Complete guide on income tax for freelancers in Malaysia. Learn when to pay, how much, and how to legally reduce your tax.
A freelancer is someone who is self-employed and receives payment directly from clients, not a monthly salary from an employer. Examples:
You need to file taxes if annual income exceeds:
YA 2024
RM34,000
/year (after EPF)
YA 2025
RM37,333
/year (after EPF)
Important!
Even if income is below threshold, it's recommended to file if you have large reliefs (like voluntary EPF) - you may be eligible for a refund!
Total all payments received throughout the year from all clients.
Example: RM60,000
Deduct all expenses related to your freelance work.
Example: RM15,000
Gross income minus expenses = net income.
Example: RM45,000
Deduct individual relief and other eligible reliefs.
Example: RM20,000
Net income minus reliefs = taxable income.
Example: RM25,000
Reduce your taxable income by deducting legitimate business expenses:
Keep all business expense receipts. LHDN can request proof up to 7 years later.
Record all payments received each month. Use spreadsheets or apps like CukaiMax.
Open a separate bank account for business. Makes tracking and auditing easier.
Set aside 10-20% of monthly income for annual tax payment.
Yes, if annual income exceeds RM37,333 (YA 2025) or RM34,000 (YA 2024). All freelance income is considered business income and must be declared.
Freelancers must use Form B (not Form BE). This is because freelance income is classified as business income.
The e-Filing deadline for Form B is July 15 each year. For YA 2024, the deadline is July 15, 2025.
Not mandatory, but recommended if income exceeds RM30,000/year. SSM registration (RM30-RM60) makes dealings with corporate clients easier.
Yes! Work equipment like computers, phones, and software can be deducted as business expenses or capital allowance (depreciation).
Use Form B and declare both incomes. Salary income is filled in the employment section, freelance income in the business section.
CukaiMax helps freelancers scan receipts, track income, and categorize expenses automatically. Ready for Form B without stress.
Sumber Rasmi
LHDN - Business Income
Business income guidelines
Updated: 2026
LHDN - Tax Reliefs
Individual tax relief list
Updated: 2026
LHDN e-Filing Portal
Official LHDN e-Filing portal
Updated: 2026
Information on this page is based on official LHDN guidelines and Malaysian government sources.