It’s that time of the year — income tax filing season is here. Don’t miss the opportunity to declare your income and take advantage of the available tax reliefs. If you’re filing your tax return for the first time, find out the eligibility criteria, how to check your status, and the reliefs you can claim for the Year of Assessment 2025.
Who needs to file income tax?
You are required to submit an income tax return if you meet any of the following criteria:
✅ Permanent or contract employees
Have a gross annual income exceeding RM37,333 (approximately RM3,111 per month or more), after mandatory EPF contributions.
✅ Gig economy workers
This includes self‑employed individuals such as e‑hailing drivers, food delivery riders, influencers or freelancers whose income exceeds the taxable threshold.
✅ Business owners
Entrepreneurs with a business registered in Malaysia must declare their profits using the prescribed tax return forms.
✅ Tax Identification Number (TIN) holders
Individuals who are registered with LHDNM and have received a notice to submit a tax return are required to do so within the stipulated period, even if they have no income
👉 Unsure if you need to file? Check your eligibility using LHDNM’s income tax calculator on the MyTax portal.
How to check and activate your LHDNM tax file?
From 1 March 2026, tax matters in Malaysia have become more streamlined and integrated. For holders of MyKad, MyPR or MyKAS, your identification number now officially serves as your single Tax Identification Number (TIN). This means you no longer need to remember multiple tax file reference numbers.
However, having a TIN does not automatically allow you to log in and submit your e-Filing. If this is your first time filing taxes, you must first activate your Digital Certificate as a security verification step before you can access the MyTax portal under LHDNM.
What are the essential documents for tax filing?
📌 Tips: Keep all relevant documents, including receipts and statements for tax relief claims, for at least seven years as records
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 | Self-employed income, freelance work, gig economy earnings | ✅ | |
| Rental Income | Income from property rentals (residential/ commercial) | ✅ | |
| Dividends & Interest | Dividends from EPF, ASD, Lembaga Tabung Haji, local bank interest | ✅ | |
| Capital Gains | Gains from the sale of shares remitted into Malaysia | ✅ | |
| Foreign-sourced income | Overseas salary/ dividends remitted into Malaysia | *✅ | |
| Gifts & inheritance | Money received as inheritance or estate distribution | ✅ | |
| Gifts & tokens of appreciation | Cash or non-cash gifts (not from an employer) | ✅ |
*Exemption until 31 December 2036 is subject to the terms and conditions set by LHDNM
What tax reliefs can you claim?
Below are the tax reliefs you may be eligible to claim to help reduce your chargeable income:
Source: Lembaga Hasil Dalam Negeri Malaysia (LHDNM)
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:
1. Tax relief limit (up to RM7,000)
Private sector employees & non-pensionable public servants:
- EPF Contributions (mandatory/ voluntary) / Approved schemes: Up to RM4,000
- Life insurance premium / Voluntary EPF contributions / Both: Up to RM3,000
Pensionable public servants:
- If you are a public servant under the pension scheme, you now enjoy greater flexibility. The tax relief of up to RM7,000 is no longer limited to life insurance premiums alone and has been extended to include voluntary EPF contributions. This is an excellent opportunity to boost your retirement savings while enjoying maximum tax savings.
2. Additional benefits for EPF members
- Tax relief via the Members Protection Plan: Protection plans purchased through the i-Lindung platform using your Akaun Sejahtera are eligible for tax relief under the life insurance/takaful category, up to RM3,000 per year.
- Tax-exempt dividends: Dividends earned on your EPF savings are fully tax exempt. This allows your retirement savings to grow without any tax deductions. By making voluntary contributions, you not only strengthen your retirement fund but also enjoy tax-free investment returns.
👉 For more information, visit the EPF website: www.kwsp.gov.my.
Read also: How to Maximise Your Retirement Benefits With EPF?
Tax filing deadlines (Year of Assessment 2025)
Next step: File your taxes with confidence
Managing income tax does not have to be stressful. By understanding the eligibility criteria, and claiming the correct reliefs, you are effectively strengthening your long-term financial position.
If you are still uncertain, do not hesitate to consult LHDNM or seek advice from a professional tax advisor.
Happy e-Filing! May your tax matters be smooth and hassle-free.