It’s that time of the year again. Yes, Ramadan has just begun, but it’s also the dreaded tax season. Hip, hip, hurrah!
For many who have just started working, this may be a daunting period as your time in school would have barely done anything to prepare you for it.
While filing your taxes for the first time can indeed be rather challenging, there are a few things that could help you through the process. Here are just a few tips to know before you dive into the tedious world of taxes and paperwork.
1. Don’t procrastinate
Malaysians have a natural habit of taking things slowly, and matters of bureaucracy, in general, usually progress at a snail’s pace.
This should not be the case when it comes to your taxes, though. Starting early will give you enough time to get all the documents you need – EA form, annual insurance statement, and so on – as well as the details you require.
The last thing you want is to put things off until the deadline and then have to run around like a headless chicken.
2. Keep your receipts
Most people throw away their receipts all too quickly. After all, who wants to accumulate a wallet or purse full of them?
But in truth, keeping them has the benefit of allowing you to keep track of your expenses throughout the year.
More importantly, some of your expenses may be tax deductible – think book and magazine purchases, internet subscription, and gym memberships, to name just three – not to mention any donations you may have made to charitable organisations.
As such, it’s better to have these receipts on hand just in case the Inland Revenue Board (LHDN) comes a-knockin’. On a related note:
3. Deductions, etc.
LHDN actually allows for a number of claimable deductions, so it’s a good idea to look them up and take advantage of those that are applicable to you.
For example, did you know you can claim tax relief for spending on education? How about investments into your mental health?
These deductibles will help lower your total taxable amount. For more information on the reliefs you may be entitled to, check out MyPF’s article tomorrow.
As for those who are employed in a private organisation, bear in mind that contributions to your EPF and Socso are mandatory, so be sure to include them in your calculations.
You are even entitled to tax reliefs on your Socso and EPF contributions.
4. Scammers, scammers everywhere
“Ini adalah panggilan daripada Lembaga Hasil Dalam Negeri.” Many people would be familiar with this prerecorded message. End the call immediately.
Scammers are always out to get people, and those who are not aware of their shenanigans just might fall for them. Suffice to say, any emails or phone calls from people claiming to be from the tax department should be treated with extreme suspicion.
If you have any questions, visit the official LHDN website and call the contact numbers there to get your answers.
5. Don’t be shy, and don’t overthink it
When it comes to taxes, it’s really a case of “jangan malu nak tanya”. It’s okay to admit your inexperience; everyone goes through the same learning process.
If you need help, LHDN is (surprisingly) efficient in helping you figure out what all those figures mean, so don’t hesitate to get in touch. Your first time may be challenging, but you’ll eventually get the hang of it.
In fact, it’s easy to file your return these days thanks to digitalisation and, once it’s done, you can enjoy the rest of the year without having to worry about it at all – assuming you’ve done everything right, of course.
Plus, you have the peace of mind of knowing you are a responsible taxpayer. And who knows, there just might be some tax refunds coming your way. Bonus!