Submitting your income tax forms in Malaysia is very easy. This is because the Malaysian IRB (Inland Revenue Board) has provided an online system which automates the entire process, making it so much easier for individuals and businesses to carry out their annual tax assessment and clearing whatever is pending between the income earner and the board.
Known in short as e-Filling, the IRB operates its online system through its e.hasil.gov.my website. This is where any income earner who is eligible to pay tax would need to log in so that they can enter all the relevant details and information for assessment.
Income earners can be divided into 2 major types. The first is individuals while the second type is referred to as businesses. In order to use the e-filling system, you must first have a login ID and password. This is the first step which must be fulfilled.
In most cases, opening a file for your income tax is very easy. If you are an income earner, your employer could apply this for you. However, you can easily open a file by walking in to any of the income tax offices convenient to you.
To use the online system, you will need a pin number to log in for the first time. You can do this when you received your income tax statement by post or you can get a temporary one at any IRB counters convenient to you. You will need a digital certificate, your income tax reference number and a standard computer with internet access and you will be ready to go.
The IRB’s e-filling system is a very convenient way of filling your taxes with the department as it is safe, fast and very secure. All you need to do is to get your information ready and then type the figures where they are relevant and the system will then calculate the final amount taxable for you.
For income earners, to ensure better and more efficient processing, you must ensure that you have provided the accurate information when it comes to your personal particulars. This include your employer’s name and file number (nombor majikan) while you must provide an active bank account number as well.
In most cases, your employer would have deducted the PCB (Potongan Cukai Bulanan) from your monthly salary. This is a convenient method to help lessen your burden of having to pay taxes at the end of each year. Usually, you would have paid more than you were supposed to and if that is the case, IRB will reimburse the surplus into your bank account. That is why your bank details are very important here. It will not take more than a month to have the amount credited back to you. However, if you have paid lesser than your taxable income, you will need to remit the payment within a month or a penalty would be imposed.
The closing date for those submitting their individual income tax assessment forms whether through e-filling or manually is on the 30th of April each year. This includes forms like BE, BT, M and MT where it is for those with no business income.
On the other hand, for income earners with business income would need to submit their forms latest by the 30th of June each year. The same procedure will be applicable for both these income earner. However, business income earners might have to pay a lump sum to income tax as they might not have adopted the PCB method.
The objective of using e-filling is to identify all the income and expenditure for the income earner in Malaysia. Therefore, it is very important that you have all the documents at hand when filing up your tax assessment form. Figures and amounts would play an important role as they determine how much you will be taxed. You must ensure that you keep the receipts and documents for 7 years which can then be discarded if no disputes are raised within this period.
Malaysia has one of the lowest income tax rates in the region where there are several types of reliefs that can help to lessen the taxable income. This include purchase of computers (RM3,000 every 3 years), broadband internet access (RM500 per year), purchase of books (RM1,000 each year) and many more.
There are several types of forms that you will be needed to submit. The BE form is for individuals who do not have any business sources. This is the most common form that is used by those who earn a monthly salary. The B Form is for individuals who own a business. The M form is for non-residents who are working with a monthly salary. This refers to individuals who are not citizens while he MT form is for those who own a business in Malaysia. The P Form meanwhile is meant for those who are in a partnership business.