How To File Your Income Tax For The First Time

HOW TO FILE YOU INCOME TAX FOR THE FIRST TIME

New to paying taxes and unsure where to start? You've come to the right place. Let's take it step-by-step.

So, your first working year is over and it's time to file your
income taxes before the deadline.

The first question you may have is "Where do I begin?".
Hint: Right here.

FIND OUT IF YOU'RE TAXABLE

Before we begin, let's find out if you need to pay income tax. To qualify as a taxable individual, you need to be a resident of Malaysia, and either:

Earn an annual income of RM34,000 or more (After EPF deductions)
Earn an income through a business (Via business gains or business profits)

If you meet the requirements, then you'll need to file your taxes.

REGISTER AS A TAXPAYER

You'll need to register with Lembaga Hasil Dalam Negeri (LHDN) and be assigned an income tax number. You can do this via two ways:

ONLINE VIA E-DAFTAR
Required documents: Digital copy of IC
ANY LHDN OFFICE
Required documents: Copy of IC, Copy of EA form, Copy of Marriage Certificate (If applicable)

After 3 days, LHDN will email your income tax number to you.

REGISTER FOR E-FILING

Now that you're in the system, it's time to set up your online account for paying taxes. Your first step will be to get a PIN, and there are two ways to do it:

VIA LHDN's Customer Feedback site
At any LHDN Office

Once you have your PIN, head over to ezHazil. Select "First Time login" and fill out your account details. Then, it's time to declare your taxes!

FILE YOUR TAXES

If you're an employee of a company, you'll receive your EA form from your finance department – so have it ready.

A) Start by picking the right tax form for your situation:

e-BE / BE: If you’re an employed individual
e-B / B: If you run your own business
e-M / M: If you’re not a Malaysian resident
e-BT / BT: If you’re classed as a knowledge or expert worker

B) Select the year of assessment and confirm all your details.

C) Fill in your statuary income. This will be listed on your EA form. If you've worked at multiple places in the last year, total up the amount from all the EA forms.

CLAIM YOUR TAX RELIEF

It's now time to get some money back in your pocket! Your gross income is subject to a list of tax reliefs. If you qualify for any of these, you can claim them.

Here are some of the important ones to note this year:

Tests for COVID-19 (Up to RM1,000)
Lifestyle purchases, like gym memberships, books, etc. (Up to RM2,500)
Life insurance (Up to RM3,000)*
Domestic travel expenses (Up to RM1,000)

*TIP: You can download your AIA premium statements via the My AIA app anytime, anywhere!

Keep the receipts for everything you've claimed somewhere safe. You are required to provide them if LHDN requests for them.

And that's it – you've filled your very first income tax

REFERENCES

https://ez.hasil.gov.my/CI/

https://www.hasil.gov.my/en/individual/individual-life-cycle/how-to-declare-income/tax-reliefs/

https://maklumbalaspelanggan.hasil.gov.my/MaklumBalas/ms-MY/CustFeed-1.aspx?cat=Permohonan

https://www.comparehero.my/budgets-tax/articles/guide-income-tax-2022#Register_under_e-Daftar

https://vulcanpost.com/773960/tax-relief-malaysia-list-claim-2022-year-of-assessment-2021/