5/28/2023 0 Comments 7 years from now walkthroughTotal income - tax exemptions and reliefs = chargeable/taxable income We’ll look at what exemptions you can for the 2021 tax year shortly but for now, this is what you need to know: Tax exemptions and reliefs are ‘discounts’ you can get for certain expenses made in the year. Then, if you qualify for any of the tax exemptions and reliefs, those amounts will be deducted from your income amount. Now, let’s jump right on to the next important question you might ask: How are my taxes calculated?įirstly, the total of all your incomes in the whole tax year will be added. But you will need to declare ALL types of income (part time and freelance included) that you earn in Malaysia. At this juncture, it’s worth mentioning that there’s a difference between filing your tax returns and paying taxes, as not everyone who files their returns will need to pay tax–only those who earn RM34,000 and more a year.Īnd speaking of that, any income that you earn outside of Malaysia is not taxable. You won’t have to pay anything, but it’s still good to get into the habit of declaring your income. However, even if you earn less than RM34,000 annually, you should still file your taxes. Those who fail to do so can face legal action, so make sure you do your part and declare your income. Let’s start with this basic question: Who should file tax returns?Īccording to Lembaga Hasil Dalam Negeri (LHDN)–also known as the Inland Revenue Board–those earning at least RM34,000 a year after EPF deductions need to pay taxes. If this is the first time you’re filing your taxes or you just need a clear guide on how to do the e-filling LHDN 2021, this article is just for you! Read on to find out all you need to know about declaring tax returns in Malaysia. ![]() However, in this article, we’ll be solely focusing on Malaysia Personal / I ndividual Income Tax (YA2021), that is, tax paid by employees in Malaysia. Now if you’re legally employed in Malaysia, or you are an employer here, you would have to pay taxes. In case you missed it, tax season is upon us again! It’s that time of the year when Malaysian citizens and residents will begin declaring all their earnings in the previous year.
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