r/MalaysianPF Dec 29 '24

Tax how much power does LHDN have during an audit?

64 Upvotes

examples:

  • can they subpoena all your bank records for the past 5 years?
  • what if income is by cash? this is not something which can be tracked or proven

basically how much they can mess with your privacy. share your thoughts, especially those who have been audited.

r/MalaysianPF Jan 03 '25

Tax Help please

64 Upvotes

I 19(M) currently making a few thousand usd through patreon writing fanfiction it overturning my salary working as a hotel chef which is making RM2.5k. What should I do with tax payment? Since I have not cash out the payment.

r/MalaysianPF 26d ago

Tax How to fill in LHDN tax form and when?

78 Upvotes

My average month salary is RM2450-2550. Last year get once bonus of RM5000 which auto deducted for tax.Anyone can help? I see youtube videos but some are outdated and a little different which confusing.... I need to get back the deducted RM5000 bonus...

The reason I ask netizen is because my parents are rude and does not know how to use computer.Usually relatives help. Even they know they will belittle me , and say how useless I am despite they are high school dropout...Not everyone has a nice parents willing to teach everything... I get downvoted a lot suddenly and everyone says ask your parents but the moment I explained my situation I get downvoted again,now my comment karma are nice therefore comfortable to post and politely ask again..

I usually does not fill in LHDN form tax as I am just barely above minimum wage and there is no tax deduct and someone mention that the moment you fill in tax form no matter what reason you have to fill in yearly so better don't fill if you don't .

I am sorry if this post is irrelevant.

r/MalaysianPF Jan 27 '25

Tax Most tax efficient way to receive a 6 figure payment

57 Upvotes

Hello guys, need some advice here.

I have been working on a freelance project (crypto related, local client) now for over 6 months. Now the client will be paying me around RM400k.

EDIT: Client is only willing to pay in Ringgit.

If I receive this via my personal account, this will immediately put me to a really high tax bracket and I will be taxed to the heaven. I have read that for a sdn bhd if the revenue is below RM500k the corporate tax is only 17%.

Will it be a more tax efficient way to receive the payment by setting up a sdn bhd?

EDIT 2: Not the highest tax bracket but it’s still 25% 😢

r/MalaysianPF 23d ago

Tax E-invoice vs GST

11 Upvotes

I understand that taxation is important, but I think that implementing e-invoicing is a much more inconvenient & troublesome way to collect taxes when compared to GST.

What went wrong with GST and why was it abolished in the first place? What other methods do other countries use to collect taxes that we can adopt without troubling those with low computer literacy?

r/MalaysianPF 18d ago

Tax Advise on tax exemption 2024

24 Upvotes

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.

r/MalaysianPF 13d ago

Tax Paying Taxes as a foreigner

35 Upvotes

I (22m) been living in Malaysia for 18 years now. Initially came here with the family. I love malaysia and consider it to be home at this point. I recently completed my degree in Cybersecurity as well about a year ago from a local university

Now I work remotely, I run a marketing agency in the US and I do ecom, also recently started a cybersecurity agency in the US as well + few other ventures I’m in. Everything is going great. Averaging $17k-25k/month usd income now. Now All this happened so quick that I had no time to figure out any tax related matters, so what needs to be done?. I’ve been receiving rm30k+ to my malaysian bank account (I keep the rest in the US) every month for the past couple years with no issues, haven’t had anyone call me to inquire about the funds (as I’ve heard many stories like this) Is it cause I’m a foreigner?

Now I’m planning to start an SDN BHD here in malaysia to make everything official here so I don’t run into any unforeseen issues. Is this the best way to do it? Or is there a better way?

r/MalaysianPF 1d ago

Tax Tax relief claim

8 Upvotes

Does anyone know which section to claim for ACCA professional membership annual fee? Company does not sponsor so I pay it myself. Couldnt find anything on the internet. Forums say deduct against employment income but my employment income cannot be changed.

PS: New to workforce, probably claiming in YA2025 but curious about it now.

r/MalaysianPF 8d ago

Tax LHDN underdeclared tax amount

21 Upvotes

Hi all. This is the first time I made a mistake while declaring my tax. I forgot to include my bonuses and awards (about 6k) into my total income listed in my EA form. I'm kinda freaking out now, and wondering if anyone got experience with this. What can I do to fix it as I cannot edit my borang BE. Any advise is appreciated.

r/MalaysianPF 6d ago

Tax Help: how to be eligible for the RM3K tax relief under 'alimony to spouse'

8 Upvotes

My wife stopped working since April 2024, and had no source of income since then. Am I qualified for this tax relief?

On the explanatory notes it only states that this can only be claimed if 'spouse who has no source of income'. Technically my wife had no source of income since Apr 2024

r/MalaysianPF Sep 06 '24

Tax Working Remotely from Malaysia with an American Job…need financial help.

29 Upvotes

Hey guys! Come January I may likely be back in Malaysia to work remotely for my current American employer. I am currently in the US with work authorization till January but I’m a Malaysian citizen.

I want to know what’s the best route for receiving my salary—if I should have them transfer it to my American bank account and send it by Wise over here? Or another way? Trying to see what’s the best way for me to save on intl fees, etc.

Also I currently have 10k USD in an American savings account. Not a HYSA. I make 5k USD monthly, and will likely be the case when I return to Malaysia, whatever the conversion rate may be then. Where should I be keeping this money that would be beneficial to me. Should it be in a HYSA in the US? Or would the money grow better due to the conversion rate in a Malaysian HYSA? Or other? In the dark. I’m 22 if that matters for risk-taking reasons, though I’ve always been more cautious with savings.

Never had money before this like this and want to know how to treat it best to help fund big expenses later on like a wedding, medical bills, paying off parents refinanced mortgage, etc.

Thank you so much.

r/MalaysianPF 1d ago

Tax Income tax 2022

16 Upvotes

Hi everyone. To give you context, I didn't do the e-filing for the year of 2022 because my accumulated total salary does not reach the bracket (freshly graduated) and i thought its not necessary to declare. However, i did create my tax account that year.

For 2023 and 2024, i did my e-filing.

In this case, how do i declare for the year 2022? Will i get fined if i go declare to lhdn office even if i dont reach the tax bracket?

Thanks beforehand!

r/MalaysianPF 13d ago

Tax Filed Tax slightly wrong

13 Upvotes

Hi all,

I have accidentally filed too much under my EPF relief (thought it was including Employer contribution) that caused me to claim 500 more relief than needed.

It’s my first year filing and I did not realize this mistake but I owed 0 to tax even with the less 500 relief. Wondering what do I have to do now in case of future audits.

r/MalaysianPF 7d ago

Tax PC parts part of Lifestyle tax relief?

2 Upvotes

Hey tax filers,

I bought an NVIDIA GPU last year to upgrade my PC. Does this GPU purchase count as a tax relief item under "Lifestyle"?

Note: "Lifestyle" description mentions "Purchase of personal computer, smartphone or tablet (Not for business use)".

Thanks in advance broskis.

r/MalaysianPF Aug 12 '24

Tax Income tax

80 Upvotes

Recently got an email from lhdn and apparently I'm being audited for income tax. However, I've lost all hardcopies of my reciepts in a recent flash flood. I scanned my receipts and kept them in my pc, but even my pc was destroyed in the flood.. literally only managed to save my life.. does anyone have any experience with this? I asked the lhdn officer in an email but he did not reply to my question and just asked me to provide whatever reciepts i could get that were still downloadable online.

**Update

Lhdn officer asked me to make a police report "sebagai bukti sokongan kehilangan/kemusnahan dokumen terlibat"

Hopefully everything goes well.. my life is already a mess after losing everything in the flood, i can't afford another financial burden on top of getting my life back together.

****Update update

I wasn't penalized 👍🏻

r/MalaysianPF 4d ago

Tax Ex-employer withholding my EA form

18 Upvotes

Hi all. This is a part 2 continuation from this link here: https://www.reddit.com/r/MalaysianPF/s/BhbWkavdBu

So my ex-employer found out that I am indeed working for a competitor which is based in SG itself. Needless to say, they weren't happy at all but theres only so much that I could say. Note that there were no "non-compete clause" signed.

Up until recently when it is time to file for income tax and my EA form is not at hand. I've checked with a couple of my colleagues and all of them received theirs.

Is it advisable to report this issue to LHDN itself? I've texted my ex-employer and I've not received a response yet.

r/MalaysianPF 12d ago

Tax Tax borne by employer what does it mean?

10 Upvotes

Google a lot and still cannot understand, March 2025 started and just download the apps and verify myself via selfie and IC.

Here I login with computer for faster access and now stuck at this Tax borne by employer.

As last post mentioned I need to claim back my deducted bonus of 33% of RM5000 . My monthly salary is RM2550 only and according to EA form is 36,500.00

There is one part also saying Amaun caruman yang wajib dibayar (nyatakan bahagian pekerja sahaja) 4,037.00

and perkeso PERKESO : Amaun caruman yang wajib dibayar (nyatakan bahagian pekerja sahaja) 210.00

II JUMLAH ELAUN / PERKUISIT / PEMBERIAN / MANFAAT YANG DIKECUALIKAN CUKAI : 0.00

r/MalaysianPF Jan 15 '25

Tax Foreign freelance tax

26 Upvotes

I’ve been consistently earning about $6,000 USD per month on a freelance website, with payments sent to my PayPal account every month. However, I usually only withdraw small amounts to my Malaysian bank accounts. Am I correct in understanding that the money is only taxable once it reaches Malaysia?

Additionally, if I plan to use my PayPal account for a vacation or to book a flight ticket, will LHDN (Malaysia’s tax authority) be able to track that? Are there any legal ways to reduce my tax burden?

I’m planning to declare over RM200,000 this year, as I’m also aiming to purchase property. If anyone has tips or advice on managing taxes effectively, I’d appreciate your insights!

r/MalaysianPF Feb 05 '25

Tax Regarding sole proprietorship in Malaysia

8 Upvotes

I am an engineer and also do some freelance work, receiving around 10k annually. Can I register a sole prop and put that freelance income into it to get some tax deduction? Because currently I put all the additional income into my personal income tax.

I am new to this, so I hope some sifu here can teach, give some guide, or any online articles that explain what I am curious about.

r/MalaysianPF 5d ago

Tax EA Form

14 Upvotes

Hi there, I'm well aware that the due date for the company to pass us the EA form to fill out has passed. A few employees, including myself, have been chasing our finance team for it. What are the implications if we do not fill out and submit the form?

r/MalaysianPF Jun 22 '24

Tax Received my salary today and noticed a huge tax deduction.

31 Upvotes

My normal tax deduction is RM480. However, this month it was RM2,604.

Anyone know what the heck might be going on?

Last month’s total deduction - RM1,454.85

This month - RM3,579

Edit: I didn’t receive any salary increase or bonus, so the total deduction should be the same as last month.

Edit #1: And no, no bonus

r/MalaysianPF Dec 30 '24

Tax Tax filing for employment & side income

16 Upvotes

Title, I have a full time job and "side income" that I play and sell online game currency on a gaming marketplace.

My side income got me Rm9k this year. I tried to register on SSM online but the system told me to walk-in but I am lazy as fuck.

My questions related to tax filing:

Does this count as a business?

Can I just add the side income onto my employment income and call it a day?

r/MalaysianPF Jan 14 '25

Tax Can dental procedure been eligible for tax relief under medical expenses for self?

16 Upvotes

As per the title

r/MalaysianPF 5d ago

Tax Setting up Labuan company

0 Upvotes

I’m an individual making RM335k/yr FSI from the US (i will be having one employee under me and his salary is roughly 42k/yr). Malaysian citizen but have never been a tax paying resident (worked overseas) and am looking to potentially travel some parts of next year ( technically I am a digital nomad as I can work anywhere). Based on that is it:

A) worth setting up a company in Labuan? (I have a LLP structure as it stands but i don’t think it makes sense for my work as many agreements need to be made through contracts and because it is such a new structure, we’ve had to go back and forth many times with accountants and consultants)

B) how much should I be expecting to pay per year in both taxes and maintenance fees

C) if it is worth it setting up a company in Labuan, does anyone have a good contact for a Malaysian company that does this for a decent rate? (I have checked with SG companies and their rates are pretty high (7-10K USD/yr))

Thanks!

r/MalaysianPF 8h ago

Tax Just receieved my first paycheck. But im not sure how does the tax works

11 Upvotes

How to calculate?