Date: March 22, 2019
This blog entry/simple FAQ is for those Malaysians who work in Singapore, and paid Singapore Income Tax, and who have received a letter from LHDN recently demanding to self-declare tax (if any) to LHDN.
A letter from LHDN
If you worked in Singapore for ages such as me, i.e. 22 years, and have paid only Income Tax to IRAS Singapore every year, you are not required to pay any tax to Malaysia.
However, for some reason, if you received the following letter. You will need to file income tax = $0 in Malaysia.
I received this letter after I sold one of my property in Malaysia recently. I am guessing that because of that transaction, the Government is interested to know why I, a Malaysian can own an apartment (which I sold away) where I never file any income tax before in Malaysia. And if you rent out the apartment which you owned, those rentals that you collect are considered as “Income earned in Malaysia” where you need to report. Luckily, I did not rent any of my property out. So, all I need to do is to file a $0 income in my income tax filing.
What is this letter about?
Here is what I extracted from the news report. It basically says the same thing as the letter you might received from LHDN. It is a special voluntary disclosure program from the IRB (taxation department) to allow you to file your income earned in Malaysia, before April 1, 2019. They said that if they found out you have any income earned in Malaysia and you failed to disclosed, they will heavily fine you. But if you do a self declare, and they found out you under-declare, they will fine you 10% of that whatever income you didn’t declared. Oh ya, they said they already received info from more than 100 countries about overseas bank account owned by Malaysians. 🙂
Do We (Malaysians) who worked in Singapore Need to Pay tax in Malaysia?
The answer is NO. You do not need to pay LHDN any tax on Salary you earned from Malaysia.
Here is posted in the LHDN Tampoi building.
And the Malay version. And Sorry, there is no English version.
My recommendations is to do an e-Filing of Income = $0 in Malaysia before April 1, 2019.
And you have to continue to do this e-Filing every year.
Where is LHDN?
The main branch is at Tampoi, Johor Bahru. Note down the opening hours and timing for this main branch. They closed on Friday and Saturday. But they open on Sunday.
The map link. If you come from Tuas, once you exit the Plus! gantry at Perling, you drive towards “Bandaraya” (city), and turn left before the Ansana mall. There are huge car park just beside the LHDN building, and you pay only RM2 for per entry.
You can also go to Galleria @ Kotaraya to get your e-filing PIN code. But try figure out
First Step – Need to get a PIN code from LHDN to do online income tax filing
Opposite the Reception counter, there is a queue. People who wants to just get the PIN code for the e-Filing will queue up here. This is what I did first. Queue up and get the PIN code.
I asked the people in front of me, whether this is the queue to get the PIN Code for e-Filing.
When it is your turn, you show them your IC (Identification Card). They will print out the PIN CODE for you.
Very important piece of paper. You will need to note down the 11 digit “Income Tax No”. As it is needed to fill in a form in the second step.
And the e-Filing Pin No is a series of 16 numbers (4 sets of 4 digit no separated by dash symbol). This is the Pin code you need to create your online account.
Second Step – Get the Special Voluntary Disclosure Form and the Queue No for using the PC/Computer.
You can then queue up at the reception at the center to get a QUEUE NUMBER for using the PC/Computer to do the e-Filing. At this counter, you can also hand in your IR8 forms or the NOA (Notice of Assessment) from IRAS to them along with a form.
This queue number is to use the PC/Computer.
At this reception counter, you will get this form “Program Khas Pengakuan Sukarela” (Special Voluntary Disclosure Program form). So, you fill in the form, and then, you come back to the same guy hand in together with your 3 years of IR8 forms & NOA from IRAS attached to the signed form. Ask for a staple to stapled these together.
Step 3 – Get access to a PC/Computer to do the e-Filing over there right away.
Then, you wait for your turn to use the PC/Computer.
Well, you can go home to do it yourself. But I choose to do it over there. The reason is simple. Because there are at least 6 staffs there helping you to fill in the details.
I strongly recommend to do it straight away, so that if you have anything you don’t understand, you can ask the staffs there. They will help you. They are indeed very helpful.
Of course you can select to use English too. For me, I just use the default, Bahasa Malayu. I was blur when I see “Kata Laluan” not sure what it was, but I guessed is “Password” hahaha Then, I immediately changed to English on the next page.
I raised my hands many times, and finally I told him what I want to do. i.e. I worked in Singapore, and I have no income in Malaysia. A nice chap, came and helped my to click all the way and even fill in the ZEROS for me.
There you go, e-Filing Income in Malaysia = RM0.00
Step 4 – Printing
Some how, he wants me to print out. So, I say yes. But one thing he failed to tell me is printing out the document of your e-Filing is chargeable at RM1.00. hahahaha
So, when I go and pick up, they asked for RM1.00 printing fee. So I gave.
Malaysia food is nice.
The app I used is called “Beat the Jam!” app. by the time I finished, the jam already build up. So I went for my lunch around 3:30pm. And after I finished my lunch, the jam got worsen. Around 7pm to 12 midnight, the jam is estimated to be around 1.5 hours to 2 hours. So, I went to my JB home and watch my TV series 倚天屠龙记, take a nap and wake up around 12:30 passed mid-night. And the Jam is over, and I then drive back to Singapore. Reach home (Clementi) within 25min.