Every year, millions of Malaysians need to file income tax — and every year, thousands scramble to figure out what to do, what forms to use, and how not to get penalised. This guide covers everything you need to know for Year of Assessment (YA) 2025, filed in 2026.
Full step-by-step walkthrough: Filing Your First Tax Return (LHDN) Malaysia — e-Filing Guide 2026
Who Needs to File?
You must file income tax in Malaysia if you:
- Earned RM34,000 or more in gross income after EPF deductions (roughly RM2,833/month)
- Have any employment income, business income, rental income, or freelance income
- Received dividends, royalties, or other taxable income above the threshold
Even if you think you won't owe tax, you may still need to file. And if LHDN has records of your income, not filing can result in penalties up to RM10,000.
Key Dates for 2026 (YA 2025)
| Taxpayer Type | Form | Deadline |
|---|---|---|
| Salaried employees | BE | 30 April 2026 |
| Self-employed / business owners | B | 30 June 2026 |
| Companies | C | 7 months after financial year end |
File early — the LHDN e-Filing system gets congested in April.
Step 1: Register for MyTax (If You Haven't Already)
Before you can file, you need a MyTax account on mytax.hasil.gov.my.
- Go to MyTax portal and click Daftar / Register
- Enter your MyKad number and details
- Verify via email or phone
- Log in and look for e-Filing in the menu
If you've filed before, just log in with your existing credentials.
Step 2: Gather Your Documents
You'll need:
- EA Form from your employer (annual income statement — should arrive by end of February)
- Bank statements if you have rental income, dividends, or freelance earnings
- Receipts for tax reliefs — medical bills, education fees, insurance premiums, etc.
- EPF statement — your EPF contributions qualify for relief up to RM4,000
Tip: Your employer is legally required to give you your EA Form before 28 February. Chase them if you haven't received it.
Step 3: Know Your Tax Reliefs
This is where most people leave money on the table. Malaysia has generous tax reliefs that can significantly reduce what you owe.
Common Tax Reliefs (YA 2025)
| Relief | Max Amount |
|---|---|
| Individual relief | RM9,000 |
| EPF contributions | RM4,000 |
| Life insurance premiums | RM3,000 |
| Medical/education insurance | RM3,000 |
| Medical expenses (self/parents) | RM8,000 |
| Education fees (self) | RM7,000 |
| Lifestyle (books, sports, internet) | RM2,500 |
| Smartphone/tablet purchase | RM2,500 (within lifestyle) |
| EV charging equipment | RM2,500 |
| Child relief (per child) | RM2,000 |
| Breastfeeding equipment | RM1,000 |
Always keep your receipts. LHDN can audit up to 7 years back.
Step 4: File Using e-Filing
- Log in to MyTax portal
- Click e-Filing > e-BE (for salaried employees)
- Your employment income from EA Form should be pre-filled — verify it matches
- Enter your tax reliefs section by section
- The system calculates your tax automatically
- Review the summary — check if you're getting a refund or owe tax
- Submit and save your acknowledgement slip
For a detailed walkthrough with screenshots of each screen, see the complete e-Filing guide on Sorted MY.
Step 5: Pay or Claim Your Refund
If You Owe Tax
- Pay via FPX, credit card, or at any CIMB/Public Bank/Maybank branch
- Pay by 30 April to avoid a 10% late payment penalty
- You can pay in instalments via CP500 (estimated tax scheme)
If You're Getting a Refund
- Refunds are processed within 30 working days for e-Filers
- Make sure your bank account details in MyTax are correct
- Check your refund status under e-Lejar in the portal
See also: How to Check and Claim Your Income Tax Refund in Malaysia
EPF and Tax: The Connection
Your EPF (KWSP) contributions are one of the biggest reliefs available — up to RM4,000/year. But EPF does more than reduce your tax:
- EPF Akaun 1 grows your retirement savings at ~5-6% annually
- Akaun Fleksibel (the new third account) allows partial withdrawal
- Voluntary contributions also qualify for the tax relief
For more on how EPF works and how to maximise it: Malaysia EPF Guide — KWSP Explained Simply
Common Mistakes to Avoid
Don't declare less than what's on your EA Form. LHDN cross-checks with your employer's submission — discrepancies trigger audits.
Don't forget freelance or side income. If you drive Grab, do tutoring, or sell on Shopee/TikTok Shop, that income is taxable once it crosses the threshold.
Don't skip filing just because you have no tax to pay. You still need to file if you're above the threshold, even if reliefs bring your tax liability to zero.
Don't miss the deadline. A one-day late filing can result in a penalty notice. E-Filing closes at midnight on the deadline date.
Check Your Estimated Tax
Before filing, it helps to estimate your tax. Use the Malaysian Income Tax Calculator on Sorted MY to:
- Estimate your chargeable income after reliefs
- See your effective tax rate
- Compare scenarios (e.g., with/without EPF voluntary top-up)
Quick Reference: Malaysia Income Tax Rates (YA 2025)
| Chargeable Income | Tax Rate |
|---|---|
| First RM5,000 | 0% |
| RM5,001 – RM20,000 | 1% |
| RM20,001 – RM35,000 | 3% |
| RM35,001 – RM50,000 | 6% |
| RM50,001 – RM70,000 | 11% |
| RM70,001 – RM100,000 | 19% |
| RM100,001 – RM400,000 | 25% |
| RM400,001 – RM600,000 | 26% |
| RM600,001 – RM2,000,000 | 28% |
| Above RM2,000,000 | 30% |
Malaysia uses progressive taxation — only the income in each band is taxed at that rate, not your entire income.
Summary Checklist
- [ ] Received EA Form from employer
- [ ] Registered / logged in to MyTax
- [ ] Gathered receipts for all reliefs
- [ ] Filed via e-BE on e-Filing portal
- [ ] Paid any outstanding tax by 30 April 2026
- [ ] Saved acknowledgement slip
More Malaysian Bureaucracy Guides
If you found this useful, Sorted MY has 57 plain-English guides for navigating Malaysian bureaucracy — from filing taxes to buying a car to understanding your EPF.
- Filing Your First Tax Return — Complete e-Filing Walkthrough
- EPF Guide — Everything You Need to Know About KWSP
- How to Claim Your Income Tax Refund
- How to Dispute an LHDN Tax Assessment
- Zakat and Tax Rebate — How It Works
Last updated: March 2026 for YA 2025 filing season. Tax rules and rates are subject to change — verify with LHDN's official portal for the latest.
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