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Filing Income Tax For The First Time

Updated: Mar 11

by Amy Ng. |


So, while we’re busy catching up on the latest movies, awaiting for the next Game of Thrones season, and being all hyped up for Avenger’s: End Game by the end of April… let us not forget that Malaysians do have a ticking bomb too this month, yes, I’m talking about filing your income tax for whatever you’ve earned in the past year. If you’re new to this, you probably clicked on the right article, if not, you may now proceed in reading our other articles on this website (not forcing, just sharing).


So yes, you get a first-hand perspective on what it’s like to “adult”, because it’s true that once you know the bits and bobs of filing your income tax, it’ll just be another yearly routine for you, and you’ll get better at it every year (better in getting a maximum possible tax refund back).


Just a disclaimer, I do not work in a tax department or any tax advisory department, but I do work in a bank and people assume I’d probably be more well-versed in dealing with monetary topic, such as income tax. Well, it’s as if saying “I’ve been in relationships before, so I understand how the whole dating/relationship game works”… but that’s not the case, is it now?


Ok, that totally went off-course on what I’m supposed to be focusing on, but you get it. All I’m saying is that, at the end of the day, you should visit Lembaga Hasil Dalam Negeri (LHDN) website for more information.


But! Because we’re just born lazy in nature (I know I am, not sure about you), I came out with a 3W solution for you, namely “Why, Where, What” on filing your income taxes… Before you begin filing your income taxes, do be very sure that you’re actually working (duh, Sherlock).

Why?

We like to believe we’re all good people – what we earn, we contribute to our loving country, and that’s why we need to pay income tax as long as we earn above RM34,000 per annum.


You see, for as long as our income is taxable, we do get some tax rebates and reliefs too!

Think of it like a cash back, like Boost or Fave. So, for us to obtain this back, we have to file our taxes, so these tax reliefs allow us to reduce our chargeable income. The more tax relief, the lower the chargeable income, the less you would require paying tax.

Where can we submit?

Either by filing manually (forms can be obtained from any of your LHDN offices), deadline for submission is 30th April 202o, or for tech-savvy people like you & I, I would say file it online via e-filing (log on to LHDN’s website), deadline’s 15th May 2020.


However, if you’re a new user, you are required to pop by LHDN’s office to obtain a designated PIN number of your very own as first time login, and then you’re good to go. Hassle-free, and yet deadline’s later! On top of that, you wouldn’t need to remember all the tax reliefs for the year because it’ll be automatically shown while you’re submitting online via e-filing.

Tip: Your employer will pass you the EA form, and just fill in whatever is on form when filing your income tax. The EA form will look exactly, if not similar to the e-filing forms. It’s basically a form which shows your full year income.


If you’ve changed employer within that same year, you will have to ask from both the employer.

What can I claim from my tax refund?

So, what can we actually claim for yourself, if you have a spouse and kids or even your parents, so that you can maximise our income tax refund? Who doesn’t love such thing? If you don’t, then we’re clearly from two different worlds!


To make things easier, we’ve made some infographics for your easier understanding to know what you are able to maximise your tax refunds and know what tax reliefs you’re able to claim:

If you’re an individual:


Source: Ringgit Plus


If you’re married and with parents:


Source: Ringgit Plus


If you’re married and with children:

Source: Ringgit Plus


So, there you have it! Took you quite some time to reach the bottom of this article, but if you made it this far, then you’re probably on the right track! I remember my first time filing income taxes; I took the easy way out by just asking my parents. Just like how I had to patiently guide them on Facebook, Instagram, Chromecast, Netflix, Cloud storage etc, they had to similarly guide me on income tax filing, so yes, do cut some slack if you plan to “consult” your parents on this. If not, ask your fellow seniors at work!


(P/S: you may need to consider buying them a meal or drink if you plan to ask them)


You may also find Amy on Instagram.

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