#1 Bring out all the relevant documents first

As an employer, it is important to know that submitting Form E e-Filing system for LHDN is mandatory. Having all the necessary documents is advisable for filing taxes through e-Filing. 

These documents can be categorized into four parts.

1. Your identification details include your IC, income tax reference number, and marriage certificate.
2. Your income statement and details. For instance, the EA form and pension statement. 
3. Relevant receipts and invoices for claim purposes include rebates, reliefs and exemptions. 
4. Your EPF statement. It is obtainable via EPF's i-Akaun.

Before you start filing your taxes using e-Filing, you must obtain an e-Filing PIN.

More information about this can be found here. Utilizing e-Filing can make the tax filing process easier and more time-efficient.

#2 Understand your tax reliefs and deductions

Despite their subtle differences, there often needs clarity between income tax deductions and income tax relief. 

Income tax deduction pertains to charitable gifts and donations to government organizations or charities, such as donating to a retirement home. 

In contrast, income tax relief reduces or eliminates a taxpayer's obligations. Although we are entitled to an exemption on our tax returns, the availability of specific tax reliefs can vary. 

It is essential to remember that when filing one's taxes, providing documentation, such as receipts and invoices, is necessary to substantiate such transactions.

#3 Ensure that all outstanding balance is settled

If you missed declaring something on your tax filing, don't worry! 

You can still make the payment to LHDN afterwards. For example, if you have two jobs and forgot to declare the second, you can settle the outstanding payment through FPX/online banking, the nearest ATM, or the LHDN counter.

Additionally, if you overpaid your taxes, you will receive a refund. Filing your taxes earlier will result in earlier refunds. For even more convenience, use e-Filing, and LHDN will directly deposit the refund into your bank account. 

Typically, refunds are credited within 30 days of income declaration.

#4 Proper record-keeping of your receipts

It is advisable to organize and categorize your receipts as a means of facilitating tax filing processes. It is worth noting that, according to the Income Tax Act, retaining receipts for at least seven years is mandatory. 

Failure to comply with this requirement may attract severe consequences such as fines of up to RM10,000, imprisonment for a year, or both. These receipts are tangible evidence of your transactions and may qualify you for tax relief. 

Additionally, retaining receipts as proof of transactions is a demonstration of integrity, as well as a precautionary measure to prevent criminal charges. 

It is crucial to remember that the LHDN carries out random audits to verify claims, hence the need to retain receipts for as long as possible to minimize the risk of any issues.

Know the different types of EA forms

Are you aware that there are different types of EA forms available?

It's important to fill out the correct form based on your income source and residential status. Additionally, each form has a different deadline. 

To avoid confusion, here is a list of the forms and their corresponding categories to ensure you fill out the correct ones.

• Form e-E for employers who run a business/company.
• Form e-BE/BE for those who do not run a business and are employed.
• Form e-B/B for those who own and run a business. 
• Form e-P (for partnerships.
• Form e-M/M non-residents employed and/or run a business. 
• Form e-BT/BT experts and specialists in certain skills.
• Form e-MT/MT non-resident experts and specialists in certain skills.

The term "non-resident" refers to individuals who are not Malaysian citizens or permanent residents but live and work in Malaysia. 

Penalties for late submission of the EA form

It is crucial to avoid tax evasion as it is a punishable offence that can result in fines ranging from RM1,000 to RM20,000 and an additional 300% of the attempted amount to be avoided.

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