Learning Your First Income Tax Return in Malaysia (No Tears!)

So, you just landed your first real job, congratulations!

Adulthood seems pretty exciting, right?

But with that excitement comes a new responsibility: taxes.

Don't worry, it's not as scary as it seems.

This guide will take you step by step through filing your income tax return in Malaysia so you can do it like a boss (and avoid LHDN drama!).

Wait do I even have to do that. Submit?

If you earn an annual salary of at least RM34,000 (that's about RM2,833.33 monthly after deducting EPF), then yes, my friend, you are officially in the tax bracket.

This also applies to our young siblings who are just starting their working life or have just received a salary.

Remember that contributing to the development of our country is part of being a responsible Malaysia!

Why submit on time? Don't make LHDN chase you!

Let's face it, nobody likes punishment.

Skipping taxes can have serious consequences.

We are talking about fines from RM1,000 to RM20,000 (ouch!) or even jail time in extreme cases.

And it gets even worse: underreporting your income can result in a whopping 300% penalty!

Basically, a tax bill of RM500 can go up to RM1500. Yes!

Become a Tax-Filing Pro

Now that we've established the importance of filing your taxes on time, let's dive into the actual process.

Here is the best guide to becoming a tax return professional:

Step 1: Register as a taxpayer (online is king!)

First you need to register as a taxpayer with the Inland Revenue Board (LHDN).

Tax payer good news?

Everything is online now!

Go to [mytax.hasil.gov.my] and click on "e-Daftar".

They will guide you through a quick registration process where you will need to upload some documents for verification.

Once done, print the form and go to the nearest LHDN branch with your IC.

They will help you set a login PIN for future online notifications.

Step 2: Log in to MyTax and get notified!

Now that you have your PIN, it's time to log in to OmaTax.

Select "First login" and create a password.

This is your key to filing tax returns online anytime, anywhere.

Step 3: use e-submission

After login, go to "ezHasil Services" menu and select "e-submission".

Annual Assessment Year 2023" (Remember you will be filing your taxes in 2024.

Step 4: Check your information (accuracy is key!)

Check the personal information shown on the form.

Update anything that has changed, such as a new address or marital status.

Next, check if you have sold any property that is subject to the Real Estate Gains Tax (RPGT) Act.

You can also claim any tax credits you're entitled to here.

Bonus Tip:

MyTax can pre-populate certain information for you.

Please check it for accuracy and don't forget to include your bank account information for possible tax refunds!

Step 5: revenue sharing (talking about money!)

Here comes the fun part (Well, maybe not so fun).

Enter your income information based on the categories provided.

This information should be readily available on the EA form provided by your employer.

Don't worry, you can always refer to it for clarification.

Tip.

This is also your chance to claim any gifts or donations you made to LHDN-approved organizations.

Just make sure you have receipts for them (keep them for 7 years!).

Step 6, action: maximize your savings with tax credits (yay!)

Here's where it gets interesting!

Every year you can reduce your taxable income by claiming tax credits and exemptions.

These can include life insurance payments, phone bills (yes, even your latest iPhone!), EPF/SOCSO payments and even sports equipment.

Don't forget to keep those receipts handy!

Mastering Your First Income Tax Return in Malaysia (Without the Tears!)

Feeling overwhelmed by filing your first income tax return in Malaysia? Don't worry, this ultimate guide breaks it down step-by-step! Learn how to register online, claim tax reliefs, and avoid LHDN drama. #adulting #taxfiling #malaysia Read now and file with confidence!