Question 1

What is the minimum income to pay tax in Malaysia?

Accepted Answer

For year 2026, individuals need to pay tax if their annual income (after EPF deduction) exceeds RM37,333. This is equivalent to a gross salary of around RM3,500 per month. However, even if your income is below this threshold, you are required to declare your income.

Question 2

When is the e-Filing deadline?

Accepted Answer

For Form BE (employees): 15 May 2027. For Form B (business/freelance): 15 July 2027. e-Filing opens from 1 March 2027.

Question 3

What is PCB and why is it different from final tax?

Accepted Answer

PCB (Monthly Tax Deduction) is the estimated tax deducted by your employer each month. Final tax is calculated during e-Filing with all reliefs considered. PCB may be higher or lower than actual tax, which will be reconciled with a refund or additional payment.

Question 4

How much can zakat reduce my tax?

Accepted Answer

Zakat paid to recognised institutions can reduce tax ringgit-for-ringgit. For example: pay RM1,000 zakat, and your tax reduces by RM1,000 (not just a regular tax relief).

Question 5

Do I need to declare small side income?

Accepted Answer

Yes. All income must be declared, including side income, freelance or part-time income, regardless of amount. LHDN can access bank records and payment gateway data. Don't take the risk.

Question 6

What can I claim to reduce my tax?

Accepted Answer

Many can claim: life insurance (RM3,000), education and medical insurance (RM4,000), EPF (RM4,000), self-education (RM7,000), lifestyle including books, internet and gadgets (RM2,500), sports (RM1,000), and many more. Total reliefs can reach RM30,000+.

Question 7

What is chargeable income?

Accepted Answer

Chargeable income is the amount your tax rates are applied to. Start with your total income for the year (salary, plus business profit, rent and so on after allowable expenses), then subtract approved donations and your tax reliefs, including the automatic RM9,000 individual relief. Rebates and zakat come off the tax itself afterwards, not off chargeable income.

Question 8

Who is considered a tax resident?

Accepted Answer

You are a Malaysian tax resident for a year if you are in Malaysia for 182 days or more in that calendar year (section 7 of the Income Tax Act 1967). A shorter stay can still count if it links up with a 182-day stay in the year before or after, or if you were here at least 90 days and were resident or present for 90 days in three of the four previous years. Citizenship does not decide it. Residents pay the progressive rates and can claim reliefs, while non-residents pay a flat 30% with no reliefs.

Question 9

When should I register for a tax number?

Accepted Answer

Malaysian citizens and permanent residents aged 18 and above are given a tax identification number (TIN) automatically from JPN records, so check MyTax before applying. You need an active income tax file once you are liable to tax: for example, employment income above RM37,333 a year after EPF, PCB being deducted from your salary, or any business income, even a loss. If you don't have one yet, apply online through e-Daftar on MyTax.

Question 10

How do I fill in e-Filing?

Accepted Answer

Log in to MyTax (mytax.hasil.gov.my), open e-Filing and choose the form for year of assessment 2026: e-BE if you only have employment income, e-B if you have any business income. Copy the income figures from your Form EA, enter your reliefs, rebates and zakat, then check the tax payable or refund it calculates. Sign and submit, and save the acknowledgement receipt.

Question 11

What documents do I need for e-Filing?

Accepted Answer

Have your Form EA from each employer (employers must issue it by the end of February), your MyTax login, and receipts for every relief, rebate and zakat payment you plan to claim. If you file Form B, you also need your business income and expense records. You don't upload receipts when filing, but keep them for seven years in case LHDN asks.

Question 12

Can I edit my e-Filing after submission?

Accepted Answer

Yes, but how depends on which way the change goes. If you over-reported income or under-claimed reliefs or rebates, apply through e-Permohonan Pindaan BE on MyTax. If you under-reported income or over-claimed, submit an amended return (Borang Nyata Terpinda) to your LHDN branch within six months of the original due date (30 April 2027 for Form BE). You can self-amend only once, only if you filed on time, and LHDN adds a 10% increase on the extra tax.

Question 13

What tax reliefs are available?

Accepted Answer

Every resident gets RM9,000 individual relief automatically. Common reliefs on top of that include lifestyle (RM2,500), sports (RM1,000), self-education (RM7,000), serious-illness medical costs (RM10,000), parents' medical care (RM8,000), EPF and life insurance (RM7,000), SSPN savings (RM8,000) and RM2,000 for each child under 18. Only claim what you can back with receipts.

Question 14

What is the maximum insurance relief?

Accepted Answer

For YA 2026, life insurance or family takaful premiums are capped at RM3,000, inside a combined RM7,000 limit shared with EPF. Education and medical insurance has its own cap of RM4,000, and SOCSO and EIS contributions get up to RM350. PRS and deferred annuity premiums share a separate RM3,000 cap.

Question 15

Can EPF contributions get tax relief?

Accepted Answer

Yes. Your own EPF contributions, compulsory or voluntary, qualify for up to RM4,000 a year, inside a combined RM7,000 limit with life insurance. Your employer's share doesn't count. Employees can find the figure on Form EA or their EPF statement.

Question 16

How do I adjust my PCB?

Accepted Answer

Give your employer Form TP1 to claim reliefs and rebates during the year, such as lifestyle purchases, medical costs, insurance or zakat, and your PCB is recalculated from that month. Employers must accept TP1 claims at least twice a year. You don't attach receipts, but keep them for seven years. If you changed jobs this year, also give your new employer Form TP3 with your earlier income and PCB.

Question 17

Is a bonus subject to PCB?

Accepted Answer

Yes. A bonus is employment income, so your employer deducts PCB in the month it is paid, using LHDN's additional remuneration formula. The formula works out how much the bonus adds to your tax for the whole year and deducts that amount in one go, which is why the deduction can look large. It is still only an advance, and it is settled against your actual tax when you file Form BE.

Question 18

Should I use Form B or BE?

Accepted Answer

Use Form BE if your income is from employment only, such as salary, bonus and allowances, even with rent or dividends on the side. Use Form B if you have any business income, including freelance work, e-hailing or online selling, even if you also have a salary. You file one form, and it covers all your income for the year.

Question 19

What is the difference between Form B and BE?

Accepted Answer

Form BE is for resident individuals without business income and is due 30 April 2027 (15 May 2027 on e-Filing). Form B is for resident individuals with business income, has extra sections for business profit, allowable expenses and capital allowances, and is due 30 June 2027 (15 July 2027 on e-Filing). Both use the same tax rates and reliefs.

Question 20

What form do freelancers use?

Accepted Answer

Freelancers use Form B, because freelance fees are business income. You declare what you earned minus the expenses you incurred to earn it, such as equipment, software and the work share of your phone and internet. If you also have a salary, it goes in the same Form B.

Question 21

Does side income require Form B?

Accepted Answer

If your side income comes from a business activity you do regularly, such as selling online, freelance gigs or e-hailing, yes: report it on Form B. LHDN treats a one-off or occasional gig as other income, which can stay on Form BE. Rental income or dividends alone don't move you to Form B.

Question 22

Do Grab drivers need to pay tax?

Accepted Answer

Yes, if your income is high enough. E-hailing earnings are business income, so you declare them on Form B and deduct allowable costs such as fuel, maintenance, phone bills and platform commission. Tax usually starts once your income after expenses passes about RM37,333 a year, and the Form B e-Filing deadline is 15 July 2027.

Question 23

Does e-commerce income need to be taxed?

Accepted Answer

Yes. Profit from selling online, whether on Shopee, Lazada, TikTok Shop or your own website, is business income and goes on Form B. You are taxed on profit, not sales: deduct stock costs, platform fees, delivery and packaging. Keep your records for seven years.

Question 24

Do YouTubers need to declare income?

Accepted Answer

Yes. YouTube and TikTok payouts, sponsorships, affiliate commissions and paid collaborations are business income and go on Form B. LHDN's guidance for social media influencers also counts free products you receive for reviews or promotion as income. Keep contracts, invoices and records of your expenses.

Question 25

Does part-time income need to be declared?

Accepted Answer

Yes. Part-time wages from an employer are employment income: your employer should give you Form EA, and you declare it on Form BE together with any other salary. Regular part-time freelance or gig work counts as business income and goes on Form B. Whether you end up paying tax depends on your total income after reliefs, not on each job.

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