How to Register Income Tax in Malaysia

5 min read|Last Updated: March 15, 2024|
What’s in this article
Book a consultation for your business expansion today.

We all know that in this current world, payment of taxes is mandatory with income tax registration required by the law in most countries. This enables the government bodies to keep track of individuals and companies who are required to pay taxes to the relevant tax authorities in the country.

By registering, the authorities are better equipped when handling tax crimes such as fraud or evasion, while at the same time understand the origin of the taxable income.

Income Tax Registration in Malaysia

The Inland Revenue Board of Malaysia (LHDN) assigns a unique number to every individual that has registered their tax. As the income earned over the year of assessment differs across every individual, the amount of taxes payable is different as well.

Malaysia Corporate Secretary Ramu

Taxpayers who intend to register for an income tax number may do so by filling up softcopies or hardcopies forms. The softcopy income tax form can be obtained from the LHDN’s website while hardcopies can be obtained from the LHDN’s branches located throughout Malaysia.

Here is the 2-step process for your income tax registration in Malaysia:

  • Step 1: Those who are to be taxed for the first time must register an income tax reference number before proceeding as mentioned above.
  • Step 2: When registering, the taxpayer is required to bring along the following items:

    • Latest salary statement / payslip
    • Identification card
    • Police IC
    • Army IC
    • International passport
    • Marriage certificate

    Those who are applying for e-Filing for the first time must also apply for a personal identification number (PIN) number at an LHDN branch. A PIN is required by those who are logging in for the first time.

Malaysia Corporate Secretary Ramu

Once registered, the income tax number will be provided within 3 working days.

What Are the Documents Required for Filing of Taxes in Malaysia?

After income tax registration, the next step is to file your taxes. Some of the documents and information required include, among others:

What Are the Forms Required for Payment of Taxes?

There are several forms for the payment of taxes. These forms depend on the taxpayer’s source of income and status as a tax resident. Here are the respective forms required for the different groups of taxpayers:

Type of Taxpayers Forms Required
Employed resident individuals Form e-BE/BE
Resident individuals who own & run a business Form e-B/B
Resident individuals who are knowledge workers Form e-BT/BT
Non-resident individuals who are either employed or own & run a business in Malaysia Form e-M/M
Non-resident individuals who are knowledge workers Form e-MT/MT

Every taxpayer in Malaysia must log into the tax account and pay the tax amount stated before the due date. The amount to be paid will be calculated automatically once the details of the income has been received by the authorities.

Role of LHDN in Tax Registration in Malaysia

If you’re interested in knowing more about the LHDN, this is for you!

The LHDN was established on March 1, 1996, and to date, LHDN is responsible for the collection of revenue for the Ministry of Finance (MOF). The MOF is the governing body responsible for the management of all government’s revenue and expenditures.

  • One of LHDN’s main responsibilities is the improvement and effectiveness of tax administration in Malaysia. There are a total of six government acts guiding the actions of LHDN which includes:

    • Petroleum Act 1967
    • Real Property Gains Tax Act 1976
    • Income tax Act 1967
    • Promotion of Investments Act 1986
    • Labuan Offshore Business Activity Tax 1990
    • Stamp Act 1949
  • LHDN is to perform as a government agent. They are obligated to perform tax-related services which includes administration, assessment, enforcement, and collection with regard to the payment of taxes.

  • The LHDN is the official representative of the Malaysian government with regard to any matter regarding taxation; such is the case whether LHDN or government authorities happen to be inside or outside Malaysia.

  • The LHDN is also required to serve as an advisory body to the government with regard to any matters which are related to taxation.

  • The LHDN is to liaise with certain ministries and statutory bodies as well as perform any other functions which are required of it by any other written law.

  • It is also required to act as a collection agent for and on behalf of any entity involved with the recovery of any loans which must be repaid.

Role of a Tax Agent in Malaysia

tax agent is the go-to person for useful tax related advices, up-to-date tax requirements, in-depth understanding on all tax deductions that you are entitled to claim, tax compliance requirements and actions and above all, tax planning.

As a tax agent, our team at Paul Hype Page & Co. will provide you the necessary information and assistance on policy updates, compliance regulations, changes to tax conditions, income tax registration, and corporate tax filings in Malaysia. We will also help to upkeep your important company files, tax reports, and tax records.

GET STRATEGIC TAX PLANNING FROM REGIONAL TAX EXPERTS

Come down to our office or connect with us virtually for strategic tax consultations and other corporate services today.

FAQs

Can taxpayers appeal on tax increase?2024-03-14T18:18:24+08:00

Yes. Taxpayers may submit the application for appeal on tax increase through Customer Feedback Form available at IRBM’s Official Portal.

What should I do if I forgot my e-Filing password?2024-03-14T18:16:49+08:00

(a) Taxpayers who have a registered e-mail address or handphone number with IRBM:

Click the ‘Forgot Password’ button at ezHASiL.

(b) Taxpayers who do not have a registered e-mail address or handphone number; or there is a change in the registered e-mail address or handphone number:

Update information through Customer Feedback Form available at IRBM’s Official Portal at:

https://maklumbalaspelanggan.hasil.gov.my/Public

How to register for income tax number?2024-03-14T18:18:59+08:00

Registration for income tax number and uploading of documents can be done online as follows:

(a) Individuals, Companies, Employers, Partnerships and Limited Liability Partnerships

(b) Associations, Deceased Person’s Estate, Hindu Joint Families, Unit Trusts/ Property Trusts, Co-operative Societies, Trust Bodies, Real Estate Investment Trusts / Property Trust Funds and Business here.

  • Select the relevant IRBM branch and click ‘Contact Us: Click here’.
  • Application for registration will be received and processed by the relevant Customer Care Officer (CCO) from the selected branch
How to apply for e-Filing PIN number?2024-03-14T18:18:11+08:00

Taxpayers may apply through Customer Feedback Form available at IRBM’s Official Portal.

Share This Story, Choose Your Platform!

More Business Insights

Undecided or got questions

Got other questions?

Drop us a message on WhatsApp or connect with us through our contact form.

Join the discussions

Go to Top