Which tax form should freelancers use?

Most freelancers use Form B (resident individual with business income). If you have a full-time job and freelance, still use Form B, because you have business income.

Can I claim my phone bill and internet for working from home?

Yes, but only the portion used for work. For example, if 70% of your phone time is for work, you can claim 70% of the phone bill. You must have reasonable justification.

Do I need to declare small side income?

Yes. All income must be declared, including small side income. Even if your total is below the tax threshold, you must still declare. LHDN can access your bank records.

What happens if I don't declare freelance income?

LHDN can impose penalties of up to RM20,000, imprisonment of up to 6 months, or both. You will also have to pay back taxes with additional penalties.

Tax guide for freelancers and gig workers.

For freelancers, side hustlers, content creators and all gig economy workers in Malaysia. From calculating tax to filing via LHDN e-Filing.

Take the tax form quiz Calculate your tax

Freelancer Tax Hub2026

Important for all freelancers

Declare all income, even below the tax threshold.

LHDN can access your bank and payment gateway records. Avoid penalties by declaring income honestly.

Which form freelancers use

Most freelancers file

Form B

Resident individual with business income

Tax threshold

RM 37,333

a year, after expenses and EPF (2026)

Form B e-Filing deadline (YA 2026)
15 July 2027
Keep receipts for
7 years
Maximum penalty
RM20,000 or 6 months, or both
Who it is for
Freelancers and gig workers

Guides by work type

Who counts as a freelancer or gig worker.

Digital freelancer

Designer, developer, writer, marketer.

View guide

Service drivers

Grab, MyCar, Bateriku, Lalamove.

View guide

Content creator

YouTuber, influencer, streamer.

View guide

e-Commerce

Online seller, dropship, reseller.

View guide

Part-time work

Side job, tuition, contract work.

View guide

Property agent

Real estate agent, sales commission.

View guide

What income to declare

All of it, on Form B.

DeclareALL

Declare all income

All income must be declared, including small side income
Even if your total is below the tax threshold, you must still declare
LHDN can access your bank and payment gateway records

Use Form BB

Which form to use

Most freelancers use Form B (resident individual with business income)
If you have a full-time job and freelance, still use Form B, because you have business income
Tax is due if annual income after expenses and EPF exceeds RM37,333 (2026)

Form BE vs Form B

Deductible expenses to reduce tax

As a freelancer, you can claim business-related expenses to reduce your taxable income.

Equipment

Work equipment

Computer and laptop
Software and subscriptions (Adobe, Canva, etc.)
Camera and recording equipment
Phone and work gadgets

Office

Office and utilities

Office or workspace rental
Internet and phone bills
Electricity (office portion)
Office furniture

Travel

Travel and transport

Petrol and parking (for work)
Toll and vehicle maintenance
Accommodation for outstation work
Flight or bus tickets for clients

Services

Professional services

Accounting and tax fees
Legal fees
Business insurance
Bank and payment processing fees

Marketing

Marketing and promotion

Online ads (Facebook, Google Ads)
Promotional materials and printing
Website hosting and domain
Business cards and branding

Pro tipKeep all receipts. LHDN can audit within 7 years. Use CukaiMax to auto-scan and store receipts in one place.

Record-keeping

Common mistakes and how to avoid them.

Mistake

Not declaring all income

Declare all income, including small side income. LHDN can check your bank records.

Mistake

Not keeping expense receipts

Keep all business-related receipts. LHDN can request proof anytime within 7 years.

Mistake

Claiming personal expenses

Only claim business-related expenses. Don't mix personal with business expenses.

Mistake

Not keeping income and expense records

Keep monthly records. Use apps or spreadsheets to track income and expenses.

Tax saving tips

Six habits for freelancers.

01
Separate bank accounts
Use a separate bank account for business and personal. Makes tracking income and expenses easier.
02
Keep digital receipts
Snap photos of receipts and store them in the cloud. CukaiMax can auto-scan and categorise them for you.
03
Pay zakat early
Pay zakat early in the year to reduce tax. Zakat deducts from tax ringgit-for-ringgit.
04
Maximise reliefs
Claim all eligible reliefs: insurance, EPF, education and more. Can save thousands of ringgit. See all reliefs
05
Estimate your tax
Calculate estimated tax monthly and set aside funds to avoid surprises at tax time. Calculate your tax
06
Register your business
If income is consistent, consider registering a business with SSM. Additional reliefs are available for businesses.

Questions

About freelancer tax

Same as regular employees: if your annual income (after deducting expenses and EPF) exceeds RM37,333 for 2026, you need to pay tax. You must still declare income even if it is below the threshold.

Guide

Form BE

How it compares with Form B

Guide

Tax relief

The complete list of reliefs

By profession

Grab driver

Tax for service drivers

Blog

Tax articles