How to File Your Income Tax in Malaysia 2026: Step-by-Step Guide

Filing your income tax return might feel overwhelming the first time, but once you understand the process it becomes straightforward. For Year of Assessment (YA) 2025, Malaysian taxpayers have until April 30, 2026 to submit their returns online via the MyTax portal. This guide walks you through every step — from figuring out whether you need to file, to selecting the right form, to submitting and tracking your refund.

Who Needs to File Income Tax in Malaysia?

Not every Malaysian resident needs to file a tax return, but the threshold is lower than many people assume.

You must file if your annual income exceeds RM34,000 after deducting your EPF contributions. This threshold applies to Malaysian tax residents — individuals who have stayed in Malaysia for at least 182 days in the calendar year (or meet other qualifying criteria under the Income Tax Act 1967).

It is important to note that the obligation to file is separate from the obligation to pay tax. Even if your PCB (Potongan Cukai Berjadual) deductions throughout the year have fully covered your tax liability, you are still legally required to submit a return. Failing to file when required can attract a penalty of RM200 to RM2,000 or imprisonment under Section 112 of the Income Tax Act.

What Counts as Income?

Taxable income includes more than just your monthly salary. LHDN (Lembaga Hasil Dalam Negeri) expects you to declare:

• Employment income: salary, wages, bonuses, commissions, allowances
• Benefits in kind: company car, housing allowance, medical benefits exceeding the exempt threshold
• Freelance and self-employment income: even occasional consulting fees
• Rental income: net rental (rent received minus allowable expenses)
• Dividends: amounts exceeding RM5,000 from non-exempt sources
• Interest income: from non-exempt deposits

Non-Residents

If you are a non-resident for tax purposes (fewer than 182 days in Malaysia), you file Form M and are taxed at a flat rate of 30% on all Malaysian-sourced income. Non-residents are not eligible for personal reliefs. If you recently relocated and are uncertain of your residency status, consult a tax agent or LHDN directly.

Which Tax Form Do You Need?

LHDN uses different forms depending on your income type and residency status. Choosing the wrong form is a common mistake that can delay processing or trigger queries from the tax authority.

The vast majority of salaried employees in Malaysia use Form BE. If your income comes entirely from a registered employer and you have no side business, freelance work, or sole proprietorship registered with SSM, Form BE is the correct choice.

If you have any business income — even casual freelancing invoiced under your own name — you are required to use Form B, which has a later deadline of June 30.

Quick Decision Guide

1. Are you a Malaysian tax resident? → Yes: continue. No: use Form M.
2. Do you have business or self-employment income? → Yes: Form B. No: Form BE.
3. Are you a knowledge worker in Iskandar Malaysia with a special tax rate? → Form BT.

Key Deadlines for 2026

Missing the deadline is one of the easiest ways to incur an unnecessary penalty. Mark these dates in your calendar.

E-filing is strongly recommended. Manual submissions require physical forms sent to LHDN branch offices and close two weeks earlier than the e-filing deadline.

Penalties for Late Filing

Under Section 112(1) of the Income Tax Act 1967, failing to file or filing late can result in:

• A fine of RM200 to RM2,000, or
• Imprisonment up to six months, or both

LHDN can also issue a notice of assessment based on estimated income if you fail to file, and the burden then falls on you to challenge it within the required timeframe.

Step-by-Step: How to File via MyTax (e-Filing)

The MyTax portal at mytax.hasil.gov.my is the primary e-filing platform for individual taxpayers. Here is a complete walkthrough for YA 2025.

Step 1: Access the MyTax Portal

Go to mytax.hasil.gov.my. The portal is available in both English and Bahasa Malaysia. Use a modern browser — Chrome or Edge are most reliable.

Step 2: Log In

• Returning users: Enter your MyKad IC number and password, then complete the OTP verification sent to your registered mobile number.
• First-time users: Click “Daftar” (Register) and set up your account using your IC number. You will need to verify your identity via your tax file number or through the MyIdentiti digital certificate. If you have never filed before and do not have a tax file number, register for one first at any LHDN branch or online via the e-Daftar service within MyTax.

Step 3: Navigate to e-Filing

From the MyTax dashboard, select “e-Filing” from the main menu, then choose “e-BE” for YA 2025. The portal will load your return form for the assessment year.

Step 4: Verify Pre-Filled Income Data

LHDN receives income data directly from employers (via the CP8D/EA form submission process). Much of your employment income, EPF deductions, and PCB amounts may already be pre-filled. Do not assume the pre-filled data is complete or accurate. Cross-check every figure against your own EA form:

• Total gross employment income
• Total EPF contributions deducted
• Total PCB deducted for the year
• Benefits in kind (if any)

If there are discrepancies, use your EA form as the authoritative source and amend the figures accordingly.

Step 5: Enter Your Tax Reliefs

This is the section most taxpayers under-optimise. You must actively input each relief — the system will not claim them for you. Work through each category:

• Individual relief: RM9,000 (automatic)
• EPF contributions: up to RM4,000
• Life insurance premiums: up to RM3,000
• Medical and education insurance: up to RM3,000
• Lifestyle (books, internet, sports, devices): up to RM2,500
• Medical expenses for serious illness: up to RM10,000
• Complete medical examination: up to RM1,000
• SOCSO and EIS contributions: up to RM350
• Education fees (self): up to RM7,000
• Supporting parents: up to RM8,000 (RM1,500 if not living with you)
• Child relief: RM2,000 per child (higher amounts for disabled children)

For a full breakdown of every available relief and the amounts for YA 2025, see our guide on tax reliefs in Malaysia 2026.

Step 6: Review Chargeable Income and Tax Payable

Once all income and reliefs are entered, the portal calculates your chargeable income (total income minus all reliefs and deductions) and applies the progressive tax rates. For YA 2025, the rates range from 0% on the first RM5,000 of chargeable income up to 30% on income above RM2,000,000.

Use our Income Tax Calculator to estimate this figure before you begin filing so you are not surprised by the result.

Step 7: Check Your PCB Balance

Compare the total PCB deducted by your employer (shown on the form) against the tax payable calculated by the system.

• PCB > Tax Payable: You are entitled to a tax refund. The refund amount is shown automatically.
• PCB < Tax Payable: You have tax owing. You must pay this balance before or by the deadline via FPX, credit/debit card, or at any bank or post office.
• PCB = Tax Payable: Nil balance, nothing to pay or refund.

Step 8: Submit and Save Your Acknowledgement

Review all figures one final time, then click “Submit”. The portal generates an acknowledgement with a reference number — save or print this. You can also download a PDF copy of your submitted return from MyTax. Keep this document for at least seven years in case of an audit.

Your EA Form — What It Contains

The EA Form (Borang EA) is an annual income statement issued by your employer. It is the single most important document you need before filing.

Key Fields on the EA Form

When Must Employers Issue It?

Under the Income Tax Act, employers must give employees their EA forms by the last day of February — that is, February 28, 2026 for YA 2025 income. This gives employees at least two months before the April 30 e-filing deadline.

What If You Have Not Received Your EA Form?

If February has passed and you still have not received your EA form:

1. Follow up with your HR or payroll department in writing (email creates a paper trail).
2. Check whether your employer has uploaded it digitally to a payroll portal.
3. If your employer is unresponsive, contact LHDN directly — employers who fail to issue EA forms face penalties under Section 83 of the Income Tax Act.

Do not delay filing while waiting. You can use your own payslip records and EPF statements to reconstruct the figures, and amend the return later if needed.

Claiming Tax Reliefs When Filing

Reliefs directly reduce your chargeable income, so claiming all reliefs you are entitled to is the single most impactful action you can take to reduce your tax bill.

Reliefs That Taxpayers Frequently Miss

• Lifestyle relief (RM2,500): Covers purchases of books, newspapers, internet subscriptions, smartphones, tablets, computers, and sports equipment. Many people forget receipts for these everyday purchases.
• SOCSO and EIS contributions (RM350): Automatically deducted from salary but easily overlooked when filing.
• Complete medical examination (RM1,000): A separate sub-limit within the medical category — your annual health screening qualifies.
• Breastfeeding equipment (RM1,000): For mothers with children aged two and below.
• Child care fees (RM3,000): For registered nurseries and kindergartens.
• Electric vehicle charging equipment (RM2,500): Introduced for recent assessment years.

Keep Receipts for Seven Years

LHDN can audit any return up to seven years after submission. You are not required to submit receipts when filing, but you must be able to produce them on request. Maintain a folder — physical or digital — organised by tax year.

How to Get Your Tax Refund Faster

If you are owed a refund, the speed at which you receive it depends almost entirely on one thing: whether your bank account is registered with LHDN.

Register Your Bank Account via MyTax

Log in to MyTax, navigate to “My Account” or “Kemaskini Maklumat Akaun Bank”, and enter your bank account number. LHDN supports direct credit to most Malaysian banks. Once registered, refunds are typically credited within 30 working days of your return being processed.

Without a registered bank account, LHDN issues a cheque — which takes considerably longer, can be lost in the mail, and requires physical collection or banking.

Checking Your Refund Status

From the MyTax dashboard, go to “Semakan Bayaran Balik” (Refund Status Check). You can see whether your return is being processed, whether additional information has been requested, and when the refund has been approved.

Common Reasons for Delayed Refunds

• Bank account not registered, or details entered incorrectly
• LHDN has flagged the return for review (common if reliefs claimed are significantly higher than prior years)
• Income discrepancies between what you declared and what the employer reported
• Outstanding tax liability from a previous assessment year, which LHDN offsets against the refund

Common Mistakes to Avoid

After reviewing the filing process, here are the errors that most frequently cause problems for Malaysian taxpayers.

Filing Under the Wrong Form

Submitting Form BE when you should have used Form B (because of freelance or rental income) is a disclosure error. LHDN cross-references income data from multiple sources, including bank records, SSM registrations, and third-party reports. Correct errors promptly by filing an amended return.

Forgetting to Declare All Income Sources

Employment income is the most visible, but LHDN expects full disclosure of:

• Freelance fees paid by clients (even if paid in cash)
• Rental income from any property you own
• Dividends exceeding RM5,000 from non-exempt unit trusts or shares
• Director fees if you sit on a company board

Missing the Deadline

April 30 comes quickly, especially for first-time filers navigating the MyTax portal. Set a calendar reminder in early April, gather your documents by mid-April, and aim to submit by April 25 to leave buffer time in case of portal issues.

Not Claiming Available Reliefs

Unclaimed reliefs are money left on the table. There is no mechanism for LHDN to claim reliefs on your behalf — you must declare them. A 30-minute review of the available reliefs against your actual spending for the year can reduce your tax bill by hundreds or even thousands of ringgit.

Relying Solely on PCB as Proof of Payment

PCB is a monthly withholding, not a final tax assessment. Your actual tax liability is determined when you file your return. Always reconcile your PCB total against your calculated tax — especially in years when you received a large bonus, changed jobs, or had a salary increase mid-year.

Filing your income tax does not have to be stressful. With your EA form in hand, your relief receipts organised, and this guide open beside you, most salaried employees can complete their Form BE in under 30 minutes. The key is to start early, double-check the pre-filled figures, and claim every relief you are entitled to.

For a quick estimate of what you owe before you file, use our Income Tax Calculator.