Do I need to be registered as a taxpayer? What are my responsibilities as a taxpayer?
Malaysia operates under the self-assessment tax system (SAS). Therefore, it is everybody's legal responsibility to compute tax liability, file tax return and pay what is legally due on a timely manner.
Self Assessment for individuals and non-corporate taxpayers such as businesses, partnerships and cooperative societies was implemented commencing from the year of assessment 2004 while for companies, the system was implemented commencing from the year of assessment 2001.
Registering for Tax
You are responsible to register as a taxpayer
with the Inland Revenue Board of Malaysia
(Malay: Lembaga Hasil Dalam Negeri Malaysia
) if you are:
- receiving annual income of more than RM34,001 per year, after Employees' Provident Fund (EPF) deduction;
- married with non-working spouses receiving annual income of more than RM45,001 per year, after Employees' Provident Fund (EPF) deduction;
- running a business or a person who has business income;
- a new employee who is subject to Monthly Tax Deduction (MTD) (Malay: Potongan Cukai Bulanan (PCB));
- eligible for tax refund that has been deducted from dividend income;
- selling or buying a property.
Once you are registered as a taxpayer, it is your responsibility to furnish your employer and the Inland Revenue Board of Malaysia with complete and up-to-date personal and relevant records.
- Inland Revenue Board of Malaysia
- Types of Records: Personal Particulars via e-Kemaskini
- Mailing address
- Residential address
- Business address
- Phone number
- Email address
- Bank account number (if any, for refund purposes)
- Types of Records: Personal Particulars via e-Filing
- Marital Status
- Particulars of spouse (for married individuals)
- Types of Records: Deduction Claims and Rebates via e-Kemaskini
Screenshot of e-Kemaskini (Rebate and Deduction Claim)
- Claims can be updated from time to time and will be prefilled in the Income Tax Return Form (e-Filing) for the relevant year of assessment
- Send to your employer, completed:
- Form TP1, if you want to claim deductions and rebates in the relevant month, subject to approval by your employer.
- Form TP3, to notify your employer of the information relating to your employment with previous employer in the current year.
You are responsible to check your tax position and monitor your remaining tax balance payment and tax overpaid in the e-Lejar
Screenshot of e-Lejar
If you are employed:
- ensure the amount deducted by your employer is the exact amount remitted to the Inland Revenue Board of Malaysia.
- ensure the Monthly Tax Deduction (MTD) payment shows the correct figure.
If you are self-employed or have business income:
- ensure your Installment Payment Notice (CP500) shows the correct figure.
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