{"id":18334,"date":"2022-03-06T19:00:00","date_gmt":"2022-03-06T11:00:00","guid":{"rendered":"https:\/\/www.comparehero.my\/blog\/uncategorized\/guide-income-tax-2022.html"},"modified":"2026-03-27T08:52:01","modified_gmt":"2026-03-27T00:52:01","slug":"guide-income-tax-2022","status":"publish","type":"post","link":"https:\/\/www.comparehero.my\/blog\/tax-planning\/guide-income-tax-2022.html","title":{"rendered":"Malaysia Personal Income Tax E-filling Guide"},"content":{"rendered":"\n

In case you missed it, tax season is upon us again! It\u2019s that time of the year when Malaysian citizens and residents will begin declaring all their earnings in the previous year.<\/p>\n\n

Now if you\u2019re legally employed in Malaysia, or you are an employer here, you would have to pay taxes. However, in this article, we\u2019ll be solely focusing on Malaysia Personal \/<\/strong> Individual Income Tax (YA2021)<\/strong>, that is, tax paid by employees in Malaysia<\/strong>.<\/p>\n

If this is the first time you\u2019re filing your taxes or you just need a clear guide on how to do the e-filling LHDN 2021<\/strong>, this article is just for you! Read on to find out all you need to know about declaring tax returns in Malaysia.<\/p>\n

Let\u2019s start with this basic question:<\/p>\n

Who should file tax returns?<\/h2>\n

According to Lembaga Hasil Dalam Negeri (LHDN)<\/a>\u2013also known as the Inland Revenue Board\u2013those earning at least RM34,000 a year after EPF deductions need to pay taxes<\/strong>. Those who fail to do so can face legal action, so make sure you do your part and declare your income.<\/p>\n

However, even if you earn less than RM34,000 annually, you should still file your taxes. You won\u2019t have to pay anything, but it\u2019s still good to get into the habit of declaring your income. At this juncture, it\u2019s worth mentioning that there\u2019s a difference between filing your tax returns and paying taxes<\/strong>, as not everyone who files their returns will need to pay tax\u2013only those who earn RM34,000 and more a year.<\/p>\n

And speaking of that, any income that you earn outside of Malaysia is not taxable<\/strong>. But you will need to declare ALL types of income (part time and freelance included)<\/strong> that you earn in Malaysia.<\/p>\n

Now, let\u2019s jump right on to the next important question you might ask:<\/p>\n

How are my taxes calculated?<\/h2>\n

Firstly, the total of all your incomes in the whole tax year will be added<\/strong>. Then, if you qualify for any of the tax exemptions and reliefs, those amounts will be deducted from your income amount. Tax exemptions and reliefs are \u2018discounts\u2019 you can get for certain expenses<\/strong> made in the year. We\u2019ll look at what exemptions you can for the 2021 tax year shortly but for now, this is what you need to know:<\/p>\n

Total income – tax exemptions and reliefs = chargeable\/taxable income<\/strong><\/p>\n

Your tax rate is calculated based on your taxable income. So the more taxable income you earn, the higher the tax you\u2019ll be paying. Per LHDN\u2019s website<\/a>, these are the tax rates for the 2021 tax year.<\/p>\n

\"guide-income-tax-2022-01\"<\/p>\n

Coming back to the tax exemptions and reliefs, these are all the ones that were announced by the government during the 2022 Budget speech<\/a>:<\/p>\n

Individuals and families<\/strong><\/p>\n