Migrant workers and businessmen can file their tax returns from March 1!
Under the Malaysian Income Tax Act 1967, it does not matter if you are a Malaysian citizen or a foreigner, as long as you reside in Malaysia for more than 182 days in a year and have income, you are obliged to file a tax return.
Many people are confused between filing and paying tax. Actually, filing and paying tax are two different things. Filing a tax return is only presenting your financial status for the past year to the government, while paying tax is handing over the tax on your income to the government. Everyone who earns income needs to file a tax return, but you only need to pay taxes if your income meets certain criteria.
All those who are eligible to file tax returns can do so through the Inland Revenue Department’s (LHDNM) electronic tax filing system starting March 1.
If you are a working person, you will need to use Borang BE to report your income for the past year. The deadline is April 30, 2022, and those who use e-Filing will get an additional 15 days to file, which means the deadline is May 15.
If you are a business person, then you want to report your income for the past year through Borang B. The deadline is June 2022. The deadline is June 30, 2022. You can also get an additional 15 days to file your taxes using e-filing, which is due July 15.
It is important to keep all relevant documents or receipts after filing your tax return so that you can produce evidence when the Inland Revenue Department comes to investigate. It is best to keep all relevant documents for more than 7 years.