Freelancer tax in Malaysia.
Income tax for freelancers: when to pay, how much, and how to reduce your tax legally.
FreelancerYA 2026
Key takeaway
Freelance income is business income.
File Form B, not Form BE, once your annual income after EPF exceeds the threshold.
Tax form
Form B
not Form BE
Tax threshold
RM 37,333
a year after EPF (YA 2026)
- Form B e-Filing deadline15 July 2027
- Tax thresholdRM37,333 a year
- Keep receipts for7 years
- Who it is forSelf-employed, paid directly by clients
Who is a freelancer
Someone self-employed who is paid directly by clients, not a monthly salary from an employer.
Content writer / Copywriter
Web developer / Programmer
Social media manager
Photographer / Videographer
Consultant / Coach
Online tutor / Instructor
Grab / Food delivery rider
Dropshipper / Reseller
YouTuber / Content creator
Do I need to pay tax?
You need to file if annual income exceeds the threshold.
CurrentYA 2026
RM37,333 a year
- After EPF
- All freelance income is business income and must be declared
PreviousYA 2024
RM34,000 a year
- After EPF
Important: Even if income is below the threshold, it's worth filing if you have large reliefs (like voluntary EPF). You may be eligible for a refund.
How to calculate freelancer tax
Five steps from gross income to taxable income.
- 01
Calculate gross income
Total all payments received throughout the year from all clients.Example: RM60,000 - 02
Deduct business expenses
Deduct all expenses related to your freelance work.Example: RM15,000 - 03
Get net income
Gross income minus expenses = net income.Example: RM45,000 - 04
Deduct tax reliefs
Deduct individual relief and other eligible reliefs.Example: RM20,000 - 05
Get taxable income
Net income minus reliefs = taxable income.Example: RM25,000
Deductible expenses
Reduce your taxable income by deducting legitimate business expenses.
01 · Equipment
Equipment and technology
- Computer / Laptop
- Smartphone (for work)
- Software and subscriptions (Adobe, Canva, etc.)
- Domain and website hosting
- Camera / audio equipment
02 · Workspace
Workspace
- Office / co-working space rental
- Office furniture (desk, chair)
- Internet bill (work portion)
- Electricity bill (work portion)
03 · Services
Professional services
- Accountant fees
- Legal fees (work-related)
- Business insurance
- SSM registration cost (if any)
04 · Marketing
Marketing and advertising
- Facebook / Instagram Ads
- Google Ads
- Promotional materials and printing
- Networking and events costs
Tips for freelancers
Four habits that make tax time easier.
Keep all receipts
Keep all business expense receipts. LHDN can request proof up to 7 years later.
Record monthly income
Record all payments received each month. Use spreadsheets or apps like CukaiMax.
Separate bank accounts
Open a separate bank account for business. Makes tracking and auditing easier.
Set aside tax money
Set aside 10-20% of monthly income for the annual tax payment.
Questions
About freelancer tax
Yes, if annual income exceeds RM37,333 (YA 2026) or RM34,000 (YA 2024). All freelance income is considered business income and must be declared.
Related guides
Guide
Form B
How to fill it in
Guide
Tax relief
The complete list of reliefs
Guide
Tax deadlines
Important dates for e-Filing
Guide
e-Filing
Step-by-step guide
Sources: LHDN, Business Income (business income guidelines); LHDN, Tax Reliefs (individual tax relief list); LHDN e-Filing portal (official e-Filing portal). Updated 2026. Information on this page is based on official LHDN guidelines and Malaysian government sources.
Manage freelance taxes easily
CukaiMax helps freelancers scan receipts, track income and categorise expenses automatically. Ready for Form B without stress.
On the App Store. Google Play coming soon.
Form B · Freelancer
Client paymentsIncome
Software subscriptionsExpense
Co-working rentalExpense
Stop overpaying taxes.
Track receipts year-round, auto-categorise deductions and export LHDN-ready files.