How to File Income Tax for the First Time in Malaysia

Filing income tax for the first time can feel overwhelming, but the process in Malaysia is more straightforward than most people expect. The Inland Revenue Board of Malaysia (Lembaga Hasil Dalam Negeri, or LHDN) has moved almost everything online through its MyTax portal, making registration, account setup, and e-Filing accessible without visiting a branch.

This guide covers everything a first-time filer needs for Year of Assessment (YA) 2025 — from checking your Tax Identification Number (TIN) to claiming every tax relief you are entitled to before the April 30, 2026 deadline.

Who Needs to File Income Tax in Malaysia for the First Time?

Under the Income Tax Act 1967, a Malaysian resident individual is required to file an income tax return if their annual employment income exceeds RM34,000 after deducting EPF contributions, or if their total income from all sources exceeds the threshold requiring a return.

Even if your tax payable is zero, filing is still compulsory once you cross this threshold. Failing to file when required can result in a penalty under Section 112 of the Income Tax Act — a fine of up to RM2,000 or six months' imprisonment.

If you are a salaried employee without business income, you will file Form BE (Resident Individual Without Business Income).

What You Need Before You Start: Documents and Forms

Gather these before you log in to e-Filing to avoid interruptions:

• EA Form (Form EA) — your employer must provide this by the end of February each year. It summarises your total remuneration, EPF and SOCSO contributions, and PCB (Potongan Cukai Berjadual) deductions for the year.
• MyKad — digital copy required for registration
• EPF statement — to verify EPF contributions for tax relief claims
• Receipts for tax relief claims — medical expenses, lifestyle purchases (books, gym, sports equipment), education fees, insurance premiums. Keep all receipts for at least seven years.
• Bank account details — to receive your tax refund if you have excess PCB

Step 1: Check Your TIN and Register as a Taxpayer (e-Daftar)

Since 2023, the LHDN has automatically assigned a Tax Identification Number (TIN) to all Malaysian citizens and permanent residents aged 18 and above, using data from the National Registration Department (Jabatan Pendaftaran Negara). In most cases, you already have a TIN even if you have never filed before.

To check your TIN:

1. Go to mytax.hasil.gov.my
2. Enter your MyKad IC number (without dashes)
3. If a TIN appears, you can skip to Step 2

If you do not have a TIN, click e-Daftar on the MyTax homepage and complete the online registration form. You will need to upload a digital copy of your MyKad. Applications are often approved instantly; if not, you will receive your income tax number by email within seven working days.

Step 2: Set Up Your MyTax Account and Digital Certificate

To access the e-Filing platform, you need an active digital certificate linked to your TIN. This is a one-time setup.

Method A — e-CP55D (web browser):

1. On the MyTax login page, enter your IC number. You will see a message that your "Digital Certificate does not exist" — this is expected.
2. Select e-CP55D, confirm your registered email address, and submit.
3. An activation link will be sent to your email. Click it within 48 hours — the link expires after two days.

Method B — e-KYC (MyTax mobile app):

1. Download the MyTax app from the App Store or Google Play.
2. Select e-KYC, scan your MyKad using the phone camera, and complete facial verification (selfie).
3. Your digital certificate is activated immediately — no branch visit required.

After activation: Return to mytax.hasil.gov.my, log in with your IC number, and set your password and security phrase. You now have full access to the MyTax dashboard, including the e-Filing module.

Step 3: File Your Income Tax Return via e-Filing (Form BE)

For YA 2025, the LHDN opened e-Filing on 1 March 2026. The key deadlines are:

To file via e-Filing:

1. Log in to MyTax and click e-Filing, then e-BE.
2. Select Year of Assessment 2025.
3. Tab 1 — Personal Particulars: Verify your name, IC number, and address. If you want your refund deposited directly, enter your bank account number here.
4. Tab 2 — Statutory Income: Enter your employment income as stated on your EA Form. The system will pre-fill PCB/MTD amounts if your employer has reported them to LHDN.
5. Tab 3 — Deductions and Reliefs: Enter all applicable tax reliefs (see section below). The system automatically calculates your chargeable income and tax payable.
6. Summary page: Review your total tax charged, any balance payable, or refund due.
7. Click Sign and Submit to electronically sign and submit your return.

Once submitted, you will receive an acknowledgement with a reference number. Save this for your records.

Tax Reliefs You Can Claim as a First-Time Filer in Malaysia

Tax reliefs reduce your chargeable income — the amount on which tax is calculated. Below are the main reliefs available for YA 2025:

Always retain original receipts for relief claims for a minimum of seven years, as the LHDN may audit your return under Section 106A of the Income Tax Act 1967.

How to Calculate Your Chargeable Income and Tax Payable

Malaysia uses a progressive tax rate system. For YA 2025, the rates for resident individuals are:

Worked example — fresh graduate:

• Gross annual income: RM43,200 (RM3,600/month)
• Less EPF contributions (11%): RM4,752 → capped at RM4,000 relief
• Less personal relief: RM9,000
• Less lifestyle relief (laptop): RM2,500
• Chargeable income: RM27,700
• Tax on RM27,700 (progressive): approximately RM381
• RM400 individual tax rebate applies because chargeable income is below RM35,000
• Net tax payable: RM0 (rebate exceeds tax)
• If PCB was deducted throughout the year, the full amount is refunded — typically within 30 working days of submitting your return.

Common Mistakes First-Time Filers Make (and How to Avoid Them)

1. Not checking for an existing TIN before attempting e-Daftar — most Malaysians born after 1990 already have one automatically assigned.
2. Missing the activation link deadline — the e-CP55D email link expires in 48 hours. Check your spam folder and act promptly.
3. Not claiming all eligible reliefs — many first-time filers miss SOCSO, education, and lifestyle reliefs, paying more tax than necessary.
4. Entering incorrect bank account details — this delays or prevents your PCB refund. Double-check the account number before submitting.
5. Filing Form B instead of Form BE — salaried employees without business income use Form BE. Form B is for individuals with business income.
6. Not keeping receipts — reliefs can be disallowed during an LHDN audit if you cannot produce supporting documents.

Frequently Asked Questions

Do I need to file if my employer deducted PCB all year?

Yes, if your income exceeds the filing threshold (RM34,000 after EPF deduction). PCB is an advance payment, not a substitute for filing. Filing is how you reconcile the actual tax owed.

How do I get my tax refund?

If you have overpaid (excess PCB), the refund is automatically processed after you file. It is deposited into the bank account you provided during e-Filing, usually within 30 working days.

What if I miss the April 30 deadline?

For e-Filing, LHDN provides a grace period until 15 May 2026. Filing after this date without an approved extension may result in a 10% late submission penalty under Section 103 of the Income Tax Act 1967.

Is the MyTax portal the same as the old ezHASIL?

No. The LHDN replaced ezHASIL with the MyTax portal as the primary platform for all tax services. Always use MyTax for YA 2025 filing.

Can a freelancer use Form BE?

Only if your freelance income is categorised as employment income under a formal contract. If you earn business or self-employment income, you file Form B instead.