How do self-employed persons in Malaysia file tax returns?Apply for Income Tax to fill in e Filing

If you want to file an online tax return, you must first open an LHDN online account.

However, before opening an LHDN online account, you must go online to fill out an electronic form of personal data▼

How to file tax returns in Malaysia?Inland Revenue Authority of Malaysia Income Tax Website 2024 Steps

When it comes to tax returns in Malaysia, if you haven't been exposed to it, you really don't know how to do it?But if you do it, you will feel that filing and paying taxes is actually not difficult: 1. Apply for No Permohonan online 2. Get No Rujukan online 1) Apply for No Pe online...

1. Apply for No Permohonan Online
2. Get No Rujukan Online

Go to LHDN Tax Office to request Pin e-Filling documents

The next method is not difficult:

You just have to go to the counter of the LHDN Income Tax Office near your home and get your IC ID card.

• If you don't know what to say, you can say "Online Submit Tax', they'll see what you mean.

Then, she will print the following Pin e-Filling file for you ▼

• These documents will record your Income Tax number (Income Tax number) and Pin number.
• This is the first registration so we will use this pin number to log into the LHDN website and file our taxes.
• In fact, he also wrote the steps.

If you are too lazy to read it, you can read this article here to teach you step by step, how to file a tax return for self-employed people.

How do self-employed persons in Malaysia file tax returns?

As long as you have your Pin number at the LHDN authority, you can file your tax return online.

Step 1:Login to LHDN's website

The following is the login account page of the Malaysian Income Tax LHDN website ▼

• ID card type and ID number.
• Enter your IC number.
• Then click [Hanetar (submit)].

Step 2:After logging in, select the applicable form in the e-Filing option according to your source of income▼

Step 3:Self-employed people choose eB, part-time workers choose e-BE work 

• e-BE:Applicable to employed persons and working groups
• eB: For business people, people with business income
• e-BT:Knowledge workers/experts (when they are such people, they know they want to choose this)
• eM:foreign worker
• e-MT:Foreign workers (knowledge work/experts)
• eP:Applicable to Partners (Partnership)

Step 4:Select tax year

Please select the year you want to declare, eg 2023.If you want to declare the overall income of last year (2022), please select 2022 ▼

Step 5:fill in personal information

Please check that the profile is correct.The system has automatically filled in the basic information (Profil Individu), you can check for errors ▼

• Warganegara : Nationality
• Jantina: sex
• Tarikh Lahir: month and year of birth
• Status: marital status
• Tarikh Kahwin/ Cerai/Mati: Married/Divorced/When the other half died
• Penyimpan Rekod: Have you ever broken the law? 1- yes 2- no
• Jenis Taksiran: Form to declare by source of income

Step 6:Fill in other information ▼

• Alamat Premis Perniagaan: Address of the company
• Telefon: Telephone
• e-Mel: email
• No.Majikan: It refers to the company's Tax number. If you are employed by a certain company and have part-time income, you can fill in the company's Employer Number.Vacant if not.
• Menjalankan perniagaan e-Dagang: Whether to run an online business
• Alamat laman sesawang/blog: Yes, please fill in the URL
• Melupuskan aset: This is the Real Estate Gain Tax (RPGT).It can also be understood that in 2022, RPGT will be levied if there is no house sold for less than 5 years.If yes, choose Yes, if not, choose No.
• Mempunyai akaun kewangan di luar M'sia: whether to have a foreign bank abroad
• Nama Bank: Fill in the local bank account information, so that the Inland Revenue Bureau can refund the extra tax to you

• Tuntutan Insentif:Have you received a letter from the government or the minister allowing you to exempt certain income?If yes, please fill in the options.

No. 7  step:Fill out the profit and loss statement (P&L) and balance sheet (Balance Sheet)

exist"Profil Lain"page, click"Maklumat Pendapatan Perniagaan Dan Kewangan Orang Perseorangan > Klik di sini untuk isi", start to fill in the contents of the income statement and balance sheet ▼

There are many items that need to be filled in the part of business income 03, so I won’t show you the screenshots one by one.When filling in, please refer to the previously prepared profit and loss statement (P&L) and balance sheet (Balance Sheet) to fill in.Be sure to click on each item to fill in.If there is no relevant number, please fill in as 0.

Step 7:Fill in the income information Pendapatan Berkanun Dan Jumlah Pendapatan ▼

Pendapatan berkanun perniagaan:The annual business income is filled in according to the "final income" calculated by tax Computation.If there is a loss, fill in 0.

Bilangan perniagaan:The number of companies you own

Pendapatan berkanun perkongsian:For partnership business income, fill in the amount if you get Profit sharing, or fill in 0 if you don’t have it.

Bilangan perkongsian:The number of partnerships you hold

TOLAK Rugi perniagaan bawah hadapan:If personal business lost money in the last year, please fill in. (not counting partnerships)

Pendapatan berkanun pengajian:Income from part-time jobs throughout the year, (running business and part-time jobs at the same time) If you have an EA form, you can fill in it according to the part-time job income listed in the form.Note: The income of EPF and SOCSO has not been deducted yet.

Bilangan penggajian:How many companies are employed by

Pendapatan berkanun sewa:If you earn rent through rent

Pendapatan berkanun  faedah, diskaun, royalti, premium, pencen, anuiti, bayaran berkala lain, apa – apa perolehan atau keuntungan lain dan tambahan mengikut peruntukan perenggan 43(1)(c):In addition to work and rent, there are other incomes such as: publishing books, advertising income, etc.

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Rugi perniagaan tahun semasa:The business lost money this year, fill in the loss amount calculated by your P&L here.

Derma/ hadiah/ sumbangan yang diluluskan:Donation items, only those organizations or institutions that have been recognized by the Inland Revenue Bureau and have kept their receipts can be declared here.Click "Klik di sini" to fill in.

Pendapatan perintis kena cukai:Income from new industries.Such as the industries specially promoted by the government.

PCB:Please fill in according to Section D of the EA form.

CP500:Prepaid tax forms.You can fill in the amount according to the CP500 form sent by the tax bureau.

Pendapatan belum dilaporkan:Any undeclared income from previous years can be filled here.

Step 9:Fill in the deductible items

But not all donations are deductible.If you don't know which donations are deductible, you can check here ▼

2019 tax deductible items: Unifi buys phone PTPTN donations to support parents tax deduction

2020 tax return must know: 2018 tax deductible consumption items According to the following consumption items, you can deduct tax when you file your tax return in 2020, and please remember to save the consumption receipt. 1) Dependent parents tax deduction conditions: Dependent parents can deduct tax...

• If none, do not need to fill in.

• You will need to fill in the data in the form according to the eligible deduction items. The LHDN system will automatically calculate the amount for you and tell you how much tax deduction you get.Note that receipts are required for any relief items to prevent being targeted by the authorities.
• If your receipt is missing, applying for the relief program could be considered illegal and cause you unnecessary trouble.Therefore, if there is no eligible deduction project, it is best not to join the deduction to avoid being targeted by the authorities.

Zakat dan Fitrah: Muslims need to pay, non-Muslims can omit.

Tolakan cukai seksyen 110 (lain-lain):Whether there is income already taxed, such as interest, royalties, foundations and other income.If yes, please click [HK-6], and then fill in the relevant information.

Pelepasan cukai seksyen 132 dan 133:Income is taxed both in Malaysia and other countries.If your income is also taxed in other countries, the Malaysian Inland Revenue Department will provide corresponding relief according to different regulations.If not, please leave blank.

Step 10:Check tax return details

After filling out the above information, you can see a summary summary of the entire account, do you need to pay tax?

• If it is 0.00, then no tax 
• If you find that you need to pay tax, you can go back to the above and modify the items that can be deducted, but please make sure the information is accurate.
• This will show your total income, the amount you can deduct, and the amount of tax you owe.After confirming that it is correct, please click "Next".
• If your tax liability is less than RM35,000, you are entitled to a special relief of RM 400; otherwise, you will not be entitled to the relief.
• So take advantage of deductibles.After reconfirming that the information is correct, click【Seterusnya].

Step 11:save submit

The electronic tax return is completed, signed and sent.Please download from the PDF file and archive it for your records.Congratulations, the tax filing process has been successfully completed!In fact, it is not as difficult as imagined.

• At this point, our tax return has been successfully submitted.

How do employees help their boss with tax returns?

The method for employees to help their boss with tax returns is as follows:

1. Company and employer-related affairs need to be completed through the boss's personal account.

2. It is recommended that the boss appoint the employee as a representative, and let the employee declare the company and employer's tax on the employee's own MyTax account.This method not only protects the privacy of the boss, but also improves the work efficiency of employees.

3. The MyTax site offers an additional method for bosses to appoint employees as representatives and file corporate and employer taxes on the employee's MyTax account.This method is both convenient and safe, maximizing employee productivity and boss privacy protection.

step 1:Login to the MyTax website

In order to start the work of appointing a representative, the boss must first log in to his account.

The following is the login account page of the Malaysian Income Tax LHDN website ▼

step 2:ClickRole Setection ▼

step 3:After changing your identity, click on the upper rightpersonLogo 【Profile】▼

step 4:Click"Appointment of Representative"▼

After filling in the employee information, click "Submit".

step 5:Appointment successful ▼

step 6:Check information ▼

• Bosses can view employee representative profiles below.
• After successful appointment, the employee can complete the tax declaration of the company and the employer on behalf of the boss through his personal account.

How can I prove that I have successfully filed my tax return?

After filing the report, what documentation do we have to prove that we have filed our tax return?

We have to save (Simpan) related files, usually there are 2 files:

1. A tax return (Pengesahan).
2. A tax return (e-BE).

• The reminder here is that friends with dividend income have 3 files to download and the other is HK3.
• Please remember to click on the downloaded project to save it, soft copy or hard copy (printed out) does not matter, the important thing is to remember to save for 7 years.
• Finally, click【Keluar】to exit the system.

Payment method

1. Go to the official website to pay, you can pay through the LHDN official website▼

2. Go to the nearest local bank, the following banks are available:

• CIMB bank
• Maybank
• public bank
• Affin Bank
• Bank Rakyat
• RHB Bank
• National Savings Bank

Complete the form and submit it.

3. Post Office

• The post office only accepts cash payments.

Final Reminder: Tax Filing Deadlines

• Borang BE – 2023 April 4 deadline for salaried persons to file income tax returns
• Borang B/P – 2023 June 6 deadline for business or self-employed persons to declare income tax

Income Tax Installment

If you need to pay the tax in installments, you can apply to the LHDN authority.

• However, the tax office will determine the monthly payment based on the amount of tax you need to pay and the installment period you need.
• Based on past experience, the Inland Revenue Department usually only approves installment periods up to 6 months.
• So when you earn your income, be sure to set aside enough money to cover your taxes.

Conclusion

In general, tax declaration is actually beneficial to businessmen without any harm.In the long run, businessmen need to file tax returns to prove their assets, source of income and financial capacity, so that it will be easier to obtain loan financing in the future.Therefore, please do not take tax evasion or tax avoidance in order to pay less tax, so as not to be fined, the loss outweighs the gain!

The above is the complete process of electronic tax filing for businessmen and self-employed persons. I wish you all a smooth tax filing!

E-hasil, see you next year!

After reading this tutorial, do you know how to file personal income tax online in Malaysia?

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