How to File Income Tax as a Foreign Teacher in Malaysia (Step-by-Step)

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Written by Zilla Ahmad

June 15, 2026

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File Income Tax is an important consideration for foreign teachers in Malaysia. If you earn employment income in Malaysia, you are required to file an annual income tax return — even if your employer deducted Monthly Tax Deductions (MTD/PCB) from your salary throughout the year. Filing reconciles what was withheld against your actual liability after reliefs, and it is the only way to claim any refund you are owed. For most foreign teachers on resident status, filing is straightforward, takes under an hour online, and often results in money back. This guide walks you through every step.

When you need to file: File Income Tax Essentials

If you’ve earned employment income in Malaysia during the calendar year, you generally need to file an annual income tax return — even if tax was withheld from your salary via the Monthly Tax Deduction (MTD/PCB) system. Filing reconciles what was withheld against your actual liability after reliefs, and it is also required for compliance. Once you’ve been a tax resident for 182 days or more in a calendar year, you are assessed as a resident, which gives you access to progressive rates starting from 1% and the full range of personal reliefs.

Step 1: Register for a tax file number

Before you can file, you need an income tax reference number (TIN) from LHDN (Lembaga Hasil Dalam Negeri — Malaysia’s Inland Revenue Board). Your employer’s payroll team often handles this when you start, or you can register yourself through the MyTax portal (mytax.hasil.gov.my) or at an LHDN branch. You’ll need your passport, Employment Pass details, and employer information. Registering early — before your first April — gives you time to resolve any issues before the filing deadline.

Step 2: Get your MyTax / e-filing login

Malaysia’s tax filing is done online through the MyTax portal at mytax.hasil.gov.my. First-time users need to register for a digital certificate (e-filing PIN), which you obtain through MyTax or at an LHDN branch with your passport and TIN. The portal is available in English and once you have your login, e-filing is straightforward — the system pre-populates some fields from your employer’s submissions and guides you through the process section by section.

Step 3: Gather your EA form and relief receipts

Your employer must issue your EA form (statement of remuneration) by the end of February for the previous calendar year. This is your primary filing document — it shows your gross income, taxable benefits, and tax already deducted via MTD/PCB. Alongside it, gather receipts for any reliefs you intend to claim: lifestyle purchases (books, devices, internet), medical expenses, life insurance and EPF contributions, and parental care costs. Keeping a simple folder of receipts throughout the year makes this step much easier.

Step 4: Choose the right form (BE vs M)

Resident individuals with employment income (and no business income) file Form BE. Non-residents file Form M with a flat 30% tax rate and no access to personal reliefs. If you became resident during the year, you typically file Form BE for that year of assessment. The MyTax system guides you to the correct form based on your residency status. Most foreign teachers, once they have been in Malaysia for more than 182 days in a calendar year, file Form BE as resident taxpayers.

Step 5: Complete your income details

Enter your employment income from your EA form into the relevant fields. If you had more than one employer during the year — for example, you changed schools — enter the combined figures from all EA forms. Include taxable benefits-in-kind as shown on your EA form, such as housing allowances that are fully taxable or car benefits. The system calculates your gross chargeable income after statutory deductions once you’ve entered all sources.

Step 6: Claim your reliefs and rebates

Reliefs reduce your chargeable income and directly lower your tax bill. Enter each relief you are entitled to: personal relief (RM 9,000 — automatic), EPF and life insurance, lifestyle relief (up to RM 2,500 for books, sports, internet and devices), medical expenses, education relief, and parental care relief. Enter the amounts and the system applies the statutory caps automatically. Be honest and keep your receipts — LHDN can audit relief claims — but claim everything you are genuinely entitled to, as most foreign teachers leave money on the table by under-claiming.

Step 7: Review, submit and pay (or claim refund)

The system calculates your final tax liability and compares it to the tax already deducted via MTD/PCB. If you overpaid — common for first-year teachers and anyone with significant reliefs — you will see a refund due, which LHDN pays to your bank account, usually within a few weeks to a couple of months. If there is a balance due, you pay online via the MyTax portal or through online banking to LHDN’s account. Review everything carefully before submitting, as you cannot easily amend a filed return.

Filing deadlines you cannot miss

For employment income, the deadlines are: 30 April for paper (manual) filing, and 15 May for e-filing via MyTax — both covering the preceding calendar year’s income. E-filing’s slightly later deadline is one more reason to file online. Late filing attracts penalties starting from 10% of the tax due, so diarise 15 May every year. If you are leaving Malaysia permanently, file a final return and obtain a tax clearance letter from LHDN before your departure — this is required for cancelling your Employment Pass.

Common Mistakes

Not registering for a TIN before the filing deadline

Many foreign teachers delay registering for a Tax Identification Number with LHDN because their employer deducts MTD/PCB automatically and it feels handled. But without a TIN, you cannot file a return or claim a refund. Register as soon as you arrive or start employment in Malaysia — your school’s HR or payroll team can usually facilitate this, or you can register online through MyTax with your passport and Employment Pass details.

Filing as a non-resident when you qualify as a resident

Non-residents are taxed at a flat 30% with no access to personal reliefs. Residents benefit from progressive rates starting at 1% plus all available reliefs. If you have been in Malaysia for 182 or more days in a calendar year, you are a tax resident for that year. Filing the wrong form — or assuming non-resident status because you hold a foreign passport — is a costly error that results in significant overpayment.

Under-claiming reliefs and leaving money in LHDN’s hands

Malaysia’s personal relief system is genuinely generous: personal relief, EPF, life insurance, lifestyle purchases, medical expenses, parental care, education, and others. Many foreign teachers claim only the automatic personal relief and nothing else. Keeping receipts throughout the year and systematically entering all eligible reliefs can reduce a tax bill by RM 500 to RM 3,000 or more, and can convert a balance-due situation into a refund.

Missing the 15 May e-filing deadline

Late filing penalties start at 10% of the tax due and can increase with further delay. The deadline is well-publicised and fixed: 15 May via e-filing, 30 April for paper. There is no automatic extension. Putting a calendar reminder in January, when you receive your EA form, gives you three months to gather documents and file at your own pace rather than under pressure in May.

Leaving Malaysia without obtaining a tax clearance letter

When you leave Malaysia at the end of a contract, you are required to file a final tax return and obtain a tax clearance letter (Form CP22A or CP22B) from LHDN. Your employer needs this to complete the Employment Pass cancellation. Skipping this step can result in your final salary being withheld by the employer pending clearance, and can create complications if you ever need to return to Malaysia or apply for a new Malaysian work pass in the future.

Assuming the employer handles everything so no personal action is needed

MTD/PCB deductions are your employer’s estimate of tax owed — they are not a substitute for filing a return. Your employer cannot claim your personal reliefs on your behalf. The annual filing is your responsibility as an individual taxpayer, and it is the only mechanism through which reliefs are applied and any overpayment is refunded. Being passive about filing can cost you significant money over a multi-year teaching contract in Malaysia.

Frequently Asked Questions

Do I still need to file if my employer deducted tax every month?

Yes. Monthly Tax Deduction (MTD/PCB) is a withholding estimate, not a final assessment. Filing your annual return reconciles it against your actual liability after all reliefs are applied. This is how you claim a refund if you overpaid, or settle any shortfall. Filing is also a legal compliance requirement for resident taxpayers in Malaysia, regardless of whether tax was deducted at source.

Can I file myself or do I need a tax agent?

Most foreign teachers with straightforward employment income can comfortably file themselves through the MyTax portal. The interface is available in English and guides you step by step. A tax agent becomes worth considering if you have complex situations: multiple income sources, significant investment income, rental income, or if you are navigating the non-resident-to-resident transition year. For a standard teacher with a single EA form and common reliefs, self-filing takes under an hour.

When do I receive a refund if I overpaid?

LHDN typically processes refunds within four to eight weeks of receiving a correctly filed return, paid directly to your registered Malaysian bank account. Some refunds take longer, particularly around the May filing peak. Make sure your bank account details are registered and current in your MyTax profile before filing. If your refund hasn’t arrived after three months, you can check its status through the MyTax portal or contact your nearest LHDN branch.

What if I only worked in Malaysia for part of the year?

If you were in Malaysia for fewer than 182 days in the year, you are assessed as a non-resident for that year of assessment: flat 30% tax, no personal reliefs. However, if you arrived in that year and continue into the next year (reaching 182 days cumulatively), you may qualify for resident status by the following year. Your employment start and end dates determine residency status for each year of assessment. LHDN’s MyTax calculator can help you determine your status.

Are housing allowances and school fee subsidies taxable?

This depends on the specific benefit and how it is structured in your contract. Cash housing allowances paid directly to you are generally taxable as employment income. Direct payments by the school to a landlord under a rental agreement may be treated differently. School fee discounts for your children are typically treated as non-taxable benefits-in-kind. Your EA form will show which benefits your employer has treated as taxable — check with your school’s payroll team if you are unclear about the classification of specific allowances.

What is the difference between Form BE and Form M?

Form BE is for resident individuals with employment income only (no business income). Form M is for non-resident individuals or for resident individuals with business income. Foreign teachers who qualify as tax residents — 182 or more days in Malaysia in the year — file Form BE and access all personal reliefs and progressive tax rates. Non-residents file Form M and are taxed at a flat 30% rate with no personal reliefs. The MyTax portal will guide you to the correct form based on the residency information you enter.

Do I need to file a return in my home country as well?

This depends on your home country’s tax rules for citizens or residents living abroad. Many countries (including the UK and Australia) operate worldwide income tax systems that may require you to declare Malaysian income, though double-taxation agreements typically prevent you from being taxed twice on the same income. Citizens of the United States are required to file a US return regardless of where they live. You should check your home country’s obligations — and, if relevant, Malaysia has double-taxation agreements with the UK, Australia, the Netherlands, and many other countries.

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References

  • Lembaga Hasil Dalam Negeri Malaysia (LHDN/HASiL) — www.hasil.gov.my
  • MyTax Portal, LHDN — mytax.hasil.gov.my
  • Inland Revenue Board of Malaysia — Tax Resident Information — www.hasil.gov.my/en/individual/individual-life-cycle/am-i-a-tax-resident
  • Expatriate Services Division (ESD), Malaysia — www.esd.gov.my
  • Malaysian Income Tax Act 1967 — www.agc.gov.my
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I’m Zilla Ahmad, a registered estate agent helping foreign teachers find the right home across the Klang Valley — from condos near major international schools to family-sized rentals that fit your budget and commute.

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