r/MalaysianTax

Budget 2027: What actually matters for our income tax?
▲ 10 r/MalaysianTax+1 crossposts

Budget 2027: What actually matters for our income tax?

Been looking through the Budget 2027 announcements & a few things caught my attention.

Some of the proposed changes that could affect individual taxpayers include:

  • Individual tax relief: The basic relief is set to increase from RM9,000 to RM12,000.
  • Tax rates: Some tax brackets are getting rate changes, so the impact depends on your chargeable income.
  • More relief categories: Things like AI subscriptions, tuition fees, certain care expenses & pet-related expenses were mentioned.
  • Gig workers: There are also measures involving EPF and SOCSO contributions.

Of course, an announcement doesn't automatically mean you can claim it right away. We'll need to see the implementation details and official LHDN guidance before making any claims.

Personally, I think the interesting part is whether people will actually take advantage of these reliefs or just forget about them until tax filing season comes around. 😂

How many of you actually track your tax reliefs throughout the year, instead of scrambling to find receipts when e-Filing opens?

u/Still-Research-1878 — 6 days ago
▲ 23 r/MalaysianTax+1 crossposts

It's still possible that some due in tax even after deduction of monthly income tax

A lot of people assume that if PCB (monthly tax deduction) is already being deducted from their salary every month, they’re done with their tax.

Not necessarily.

PCB is basically an estimate of your tax throughout the year. When you actually submit your tax return, your final tax is calculated based on your total income, reliefs, rebates, and other factors.

So you can still end up owing some tax even though PCB was deducted every month.

It doesn’t necessarily mean your employer did anything wrong. Sometimes the monthly deduction simply wasn’t enough to cover the final amount.

u/Still-Research-1878 — 7 days ago
▲ 0 r/MalaysianTax+1 crossposts

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u/Still-Research-1878 — 10 days ago
▲ 5 r/MalaysianTax+1 crossposts

Tax implications for remote work income paid via offshore payroll platform

I am currently working two remote jobs with a combined monthly income of approximately RM11k after convert.

Job A is with a local Singaporean company based in Malaysia, which handles my EPF and SOCSO contributions. Job B is with a US-based company that does not offer local benefits, but they did request my Tax Identification Number (TIN).

My income from Job B is paid through an international payroll platform via a Visa card; the funds do not enter the Malaysian banking system directly, and when I use the card, the transaction merchant name appears as "[COMPANY] PTE. LTD." rather than my own name.

  1. How does LHDN track income paid through offshore payroll platforms, and are they likely to detect this?
  2. If I want to ensure I am fully compliant, what is the best way to report this income and pay the necessary taxes?
  3. What is the "proper" process for transferring these earnings into my local Malaysian bank account without getting detected?

Any advice on navigating this situation legally would be greatly appreciated.

(edit: job B they pay in $USD).

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u/ProbablyNotHappy — 10 days ago