Filing for Personal Income Tax

Fuh, I've never been away from my blog for so long before! Have so much things pending to share on my blog but I'm just too busy with my life. However, there is this thing about filing personal income tax that I would like to write a little, not just to remind myself on the process (ya, I'm the first timer here, still a newbie), but also to share it with some of you out there who are same as me, first time filing tax as an employee.

** Disclaimer: This is only my personal experience in declaring, submitting and filing my personal income tax as an employee. If there are some missing steps which you encounter, please do not hesitate to drop me a comment, or you may straight feedback / fax (+603-8922 1676) directly to LHDN for official responses.

Actually it's not as difficult as I thought. Once read through 15 simple steps below, you would have a rough idea and you are ready to hands-on it yourself:

1. First of all, our employer will send us EA form, which details all our incomes including salary, bonuses, allowance etc. This is the form you need to keep properly for filing purpose.
2. Head on to e-Daftar website which looks like this: 

   

   Since I'm filing as an employee, I'll focus on employee steps ya..
   Who knows maybe in the future I would have the chance to share filing as a company? XD

   
   
   
3. Click on the hyperlink in point #1 on the website and it would bring you to e-Dafter input page which looks like this:

   

   Just fill in this form until all the way down and submit.

   
   
   
4. Once submitted, you will then land on the acknowledgement page which will show you your e-Daftar reference number. You are required to wait for a few days to check your e-Daftar status here:

   

   Just type your reference number and your status will be shown.

   
   
   
5. Since you have to wait for a few day, might as well get your first-time-login PIN. (Though I heard people said you could request e-PIN which would be sent to your email address, I fail to find a way). Anyway, on the website itself is stated as well, you need to go to the physical branch:

   

   It's advisable to reach the branch super duper early. I had to wait like one hour plus to get my PIN!

   
   
   
6. Click here to find out your nearest branch. Once you got your PIN from the physical LHDN branch, you may head on to the first-time-login page here

   

   The PIN is a 4 x 4 digits combination.

   
   
   
7. Once you got in, just fill up your personal information and your personal login password, and you will then be directed to the login page:    

   

   So, next time onwards, you may straight login from this page.

   
   
   
8. Your home page would look like this:

   

   Click e-Borang (boxed in red).

   
   
   
9. Once you got in, you are required to select your Year of Assessment (YA). For example, if you are submitting your tax this year (by 30th April 2016), then you are filing tax for 2015:

   

   Choose your YA as shown in the red box for e-BE (if you have no business income).
   If not mistaken, e-B form is for partner in Partnership business;
   while e-BT for professionals who have own firms/clinics, eg lawyers, accountants, doctors etc..
   It's better to check with LHDN for more details.

   
   
   
10. Once you have chosen your YA, you are cool to go:

    

    Section A: Individual Particular

11. Move on to Section B, which is all about what you received as an individual:

    

    The yellow boxes are automatically populated upon entering of figures in the white boxes.

    
    
    

    

    How do you get the statutory income from employment?

    
    
    Statutory income from employment is actually the total as boxed in red below:

    

    
    

    
    
    

    

    Monthly Tax Deduction (MTD) is also known as
    Potongan Cukai Bulanan (PCB) in Malay term.

    
    
    MTD / PCB is stated in your EA form as well:
    

    

    
    

    
    
    

    

    If you forget / missed to file for previous year(s),
    here's where you need to declare it back.

    
    
    
12. Moving on the Section C, the section with all the tax relieves. Please claim those you are really qualified for, as you might get penalty or something if they found elements of fraud in your declaration. For example, declare the amount of money you REALLY spent on books instead of straight input the maximum value of RM1,000.

    

    You may also click here to see the whole list of tax relief.

    
    
    
13. Once you declared all the relief that you deserved, you would then proceed to the next section, which is the Summary page:

    

    The red box is the final tax payable. If it's a negative, which means your MTD / PCB has already

    more than what you are supposed to pay, you would get a refund from LHDN. Thus,

    make sure your bank account number is correct when registering for income tax account

    during first-time-login (link in step #6).

    
    
    
    
14. Finally, it's the declaration page:

    

    Click "Sign and Submit", and you will be requested to enter "IC Num" and "Password" again to complete the process.

    
    
    
15. Then, it's up to you if you want to keep a copy of your tax acknowledgement slip and tax e-BE form:

    

    
    

That's all. Hope the steps described above are clear and details enough. Otherwise, you are always welcome to leave a comment and I'll update my blog again. 

There are few good habits that each one of us are encouraged to practice:

1. Always keep your receipts and paste them nicely on a piece of A4 paper. Collect and scan them into soft copy before archiving the physical copies into some random-corner of your room. It's important to keep soft copy as we are advised to keep the record for at least seven years. Carbon-printed receipts would have long faded.
2. Do not file tax last minute. It would only make you frustrated as you are rushing and might make mistakes during those calculations. As for me, even a first timer was able to complete everything in around one hour.
3. Help to remind family and friends around you to file for tax even though they might not be taxable. It's always better to have a clean record with LHDN instead of letting them suspect that you are intentionally running from being taxed and draw unnecessary attention to you.

If some of you prefer the Chinese version, you may click here to find out more.

Last but not least, here's the link of official materials published by LHDN, which I think the info-graphics are quite straight-forward and would be helpful to anyone of us.

Finally, hope my post helps ease your experience in filing personal income tax for the first time. 

Have fun XD