What is an income tax return in Malaysia?
In Malaysia, income tax is assessed annually through LHDN (Lembaga Hasil Dalam Negeri). Salaried employees file using Borang BE, while those with business income use Borang B. The process involves declaring your total income, applying eligible tax relief, and calculating your final tax liability.
If your Monthly Tax Deduction (PCB) has been over-deducted by your employer throughout the year, LHDN will refund the difference after you file. This is your tax return — and the more relief you claim, the larger it can be.
Tax relief categories that most people miss
LHDN allows you to reduce your taxable income through 11 official relief categories. Here are the ones most commonly missed:
Medical & Health
Up to RM 10,000Includes medical checkups, dental treatment, serious illness, and medical devices.
Lifestyle
Up to RM 2,500Books, electronics, sports equipment, internet subscription, and gym memberships.
Education Fees
Up to RM 7,000Covers courses to improve work skills or degree/master/PhD for self.
Life Insurance & EPF
Up to RM 7,000Combined limit for EPF and life insurance. Already deducted if you're salaried.
SSPN
Up to RM 8,000Saving for your child's education through Tabung SSPN gives direct tax relief.
Common mistakes that reduce your tax return
- Not keeping receipts for medical expenses throughout the year
- Forgetting to claim lifestyle purchases like books, electronics, and gym memberships
- Missing EPF and insurance relief that's often worth RM 3,000–7,000
- Not claiming childcare relief if you have children under 6
- Skipping domestic travel receipts from holidays within Malaysia
- Ignoring SSPN contributions that are worth up to RM 8,000 in relief
How to file your income tax in Malaysia
Gather your documents
Collect EA form from employer, all receipts for claimable expenses, bank statements, and investment proofs.
Log in to MyTax
Visit mytax.hasil.gov.my and log in with your MyKad or Tax Reference Number. First-time filers need to register first.
Complete your Borang BE
Enter your income, deductions, and tax relief. Use your Finpersona summary to fill in relief categories accurately.
Submit and pay (or receive refund)
Review your final tax amount. If you've overpaid via PCB, LHDN will process your refund within 30 working days.
Track it all year with Finpersona
The biggest reason Malaysians miss deductions is not tracking receipts as they happen. Finpersona lets you snap receipts instantly, categorizes them automatically against LHDN rules, and builds your tax summary in real time — so tax season is just a review, not a scramble.
Frequently asked questions
Who needs to file income tax in Malaysia?
Any individual earning more than RM 34,000 per year (after EPF deduction) is required to file income tax in Malaysia. This includes salaried employees, freelancers, and business owners.
When is the income tax filing deadline in Malaysia?
For individuals with employment income (Borang BE), the filing deadline is 30 April each year. e-Filing via MyTax or ezHASiL is available from March 1.
How do I know if I'm due a tax refund?
If you've paid more Monthly Tax Deduction (PCB) through your salary than your final tax liability, you're entitled to a refund. Filing Borang BE correctly ensures LHDN calculates and returns the difference.
How long does it take to receive an LHDN refund?
Typically 30 working days after filing if done via e-Filing (MyTax). Refunds are deposited directly to your bank account if you've registered it with LHDN.
Can Finpersona help me file my taxes?
Finpersona tracks all your qualifying expenses and tax relief year-round and generates a ready-to-use summary. However, actual filing must be completed through LHDN's MyTax or ezHASiL portal. Think of us as your preparation tool.