Am I taxable ?

Am I taxable?

This is a frequently asked question especially to those who are entering their career world. Some people are saying that if your salary is low than RM2,500 you are not subjected to any tax.  Let see how LHDN see this issue !

Malaysia Income Tax

  • If you earns an annual employment income of RM25,501 (after EPF deduction) has to register a tax file.
  • With effect year 2010 an individual who earns an annual employment income of RM26,501 (after EPF deduction) has to register a tax file.
  • Nevertheless, with effect year 2013 an individual who earns an annual employment income of RM30,667 (after EPF deduction) has to register a tax file.

If the employee is eligible for STD deduction, he is advised to register an income tax file before STD is implemented.

What should I do if my income is taxable?

The first step is to register a tax file.  Application to register an income tax reference number can be made at the nearest IRBM branch.

Documents Required For Registration

  • A copy of the latest Salary Statement (EA/EC Form) or latest Salary Slip
  • A copy of Identification card (IC) / police IC / army IC / international passport
  • A copy of marriage certificate (if applicable)

You can also register an Income Tax reference number via e-Daftar

Non-receipt of Income Tax Return Form (ITRF)

The Return Form for a resident individual with no business income will be issued and posted to all taxpayers every year through the process of `General Issue`.

If you do not receive the form, you can obtain it from :

  1. The nearest IRBM Branch, or
  2. Information Processing Department, Pandan Indah, Kuala Lumpur, or
  3. Download from IRBM�s website.

Please note that a photocopy of the form is not accepted for submission.

You are encouraged to use our e-filing facility if you do not receive a Return Form. Please contact any IRBM branch or our Customer Service Centre at 1-800-88-LHDN (5436), for further enquiries on e-Filing.

Chargeability of Income Tax for Foreigners

If you are a foreigner employed in this country you must give notice of your chargeability to the Non-Resident Branch or the nearest IRBM branch within 2 months of your arrival in Malaysia.

Customer Service Centre

Scope of Taxation

An individual who is resident in Malaysia is taxable on all income accruing in or derived from Malaysia and on income received from outside Malaysia. The scope of taxation of an individual depends on his resident status.

However, with effect from the year of assessment 2004, income received in Malaysia from outside Malaysia is exempted from tax. Hence, an individual, either or non-resident, is taxable only on income accruing in or derived from Malaysia.

Read our previous post on how to register tax file.

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