A Comprehensive Guide to Personal Tax Returns in Malaysia:
2024 Year of Assessment
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| As the 2024 Year of Assessment approaches, it is essential for Malaysian taxpayers to understand their obligations, explore available tax reliefs, and ensure compliance with the Inland Revenue Board of Malaysia (LHDN). Filing your personal tax returns not only fulfills a legal requirement but also allows you to maximize your eligible tax reliefs and deductions, potentially reducing your taxable income. |
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Key Dates to Remember
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The tax filing deadline for individual taxpayers in Malaysia is typically:
- April 30 for taxpayers without business income (Form BE).
- June 30 for taxpayers with business income (Form B).
Ensure that you meet the relevant deadlines to avoid late penalties or interest charges. |
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What if I don’t file my Tax Return? Or I have wrongly filed my Tax Return?
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| The following table are the types of Offence under the Income Tax Act 1967: |
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| Type Of Offences |
Provisions Under ITA 1967 |
Amount Of Fine (RM) |
| Failure (without reasonable excuse) to furnish an Income Tax Return Form. |
112(1) |
200.00 to 20,000.00 / Imprisonment for a term not exceeding 6 months / Both |
| Failure (without reasonable excuse) to give notice of chargeability to tax. |
112(1) |
200.00 to 20,000.00 / Imprisonment for a term not exceeding 6 months / Both |
| Make an incorrect tax return by omitting or understating any income. |
113(1)(a) |
1,000.00 to 10,000.00 and 200% of tax undercharged |
| Give any incorrect information in matters affecting the tax liability of a taxpayer or any other person. |
113(1)(b) |
1,000.00 to 10,000.00 and 200% of tax undercharged |
| Wilfully and with intent to evade or assist any other person to evade tax. |
114(1) |
1,000.00 to 20,000.00 / Imprisonment for a term not exceeding 3 years / Both and 300% of tax undercharged |
| Assist or advise (without reasonable care) others to under declare their income. |
114(1A) |
2,000.00 to 20,000.00 / Imprisonment for a term not exceeding 3 years / Both |
| Attempt to leave the country without payment of tax. |
115(1) |
200.00 to 20,000.00 / Imprisonment for a term not exceeding 6 months / Both |
| Obstruct any authorized officer of IRBM in carrying out his duties. |
116 |
1,000.00 to 10,000.00 / Imprisonment for a term not exceeding 1 year / Both |
| Fails (without reasonable excuse) to comply with an order to keep proper records and documentation. |
119A |
300.00 to 10,000.00 / Imprisonment for a term not exceeding 1 year / Both |
| Fails (without reasonable excuse) to comply with a notice asking for certain information as required by IRBM. |
120(1) |
200.00 to 20,000.00 / Imprisonment for a term not exceeding 6 months / Both |
| Fails (without reasonable excuse) to give notice on changes of address within 3 months. |
120(1) |
200.00 to 20,000.00 / Imprisonment for a term not exceeding 6 months / Both |
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Who Needs to File Personal Tax Returns?
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You are required to file your personal income tax returns if:
- You are earning an annual income exceeding RM34,000 after EPF deductions.
- You are a Malaysian resident under the Income Tax Act 1967.
Even if your income does not meet the threshold, filing may be beneficial, especially if you have excess tax credits or wish to claim refunds. |
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Tax Reliefs for the 2024 Year of Assessment
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| Individual and Dependent Relief |
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- Relief for self: RM9,000
- Spouse without income: RM4,000
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| Child Relief |
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- Per child under 18: RM2,000
- Per child over 18 and pursuing higher education: RM8,000
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| Medical Expenses |
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- Medical expenses for self, spouse, or children: RM8,000
- Expenses for serious diseases (including parents): RM8,000
- Full medical check-ups: RM1,000
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| Lifestyle Relief |
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- Expenses on books, gadgets, sports equipment, and internet subscriptions: RM2,500
- Additional lifestyle relief for the purchase of personal computers, smartphones, or tablets: RM2,500
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| EPF and Life Insurance |
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- Combined relief for EPF contributions and life insurance premiums: RM7,000
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| SSPN Contributions |
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- Net savings in the National Education Savings Scheme (SSPN): RM8,000
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| Education and Skill Development |
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- Fees for professional courses or self-enhancement programs: RM7,000
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| Parental Care Relief |
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- Relief for parents aged 60 and above (with certain conditions): RM8,000
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| Other Reliefs |
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- Donations to approved charitable organizations: up to 10% of aggregate income
- Domestic tourism expenditure: RM1,000
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Steps to File Your Tax Returns in Malaysia
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Register with LHDN: Ensure you have a tax file number and access to e-Filing through LHDN’s online platform, MyTax. |
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2
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Gather Necessary Documents: Prepare documents such as salary slips, EA forms, receipts for tax relief claims, and investment income statements. |
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3
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Log In to e-Filing: Access the e-Filing portal, update your personal details, and input your income and reliefs. |
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Review and Submit: Double-check all entries for accuracy, compute your tax liability, and submit your return before the deadline. |
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5
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Make Payments (if applicable): If additional tax is payable, settle it through online banking or other approved methods. |
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Avoid Common Pitfalls
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| Incomplete Documentation |
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| Always keep receipts and proof of purchase for at least seven years to support your claims. |
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| Missing Deadlines |
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| Late submission may incur penalties up to 20% of the tax payable. |
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| Incorrect Information |
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| Ensure accurate reporting of all income sources to avoid audits or penalties. |
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Understanding and effectively utilizing the available tax reliefs can make a significant difference in your overall tax liability. The 2024 Year of Assessment provides a range of reliefs designed to support individual taxpayers while promoting savings, education, and healthcare. By staying organized and informed, you can seamlessly navigate your personal tax filing process.
For further assistance, contact the LHDN or consult a licensed tax agent. Filing your taxes may seem daunting, but with the right knowledge and preparation, you can turn it into a smooth and beneficial experience. |
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