the residential property is not rented out.
Where:
(a) 2 or more individuals are eligible to claim relief for the same property ; and
(b) total interest expended by those individuals exceeds the allowable amount for that year. Each individual is allowed an amount of relief for each year based on the following formula:
A x B
C
where;
A = total interest allowable in the relevant year;
B = total interest expended by the relevant individual in the relevant year;
C = total interest expended by all the individuals.
10,000
(Limited)
13 Husband/Wife/Alimony Payments 4,000 (Limited)
14 Disable Wife/Husband 3,500
15 Ordinary Child relief 2,000
16 Each unmarried child of 18 years and above who is receiving full-time education ("A-Level", certificate, matriculation or preparatory courses). 2,000
17 Each unmarried child of 18 years and above that:
(i) receiving further education in Malaysia in respect of an award of diploma or higher (excluding matriculation/preparatorycourses).
(ii) receiving further education outside Malaysia in respect of an award of degree or its equivalent (including Master or Doctorate).
(iii) the instruction and educational establishment shall be approved by the relevant government authority.

8,000
18 Disabled child 6,000
Additional exemption of RM8,000 disable child age 18 years old and above, not married and pursuing diplomas or above qualification in Malaysia @ bachelor degree or above outside Malaysia in program and in Higher Education Institute that is accredited by related Government authorities
19 Life insurance dan EPF 6,000 (Limited)
20 Deferred Annuity and Private Retirement Scheme (PRS) - with effect from year assessment 2012 until year assessment 2021 3,000 (Limited)
21 Insurance premium for education or medical benefit 3,000 (Limited)
22 Contribution to the Social Security Organization (SOCSO) 250 (Limited)
 
You may also refer to the complete list of tax reliefs from previous years in the LHDN website.

Step 11: Check total due taxes or overpaid taxes


Once you’ve completed the form and filled in all the necessary details, the online system should automatically calculate your taxes and you’ll see if you’ve underpaid or overpaid. This is definitely a much easier, safer and more accurate way to submit your taxes.
 
If you have balance of taxes to pay, you can make your payment via online banking, ATM or credit card. As much as you don't want to do it, it is very important to clear all your due taxes because you wouldn't want auditors to come tailing your behind for unpaid taxes several years down the road. Trust us, this really does happen!

But if you find that you've actually overpaid your taxes, well, that's good news for  you because the excess amount will be reimbursed to you! LHDN will refund the extra to your bank account within 30 working days. Hurray!

Step 12: Sign and send

With all things official and formal, the final step is to declare that all the information provided is true before submitting. Then, you need to electronically sign the form and send it in. And you're done! (For this year at least)

You still have some time before the deadline. If you follow all the steps carefully and correctly, it shouldn't take you long to complete the whole process. So hurry on before 30 April 2018 comes!

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