How to pay income tax

Paying income tax in Malaysia involves several steps, from calculating your tax liability to making the payment through various available methods. Here’s a step-by-step guide on how to pay income tax in Malaysia:

1. Calculate Your Income Tax Liability

Determine Your Taxable Income: Calculate your total annual income, including salary, bonuses, business income, rental income, and any other sources of income.
Apply Deductions and Reliefs: Deduct eligible tax reliefs, rebates, and exemptions to determine your chargeable income.
Refer to the Tax Rate: Use the Malaysian tax rate table for individuals or businesses to calculate the tax amount due.

2. File Your Tax Return

Submit the Tax Return Form (e-Filing):
- Visit the LHDN’s official website and log in to the ezHASiL portal.
- Choose the appropriate tax return form:
  - Form BE: For resident individuals with employment income.
  - Form B: For resident individuals with business income.
  - Form M: For non-residents.
  - Form P: For partnerships.
  - Form C: For companies.
- Complete the form with your income details, deductions, and calculate your final tax liability.
- Submit the form electronically by the deadline (usually April 30th for individuals and June 30th for businesses).

3. Check Tax Payable

After filing your tax return, the system will calculate the amount of tax you owe or any tax refund you may be eligible for.
Review the summary carefully to ensure all information is accurate.

4. Make Payment

There are several methods available to pay your income tax:

a. Online Payment via FPX (Financial Process Exchange):

Log in to your bank’s online banking portal.
Select “Payments” or “Pay Bills.”
Choose “LHDN” or “Hasil” as the payee.
Enter your Income Tax Number and payment amount.
Confirm the payment and keep a copy of the transaction receipt.

b. Payment via ezHASiL:

Log in to the ezHASiL portal.
Choose “ByrHASiL” (Tax Payment) and select your tax category.
Choose the payment method (credit/debit card, FPX, etc.).
Complete the payment and print the receipt for your records.

c. Payment at Bank:

You can pay your income tax at participating banks, such as Maybank, CIMB, Public Bank, etc.
Provide your Income Tax Number and payment details.
Pay via cash, cheque, or bank transfer.
Obtain a receipt from the bank.

5. Confirm Payment

After making your payment, log in to the ezHASiL portal to check that the payment has been credited to your tax account.
Keep all receipts and confirmation of payment for your records.

6. Monitor Tax Compliance

Stay on top of your tax obligations, including filing returns and making payments on time, to avoid penalties.

By following these steps, you can efficiently pay your income tax in Malaysia and remain compliant with the country’s tax regulations.