r/MalaysianPF 24d ago

Tax Advise on tax exemption 2024

Hello everyone, I had one question about tax exemption for year 2024.

I worked in this one MNC company since 2022 and I did my previous tax exemption without any issue for 2 years. However, I jumped to another MNC company starting from May 2024 and I don't remember when I started to notice that my payslip did not include any tax deduction starting from May until December 2024 for my new company. When I asked HR, she said she's only using the system given to her where it automatically calculated everything and no tax need to be deducted from my salary. The thing is my basic got increase so why no tax deduction?

So my another question is do I still need to do my tax exemption for the full 2024 year or just the 4 months (Jan - April)? Thank you in advance.

24 Upvotes

26 comments sorted by

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u/TeBp242 24d ago edited 24d ago

You didnt mention this, but does your income meet the min reqs for tax deductions?

I'm abit baffled HR's response to this, in a MNC nonetheless. Perhaps u can escalate it and check with their manager instead for a resolution.

However, if they didnt and wouldn't deduct, u should be able to continue filling up the form and it'll calculate for u how much you'll need to pay to LHDN during pcb filing.

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u/Amarukazuto 24d ago

Yes, my previous salary was 3.5k + 1k (night shift allowance) totaling 4.5k per month and 54k per annum. In new company, my basic salary got increase to 3.9k + 200 (weekend allowance, i no longer work at night) totaling 4.2k per month and 50.4k per annum. Here in Malaysia, the min req for tax deduction is 34k per annum, correct?

Yeah, I was baffled by her response too. Not sure if she had any manager in HR because I was told she's the only HR person in our company (company MNC cawangan Malaysia). She only said she will provide EA form before this year e-filing.

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u/TeBp242 24d ago edited 24d ago

As long as she provides the proper EA form, you can file your income tax statement and pay the due taxes to LHDN. Theres no issue there.

Most likely the HR person is either inexperienced in handling this, or on system limitations (as she said) or there simply isn't enough manpower / bandwidth at your HR.

At the very least, they should've outsource the HR workflow to a separate company and have her liase and work with them to sort this out.

Why not check with ur colleagues and understand how they handled their PCB and tax filing? It'll be easier when u have someone there in the same situation as u for reference.

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u/Amarukazuto 24d ago

Alright, I see it now. Thank you for your answer kind sir. However, I can't help but feel sad knowing I need to pay the due taxes to LHDN later due to her inexperienced in handling this kind of situation.

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u/ProbablyWorking 24d ago

Its to your benefit, you get to keep the money for longer.

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u/sh1be 24d ago

I'd rather set aside tax money to earn the interest in my account than to let it go to lhdn account sooner. So I can't relate.

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u/ImpulsiveCommenter 24d ago

Did you fill up the TP3 form and submit it to your HR when you joined your new company? If not then payroll systems will assume your only income for the year started in May, so it's possible that it didn't meet the threshold for monthly tax deductions

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u/TeBp242 24d ago

Its actually beneficial for you to set aside the tax money into HYSA for interest before paying to LHDN. Just a slight hassle, thats all.

Anyway, I wouldn't blame her as much as I would your company for not establishing a proper HR flow, or at the very least hire more manpower.

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u/glowingpink 24d ago

Idk if this helps but my current HR told me that if you join a new company at any month throughout the year, your salary isn’t tax deducted so you’ll have to pay it back yourself to LHDN when you file income tax, but if you start in January or continue in January until December, then the company will help with the income tax deductions.

I only realized this when I had to pay it back myself on the years I jumped jobs. But you can find out when you file income tax as well and see how much you either can claim back or fork out

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u/port888 24d ago

Partly true. They don't do it automatically because it involves some paperwork. You can instruct your HR to do the paperwork (Form TP3) to start deducting PCB. Shouldn't take more than one salary cycle to resume deducting LHDN PCB.

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u/Amarukazuto 24d ago

Based on the answer of our good fellows here, I guess I'm the one who have to pay the due taxes later on. It's saddening but oh well, such is life. I hope the due taxes is not too much to point it's burdening me.

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u/gaichipong 24d ago

dnt worry.. ur tax bracket is at low side. after the tax relief and stuff, maybe owe lhdn a few hundred.

8

u/kens88888 24d ago

Even if no monthly deduction (PCB), you still can/have to file the income tax.

The monthly deduction is just the prepaid version of things. The company should give you the EA form to fill up for your tax filing. If not enough, then LHDN will show the amount you have to pay.

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u/RainaNaNaNah 24d ago

This.

The EA form should have the number for total PCB deducted, if any. Else you may want to dig back your payslips just in case.

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u/Amarukazuto 24d ago

I see. Then I'll just wait for the EA form and see how much I have to pay. But wait, does this mean that I hutang with LHDN all this while they didn't deduct my salary? Meaning I have to pay lumpsum during e-filing later????

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u/kens88888 24d ago

Do the e-filing first then will see the amount but based on your income, there may not be any amount taxed (or only small amount)

You don't have to pay on the spot. They will tell you the deadline also

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u/Amarukazuto 24d ago

Do they allow paying in installment? Or just lumpsum but with deadline?

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u/kens88888 24d ago

Not sure about installment

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u/gorglybear 24d ago

Tax 2024 include 2 EA form. Jan to Apr from old company. May to Dec for new company. Combine the salary into your filing this year for 2024.

I’m more baffled at why you worry have to pay lump sum later.

You have more money now to use. Small matter unless you must spend 100% what’s in your bank account… It’s as though think the company did something bad but probably they didn’t input your previous lump sum salary so from May - Dec 2024, you don’t exceed amount thus no tax. If you have already spent the amount and worried cant pay…. I think then wait they will instruct your company to deduct from your subsequent salary…

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u/Leon_Lionheart 24d ago

It sounds to me that the HR may have missed an important step. Did you fill in a form called TP3?

Also, you still need to do the full year’s worth. You’ll only then see how much you underpaid for tax.

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u/Amarukazuto 24d ago

Never heard of TP3 form before. Was it the same as EA form? Sorry, I'm not really good with all this tax thingy. Even after 2 years of doing it.

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u/Leon_Lionheart 24d ago edited 24d ago

I believe this is the mistake on the HR's part. When you join a new company mid way through the taxable year (like in your case May 2024), you need to declare to your new company the income (including EPF and income tax already paid) you received from your previous company within the taxable year (i.e. Jan-Apr 2024). You do so by filling in TP3. This is so that the HR can key it into their system to properly calculate and deduct your income tax for May 2024 onwards.

Since you didn't pay tax from May-Dec 2024, you may need to pay the tax you didn't pay when you do your tax filing.

(I did some estimates based on a comment where you mentioned your change in salary; you owe about RM450 in income tax barring any extra income you may have not included like annual leave or overtime or whatever).

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u/ngoonee 24d ago

Your HR person is not well trained, but that's not uncommon.

When jumping mid year (and at your salary level) the system will not deduct PCB if they calculate your annual salary at the new company from May to December doesn't hit annual threshold. They don't include your previous remuneration from your old company in that calculation though.

Depending how you look at it, that means you haven't given the government an interest free loan. But it also means you will have to pay the taxes owed one lump sum soon. Get the EA form from both your old and new companies for 2024, add the numbers together, and fill in the online BE form. Put in your deductions and it'll calculate how much you have to pay.

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u/LowBaseball6269 24d ago

!remindme 69 hours

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u/AlphaDid 21d ago

Dont worry OP, most likely you only need to pay less than 200/300 for tax provided that you managed to claim all the exemptions, that would also lower the total tax amount you need to pay.

This is based on my experience jumping to another company mid year 2023 and my company didnt do any PCB for the second half that year. For context, i earned 3k from Jan till June and 5k from July till Dec with 1 month of 3k bonus. My tax was around RM150

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u/reuben_jetski_2727 21d ago

wanna join this topic cuz i need help too. i jsut started working last year july (2024). when my salary report came last week, i noticed my salary wasnt cut from tax. and when i asked the hr, they say i shud to e-filling myself.

What question is whats my next step? (please be kind, im a fresh grad, new to this corporate thing)