What is LHDN or HASiL in Malaysia?

LHDN, also known as HASiL, is Malaysia's Inland Revenue Board and is responsible for administering many income-tax matters, taxpayer records, filings, and payments.

Is PCB the same as final income tax in Malaysia?

No, PCB is a monthly tax deduction from employment income in Malaysia, while the final tax position depends on the person's complete annual income and eligible claims.

What is the difference between SST and income tax in Malaysia?

SST in Malaysia is a sales and service tax connected to certain goods and services, while income tax is generally based on taxable income and is handled through a different process.

Taxes in Malaysia

Taxes in Malaysia help pay for public services and are collected through different systems. Personal income tax is handled through the Inland Revenue Board, commonly known as LHDN or HASiL, while sales and service tax is a separate consumption tax system. What a person must do depends on income type, residence, work, business activity, and eligible reliefs.

Tip

Keep Malaysian tax records throughout the year instead of trying to rebuild them later. Separate salary deductions from your final tax position and check every relief or deduction against its conditions.

byAmira&Azlan

Taxes in Malaysia are compulsory payments to public authorities. The main personal tax concern for many people is income tax on taxable income, while businesses and consumers may meet other taxes and duties. The Inland Revenue Board of Malaysia is commonly called LHDN or HASiL. It administers income tax, taxpayer records, filings, payments, and related processes. Employees may see monthly tax deductions from salary, often called PCB or monthly tax deduction. This is a payment during the year, not always the final calculation of the person's total tax position. People can have different income types, including employment income, business income, rental income, investment income, and other receipts. The treatment depends on the nature of the income and the applicable rules. Malaysia's tax system can distinguish between residents and non-residents for some purposes. Residence is a legal tax concept and may not be the same as citizenship, nationality, or the place where a person feels at home. Tax reliefs, rebates, deductions, and exemptions can reduce taxable income or tax payable when the person meets their conditions. Keep documents that support any claim, such as receipts, statements, and records of eligible payments. Sales and service tax, known as SST, is a separate system that can affect the price of certain goods or services. It is not the same as personal income tax and is generally handled through the supply chain. A sound first step is to keep income and expense records, understand whether you have a tax file or filing duty, and use official instructions when preparing a return. Do not guess about complex cross-border, business, property, or inheritance situations.