According to the LHDN, working people have until 30 April to submit their tax returns, while those who choose to file electronically will be given an additional 15 days to complete their tax returns by 15 May.
If you are in business, you will need to submit a paper tax return by 30 June or an electronic return by 15 July.
Everyone who works or runs a business in Malaysia is obliged to file a tax return. Many people confuse filing a tax return with paying tax, but in fact, filing a tax return is only reporting your income for the past year to the government, while paying tax is submitting tax to the government. A person who files a tax return does not necessarily have to pay tax, but only if his or her income exceeds a certain amount.
According to the LHDN website, a single person with an annual income of more than RM37,333 or a monthly income of more than RM3,111 may be liable to pay tax. However, this is subject to whether the tax filer has additional tax deductions.
Married families filing separately may be liable for tax if their annual income exceeds RM37,333 or their monthly income exceeds RM3,111 without children. For married families with 2 children filing separately, tax may be payable if the annual income exceeds RM41,333 or the monthly income exceeds RM3,444.
Married families filing a combined tax return may qualify for tax if their annual income exceeds RM48,000 or their monthly income exceeds RM4,000 for families without children. Families with 1 child may be eligible for tax if their annual income exceeds RM50,000 or their monthly income exceeds RM4,167. Families with 2 children may qualify for tax if their annual income exceeds RM52,000 or their monthly income exceeds RM4,333.
This example is based on a personal deduction of RM9,000 and a deduction of RM2,000 per child under 18 years of age. The actual tax payment will depend on the tax deductions available to the tax filer.
