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As we approach another year of tax obligations, it's essential for property owners to be well-informed about the latest updates and guidelines provided by the Malaysian Inland Revenue Board, also known as Lembaga Hasil Dalam Negeri Malaysia (LHDN). Whether you're a seasoned property investor or a first-time landlord, understanding Malaysian tax laws and regulations is crucial for smooth and accurate tax filings. 

In this guide, we'll explore key considerations for property owners as they prepare to fulfill their tax obligations in 2024. From documentation requirements to tax reliefs and filing deadlines, we'll cover everything you need to know to ensure a successful tax season ahead. Let's ensure a successful tax season ahead for property owners across Malaysia.

 

 

What is LHDN e-Filing?

LHDN e-Filing, developed by the Lembaga Hasil Dalam Negeri (LHDN), is an online platform that facilitates the electronic submission of income tax returns. This digital solution offers property owners the convenience of filing taxes from anywhere with internet access, eliminating the need for physical visits to tax offices. It also reduces paperwork, streamlining the tax filing process and promoting eco-friendly practices.

 

Who Needs to File Taxes in Malaysia?

Not everyone needs to file taxes in Malaysia, but according to Lembaga Hasil Dalam Negeri (LHDN), individuals earning an annual income of RM34,000 or more after EPF deductions are required to register a tax file with the tax department. To simplify the process, property owners can refer to their monthly payslips to determine eligibility for taxation if they take home at least RM2,833 after EPF deductions.

It's important to note that this income threshold extends beyond earnings from a primary job and includes income generated from part-time or freelance work. By adhering to LHDN's guidelines and accurately declaring all sources of income, property owners can ensure compliance with tax regulations while maximizing potential deductions and benefits related to property ownership.

 

Document Preparation for LHDN Tax Filing

To comply with LHDN requirements and effectively manage your property-related tax obligations, property owners must gather the necessary documentation. By February 28th, 2024, employers should provide an EA Form (Borang EA), containing crucial income details relevant to property ownership or rental income. 

Safeguarding this form is essential for accurate tax filings related to real estate ventures. Furthermore, if you've been involved in multiple employment opportunities within the property sector throughout the year, ensuring you collect all EA forms is vital for consolidating your total income accurately. By meticulously organizing and retaining these documents, property owners can streamline the tax filing process and uphold compliance with LHDN regulations specific to real estate transactions or rental properties.

 

 

Deadline for tax returns filing

Understanding tax filing deadlines is crucial for property owners. The deadlines for LHDN filing tax returns in Malaysia can vary depending on various factors such as when the form being submitted and specific circumstances. Here are the deadlines for LHDN filing tax returns form in 2024:

1. Form EA
   Annual income statement prepared by company to employees for tax submission purpose
   Deadline: 29.02.2024
2. CP 58
   Commission / fees statement prepared by company to agents, dealers & distributors
   Deadline: 31.03.2024
3. Form E
   Form used by company to declare employees status and their salary details to LHDN
   Deadline: 31.03.2024 (30.04.2024 for e-filing)
4. Form BE
   Income tax return for individual who only received employment income
   Deadline: 30.04.2024 (15.05.2024 for e-filing)
5. Form B
   Income tax return for individual with business income (income other than employment income)
   Deadline: 30.06.2024 (15.07.2024 for e-filing)
6. Form P
   Income tax return for partnership
   Deadline: 30.06.2024 (15.07.2024 for e-filing)
7. Form C
   Income tax return for companies
   Deadline: 7 months after financial year end (8 months for e-filing)
8. Form PT
   Income tax return for LLP
   Deadline: 7 months after financial year end (8 months for e-filing)

 

Benefits of LHDN e-Filing for Property Owners

1. Convenience:
   LHDN e-Filing offers property owners the convenience of filing taxes from anywhere with internet access, saving valuable time and eliminating the need for physical visits to tax offices.
2. Reduction of Paperwork:
   By transitioning to digital submissions, property owners experience a reduction in paperwork, leading to a more streamlined and eco-friendly tax filing process.
3. Accuracy Assurance:
   The LHDN e-Filing system includes built-in validation checks that ensure the accurate submission of tax information, minimizing the risk of errors and discrepancies.
4. Efficient Processing:
   Electronic submissions expedite processing times, allowing property owners to receive assessments or refunds promptly and efficiently.
5. Secure Record-Keeping:
   LHDN e-Filing provides property owners with secure digital record-keeping capabilities, ensuring easy access to tax filings and related documents whenever needed, while also enhancing data security and privacy.

 

 

How to Do LHDN e-Filing?

 

Register for an Account on LHDN e-Filing Portal

Visit the official LHDN e-Filing website and click on the "Register" or "Sign Up" button. Fill in your personal details accurately, including your full name, MyKad number, email address, and contact number. Create a strong password for your account and select security questions for account recovery purposes. Verify your email address and activate your account.

(Note: Click for Register Account on LHDN e-Filing's Guideline)

Prepare Your Tax Information

Gather all necessary financial documents and information related to your property, including:

• Rental income statements
• Expenses related to property maintenance, repairs, and renovations
• Receipts for property-related expenditures
• Capital gains from property sales (if applicable)

Log In to the LHDN e-Filing Portal

After registering, log in to your account on the LHDN e-Filing portal using your credentials. Once logged in, navigate to the "Individual" section and select the appropriate tax year for filing.

Fill in the Tax Form

Select the relevant form for property income, such as Form BE (Individual) or Form B (Business). Carefully fill in all required fields with accurate information regarding your property income, deductions, and exemptions. Take your time to ensure correctness, as inaccurate information may lead to penalties or delays in processing.

Verify and Review Your Submission

Before submitting your tax return, review all entries thoroughly to ensure accuracy and completeness. Double-check figures, calculations, and supporting documents to avoid errors. Utilize the validation features provided by the e-Filing system to identify any potential mistakes.

Submit Your Tax Return

Once you are satisfied with your tax return, proceed to submit it electronically through the e-Filing portal. Follow the instructions provided to confirm your submission. Upon successful submission, you will receive a submission receipt or acknowledgement from LHDN as proof of filing.

Settle Any Tax Payments

If you have tax liabilities resulting from your property income, settle the payment using the available online payment options within the e-Filing system. Ensure timely payment to avoid penalties or interest charges.

Retain Copies of Documents

After completing your e-Filing, retain copies of all submitted documents, receipts, and confirmation emails for your records. These documents may be required for future reference, audits, or inquiries from tax authorities.

 

By following these detailed steps, you can successfully complete your LHDN e-Filing for property income and ensure compliance with tax regulations in Malaysia.

In conclusion, LHDN e-Filing represents a significant advancement in tax administration for property owners in Malaysia. By embracing this digital platform, property owners can streamline tax management processes, enhance efficiency, and ensure compliance with regulatory requirements. Embracing LHDN e-Filing is a step towards simplifying tax compliance and maximizing efficiency in property ownership endeavors.

 

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