{"id":17524,"date":"2020-12-02T19:00:00","date_gmt":"2020-12-02T11:00:00","guid":{"rendered":"https:\/\/www.comparehero.my\/blog\/uncategorized\/freelancer-income-tax.html"},"modified":"2026-03-26T16:02:05","modified_gmt":"2026-03-26T08:02:05","slug":"freelancer-income-tax","status":"publish","type":"post","link":"https:\/\/www.comparehero.my\/blog\/tax-planning\/freelancer-income-tax.html","title":{"rendered":"#DigitalCareers: How To File Your Income Tax As A Freelancer"},"content":{"rendered":"\n

Working as a full-time freelancer means you don\u2019t have an employer to assist you with tax-related matters. This can complicate the tax filling procedure come tax season. So if you are new to freelancing and haven\u2019t registered a tax file, here\u2019s a quick guide on how you can do it.<\/strong><\/p> \n

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If you think freelancing is a way to circumvent taxes, then you are greatly mistaken.<\/p> \n

As the old adage goes, there\u2019s two things in life that are certain: death and taxes. You could even argue that paying taxes is part of our civil responsibility and obligation as a citizen of the country.<\/p> \n

Unfortunately, pocket money or extra income earned from side-gigs or side-businesses aren\u2019t exempted from being taxed, and there\u2019s no real way to escape paying taxes irrespective of your type of employment, i.e. freelancing and being self-employed.<\/p> \n

Having an employer, however, does come with some advantages. For example, your company will carry out the payments for you, making the entire process much easier and smoother – but as a freelancer, that\u2019s not really the case and you\u2019ll need to manage the entire process by yourself.<\/p> \n

If you are a freelancer, it\u2019s not uncommon to feel unsure of how to manage and deal with all of your tax-related documents. If you need more help on how to file your income tax as a freelancer, read on.<\/p> \n

How do you define freelance work?<\/h2> \n

If your payment is directly dependent upon the profits earned from the goods and services produced then you are categorised as a self-employed worker, according to The World Bank<\/a>. And guess what? The description pretty much applies to freelancers, too.<\/p> \n

Don\u2019t take filling your income tax lightly as you could be fined or imprisoned by Lembaga Hasil Dalam Negeri (LHDN). For example, failure to (without reasonable excuse) to furnish an income tax return form could result in a fine of RM200 to RM20,000 or imprisonment for a term not exceeding six months.<\/p> \n

Related:<\/strong> The Complete Personal Income Tax Relief For Malaysia<\/a><\/p> \n

There\u2019s no escaping taxes – so first establish if you are taxable!<\/h2> \n

To be taxable, you have to fulfill certain requirements as a resident in Malaysia<\/a>.<\/p> \n