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The Definitive Guide To Personal Income Tax In Malaysia For 2016

Find out everything you need to know about filing your personal income tax in Malaysia by April 2016!

Chapter 10

How To Pay Income Tax In Malaysia

If you have paid your income tax payment in excess via the monthly tax deductions, the excess amount will be reimbursed to you via the bank account details that you had provided. For those who do not provide bank accounts, you will be reimbursed via cheques or the new tax refund voucher system (BBBC), which will be implemented in stages.

However, if you have taxes due, you can pay through various methods, such as e-banking, collection agents, and the ATMs to name a few. You can also pay your income tax via credit card. If you are looking for a card that will reward you for your tax payment, check out all the credit cards available in Malaysia.

Here are the many ways you can pay for your personal income tax in Malaysia:

income tax

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1) Pay income tax via FPX Services

The FPX (Financial Process Exchange) gateway allows you to pay your income tax online in Malaysia. First of all you need an Internet banking account with the FPX participating bank.

The participating banks are as follows:

  • Affin Bank & Affin Islamic Bank
  • Alliance Bank & Alliance Islamic Bank
  • AmBank & AmBank Islamic Bank
  • Bank Islam
  • Bank Rakyat
  • CIMB Bank & CIMB Islamic Bank
  • Hong Leong Bank & Hong Leong Islamic Bank
  • HSBC & HSBC Amanah (Not available for Retail)
  • Maybank & Maybank Islamic Bank
  • Public Bank & Public Islamic Bank
  • RHB Bank & RHB Islamic Bank
  • UOB Bank

To make the payment, please go to ByrHASiL at https://byrhasil.hasil.gov.my/

2) Pay income tax via credit card

You can pay your income tax with your credit card through FPX participating bank at https://byrhasil.hasil.gov.my/

All VISA, Mastercard and American Express credit cards issued in Malaysia can be used for this service.

3) Pay income tax via LHDN Agents

You can choose from several methods when paying through an appointed agent.

a) Pay your tax over the counter at bank branches

You can pay for your Income Tax, Real Property Gains Tax (RPGT) and Monthly Tax Deduction (MTD) by cash, cheque, and instruction to debit account at the following LHDN agents’ branches nationwide:

  • CIMB Bank (MTD)
  • Public Bank (MTD)
  • Maybank
  • POS Malaysia (cash payment only)
  • Affin Bank
  • Bank Rakyat
  • RHB Bank
  • Bank Simpanan Nasional

You need to provide the following information in the payment slip:

  • Payment Code
  • Name of Taxpayer/Employer
  • Income tax number/Employer number
  • Identity card number
  • Year of assessment of the respective payment/Year and month of the MTD payment
  • Payment amount

b) Pay your income tax online

Below are the appointed agents that have the electronic payment facilities to receive tax payments.

Income tax payment
RPGT payment
MTD payment
HSBC call at 1300-88-1128 or 603-8321 5511

Taxpayers receive their tax returns via CIMBClicks, Bank Rakyat, Hong Leong Online, RHB Bank, MEPSCASH, Bank Islam, Al-Rajhi Bank and Affin Bank.

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pay tax at atm

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c) Pay your tax at the ATM

You can also make your payment for individual Income Tax and RPGT via Auto Teller Machine (ATM) at appointed agent banks as follows;

  • Public Bank Berhad
  • Maybank Berhad
  • CIMB Bank Berhad

You must have an ATM card from the respective bank to proceed with payment and you also need to provide your income tax reference number to complete the transaction.

d) Pay your tax via tele-banking

Payment of individual Income Tax and RPGT can be made via tele-banking service only at Maybank Berhad – Kawanku Phone Banking (1-300-88-6688).

pay income tax with cheque

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e) Payment via Cheque Deposit Machine (CDM)

You can also make your individual Income Tax and RPGT payment using a CDM at Public Bank Berhad.

f) Payment via Cash Deposit Machine (CAM)

If you are more comfortable making the payment in cash, you can do so for your personal Income Tax and RPGT payment using a Cash Deposit Machine (CAM) available at CIMB Bank Berhad.

How to pay your income tax when you are overseas?

Don’t worry, you don’t have to fly back to Malaysia just to pay for your income tax. You can do it wherever you are in these two ways:

pay income tax overseas

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1) Payment via Telegraphic Transfer (TT)/Transfer Interbank Giro (IBG)/Electronic Fund Transfer (EFT)

Tax payment using this method can be made to the Inland Revenue Board of Malaysia (IRBM) banks account. Details of the account are as follows:

  • Bank Account Number: 8000766957
  • Beneficiary (Payable to): Ketua Pengarah Hasil Dalam Negeri
  • Name and address of the bank: CIMB Bank Berhad, Cawangan Jalan Tunku Abdul Halim Tingkat Bawah, Blok 8, Kompleks Pejabat Kerajaan, 50480 Jalan Tunku Abdul Halim, Kuala Lumpur, Malaysia

For Telegraphic Transfer (RENTAS), the CIMB Bank Berhad swift’s code is as follows:

Swift Code: IBBMYKL

You need to furnish the following information to enable IRBM to update their tax accounts.

  • Tax Payer name
  • Tax reference number
  • Transaction reference number for the TT/IBG/EFT
  • Tax assessment year
  • Payment code (Please refer to the schedule below)
    Instalment number, if any. If none, LHDN will consider current month as instalment number.

You will need to send the above information to LHDN/IRBM office at Jalan Tunku Abdul Halim, Kuala Lumpur via fax at 03-62019637 on the transaction day (for the attention of Tengku Ruzma Tuan Hussin/Zaharah Shafie).

Alternatively, the same can be emailed to the following officers:

  • Tengku Ruzma Tuan Hussin tengkuruzma@hasil.gov.my
  • Zaharah Shafie zaharah.s@hasil.gov.my
  • Zakuan Afzan Abdul Halim zakuanafzan@hasil.gov.my
  • Azreen Abd Rahman azreen@hasil.gov.my

You will be issued an official receipt from LHDN once the above information has been received and the payment amount is confirmed by the bank. If you fail to follow the above procedure, which cause a delay in updating the tax accounts, you may be subject to late penalty.

2) By Bank Draft

You can also make your personal income tax payment when you are overseas by bank drank. Monetary transfer from overseas by this method requires you to forward the following information:

  • Payable to: Director General of Inland Revenue
  • Name and address of payer bank: Must be ‘local paying bank’ or ‘local correspondence bank’ so that draft becomes a local cheque.

Bank draft cannot be bought in Malaysian Ringgit (RM). Therefore, please ensure that the currency exchange for the amount to be paid is accurate.

Payment and payer details must be written at the back of the bank draft and then posted to the address below:

Inland Revenue Board Malaysia
Payment Counter
Ground Floor, Block 8A
Government Offices Complex, Jalan Tunku Abdul Halim

How to pay your income tax in instalments?

pay income tax in instalments

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If you find yourself struggle to fork out the full tax payable amount and is unable to meet the payment deadline of April 30 of the year of assessment, you can apply for payment of the balance of tax in instalments.

To apply for instalment, you need to forward a letter of appeal to the Collection Unit of the LHDN branch where your physical income tax file is maintained. This letter must be received by the Collection Unit before April 30 of the year of assessment.

However, please note that even if the appeal is approved, late payment penalty will still be imposed.

What’s the penalty for late income tax payment?

If you failed to make the full payment after April 30 following the year of assessment, you will be charged a late payment penalty of 10% on the balance of tax not paid.

If the tax and penalty imposed is not paid within 60 days from the date the penalty is imposed, a further penalty of 5% will be imposed on the amount still owing.

Here’s an example:

Balance of tax not paid after April 30: RM700

First late penalty (10%): RM70

Total tax payable: RM770

If the above is still not paid after 60 days, you will be charged another 5% on the RM770, making your total tax payable come up to RM808.50.

How to appeal for late payment penalty

If you do not agree with the late payment penalty imposed, you can forward an appeal in writing to the relevant branch for the attention of the Collection Unit within 30 days from the date the Notice of Increased Assessment is issued.

The penalty imposed has to be settled notwithstanding any appeal made. If the appeal is successful, LHDN will refund the relevant amount.

What is income tax payment code?

When making your tax payment, you are required to fill in the payment code. If you are wondering what you payment code is, here is a list of all the payment codes:

Payment Code
Tax Instalment Payment - Individual
Tax Instalment Payment - Company
Investigation (Composite) Instalment Payment
Real Property Gain Tax Payment (RPGT)
Income Tax Payment (excluding instalment scheme)
Penalty Payment For Section 103A / 103
Payment Section 108
Penalty Payment For Section 108
Penalty Payment For Composite
Penalty Payment For Section 107C(9) / 107B(3)
Penalty Payment For Section 107C(10) / 107B(4)
Payment For Court Fee
Payment For Interest On Judgement Amounts
Instalment Payment Approved by Audit
Instalment Payment Approved by Collection Unit
Instalment Payment Approved by Civil Suit Unit
Payment For Legal Fee
Payment Section 108 (Sec 25)
Penalty Payment For Section 25
Tax Settlement
Tax Settlement - Employer
Penalty Payment For RPGT - Disposer
Penalty Payment For RPGT - Acquirer
thly Tax Deduction (MTD)
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