About Income Tax: Working Foreign Spouse in Malaysia

As a follow up to my article about “Work Endorsement Allows Foreign Spouses To Legally Work in Malaysia”, I want to touch an article about the filing taxes for foreign spouses.

As everybody knows, e-filing for taxes in Malaysia is once a year. The last submission is every 30^th of April of the year for manual form but for e-filling, the last submission is on the 15^th of May (this was based on the filing assessment for the year 2017).

Income Tax Registration Page from LHDN website. 

My experience with this situation was a mixed emotion because at first, I was deducted with 28% on my monthly salary (2016). Accordingly, this was due to the pending 182 days of my stay in Malaysia from the day I entered the country.

The deductions were reflected in my monthly salary slip under PCB. So after my 182nd day, our payroll had already deducted a normal PCB (less deduction) in my monthly salary. Our company payroll is the one deducting for me.

My wife was the one keeping all my salary slip to match with my AE form which our payroll will be issuing before I file my income tax for the year.

You may wonder what is this income tax? For the information of everyone, income tax is a type of tax that the government of Malaysia is imposing to any individual or companies on all income generated. Individual or companies must file their taxes within a stipulated deadline to pay any taxes owed (or receive any overpaid tax refunds).

The income maybe comes from business or profession, employment, dividends, interest, discounts, rent, royalties pensions, bonuses, incentives and others.

In my 2 years of experiences working in Malaysia, I already filed my income tax to LHDN for two times. At first, I need to register to the portal of http://edaftar.hasil.gov.my/  and obtain my LHDN account/ PIN number for me to proceed further.

When I registered, my wife accompanied me since I cannot understand Bahasa Melayu. We went to the LHDN office at the UTC Kotaraya in Johor Bahru near the City center and a staff there assisted us to file my income tax.

LHDN office at UTC Kotaraya JB

I brought with me my passport, my EA form ( given by our HR payroll team), my Wife IC, and our marriage certificate to file my income tax there.

After filing all the required process,  they helped me printed the file that submitted and I only paid RM1 for the printing fee. By the way, they have a computer available for you to file your income tax there.

If you have a question like, “DO I NEED TO PAY TAX’.. The explanation is that an individual who earns an annual employment income of 34,000 (after EPF deduction) has to register a tax file. If the employee is eligible for Scheduled Tax Deductions (STD/PCB) deduction, he or she is advised to register an income tax file before STD/PCB is implemented.

And if you don’t pay your tax, you will be prepared to pay the penalty imposed by IRBF or LHDN rules and regulations.

By the way, when claiming some of the excess charges or overpaid tax,  LHDN office will give back to you. You need to go to the nearest LHDN office to provide your supporting documents. They will guide you.

Most documents for working foreign spouses are required to bring with them their company offer letter, Employment Letter ( Surat Pengasahan), Marriage certificate,  and a copy of every page of your passport from the day you entered Malaysia.

UTC Kotaraya Building in Johor Bahru.

 So far, on my claim, the process was smooth it’s just that I have to wait for my queue at the LHDN Office.