Do I need to file taxes in Malaysia — and by when?

Who has to file

As a rule of thumb, if your employment income is more than RM37,333 a year — about RM3,111 a month — you are subject to tax and should register and file. So is anyone who has had PCB (the monthly tax deduction, also called MTD) taken from their salary: if tax is being deducted, you are in the system and should file.

Where does RM37,333 come from? It is not a special number — it is simply the point where, after the automatic reliefs everyone gets (the individual relief, and reliefs for a spouse or children where they apply) and the low-income rebate, there would finally be some tax to pay. Because those reliefs differ from person to person, the exact threshold shifts with your situation — the table below shows how.

The income at which tax starts

LHDN publishes the annual income at which tax begins for different situations. Below the figure for your situation there is normally no tax to pay; above it, tax starts to apply.

"Separately" and "jointly" refer to how a married couple files: separate assessment means each spouse files their own return; joint assessment means one spouse declares both incomes on a single return.

If you run a business or earn on the side

The income thresholds above are about employment. Business income is different: profits from a sole proprietorship, a partnership, gig and e-hailing work, online selling, freelancing, tuition, commissions, content creation, or any profession are all taxable. There is no fixed minimum here — business income must be declared, and the tax is worked out on your profit.

The figures above are LHDN's current stated thresholds, meant as a guide — your own position depends on your income and the reliefs you can claim. If you are unsure, the surest way to know is to work it out with your real numbers.

The "PCB as final tax" option (Cukai Muktamad)

There is one way an employee can choose not to file at all: treating the PCB already deducted from their salary as their final tax for the year (LHDN calls this Cukai Muktamad — "final tax"). It has been available since the 2014 Year of Assessment, but only if you meet all of LHDN's conditions:

You may treat your PCB as final tax if:

• your income is only employment income, with PCB deducted under LHDN's MTD rules;
• you worked for only one employer during the year;
• your PCB was deducted correctly by that employer; and
• your spouse is not electing for joint assessment under section 45 of the Income Tax Act.

Even when you qualify, filing is often still worth it: it is how you claim your reliefs and get back any tax that was over-deducted during the year. See the reliefs you could claim →

Which form is mine

Which return you file depends on the kind of income you have and whether you are a Malaysian tax resident.

The filing deadlines

These are the dates to file for a given year of income. Filing online (e-Filing) gives you a little more time than filing on paper.

The online (e-Filing) dates are set each year by LHDN's filing programme and can vary — always check the current year's dates on LHDN before you rely on them.

Your tax number (TIN) and registration

You need a Tax Identification Number (TIN) to file. Since 1 January 2024, TIN registration is automatic for Malaysian citizens and permanent residents aged 18 and over — LHDN creates it from National Registration Department records, so most people already have one without applying. If you need to register yourself, e-Daftar on the MyTax portal is the online route.

To find your TIN, check the MyTax portal (mytax.hasil.gov.my), call the Hasil Contact Centre on 03-8911 1000, or visit any HASiL (LHDN) office.

One thing to know: self-assessment

Malaysia runs on self-assessment: you work out, declare, and pay your own tax, and the return you submit is treated as your notice of assessment — LHDN does not send a separate assessment afterwards. So getting your figures right matters, which is exactly what our calculator is for.