How to Register for Income Tax in Malaysia (Updated 2025 Guide)

In today’s interconnected and global economy, paying taxes is not just a civic duty—it’s a legal necessity. In Malaysia, as in most countries, income tax registration is a crucial process that ensures individuals and companies contribute their fair share to the nation’s development. Whether you’re a salaried employee, a business owner, a freelancer, or an expatriate earning income in Malaysia, you are required to register with the Inland Revenue Board of Malaysia (LHDN) once your earnings reach a taxable threshold. This process allows you to register as a taxpayer and get your income tax number, which is used to declare your income and comply with Malaysian tax laws.

For many first-time earners or business owners, navigating the Malaysian tax landscape may seem overwhelming. The process, while systematic, involves an understanding of when to register, what documents are required, and what tax obligations follow registration. This step-by-step guide will walk you through everything you need to know about how to register income tax, from tax file registration using e-Daftar to understanding tax deductions, e-Filing procedures, and the importance of seeking help if you’re filing taxes for the first time.

Tax Residence Status in Malaysia

You are considered a tax resident in Malaysia if you meet one of the following criteria:

1. You are present in Malaysia for at least 182 days in a calendar year.
2. You are present in Malaysia for less than 182 days in a year, but this period is linked to a stay of 182 or more consecutive days in the previous or following year.
3. Temporary absences from Malaysia for business trips, medical treatment, or social visits (not exceeding 14 days) are considered part of your 182-day period, provided you were in Malaysia immediately before and after the absence.
4. You are in Malaysia for at least 90 days in the year and were a resident or present in Malaysia for at least 90 days in three of the four preceding years.
5. You are a resident for the current year and have been a resident for the three previous years.

A Malaysian tax resident is taxed on all income accruing in or derived from Malaysia, as well as income received from abroad. The applicable tax rate is determined based on residency status, with residents enjoying progressive rates and access to various reliefs.

How to Register Income Tax in Malaysia as a First-Time Taxpayer

Anyone who earns an annual employment income sourced from Malaysia—whether through employment, business, dividends, rent, royalties, or other means—must register a tax file once they cross the minimum chargeable income threshold. As of 2025, this threshold remains RM34,000 annually after EPF deductions. If your total taxable income exceeds this, you must register yourself as a taxpayer with the LHDN. Each tax payer is then issued a tax identification number, which is critical for managing their income tax in Malaysia.

Foreigners working or earning income in Malaysia are also subject to the same obligation. According to the Inland Revenue Board, they must provide identification through a passport instead of a Malaysian IC number and include supporting documents such as a work permit. Registration does not happen automatically. Even if your employer deducts monthly PCB contributions, you still need to register online and open your own tax file.

Step-by-Step Guide to Register as a Taxpayer via e-Daftar

Step 1: Register for an Income Tax Number

First-time taxpayers need to start by registering a tax file with LHDN. You can register income tax online via e-Daftar or do so in person at the nearest LHDN branch. The platform allows you to upload a digital copy of your latest salary slip or EA form, as well as a copy of your IC or passport. If you prefer the physical route, make sure you visit during business hours and bring along all necessary paperwork.

When using e-Daftar, make sure to check your application status regularly. You’ll be given an application number, which lets you track the process. Once successfully registered, LHDN will issue a tax file number and link it to your MyTax portal. You’ll then be able to access your account using your IC number and begin managing your income tax online. You will also receive a security phrase and be required to sign up for e-Filing for subsequent tax submissions.

Step 2: Prepare Required Documents

To avoid delays, you’ll need to prepare that beforehand. Required items include a copy of your IC or passport, the latest salary slip or EA form for the process, and supporting documents such as employment letters or permits. These documents confirm your source of income and establish your tax eligibility.

For digital submissions, make sure you upload a digital copy of all documents in the required format. Once approved, you’ll receive your PIN number from LHDN to complete your first-time login. This PIN gives you access to your MyTax account and the ezHASiL platform, which are essential for managing income tax filing and monitoring your tax refund status throughout the year.

Documents You Need to File Income Tax Malaysia in 2024

Once your tax file registration is complete, the next step is to declare your income and file your taxes. Required documents include your EA form, EPF statement, and any bank statements if you’re self-employed. These documents are used to determine the total taxable income for the year and calculate your tax amount based on the applicable rates.

In addition, you must collect receipts that support any tax reliefs or deductions you intend to claim. These include payments toward insurance, education, or donations. Deductions must register properly through documentation to ensure they’re accepted. Keeping these receipts organized for each year of assessment will make the process smoother and reduce your chances of being audited.

Income Tax Filing Forms You Need to Know as a First-Time Taxpayer

When it comes time to file your return, choosing the correct form is crucial. The form you use depends on whether you are a resident or non-resident, and your source of income. For instance, employed resident individuals typically file Form e-BE, while those with business income use e-B. If you are a knowledge worker or non-resident, there are specific forms such as e-BT or e-MT tailored to your income type.

Filing the wrong form can lead to overpayment or underreporting, affecting your tax refund eligibility. LHDN provides clear guidelines to help first-time taxpayers choose correctly. If you’re unsure which to use, consulting a licensed tax agent is highly advisable, especially for limited liability partnerships or those filing income from multiple sources.

Why You Need to Register with LHDN: Role in Income Tax Malaysia

The LHDN plays a central role in overseeing income tax Malaysia systems. It administers various tax-related legislations and ensures individuals and businesses comply with tax laws. Once registered, LHDN links your income details to your tax identification number and updates your MyTax portal with relevant information each assessment year.

LHDN also ensures taxpayers have access to their account details for filing and payment through digital services. As Malaysia advances its tax infrastructure, tools like ezHASiL and MyTax help streamline processes and maintain a robust compliance system. The department also assists taxpayers in checking their tax amount and deduction claims through secure digital platforms.

First-Time in 2024? Why a Tax Agent Can Help You Navigate Income Tax Filing

Filing taxes for the first time can be complicated, especially when dealing with reliefs, exemptions, or multiple income streams. A tax agent can walk you through the steps to register, sign up for e-filing, and monitor your tax refund claims. Whether you’re trying to declare income from employment or investments, agents ensure you stay on track with accurate and timely filing.

Additionally, tax agents help with tasks such as income projection, digital certificate setup, and checking your application status via LHDN. They’ll also help you manage your MyTax account, remind you of deadlines, and provide year-round support. For peace of mind in your first time filing, a qualified tax agent can save you time, money, and avoid potential legal complications.