LHDN Overview Malaysia
Lembaga Hasil Dalam Negeri (LHDN) Malaysia, also known as the Inland Revenue Board of Malaysia, is a prominent tax collecting agency in Malaysia. It was established as a government agent to monitor and administer the finances, especially the taxes. LHDN provides online and offline methods for you to file income tax returns and submit the form. In addition, the official website of LHDN provides several other services. You can also get an overview of the tax relief schemes available in Malaysia.
LHDN Taxation Service in Malaysia
- ByrHASiL: onlinethrough the participating banks. The funds will be transferred from your account towards the income tax department via Financial Processing Exchanges (FPX).
- e-Daftar: New taxpayers can register for income tax payments on the e-Daftar platform. Upon registration, you will receive an income tax reference number. Both individuals and companies can use the platform for online registration.
- e-Data PCB: This tool is designed for employers to verify the CP39 file and upload the “.txt” file to submit it to LHDN online. This is to ensure that the LHDN specifications are met. e-Data PCB can be used by employers who have a computerised payroll system that can calculate the monthly tax deduction (MTD) and generate CP39 in “.txt” format.
- e-Data Praisi: The employers can check if the pre-filled data sent to LHDN complies to the set standards. Upon confirmation, the employer can send the data to LHDN.
- e-Filing: Income taxpayers can fill relevant details and submit their Income Tax Return Form (ITRF) online using the e-Filing tool. You can also submit the tax estimation form on the tool. Forms, such as B/BT Form, BE Form, P Form, and more are available here.
- e-Filing CKHT/WHT: The system allows you to fill the tax form online. Instead of submitting it online, you must print the form and submit it to the nearest LHDNM branch. You can access the Real Property Gains Tax Form and Withholding Tax Payment Form for tax filing.
- e-Kemaskini: As a taxpayer, you can update telephone number, email address, and other personal information online. Rebate and tax relief information can be updated. The details entered in the Relief Information section will be pre-filled in the income tax return form for the respective assessment year. OeF taxpayers can also update their personal information on the tool.
- e-Lejar: Taxpayers can verify the personal information, bank account details, and tax payment balance on the e-Lejar tool. The status of tax assessments, tax payments, and refund can be checked here.
- e-PCB: Employers who do not have a computerised payroll system can compute the MTD accurately on e-PCB. The system stores employee information and helps to submit the MTD data to LHDNM online.
- e-Residence: This is a platform where you can apply and get the Certificate of Residence (COR). COR confirms the taxpayer residency in Malaysia for tax payment purposes. With COR, you can get the benefits of the Double Taxation Agreement (DTA) that Malaysia has signed with several countries.
- e-SPC: Surat Penyelesaian Cukai (e-SPC) is a system for the employers to apply for tax clearance letter online. Employee resignation notification can be uploaded on the tool using CP22A/CP22B form. If the employee is leaving the country, form CP21 must be uploaded to notify the same.
- PCB Calculator: Employees can use the PCB Calculator to calculate the MTD. You can use this tool to verify your employer’s calculations.
- STAMPS: Stamp Assessment and Payment System (STAMPS) makes the stamping process more convenient. Only registered users can access the STAMPS tool.
- TAeF: Tax Agent e-Filing (TAeF) allows tax agents to complete and submit the tax returns online on behalf of clients.
- XBRL: Tax computation working sheets can be submitted online through the XBRL Submission System. eXtensible Business Reporting Language (XBRL) is used to create, share, and utilise business data in an efficient way.
- Digital Franking System 2.0 (DFS): DFS, an alternative to STAMPS, was introduced in 2011 to replace the manual red-inked franking machine. In the version 2.0, the document information must be written before the stamping is made.
Important Tax Forms
- CP204 Form: Use to submit an estimate of the tax payable.
- CP204A Form: To submit the revised estimate of the tax payable with this form
- e-C Form: This form must be filled based on audited accounts for the submission of income tax returns.
- CP 58 Form: furnish particulars of the payments made to agents, dealers, and distributors.
Note: The forms given above can be downloaded for reference use.
LHDNM takes care of the services related to tax computation and payment for both individuals and companies. You can make all the necessary form filling and submission transactions online with ease. Make use of the services provided by the organisation to register yourself, file income tax returns, pay the tax online, check if you have a tax balance, and more.
LHDN News & Announcements
IRBM Asks Taxpayers to Declare Their Income
As per a notice circulated by the Inland Revenue Board of Malaysia (IRBM) recently, all eligible taxpayers need to declare their income under the Special Voluntary Disclosure Programme (SVDP). This is applicable for the taxpayers who have a monthly income of RM4,000 and more. Those who run a business (excluding a private limited company), and have an annual income of RM48,000 or RM4,000 per month, also need to announce their income and register themselves as taxpayers. The board has already sent emails and notices to all the taxpayers regarding this, and those who fall below the allotted income criteria can ignore the notices. As per another recent development, the Organisation for Economic Cooperation and Development (OECD) has introduced an Automatic Exchange of Information (AEOI) initiative in Malaysia. Under this, the organisation will receive all the financial information of any offshore banking account. Therefore, the taxpayers are also requested to declare overseas accounts that are connected to income accumulated or derived from Malaysia and are liable to tax.
IRBM Updated Latest Forms for Tax Filing
On 19 December 2018, the Inland Revenue Board of Malaysia made an announcement regarding the latest form available. The form used for declaring the income from letting of real property, “Public Rulings No.12/2018”, can be downloaded from the official website of IRBM.
IRBM notified that the filing of the Real Form (BN) for the assessment year 2019
IRBM has been uploaded on the IRBM portal. Taxpayers can use it as a reference to submit the Real Form. The organisation also mentioned the step-by-step procedure to access and download the documents. The sample form can be found when you click “Program Filed Forms (BN)” under the “Form” menu on their official website.
IRBM Public Ruling No. 10/2018
IRBM stated that the “Public Rulings No. 10/2018”, regarding the tax incentive for investment in Bionexus Status Company, is available for downloading on its official website. Similarly, public rulings on withholding tax on special classes of income, Public Rulings No.11/2018 is also available on the site.
LHDN OFFICIAL LINKS
The link directs you to a page where you must enter new identification card number, passport number, army identification number, or police identification number to login.
The STAMPS portal can be accessed with the above link. You can get the stamping done with digital franks on this website.
ByrHASiL Payment Portal:
You can make online tax payments by visiting the ByrHASiL link.
E-Daftar New Registration:
First-time taxpayers can register for tax filing on the e-Daftar link. Fill the online registration form and upload the relevant documents to get your PIN.
LHDN TAX COMPUTATION TOOLS
This is a monthly tax deduction calculator tool useful for employers that do not have a computerised payroll system in-place.
The LHDN website also provides a way for the employees to calculate the monthly tax deductions via the PCB Calculator. Employees can compute the tax payable and verify if the amount deducted by the employer is correct.
Guide to LHDN Malaysia