Do I need to file a tax return?

Minimum Requirements

If you earn (after EPF deductions) a minimum of RM 34,000 yearly or RM 2,834 monthly, then you must file a tax return, unless you are exempted from doing so under the conditions set out below.

PCB and Exemption from Filing a Tax Return

Even if you pay PCB every month, you are still obligated to file a tax return unless you meet the conditions below, in which case you may opt not to file a tax return.

Conditions:

• Your only source of income is your employment income;
• You have been working for 12 months in the calendar year with the same employer;
• Your employer has been deducting PCB from your salary, correctly;
• Your employer is not paying any of your taxes; and
• You have not opted for a joint assessment with your spouse.

If any of those conditions are not met, then you must file a tax return.

If you meet the above conditions and have not submitted a tax return by the deadline for submission (April 30th) you will be deemed to have made an election not to submit a return.

Benefits of filing a tax return

If you have somehow underpaid your taxes for the year (e.g. incorrect PCB calculation), filing a tax return will save you trouble down the road - imagine trying to retire and finding out that you owe thousands of Ringgit in unpaid taxes!

On the other hand, you may have overpaid taxes and filing a tax return will allow you to claim a tax refund.