How to Pay Income Tax Online in Malaysia 2026

Paying income tax is a responsibility of every citizen who earns taxable income. In recent years, the Malaysian government has accelerated the digitalization of the taxation process to facilitate compliance and reduce manual errors. Today, almost all tax forms can be submitted electronically through the e-Filing system on the MyTax portal managed by the Inland Revenue Board of Malaysia (LHDN). This article provides a detailed guide for those who wish to pay their income tax online in 2026.

Steps to Register for Income Tax Online (e-Filing) in Malaysia

Before you can submit your tax forms through e-Filing, you need to register your tax file and obtain a Tax Identification Number (TIN). This process is done through the e-Register system on the MyTax portal. According to the latest guide from ClearTax, individuals and businesses that earn taxable income must register to obtain a TIN. Additionally, registration is done entirely online without any fees. Below are the steps to register:

Visit the MyTax website. Go to mytax.hasil.gov.my and select the e-Register menu.
Select the taxpayer category. The system will ask you to choose a category such as individual, company, employer, partnership, or limited liability partnership (LLP) before filling out the appropriate form.
Fill out the form and attach supporting documents. Ensure that all information is entered correctly and that supporting documents are attached before clicking the submit button.
Review and submit the application. The system will provide a reference number to track the application status. Once approved, you will receive your TIN.

What Documents Are Required for Registration?

The types of supporting documents vary depending on the taxpayer category. ClearTax lists the main requirements as follows:

Individual: A copy of the identification card (MyKad/ MyPR/ MyKAS), passport, or birth certificate.
Business: Business registration certificate and a list of partners.
Company: Incorporation certificate (Form 9), Form 24, and Form 49.
Partnership: Partnership registration certificate and a list of partners.
Association/Organization: Registration certificate, member list, and details of the administrative body.
Trust and other entities: Trust documents, trustee information, and authorization from the relevant authorities.

Make sure all documents are scanned in PDF, JPG, or PNG format with file sizes not exceeding 2 MB per document.

How to Access the e-Filing System in Malaysia

After obtaining your TIN, you need to open a MyTax account to access e-Filing. Account registration requires a 16-digit PIN, which can be obtained at LHDN branches or electronically through the e-CP55D application. The L & Co website outlines the steps as follows:

Visit the MyTax portal. Select your ID type (IC number, police number, military number, passport, or tax reference number) and enter the number.
Apply for a PIN (if you don't have one). If the system shows the message "Digital Certification not exist", click on the e-CP55D link to apply for the PIN.
Verify email information. The system may show two situations: (a) existing email displayed; (b) no email recorded. Confirm the information or enter a new email and upload a color copy of your ID card or passport. The file must not exceed 2 MB.
Receive and activate the link. LHDN will send an activation link via email within a few days. Click the link within two days to activate the account.
Set your password and security phrase. Enter your ID, create a password, security phrase, and agree to the terms. Then click submit.
Log in to MyTax. Select your ID type, enter the number and password, then click login. You can now access the e-Filing system.

Ensure you keep your 16-digit PIN and password safe, as they are needed for future access. If you forget your password, you can use the Forgot Password function provided by LHDN. The official manual states that users must enter their reference number and registered email; the system will then send a reset link valid for two hours. Make sure to check the SPAM folder if the email is not received.

How to Submit Your Tax Return via e-Filing

Once logged into your MyTax account, you can begin e-Filing. The guide from iMoney outlines the complete process as follows:

Start e-Filing. From the ezHasil Services menu, click e-Filing and select the appropriate form (for example, e-BE for individuals not running a business or e-B for individuals running a business).
Update personal information. Verify name, address, and other details. If there are changes (e.g., new passport number or marital status), you can update the information.
Enter income and deductions details. Enter your annual income by category (salary, business, rental, dividends, etc.). Ensure the Monthly Tax Deduction (MTD/PCB) shown is correct by referring to the EA Form from your employer.
Declare rebates and exemptions. The exemption section allows you to claim eligible purchases such as contributions to the Employees Provident Fund (EPF), life insurance, sports equipment, educational exemptions, and more. The system shows the maximum exemption amount when you hover over the information icon.
Check the summary and confirmation. After entering all information, the system will automatically calculate your tax and show if there is a balance to be paid or refunded. Double-check before submitting.
Declare, sign, and submit. Finally, click the Sign and Submit button and enter your MyTax identification number and password to confirm submission. Save a copy of the form or confirmation receipt as proof.

Practical example: Imagine Mr. Ahmad, a private sector employee with no business. After registering and logging in, he selects the e-BE form. Mr. Ahmad reviews his personal details, enters an annual salary of RM60,000, and claims exemptions such as EPF contributions, life insurance, and sports equipment. The system calculates the tax and shows that he is eligible for a refund due to MTD exceeding the actual tax amount. After signing digitally, he receives the e-Filing receipt via email.

Payment Methods for Income Tax in Malaysia

After submitting the form, the next step is to make the payment if there is a tax balance. Malaysia offers various payment methods including online banking, credit cards, and conventional methods. iMoney lists some main options:

Payment via FPX (Financial Process Exchange). FPX is an online payment gateway that allows direct transfers from your bank account. You will need an internet banking account with participating banks such as Maybank, CIMB, RHB, Hong Leong, Bank Islam, and others. Visit the ByrHASIL website (byrhasil.hasil.gov.my), select the FPX logo, enter your identification type and number, along with the payment code (e.g., 095 for final tax payment). Then select the assessment year and tax amount, click Submit, and confirm the transaction through your bank portal. Save the receipt as proof.
Payment via credit card. LHDN allows tax payments via Visa, Mastercard, or American Express credit cards issued in Malaysia. According to L & Co, a 0.80% service charge is imposed on credit card payments, and installment options (Ezypay) for 6 months or 12 months are available for Maybank credit cards for amounts between RM1,000 and RM500,000. The payment steps are almost the same as FPX: select the credit card logo on the ByrHASIL portal, enter identification details, select the payment code, enter the card details and amount, and confirm payment. Be sure to keep the receipt as LHDN does not issue physical receipts.
LHDN collection agents and bank counters. You can make payments via cash, check, or debit order at bank counters such as Maybank, Public Bank, CIMB, Affin Bank, and at Malaysia Post offices. For payments via check deposit machines (Public Bank) or ATMs, you need to enter your tax reference number and choose the appropriate payment code. Some banks also offer telebanking and cash deposit services via CDM machines.
Telecommunication transfer (IBG/RENTAS/EFT) for overseas payers. Malaysians residing abroad can transfer payments via telegraphic transfer or the IBG system to LHDN's CIMB Bank account. Please include information such as name, tax reference number, transaction number, and assessment year to ensure the payment is updated correctly.
Installment payments via e-TT. If you are unable to make a full payment, the e-TT portal allows taxpayers to generate a virtual account (VA) number. According to the official LHDN site, this number can be used to make payments via IBG, RENTAS, ATM, or bank counters. This is especially useful for taxpayers who need a payment installment plan.

Paying via Bank Transfer or Credit Card

Using internet banking or a credit card offers unique advantages. FPX allows immediate payment without service fees, but you must have sufficient funds in your account. Credit cards provide flexibility and interest-free periods if the full amount is redeemed before the statement date. However, the 0.80% service fee and installment interest rates should be considered. When choosing a method, reassess your personal cash flow. If you lack funds due to other commitments, obtaining short-term personal financing might be a better option than credit card debt. Financing companies like Amanahkredit offer fast loans with easy processes and competitive interest rates—this can help you pay your taxes on time and avoid penalties. Be sure to understand the loan terms and adjust them to your monthly budget.

Deadlines and Penalties for Late Payment of Income Tax

The e-Filing deadline depends on the form type and taxpayer category. The "Return Form (RF) Filing Programme for 2026" issued by LHDN states that for the 2025 Assessment Year, individuals who do not run businesses must submit the e-BE form by 30 April 2026 and can benefit from an extended period until 15 May 2026. For individuals running businesses, the deadline for the e-B form is 30 June 2026 with an extended period until 15 July 2026. If forms are submitted after these dates, they are considered late and LHDN has the right to impose a penalty under subsection 112(3) of the Income Tax Act 1967.

In addition to submission deadlines, you must also pay any tax balance by the same date. Late payments incur a 10% penalty on the outstanding tax amount, and an additional 5% penalty if not paid after 60 days. Therefore, it is crucial to prepare enough funds before the deadline. Use a digital calendar or reminder app so you don't miss this important date.

Troubleshooting Common Issues with e-Filing

Although e-Filing makes the process easier, users often face several technical issues. Below are common issues and how to resolve them:

Forgot password or security phrase. LHDN provides a Forgot Password function that can be accessed on the login page. The user manual states that you need to enter the reference number (ID number) and select the option to send a reset link to the registered email. This link is valid for two hours; if you do not receive the email, check the SPAM folder. Once you receive the link, click it and set a new password according to the requirements (8–12 characters, a mix of uppercase, lowercase, and numbers).
‘Digital certificate not exist’. This occurs for new users who have not applied for a PIN. Resolve this by applying for the PIN through the e-CP55D link as described in the registration section. If it still fails, try using another web browser or contact the nearest LHDN branch.
Did not receive the activation link. Make sure the registered email is valid and not full. Some corporate emails block automatic messages; therefore, consider using a Gmail or Yahoo account. If still no link, contact the LHDN service center (HASiL Care Line) to activate it manually.
Slow system or failure to download. During peak seasons (March–May), traffic to the MyTax portal increases dramatically. Try accessing it during off-peak hours (early morning or late at night). Also, ensure your internet connection is stable and your web browser is up to date, allowing pop-ups, as recommended in the LHDN manual.
Error when using credit card or FPX. If the transaction fails, double-check the payment code, tax reference number, and amount. Make sure your credit card is valid and has not exceeded the limit. For FPX, your bank must be a participating bank. If problems persist, try using another bank or pay at a counter.

Tips and Practical Examples for Tax Management

Prepare early by planning your finances. Keep records of receipts and documents related to tax exemptions throughout the year. Users are encouraged to retain proof of purchase for at least seven years as advised by iMoney. Using a receipt management app or a digital cloud folder can make it easier to find when it's time to file taxes.
Use online tax calculators. The iMoney portal and several banks offer a tax calculator for 2026. This tool helps you estimate the tax amount before completing e-Filing, allowing you to plan your budget and avoid tax debt surprises. Knowing the estimated tax balance, you can save gradually or apply for a microloan temporarily if needed.
Follow the latest tax trends for 2026. In 2026, the Malaysian government continues its e-Invoicing initiative for businesses, which will be gradually made mandatory. This means that income and expense data will be automatically entered into the LHDN system, simplifying e-Filing. Also, tax exemption provisions are regularly updated — for example, the exemption limit for computer purchases has been raised to encourage remote work. Always check the official portal or budget announcements for the latest incentives.

Conclusion

Paying income tax online in Malaysia is now easier than before. By following the registration steps via e-Register, providing the correct documents, opening a MyTax account, and using e-Filing, you can manage your tax responsibilities without having to queue at counters. The various payment methods – FPX, credit cards, collection agents, and bank transfers – offer flexibility according to individual needs.