First job? First payslip? First time seeing “PCB” and wondering if it’s a secret adult club? 😅

Before you panic-Google “Do I need to pay income tax Malaysia?”, relax. This guide explains:

We’ll cover:

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And then you can jump to our step-by-step e-Filing guide when you’re ready to actually submit.

For YA 2025, you generally need to file income tax in Malaysia if your annual employment income exceeds RM37,333 after EPF deductions (around RM3,111 per month).

⚠️ This figure may be revised by LHDN from time to time. Always confirm the latest threshold on the official LHDN website.

If your income is below this amount, you may not have tax payable — but you could still be required to submit a tax return depending on your circumstances.

Filing taxes vs paying taxes (they are not the same 👀)

This is where many first-time taxpayers get confused.

• Filing income tax means submitting your income details to LHDN through the MyTax portal.
• Paying income tax means you actually owe money after your tax is calculated.

You can:

• File but pay nothing → if your income is below the taxable threshold or fully covered by reliefs
• File and receive a refund → if MTD deductions were higher than your actual tax payable)
• File and pay a small balance → if MTD was not enough

So even if you don’t think you need to pay tax, you may still need to file.

Do I need to file income tax if my salary is below RM3,000?

It depends.

You may still need to file if you:

• Have side income (freelance, gigs, commissions)
• Have rental income or other taxable income streams
• Have MTD/PCB deduction on your payslip

When in doubt, check your status via LHDN's MyTax portal.

MTD (Monthly Tax Deductions) or PCB (Potongan Cukai Bulanan) is a monthly tax deduction automatically deducted from your salary and paid to LHDN by your employer.

Think of MTD as “pre-paying” your tax throughout the year:

• If MTD exceeds your actual tax payable → you receive a tax refund
• If MTD is insufficient → you pay the balance

⚠️ MTD does NOT replace tax filing. You must still submit your income tax return.

1. Register online via the e-Daftar section on the MyTax portal.
2. Complete the application form and upload relevant documents to obtain a Tax Identification Number (TIN) which is necessary for all tax-related transactions.
3. Obtain a one-time PIN via the MyTax portal or at an LHDN branch to access e-Filing for the first time.
4. Set up your account on the MyTax platform for online tax filing.

🟡 Tax exemptions

Income that is not taxed at all (excluded from tax).

See list of tax exempted income here.

🟢 Tax deductions

Amounts you can subtract from income (depending on category) before tax is calculated.

They reduce your chargeable income.

🔵 Tax reliefs (most important for first-time taxpayers)

This is the big one for most people. Tax relief reduces your chargeable income, so you pay tax on a smaller amount.

Popular income tax relief items young adults often claim include:

• Personal relief (RM9,000)
• EPF contributions
• Life insurance
• Lifestyle relief (books, laptop, sports equipment, gym membership)
• Internet subscription
• Medical expenses (including mental health)
• Education fees

Relief categories and limits may change each Budget year — check the full list of Tax Reliefs Malaysia for YA 2025.

🟣 Tax rebates

A rebate reduces the tax you need to pay (a “direct discount” after tax is calculated), usually for specific eligibility cases.

Deadlines depend on which form you file (Borang BE vs Borang B), but as a first-time salaried employee you’ll most likely deal with Borang BE.

Rule of thumb:

• Main deadline is commonly 30 April
• e-Filing grace period often extends to 15 May

Common first-timer mistakes

• “My MTD already deducted, so I don’t need to file” ❌
• Forgetting to update bank details (refund delays) 😭
• Not keeping proof/receipts for claims 🧾
• Waiting until the last day and the site slows down 🫠
• Ignoring emails/requests from LHDN

What to do next 👇

Now that you’ve got the basics (registration, MTD, thresholds, reliefs), you’re ready for the practical part.

You’re ready for the action part.

👉 Read our complete step-by-step guide on how to file income tax in Malaysia for beginners

FAQ

1. What form do salaried employees use?

Salaried employees without business income typically file Borang BE via LHDN e-Filing.

2. How long does tax refund in Malaysia take?

Refunds are usually processed within 30 working days for accurate e-Filing submissions with correct bank details.

3. What is Year of Assessment (YA)?

Year of Assessment refers to the tax year being reported. For example, income earned in 2025 is filed in 2026 under YA 2025.