We provide a concise guide to Malaysia’s current rules so you can plan and remain compliant. This introduction explains which earnings are in scope, what a Year of Assessment means, and that YA 2024 returns are filed in 2025 via mandatory e‑Filing on MyTax.
Residents face progressive rates from 0% up to 30%, while certain knowledge workers and select relocation programmes may qualify for a 15% employment regime. Non‑residents are taxed at flat rates by income type, so determining residency early matters.
New for YA 2025: a 2% levy applies to dividend amounts over RM100,000 after eligible deductions. We outline how reliefs, deductions, and records affect chargeable income and why seven years of documentation protects you in an audit.
Our services help you forecast liabilities, optimise claims, and meet deadlines. We focus on practical steps to reduce risk and keep filings accurate in MyTax.
Key Takeaways
- YA 2024 is filed in 2025 and e‑Filing on MyTax is mandatory.
- Resident rates are progressive (0%–30%); select regimes offer 15% for qualifying roles.
- Non‑residents face flat rates by income type—confirm residency early.
- Dividend amounts above RM100,000 may incur a 2% charge after deductions.
- Keep records for seven years and prepare BE/B/M forms to streamline compliance.
- We provide services to forecast liabilities and optimise reliefs for individuals and businesses.
What “income tax 2025” means right now in Malaysia
For the present filing cycle, earnings made in 2024 are reported in 2025 using e‑Filing on MyTax. This is the active window for the year of assessment and it affects how you record salary, benefits and other income.
Present time context: YA 2024 recorded in the 2025 window
YA 2024 covers income earned during the calendar year 2024 and must be filed via MyTax. LHDN made e‑Filing mandatory from YA 2024 onward.
User intent: rates, forms and deadlines you need now
Key deadlines: Form BE manual due April 30, 2025; BE e‑Filing due May 15, 2025. Form B manual is June 30, 2025; B e‑Filing is July 15, 2025.
| Form | Manual Deadline | e‑Filing Deadline |
|---|---|---|
| BE (salaried) | Apr 30, 2025 | May 15, 2025 |
| B (self-employed) | Jun 30, 2025 | Jul 15, 2025 |
| Who must file | Salaried above RM37,333 after EPF; self‑employed; residents meeting thresholds | |
We recommend you gather EA forms, rental and investment statements, receipts for deductions and rebates, and confirm residency status early. Build an internal calendar one to two weeks before official cutoffs so you have time to review.
Our services help individuals decide on assessment status, optimise reliefs, and assemble defensible documentation for a smooth submission.
Tax residency rules: the 182 days tests and linked periods
Your presence in Malaysia — counted by days — decides resident status for fiscal purposes.
The primary test
The “at least 182 days in a calendar year” rule
You are a resident if you spend at least 182 days in Malaysia in a calendar year. This is the clearest route to resident status.
Linked periods and temporary absences
Linking periods with business, illness and short social visits
If you fall short of the least 182 days, you may still qualify when that time links to a consecutive 182‑day stretch in the prior or following year.
Temporary absences count when they are for business, treatment for ill‑health, or social visits of up to 14 days if you were present immediately before and after each absence.
Alternative multi‑year tests and practical notes
Other routes include a 90+ days test tied to prior‑year residence, or a rolling test across four years for repeated presence.
| Test | Key requirement | When it helps |
|---|---|---|
| 182‑day rule | At least 182 days in calendar year | Straightforward resident qualification |
| Linked periods | Short year linked to adjacent 182‑day stretch | Frequent travellers with gaps |
| 90+ / rolling | 90 days + 3 of 4 prior years or 4‑year rolling | Executives and regional staff |
Why this matters: resident status affects how your income and tax are treated, your access to reliefs, and allowable expenses. We recommend that individuals keep a travel log, boarding passes and employer approvals. We can help schedule travel and advise on documentation to secure status.
How Malaysia’s tax system works: territorial basis and taxable income
Malaysia applies a territorial system: local-source receipts are generally within the charge for most residents. Determining where each receipt arises is the first step in correct reporting.
Territorial scope: Malaysian-sourced vs foreign-sourced
For individuals, Malaysian-sourced amounts are taxable. Foreign-sourced flows are typically outside scope under current exemptions for personal cases.
What counts as taxable
Taxable categories for residents include employment (salary, bonuses, commissions, benefits-in-kind from work performed in Malaysia), profits from business activities, and rental from Malaysian property.
Investment returns such as interest are generally taxable. Single-tier dividends are usually exempt, but a 2% charge applies to dividend amounts exceeding RM100,000 after allowed deductions.
- Keep source evidence: payslips, contracts, tenancy agreements, and bank statements.
- Watch common pitfalls: valuing benefits-in-kind, applying rental netting rules, and separating business from employment receipts.
We help companies and individuals organise documentation and separate deductible items so you report each part accurately at year-end.
Personal income tax rates for 2025 and who gets 15% preferential rates
Malaysia uses a graded personal schedule with marginal steps up to 30%. We summarise the resident bands and targeted 15% employment regimes so you can assess exposure and planning needs.
Progressive resident brackets
Resident bands start at 0% for the first RM5,000 and rise through 1%, 3%, 6%, 11%, 19%, 25%, 26%, 28% to 30% above RM2,000,000.
Map your chargeable amount to the correct bracket to plan any withholding or top-ups.
Who qualifies for the 15% employment regime
The 15% rate applies to select knowledge workers and relocation hires under time-bound schemes.
- Iskandar Malaysia knowledge workers — applications to IRDA (deadline Dec 31, 2024).
- Returning Expert Programme (REP) — up to five consecutive YAs; apply via TalentCorp (window to Dec 31, 2027).
- PENJANA relocation for non‑citizen C‑suite — up to five individuals per company; apply to MIDA (deadline Dec 31, 2024).
- Individual regimes in Forest City and JS‑SEZ for eligible specialists.
Non-resident flat rates by types
Non‑residents face flat rates by types of receipt: 30% for most employment and business, 15% for entertainers and certain interest, and 10% for royalties and specified technical or rental of moveable property. Note most personal reliefs are not available to non‑residents.
New for YA 2025: a 2% charge applies to dividends above RM100,000 after eligible deductions. Track distributions across companies and nominees to avoid underpayment.
Practical step: model scenarios combining salary, incentives and expected dividend receipts, and coordinate with HR and payroll so qualifying staff are registered from year start. We provide services to run these simulations for individuals and company payroll teams.
income tax 2025 filing forms and deadlines
Timely filing hinges on matching your profile to BE, B or M and meeting MyTax cutoffs.
Which form applies to your source of receipts
We help you pick the correct form. Use Form BE if you are a resident with employment and investment receipts but no business source.
Choose Form B when you have any business source, including sole proprietorship or freelance work.
Non‑resident individuals must file Form M.
Key due dates and filing process
e‑Filing on MyTax is mandatory from YA 2024 onward. Missing cutoffs can cause penalties and cash‑flow issues.
| Form | Applies to | Key deadline(s) for YA 2024 filed in 2025 |
|---|---|---|
| BE | Resident, no business | Manual: Apr 30 — e‑Filing: May 15 |
| B | Resident with business | Manual: Jun 30 — e‑Filing: Jul 15 |
| M | Non‑resident individuals | Follow MyTax guidance and deadlines |
- Prepare account credentials early so you can submit before each date.
- Organise supporting documents by form to speed data entry.
- If your source changes mid‑year, disclose both categories and choose the correct return.
- We review deductions and rebates to ensure claims are placed in the right sections.
- Schedule buffer time to reconcile EA/PCB, check bank details, and confirm submission.
Step-by-step e-Filing on MyTax: from TIN to submission
A stepwise approach makes e‑Filing on MyTax fast and compliant for first‑time filers. We guide you through registration, completion, signing and record keeping so you avoid common errors.
Registering for a TIN and obtaining your one‑time PIN
First, register for your Tax Identification Number via e‑Daftar on MyTax. Set up your account and follow the online applications to request a one‑time e‑Filing PIN.
You can also collect the PIN at any LHDN branch if needed. We offer services to assist with this step so you start without delay.
Accessing e‑Filing and selecting the correct form
Open MyTax > EzHasil Services > e‑Filing. Choose e‑BE, e‑B or e‑M and confirm the year of assessment (YA 2024).
Select the right form to avoid amendments later. We review your profile so you file the correct return the first time.
Completing the ITRF and declaring receipts
Complete personal particulars, bank details for refunds, and employer numbers. Declare employment via EA, other receipts such as rental, and report PCB/MTD exactly as shown on your EA.
Claim documented deductions and rebates. Note foreign‑sourced amounts where applicable and mark exempt items correctly to reduce error risk.
Signing, submitting, records and amendments
Request a TAC to sign and submit. Download the acknowledgment and save the e‑Form; keep records for seven years. If you need a correction, limited online amendments are possible or you may lodge an appeal by April 30, 2025.
Reliefs, deductions, and rebates to lower your tax in YA 2024/2025
Small adjustments to contributions and documented expenses often yield meaningful savings. We map core reliefs and show where enhancements apply so you can claim correctly on the form.
Core personal and family reliefs
Key resident reliefs include self RM9,000 and spouse RM4,000. Disabled taxpayers get extra allowances; child relief varies by level and disability status.
Retirement, protection and premiums
Claims include EPF/pension RM4,000, PRS/deferred annuity RM3,000, life and medical premiums RM3,000 (increased for certain items w.e.f. YA 2025), and SOCSO RM350.
Health, education and lifestyle expenses
Medical caps: RM10,000 overall and RM8,000 for parents/grandparents (includes dental and vaccines from YA 2025). Education and upskilling allowances, lifestyle and childcare have specific caps and documentation rules.
“Keep clear receipts and a short checklist — documentation wins claims in review.”
| Relief type | YA 2024 cap (RM) | Note |
|---|---|---|
| Self | 9,000 | Standard personal relief |
| EPF / pension | 4,000 | Employee statutory contributions |
| Medical (parents) | 8,000 | Includes dental & vaccinations (expanded) |
| Child (higher education) | 8,000 | Higher cap for tertiary disabled students |
Green, property and rebates
EV charger and composting machine claims up to RM2,500. New housing loan interest tiers apply for qualifying SPAs. Rebates include RM400 (or RM800 jointly) if chargeable income ≤ RM35,000, plus zakat/fitrah and departure levy credits.
Receipts checklist: EA forms, premium statements, medical invoices, course certificates, SSPN/PRS receipts, boarding passes for residency evidence, and loan SPAs. We recommend scanning and tagging files for the form and for audit readiness.
Residents vs non-residents: compliance, relief eligibility, and examples
Determining residency early in the year shapes both your filing obligations and relief access.
Who must file: thresholds for salaried, business, and foreigners
Salaried residents with net pay above RM37,333 after EPF must file.
Self-employed persons with taxable profits must also submit a return.
Foreigners who meet residency status tests are likewise required to file.
Short assignments under 60 days, work on Malaysian‑registered ships, certain pensions at age 55+, bank interest, and exempt dividends typically do not trigger filing.
Reliefs access for residents vs non-residents and common edge cases
Residents benefit from progressive brackets and can claim personal reliefs, rebates, and allowances.
This applies to many deductions for medical, retirement contributions, and education.
Non-residents face flat rates by receipt: 30% for employment and business, 15% for entertainers and certain interest, and 10% for royalties and specific service payments.
They generally cannot claim personal reliefs.
| Scenario | Treatment | Docs to keep |
|---|---|---|
| Cross‑border executive (meets residency) | Progressive rates; reliefs available | Travel log, EA, rental agreements |
| Short assignment <60 days | No filing if only that employment; exemption applies | Employer letter, boarding passes |
| Non‑resident with rental or interest | Flat withholding; limited reliefs | Rental ledgers, bank statements |
“Analyse presence and receipts early; small shifts in days can change liability and relief eligibility.”
We offer services to review your pattern of days, model scenarios, and advise on documentation for rental, interest and business sources.
Act early in the year to shape presence and preserve benefits.
Paying your tax: methods, installments, and cash-flow planning
A clear payment strategy helps businesses and individuals maintain compliance and liquidity. We set out practical channels and steps so you can settle liabilities without disruption.
Online payments: FPX and credit card via ByrHASiL
You can pay online using FPX or a credit card through the ByrHASiL portal. Log in with your tax file details and confirm the amount before authorising the transfer.
We set up your ByrHASiL workflow so settlements are fast, traceable, and aligned with your filing outcome.
In-person, ATM, and telebanking options
Over‑the‑counter payments are accepted at authorised banks such as Maybank, Public Bank, CIMB, Bank Rakyat, and Bank Simpanan Nasional.
ATM payments are available at Maybank, CIMB and Public Bank. Telebanking channels such as Maybank’s Kawanku also support payments when online access is limited.
Installments, CP500 and penalty awareness
If you cannot pay in full, submit a written appeal to LHDN’s Collection Unit before the due date to request instalments. Penalties may still apply, so we prepare appeals early and outline likely charges.
For non‑salary income, LHDN may issue CP500 to spread liability over six bimonthly payments. We configure CP500 for business, rental or other non‑salary receipts and integrate it into your cash‑flow plan.
“Plan payments, document each transfer, and reconcile to your MyTax acknowledgment to keep a clear audit trail.”
| Channel | Where | Best use |
|---|---|---|
| FPX / Credit Card | ByrHASiL portal | Fast, traceable online settlements |
| Bank counters | Maybank, Public Bank, CIMB, Bank Rakyat, BSN | When receipts or slips are needed |
| ATM / Telebanking | Maybank, CIMB, Public Bank / Maybank Kawanku | Quick transfers when online not available |
- We document each transaction and reconcile it to your MyTax account and acknowledgment.
- We advise company payroll teams and individuals to schedule transfers to avoid late penalties and preserve compliance.
- When liquidity is tight, we prepare installment appeals and model cash‑flow to reduce surprise shortfalls.
Conclusion
Plan now so you can claim every eligible reliefs and rebates before the filing window closes. Determine residency, map your income sources and apply the correct bands to minimise exposure under Malaysia income tax.
Organise receipts by form and by date. Complete the correct e‑Filing, sign with TAC, and keep records for seven years so LHDN reviews are straightforward for each person who files.
Watch planning items for coming years: check incentive eligibility, monitor dividend thresholds, and time SPAs to secure housing interest relief. Review premiums, education and retirement contributions early to improve outcomes.
We offer end‑to‑end services — assessment, preparation, submission and payments — to keep you compliant and focused on your goals.
FAQ
What does "income tax 2025" mean right now in Malaysia?
It refers to assessments for year of assessment (YA) 2024 that are filed in 2025. We mean current updates on rates, forms, reliefs, and filing deadlines you must follow this filing season to remain compliant.
How does the "at least 182 days" residency test work?
You are generally resident if you spend at least 182 days in a calendar year in Malaysia. Short absences for business, medical treatment, or brief social visits usually do not break residency if you retain a regular home and employment ties here.
Are there alternative residency tests besides the 182-day rule?
Yes. There are rolling and prior-year conditions such as 90+ days combined with presence in the previous year, and multi-year linkage tests that consider continuous stays across several years to determine resident status.
What is the territorial scope of Malaysia’s system?
Malaysia taxes Malaysian-sourced earnings. Resident individuals generally declare local source remuneration, business receipts, rental, and certain investment proceeds; foreign-sourced sums may be exempt unless remitted under specific rules.
What types of receipts count as taxable?
Taxable items typically include employment remuneration, business profits, rental receipts, and selected investment returns like interest and certain dividends. Specific exemptions and timing rules apply for each type.
What are the personal rates for YA 2025 and who gets the 15% preferential rate?
Resident rates remain progressive from 0% up to 30% across chargeable bands. The 15% preferential rate targets qualifying knowledge workers and specific relocation or special economic zone schemes such as REP and Forest City/JS-SEZ, subject to eligibility criteria.
What flat rates apply to non-residents?
Non-residents face flat withholding rates depending on the category: typically higher rates for employment and some passive receipts. Rates include 30% for many employment payments, with reduced rates like 15% or 10% for certain contract or royalty types.
Is there any new levy for YA 2025 on dividends?
A new 2% charge applies to dividends exceeding RM100,000 after allowable deductions. Check your assessment notice and consult us if you expect to cross this threshold.
Which filing form should I use: BE, B, or M?
Use e-BE for individual residents with employment only, e-B for those with business or partnership profits, and e-M for non-resident employment. Choose the form that matches your main source of receipts for the year.
What are the key filing deadlines and cutoffs for manual and e-Filing?
Deadlines differ by taxpayer type and whether you file electronically or by paper. e-Filing windows close earlier than manual submissions. Confirm the specific date on the Inland Revenue Board portal and plan ahead to avoid penalties.
How do we register for a Taxpayer Identification Number (TIN) and e-Filing access?
Register via e-Daftar on the LHDN portal to obtain a TIN and one-time PIN. After activation, log into MyTax to access e-BE, e-B, or e-M and begin your submission.
What should I include when completing the return on MyTax?
Provide personal particulars, declare all relevant employment, business and rental receipts, report PAYE/PCB or MTD credits, and note any foreign-sourced sums. Attach supporting schedules for relief claims and retain documents for audit.
How do we sign, submit, and amend a filed return?
Electronically sign and submit via MyTax, then download and archive the acknowledgement. If you need to amend, lodge a revision within the allowed statutory period and provide corrected schedules and explanations.
What core reliefs and deductions can reduce my chargeable amount?
Common reliefs include personal, spouse, children, and enhanced allowances for disability. Retirement and protection reliefs cover EPF, SOCSO contributions, PRS and qualifying annuities, plus life and medical premiums.
Are there health, education, or lifestyle claims available?
Yes. Eligible claims include medical expenses, parental care, childcare, vaccinations, dental work, approved courses, professional upskilling, and certain equipment like computers or internet costs for study.
What property or green incentives exist?
Deductions can be available for housing loan interest under qualifying conditions, EV charging equipment, and approved green machinery such as composting units for qualifying taxpayers or businesses.
What rebates might reduce final liability?
Rebates apply to chargeable amounts up to RM35,000, payments of zakat/fitrah where applicable, and certain departure levies. These reduce final payable sums subject to documentary proof.
Who must file a return: residents, non-residents, and thresholds?
Salaried persons, business operators, and non-residents with Malaysian-sourced receipts must file if their gross receipts exceed statutory thresholds. Specific filing triggers vary by employment status and revenue type.
Do non-residents qualify for the same reliefs as residents?
No. Non-residents have limited access to domestic reliefs and rebates. Many personal allowances are restricted to resident taxpayers; consult guidance for common edge cases like part-year residency.
What payment methods are available for settling liabilities?
Payments can be made online via FPX or credit card through ByrHASiL, through internet banking, ATM transfers, or designated counters. Keep payment confirmations for your records.
Can I request installment arrangements or appeal assessed amounts?
Yes. We can help apply for installment schemes and negotiate CP500 arrangements for non-salary receipts. Be mindful of penalties and interest that accrue on late or underpaid sums.
How do we plan cash flow for expected assessments?
Forecast taxable receipts, claim all eligible deductions early, optimize withholding credits, and consider voluntary top-ups to EPF or approved schemes to reduce liabilities. We provide planning services tailored to your cash-flow cycle.
