Avoiding Common Mistakes in Malaysian Tax Filing
Know Your Deadlines and Status
Mark the Malaysian tax calendar
The Inland Revenue Board of Malaysia (LHDN) announces official due dates every year. Put the MyTax portal deadlines in your calendar, set two reminders, and aim to file a week early. Share this post with a friend who tends to procrastinate.
Report Every Ringgit of Income
Your EA form may include allowances, perquisites, and benefits-in-kind like a company car or phone. Confirm what is taxable and what has prescribed values. A colleague once missed a parking benefit and paid penalties later. Verify today and avoid that sting.
Claim Reliefs Without Errors
Lifestyle reliefs, sports equipment, books, personal devices, and internet can overlap in your mind but not on the tax form. Label receipts as soon as you buy. Aida, a reader, saved hours by keeping a monthly relief spreadsheet.
Claim Reliefs Without Errors
Contributions to EPF, SOCSO, and life or medical insurance have different caps and categories. Check your EA form and policy statements against the relief list. If you support a spouse or parents, explore eligibility rules carefully before claiming.
Register on the MyTax portal early, update your email and phone, and use strong passwords. Enable verification codes and log out on shared devices. Drop a comment if you want our quick security checklist for tax season.
Do not assume Monthly Tax Deduction (PCB/MTD) equals your final tax. Compare EA details with your pay slips, especially allowances and benefits. If numbers disagree, ask HR for clarification before filing to avoid post-submission amendments.
Tick off salary, dividends, rental, business income, donation receipts, and bank interest. Confirm relief caps and spelling of names as they appear in identification documents. Share this checklist with your group chat and keep a clean filing trail.
Business and Rental Pitfalls
Separate personal and business spending
Use a dedicated bank account for your business or side hustle. Record every transaction the same day. Only expenses wholly and exclusively for producing income should be claimed. Ask us for a simple expense categorization template.
Capital vs. repairs—get it right
Painting and minor fixes generally differ from improvements or renovations. Capital items may qualify for capital allowances rather than immediate deduction. Attach photos and invoices to each claim so you can justify the treatment confidently if asked.
Understand instalments like CP500
If you have non-employment income, you may receive CP500 instalments. Review them against your latest earnings and update when circumstances change. Overpaying strains cash flow; underpaying invites penalties. Comment if you need a walkthrough on managing instalments.
Audits, Notices, and Corrections
Read every letter carefully, note the response deadline, and acknowledge receipt. Provide requested documents clearly labeled. Keep a call log or email trail. Respectful, timely replies can make reviews smoother and shorter.
Audits, Notices, and Corrections
If you discover an omission, act quickly and document why it happened. Voluntary corrections usually fare better than late discoveries. A reader fixed a missed rental receipt within days and avoided a larger penalty. Learn from that win.
Family, Property, and Life Changes
01
Choose separate or joint assessment wisely
Run the numbers for both separate and joint assessment if eligible. Consider income levels, relief transfers, and spouse contributions. A simple spreadsheet comparison can reveal meaningful savings. Ask for our sample calculator in the comments.
02
Get rental income treatment right
Record rental deposits, tenancy dates, and allowable expenses like quit rent, assessment, and necessary repairs. Improvements are different from repairs. Keep photos, invoices, and tenancy agreements together to justify claims without scrambling later.
03
Update after big life moments
Marriage, a new baby, education plans, or buying a home can affect reliefs and documentation. Update your personal details on MyTax and refresh your relief plan. Share your upcoming life event, and we’ll suggest a tailored pre-filing checklist.