Frequently Asked Questions

Your tax bracket depends on your annual chargeable income and resident status. If you’re a resident in Malaysia, you’ll fall into one of six progressive tax brackets ranging from 0% on the first RM35,000 to 30% on income exceeding RM400,000 per year. Most salaried employees are residents, which means your employer deducts tax monthly through the real-time LHDN system. You can check your exact bracket by reviewing your latest assessment notice or using LHDN’s e-Services portal.

Common reliefs for salaried employees include individual relief (RM9,000), spousal relief, child relief, life insurance premium relief, education fees relief, and medical expenses relief. The key is having proper documentation—payslips, receipts, certificates, or statements depending on the relief type. We recommend reviewing LHDN’s relief checklist (available on their website) against your personal situation, then keeping all supporting documents for at least 5 years in case of an audit. Many employees miss out simply because they don’t know these reliefs exist.

Since 2020, e-Filing has been mandatory for all salaried employees earning more than RM35,000 annually, so paper filing isn’t an option. The good news? It’s straightforward and takes about 10-15 minutes once you log into LHDN’s e-Services portal with your PIN. You’ll see a pre-filled form based on information your employer already submitted, and you just need to add your reliefs and deductions, then submit. If you’ve never done it before, LHDN offers free online guides and even a mobile app to walk you through the process.

A deduction reduces your total income (like professional fees or work-related expenses), while a relief reduces your chargeable income after deductions are applied. For salaried employees, deductions are rare since your employer doesn’t deduct employment-related costs. Reliefs are what you’ll use—they’re standardized amounts or actual expenses that LHDN allows you to subtract. The result is the same: lower taxable income and a smaller tax bill, but understanding the difference helps you navigate LHDN forms and documentation requirements correctly.

Unfortunately, LHDN doesn’t allow salaried employees to claim home office expenses or work-from-home costs as deductions—this is only available to self-employed individuals and business owners. What you can claim are things your employer reimburses you for (which don’t count as taxable income anyway) or genuine professional development courses related to your job. If you’re spending money out of pocket on work necessities, the better strategy is to ask your employer to reimburse you directly rather than trying to claim it later.

The standard filing deadline is 30 April each year (or 31 May if you request an extension). If you miss it without an extension, LHDN can impose penalties starting from RM100 and increasing based on how late you are. You might also face compound interest on any unpaid tax. The good news is you can request an extension online through LHDN’s e-Services if you need more time, or contact them to discuss your situation. It’s much easier to file late with an extension than to deal with penalties, so don’t ignore the deadline.