LHDN MyTax eFiling for salary man - the 4 most confusing items to fill be filled up - cukai pendapatan

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 In this world nothing can be said to be certain, except death and taxes - Benjamin Franklin


April is the month when all employed Malaysians must submit their income tax returns. The filing period commences on April 1st and ends on April 30th each year. Neglecting or submitting the returns after the deadline will incur penalties and fines. Some people even have been barred from traveling overseas for undeclared and unpaid taxes.


I've always found 4 items in the Malaysian LHDN (Lembaga Hasil Dalam Negeri) eFiling form to be most confusing (in my POV).

1) Melupuskan aset di bawah Akta Cukai (Disposing of assets under the Income Tax Act)

This basically means that if you have sold a property/real estate in the year under review, you need to select Yes (Ya). This is because property sold is subject to RGPT (Real Property Gains Tax)/ CKHD (Cukai Keuntungan Harta Tanah (CKHT) and needs to be declared.

For most of us, the appropriate answer is No (Tidak). 


2) Bilangan penggajian (Number of employers)

This basically asks how many employers were in the picture during the year under review. Some of us may be working for 2 companies and have 2 employers or some people have left their previous job and have a new job under the under review. For most of us, the number to put is 1 (only 1 employer).

3) Cukai ditanggung oleh majikan (Taxes are borne by the employer)

I found out apparently in some expat pay remuneration packages, the employer can opt to pay the entire sum of the tax of the employee (expat) on top of his/her salary. For most of us, the answer is No (Tidak).

4) Pelaburan yang diluluskan di bawah insentif cukai bagi pelabur mangkin (Approved investment under tax incentives for angel investors)

The Pelabur Mangkin term referred here is synonym with Angel Investor. It is for people who provide funding to startups. There are a few licensed ECF (Equity Crowd Funding) operators like Leet and Pitchin.my that offer a platform for the general public to do ECF.

Income tax exemption is given on 50% of the investment amount, subject to the following:

    (i) The exemption is limited to RM50,000 for each year of assessment;

    (ii) The deduction is limited to 10% of the aggregate income for that year of assessment;

    (iii) The investor, investee company, and amount of investment must be verified by SC;

    (iv) The investor must not have any family relationship with the investee com menara hasil pany;

    (v) The investment must be made through the ECF platform approved by SC; and

    (vi) The investment must not be disposed of, in full or in part, within 2 years from the date of investment.

Effective: For investment made from 1 January 2021 to 31 December 2023

As such, for most of us 99%, the figure is 0.

Oh by the way, efiling form now can switch language to English language from BM (Bahasa Malaysia). Still, some of the terminologies used might still be foreign to some. Do note all tax records, receipts needs to be kept for 7 years in case of an audit or investigation by LHDN.

Disclaimer: Please note that I am not a tax specialist, and there is a possibility that some of the information I provide may be incorrectly explained. I apologize in advance if any of the information I present is inaccurate.

📍Links

https://mytax.hasil.gov.my/


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