It’s that time of the year — the income tax filing season is here, and understanding the process can help you file your taxes correctly. Whether you are filing for the first time or need a refresher, this guide outlines the key steps and important information.
Who needs to file income tax?
You may need to if you meet any of the following criteria:
💡 Salaried individuals earning an annual income exceeding RM37,333 or a monthly salary of approximately RM3,111 or more, after mandatory EPF deductions.
💡 Self-employed individuals, freelancers, and gig economy workers (e.g. e-hailing drivers and food delivery riders) with an income that reaches the taxable threshold as mentioned above.
💡 Entrepreneurs or registered business owners in Malaysia who need to file taxes based on their business profits.
💡 Anyone registered with the Inland Revenue Board of Malaysia (LHDNM) and has been assigned a tax number, including those without a fixed income or haven’t earned the taxable amount.
👉 Unsure if you need to file? Use LHDNM’s income tax calculator to check your eligibility.
What are the essential documents for tax filing?
Before submitting your tax return via the e-Filing platform on MyTax LHDNM, ensure you have gathered all the necessary documents, including:
Tips: All relevant documents including receipts and statements for relief must be kept for at least 7 years.
How to easily register for a tax file number with LHDNM?
Before you can file your taxes, you’ll need to obtain an income tax number from LHDNM. If you are filing for the first time, follow these steps to register:
What types of income are taxable & exempted?
Not all income is taxable. Here’s a breakdown of taxable and non-taxable income categories:
| Income Type | Examples | Taxable | Exempt |
|---|---|---|---|
| Employment Payroll | Salary, bonuses, commissions, fixed allowances | ✅ | |
| Business Profits | Income from self-employment, freelancing | ✅ | |
| Rental Income | Earnings from property rental | ✅ | |
| Investment Gains | Dividends, shares | ✅ | |
| Capital Gains (Public Equities) | Profits from the sale of shares on Bursa Malaysia | ✅ | |
| Interest (Local Banks) | Interest earned from Malaysian banks | ✅ | |
| Interest (Foreign Banks) | Interest from overseas accounts brought into Malaysia | ✅ | |
| Hibah & Inheritance | Money received as inheritance | ✅ | |
| Gifts | Cash or items received as gifts | ✅ | |
| Certain Government Allowances | Special allowances for civil servants | ✅ |
Tips: Keeping a record of your income and expenses throughout the year makes tax filing easier.
Tax reliefs you can claim for the 2024 assessment year
Here are some tax reliefs that can help reduce your taxable income:
Note: For a complete list, reliefs, and rebates, please refer to LHDNM’s official website.
Tax relief through EPF contributions and life insurance
As a member of the Employees Provident Fund (EPF), you can optimise your tax relief by managing your contributions and insurance premiums wisely. Here’s how:
Tax relief limits
For Private Sector Employees & Non-Pensionable Public Servants:
- EPF Contributions (Voluntary / Mandatory) / Approved Schemes: Up to RM4,000
- Life Insurance Premium / Voluntary EPF Contributions / Both: RM3,000
Total Tax Relief: Tax relief of up to RM7,000 for EPF contributions and life insurance premiums.
For Pensionable Public Servants
Previously, retired civil servants could only claim tax relief of up to RM7,000 for life insurance premiums alone. However, this tax relief has now been expanded to include retirement savings with the EPF. Therefore, retired civil servants are encouraged to make voluntary contributions to their EPF savings to benefit from this tax relief.
Understanding tax relief for EPF members
- Tax Relief via i-Lindung – Insurance/takaful plans purchased through i-Lindung platform using EPF’s Akaun Sejahtera qualify for tax relief under the life insurance/family takaful category — up to RM3,000 per year.
Note: Even if you use your EPF savings to purchase an insurance/takaful plan, it still qualifies for personal tax relief (subject to LHDNM approval).
- EPF Dividends - Dividends earned on your EPF savings are not subject to tax, allowing your retirement savings to grow without deductions. By making voluntary contributions, you can increase your savings and benefit from potential returns — all of which remain tax-free.
👉 For more information, visit the EPF website.