Taxpayers also advised to do e-filing before deadline
Digital format: Tax filing is only available online starting this year.
PETALING JAYA: The tax filing season has started and taxpayers are reminded to claim eligible tax reliefs and file before the deadline.
For the first time, tax filing is only available online and the Inland Revenue Board (LHDN) will no longer accept manual submissions or in hard copy.
KPMG Malaysia senior adviser on tax policy, Dr Veerinderjeet Singh, said e-filing has been used for many years and is an efficient and effective way of reporting tax liabilities.
He said all individuals earning income from employment and receiving passive income, such as interest and rental income, have to file personal income tax returns ( Form BE).
The tax period for filing is from Jan 1 until Dec 31, 2024, he said.
“Income from overseas will also need to be reported even though the actual income received enjoys a tax exemption,” said Veerinderjeet.
He also said internet and newspaper subscriptions, as well as purchase of gadgets are claimable under the lifestyle relief of up to RM2,500.
“Common mistakes are trying to claim all reliefs without having the necessary evidence to justify such claims,” added Veerinderjeet.
Tax expert Desmond Anil said some commonly missed tax reliefs are payment for parents’ health expenses, as taxpayers can claim tax relief up to RM8,000.
Another tax relief is for EPF and life insurance, which are claimable up to RM7,000, he said.
Desmond, who is Hernancres Tax Services Sdn Bhd managing director, also highlighted the new tax relief for Electric Vehicle Charging Equipment, which is up to RM2,500.
However, he cautions not to mistakenly claim reliefs that the taxpayer is not eligible for.
He cited the example of incorrect dependent reliefs.
Taxpayers must retain receipts and supporting documents for seven years in case of an audit, he said.
Desmond also said all sources of income, including rental income, freelance earnings or commissions, should be declared.
Tax filing needs to be completed by April 30 for salaried individuals and June 30 for business owners/self-employed, as late submissions would face penalties.
“Filing taxes early can help individuals identify errors, avoid last-minute rushes, and plan payments efficiently.
“Seeking professional tax advice is recommended for those with complex tax structures and if they are unsure about how to complete their tax filing,” he said.
TraTax Sdn Bhd executive director Thenesh Kannaa said those who receive income from gig work or passive income via properties need to file their taxes.
He reminded those with income from foreign countries to report their income even though it is exempted.
He said that LHDN can be made aware of bank balances of foreign bank accounts following a global initiative known as Common Reporting Standards.
Expatriates working in Malaysia are also taxed, he added.
He said they need to pay significantly higher tax due to ineligibility for personal relief and progressive tax rate.
Starting March 1, individual and non-individual taxpayers can submit their tax return form for the Year of Assessment 2024 through e-filing.
Taxpayers are advised to use the e-filing service through the MyTax portal at https://mytax.hasil.gov.my or the HASiL official portal at https://www.hasil.gov.my.
For first-time users of e-filing, taxpayers must first register at the MyTax portal via e-Daftar.
Afterwards, they must register for a digital certificate and one-time PIN for e-filing.
Once the preliminary registration is done, taxpayers can proceed to login to MyTax, click on EzHasil Services, and then e-filing and subsequently e-BE Year of Assessment 2024.
The taxpayer can then provide the necessary details such as personal particulars, income and tax reliefs
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