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IT’S TAX SEASON. While many begrudgingly file their details obediently, paying taxes is more than a duty; it is a vital contribution to the nation’s development. Understanding and engaging with the tax system is crucial for every citizen; taxes ensure the smooth operation of public services and the realisation of broader societal goals.
The Tax Landscape
Malaysia’s tax system consists of direct and indirect taxes, with the Inland Revenue Board of Malaysia (IRBM), known to many as Lembaga Hasil Dalam Negeri Malaysia (LHDN), helming its administration. Citizens tout it as one of the most efficient departments in the country.
Taxpayers range from salaried individuals and freelancers to small-to-medium enterprises and large corporations, each with specific obligations and responsibilities. One of the most critical obligations is knowing when to pay taxes. Taxes for a given assessment year become due and payable on specified dates in the year following that assessment period. That means 30 April for individuals deriving non-business income and 30 June for those having a business income.
