A step-by-step guide to the Malaysia Income Tax online submission for the calendar year of 2020 via LHDN e-filing.
Preparing and filing your income tax in Malaysia can be a challenging and anxiety-inducing experience every year for most people, but it doesn’t have to be if you understand how income tax works in this country.
Taxpayers can start submitting their income tax return forms through the e-Filing system starting from March 1 of every year, unless otherwise announced by LHDN. This method of e-filing is becoming popular among taxpayers for its simplicity and user-friendliness.
Who needs to file income tax?
According to the Inland Revenue Board (IRB) of Malaysia, also known as Lembaga Hasil Dalam Negeri or LHDN, any individual earning a minimum of RM34,000 after EPF deductions must register a tax file. This translates to roughly RM2,833 per month after EPF deductions or about RM3,000 in net income. It should be noted that this takes into account all your income, and not only your salary from work.
While you must file your taxes, you may not necessarily have to pay anything due to tax reliefs and rebates.
Income tax Malaysia 2021 (for the calendar year of 2020) deadline
The deadline for tax form submission in the year 2021 for the calendar year of 2020 is as below:
- EA form – The form that is provided by employers to employees: 28th February 2021
- CP 58 – The form that is provided by companies to dealers, distributors, and agents: 31st March 2021
- Form E: 30th April 2021 (for e-filing)
- Form BE: 15th May 2021 (for e-filing)
- Form B: 15th July 2021 (for e-filing)
- Form P: 15th July 2021 (for e-filing)
- Form C: 7 months after the end of the financial year (8 months for e-filing)
- Form PT: 7 months after the end of the financial year (8 months for e-filing)
How to file my taxes online using e-filing?
Unlike the traditional income tax filing, where you have to print out the income tax form and fill it in manually, the e-Filing income tax form calculates your income tax for you automatically.
Here is the step-by-step guide for the e-Filing process:
1. Register for first-time taxpayer online via LHDN MalaysiaA~
*existing e-filing users, proceed to next step
If you have never filed your taxes before on e-Filing income tax Malaysia 2020, go to http://edaftar.hasil.gov.my/ where you can apply online for the registration of income Tax File for individuals and companies. Click on Borang Pendapatan Online in the first step of e-Daftar and then, you will have to fill-up the form for registration.
After you have filled up the form, you will have to reconfirm your information. Your application number will be presented after confirmation.
NOTE: Please note down your application number for future reference!
Scroll down from your application number, and click on Muat Naik Disini to upload a copy of your identity card. You have 14 days to upload it, and your identity card must fulfil the following requirements:
- Just scan the front of your identity card showing your name and I.C. number clearly
- File must be in .gif format
- File size must be between 40kb and 60kb
- File name must be in alphanumeric only
Once you’ve uploaded your identity card, you need to physically visit the nearest LHDN branch to obtain your PIN number. New taxpayers used to be able to do this online, but it seems like the feature has been removed – we’ll update this page if that changes!
2. Go to e-Filing website
Once you have gotten your PIN, here are the steps on how to file income tax in Malaysia.
If you already have the PIN from LHDN or an account for e-Filing, you can proceed to LHDN’s official website, click on ezHASIL and then click on myTax. This will lead you to the main page of the e-Filing system.
3. Login to e-Filing website
Next, key in your MyKad identification number (without the dashes), and your password.
If you are a first-timer, click on Login Kali Pertama. Then fill in your PIN and identity card number to register for an account.
4. Choose the right income tax form
Once you’ve logged in, you will be shown a list of features available on e-Filing. To begin filing your tax, click on e-Borang under e-Filing:
After clicking on e-Borang, then you will be shown a list of income tax forms. If you are an individual with non-business income, choose Income Tax Form BE (e-BE), and choose the assessment year (tahun taksiran) 2019. Remember, you file for 2019 income tax in 2020.
5. Check your personal details
In the first section of the form, MAKLUMAT INDIVIDU, you can check your details displayed on the form, make changes if the form is displaying incorrect information or does not display your latest information.
There will also be a “layak menuntut insentif dibawah seksyen 127” which refers to claiming incentives under section 127 of the Income Tax Act (ITA) 1976. This is incentives (such as exemptions) under the provision of paragraph 127(3)(b) or subsection 127 (3A) of ITA 1976, which is claimable as per government gazette or with a minister’s approval letter. If you are not entitled to such exemptions, choose “TIDAK BERKENAAN”, which means Not Applicable.
Below that, you will see “melupuskan asset di bawah Akta Cukai Keuntungan Harta Tanah 1976”, which refers to any disposal of assets under the Real Property Gains Tax (RPGT) 1976. If you have not disposed or sold any real estate, just select “TIDAK”. Additionally, you can read up about RPGT at the LHDN website.
If you would like your income tax return to be banked into your bank account directly, this is where you need to fill in your bank account details. LHDN has numerous times assured taxpayers that bank account details will be safeguarded and not shared with any other parties.
6. Fill in your income details
In the second section, PENDAPATAN BERKANUN, JUMLAH PENDAPATAN DAN PENDAPATAN TAHUN KEBELAKANGAN YANG BELUM DILAPORKAN, you can key in your income details according to the relevant categories.
The second step is to fill in the approved donation and gifts amount. Refer to our tax deduction section to understand more about this deduction. Remember, you must ensure the organisation you donate to, is approved by LHDN. If unsure, you can check the status of the charitable organisation on the LHDN website.
Check if the total monthly tax deductions (MTD/PCB) displayed is correct. You can find this information in the EA Form provided by your company.
If you have not declared any income in the previous years, this is where you declare it. For undeclared income from previous years, fill in the sub-section PENDAPATAN TAHUN KEBELAKANGAN YANG BELUM DILAPORKAN at the end of this section.
7. Fill in your tax reliefs, tax rebates and tax exemptions
In the third section, PELEPASAN/REBAT/TOLAKAN CUKAI/PELEPASAN CUKAI, key in your tax reliefs, tax rebates and tax exemptions.
Understand the tax reliefs available and identify which are applicable to you to ensure you spend wisely and save on your income tax. Make sure you retain the proof of purchase or spending for the items you are claiming for up to seven years.
8. Check the total taxes you are due or your tax return
Once you have filled up all the reliefs and rebates, the system will automatically calculate your taxes and you will know if you have balance or excess in income tax payment.
This can be seen in the last section, RUMUSAN.
Your total tax will be shown in the first red box in the screenshot above. After deducting your MTD/PCB, if there is an excess or income tax return, it will be shown in the second red box in the screenshot.
9. Declare, sign and send
The final step is to declare that all the information provided is true. Then, you need to electronically sign the form and send it in by clicking on (Tandatangan & Hantar).
That’s all! It may seem intimidating to use e-Filing form at first, but it really is easy to do. Those who did not own a computer or have Internet access could head to the special computer counters at IRB branches.
If you would like to check or change any information, click on KEMBALI.
You can check how much income tax you will pay with the latest tax rates using this income tax calculator.
What are the available Tax Reliefs for Year Of Assessment 2020? (Tax filed in 2021)
What is an income tax relief? Tax reliefs are set by LHDN, where a taxpayer is able to deduct a certain amount for money expended in that assessment year, from the total annual income. These are for certain activities or behaviours that the government encourages or even necessities or burdens to lighten our financial loads. Tax reliefs can help reduce your chargeable income, and thus your taxes. If planned properly, you can save a significant amount of taxes.
The three most well-known tax reliefs are the self & dependent tax relief of RM9,000, life insurance and EPF relief at RM6,000. Here’s the complete list of the income tax relief you can claim in 2021 for Year of Assesment 2020.
|INDIVIDUAL RELIEF TYPES||Amount|
|Self and dependent||RM9,000|
|Insurance & other policies|
|Life insurance and EPF including not through salary deduction
For pensionable public servants: up to RM7,000 life insurance
|Deferred annuity and Private Retirement Scheme (PRS) – with effect from year assessment 2012 until year assessment 2021||RM3,000|
|Insurance premium for education or medical benefit including not through salary deduction||RM3,000|
|Contribution to the Social Security Organisation (SOCSO)||RM250|
|APPLICABLE TO CERTAIN TAXPAYERS|
Medical expenses for parents
|Education fees (Individual)
(i) Other than a degree at Masters or Doctorate level for acquiring law, accounting, Islamic financing, technical, vocational, industrial, scientific or technological skills of qualification;
(ii) Degree at Masters or Doctorate level for acquiring any skills or qualifications
|Medical expenses for serious diseases for self, spouse or child||RM6,000|
|Complete medical examination for self, spouse or child|
|Fertility or IVF treatments|
(i) Purchase of books, journals, magazine, printed newspaper and other similar publications (except banned reading materials) for self, spouse or child;
(ii) Purchase of a personal computer, smartphone or tablet for self, spouse or child;
(iii) Purchase of sports equipment for any sports activity as defined under the Sports Development Act 1997 (excluding motorised two-wheel bicycles) and gym memberships for self, spouse or child; and
(iv) Payment of monthly bill for internet subscription
|Purchase of breastfeeding equipment (allowed once every 2 years)||RM1,000|
|Basic supporting equipment (for disabled self, spouse, child or parent)||RM6,000|
|Applicable to tax-paying parents|
|Ordinary child relief||RM2,000|
|Each unmarried child of 18 years and above who is receiving full-time education (“A-Level”, certificate, matriculation or preparatory courses)||RM2,000|
|Each unmarried child of 18 years and above that is:||RM8,000/per child|
|(i) receiving further education in Malaysia for diploma or higher (excluding matriculation/preparatory courses)|
|(ii) receiving further education outside Malaysia for degree or its equivalent (including Master or Doctorate)|
|(iii) the instruction and educational establishment shall be approved by the relevant government authority|
|Disabled child||RM6,000/per child|
|Additional exemption of RM8,000 for a disabled child aged 18 years old and above, not married and pursuing diplomas or above qualifications in Malaysia or bachelor degree or above outside of Malaysia in a Higher Education Institute that is accredited by related Government authorities|
|Net saving in SSPN’s scheme (total deposit in 2019 minus total withdrawal in 2019)||RM8,000|
|Child care fees to a child care centre or a kindergarten||RM2,000|
For detailed explanation of each tax relief, you can refer to the List of LHDN’s income tax relief for e-Filing 2021 (YA 2020).
On top of just looking at tax reliefs, how you file can make a difference. For married taxpayers, you need to consider whether to file for joint or separate assessment to maximise on the tax relief such as spouse relief, and also which spouse to claim for child relief. Depending on the income differences between the spouses, claiming joint or separate taxes can have a big impact on your tax savings.