EXPLANATORY NOTES

B 2023

RESIDENT
INDIVIDUAL WHO
CARRIES ON
BUSINESS

ADDITIONS / AMENDMENTS

Item Subject Page

D6b E-Commerce business model 13
H8 Expenses (Restricted to 4,000) on child of the age of 18 years and below, in
respect of assessment for the purposes of diagnosis of learning disability or 20
early intervention programme or rehabilitation treatment for learning disability
H17 Life insurance and EPF 26

- Tax Schedule Year Of Assessment 2023 35

Together we develop the nation

This Explanatory Notes is provided to assist an individual who is resident in Malaysia in accordance with the
provision of section 7 of Income Tax Act 1967 (ITA 1967) or deemed to be resident under subsection 7(1B) of
the same Act, in completing the Form B for Year of Assessment 2023. Please read this with care so that the
return form and declarations made therein for Year of Assessment 2023 are true, complete and correct.
In the case of a married individual who elects for joint assessment either in the name of husband or wife, and
has total income to be aggregated, both the husband and wife are each required to fill out separately whether:
(a) Form B (resident individual who carries on business); or
(b) Form BT (resident individual who approved by the Minister as a knowledge worker / expert worker / non-
citizen worker holding key position); or
(c) Form BE (resident individual who does not carry on business)
Working sheets, appendices and other information to complete Form B are available at the LHDNM Official
Portal: https://www.hasil.gov.my > Forms > Download Forms > Individual > Computation Guide & Other
Information.
All records, working sheets and documents need not be enclosed when submitting the Form B EXCEPT for the
purpose of tax refund, in which case the following working sheet(s) is / are required to be submitted:
(i) Working Sheet HK-6 pertaining to the claim for section 110 tax deduction (others); and
(ii) Working Sheet HK-8 / HK-9 (if relevant) relating to the tax deducted in the foreign country.
All records, documents and working sheets used in the computation must be kept for a period of seven (7) years
after the end of the year in which the return form is furnished to the Director General of Inland Revenue, for
future reference and inspection if required.
Please complete all relevant items in BLOCK LETTERS and use black ink pen. Leave the item(s) blank if not
applicable.

BASIC PARTICULARS
1-4 Fill in relevant information only.
For the item ‘Tax Identification No. (TIN)’, enter TIN in the box provided.

Example: For example TIN IG 10234567080

Tax Identification No. (TIN) IG 10234567080

The implementation of TIN take effect on 1 January 2022 according to the new provision under section
66A of the ITA 1967. Any individual taxpayer who was assigned an income tax number prior to or on 1
January 2022, will be deemed to have a TIN automatically.
Effective 18 May 2021, LHDNM has implemented a new prefix for individual taxpayers, changing from
SG and OG to IG. This change will not alter taxpayers’ existing individual income tax number
For the item ‘Identification no.’, enter the MyKad / new identity card / police / army number.
5 Passport no. Enter the last passport number filed with LHDNM prior to the current passport.
registered with
LHDNM
PART A: PARTICULARS OF INDIVIDUAL
A1 Citizen Enter ‘MY’ for citizen of Malaysia. If not a citizen of Malaysia, please refer to the
country code provided on page 35 of this explanatory notes or Appendix E.

A2 Gender Enter ‘1’ for male or ‘2’ for female.

A3 Date of birth Enter the date of birth according to the sequence: day, month and year.

A4 Status as at Enter ‘1’ for single; ‘2’ for married; ‘3’ for divorcee / widow / widower or ‘4’ for
31-12-2023 deceased.
A5 Date of marriage / If the marriage / separation in accordance with any law or demise occurred in the
divorce / demise current year, enter the date according to the sequence: day, month and year.

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 A6 Record-keeping This refers to the keeping of sufficient records as required under the provision of
ITA 1967. Enter ‘1’ for full compliance or ‘2’ for non-compliance.
A7 Type of assessment Enter:
(i) ‘1’ if the wife elects for joint assessment to be raised in the name of the
husband. She does not have to fill in items B21 to B34 and Part H of her
Form B; or
(ii) ‘2’ if the husband elects for joint assessment to be raised in the name of his
wife. He does not have to fill in items B21 to B34 and Part H of his Form B;
or
(iii) ‘3’ if the individual and spouse elect for separate assessment; or
(iv) ‘4’ if the individual is married with a spouse who has no income or no source
of income or has income which is tax exempt.
(v) ‘5’ if the individual is single / a divorcee / a widow / a widower / a deceased
person.
Note:
Conditions on eligibility to elect for joint assessment:
(i) The husband and wife were living together in the basis year for a year of
assessment and did not in that basis year cease to live together;
(ii) Has total income to be aggregated with the total income of the spouse;
(iii) The husband / wife who elects for joint assessment must be a Malaysian
citizen, if not resident in Malaysia;
(iv) The aggregation of total income can be made with one wife only.
PART B: COMPUTATION OF INCOME TAX
B1 Statutory income Gains or profits from carrying on a business, trade, vocation, profession and
from sources of every manufacture, adventure or concern in the nature of trade are liable to tax.
businesses in The gains or profits include gross receipts from the sales of goods and services
Malaysia rendered such as by doctors or lawyers.
Amount J5 from Working Sheet HK-1 / amount L from Working Sheet HK-1D.

B1a Number of Complete this item if there is statutory income from sources of business(es).
businesses
Number of
No. Example
Business(es)
1. Mr. Hasan runs the following businesses:- 3
(i) HYS Enterprise (gas station and convenience store at
the gas station)
(ii) Bersatu Enterprise (restaurant)
2. Mr. Steven has the following businesses in the year 2023:- 2
(i) Steven & Sons Enterprise (tyre shop) ceased with
effect from 1 March 2023 but re-operates from 1
November 2023.
(ii) Steven Enterprise (bicycle shop)
3. Mr. Mark runs a business of selling foodstuffs since 2015. 1
Commencing from 1 September 2023, Mr. Mark changed
the name of his business from Mark Enterprise to Mark &
Sons.

B2 Statutory income Share of profit / loss from carrying on a business, trade, vocation, profession and
from sources of every manufacture, adventure or concern in the nature of trade is liable to tax.
partnerships in Amount E / G from Working Sheet HK-1B.
Malaysia

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B2a Number of This item has to be completed if there is statutory income from sources of
partnerships partnership business(es) in Malaysia.
Number of
No. Example
Partnership(s)
1. Mr. Phan received partnership income from the following 1
legal firms in the year 2023:-
(i) Phan & Associates : Jan. 2023 – May 2023
(ii) Commencing from 1 June 2023, the partnership
changed its name to Phan, Chris & Associates with
the entry of a new partner.

Capital allowance Claim for depreciation on the use of business assets is disallowed. However, it
is allowed in the form of capital allowance which is deductible from the adjusted
business / partnership income. The applicable rate of allowance depends on
the type of asset.
Working Sheets HK-1.2 to HK-1.2A can be used as a guide to compute.
B3 Aggregate statutory This item has to be completed if individual resident that remits business and
income from sources or partnership income from outside Malaysia into Malaysia.
of business and Please fill in the necessary information required in Part E.
partnership outside
Malaysia received in
Malaysia
B5 Business losses Business / partnership losses suffered in earlier year / years of assessment
brought forward brought forward to the current year to be set off against business / partnership
income.
Amount from Working Sheet HK-1.3. If the amount in B5 exceeds the amount in
B4, enter the amount as per B4 in this item.
B7 Statutory income from sources of employment in Malaysia
B7a Number of This item has to be completed if there is statutory income from sources of
employments employment in Malaysia.
Number of
No. Example
Employment(s)
1. Mr. Adi received payment of director’s fees from Mas Sdn. 2
Bhd. and Dinar Sdn. Bhd. in the year 2023.
2. Mr. Sami worked for the following employers during the 3
year 2023:-
(i) GHI Sdn. Bhd. : Jan. 2023 – April 2023
(ii) HIL Sdn. Bhd. : May 2023 – Nov. 2023
(iii) GHI Sdn. Bhd. : Dec. 2023
3. Mrs. Edith who works for MDP Holdings Bhd., was 1
seconded to MDP Technology Sdn. Bhd. (within the same
group of companies) from 1 June 2023 until 30 September
2023. Her salary from June until September 2023 was
paid by MDP Holdings Bhd.
(i) MDP Holdings Bhd. : Jan. 2023– May 2023
(ii) MDP Technology Sdn. Bhd. : June 2023– Sept 2023
(iii) MDP Holdings Bhd. : Oct. 2023 – Dec. 2023

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Salary, bonus, director’s fee, commission and any perquisite [such as share option scheme (Public Ruling No.
11/2012) [Original and amended], insurance premium / school and tuition fee paid by the employer] have to be
declared. Entertainment and travelling expenditure incurred in the production of gross employment income and
discharge of official duties are allowable deductions. Deduction of entertainment expenditure is restricted to the
amount of entertainment allowance included as gross income from employment. However, reimbursements by
the employer in respect of both types of expenditure are neither deductible nor liable to tax.
Amount N4 from Working Sheet HK-2.

Note:
With effect from the Year of Assessment 2016, where gross income from an employment is receivable in respect
of any particular period, it shall, when received, be taxed in the year in which it is received [Subsection 25(1) of
ITA 1967].

Tax exempt allowances / perquisites / gifts / benefits:

Reference: Public Ruling No. 5/2019 (Perquisites From Employment); and

Public Ruling No. 11/2019 (Benefits-In-Kind)

Gratuity (Reference: Public Ruling No. 9/2016)

This refers to a sum received upon retirement / termination of a contract of employment and considered as a gift
for past service. Refer to Working Sheet HK-2.2 and Appendix B1 for computation.
1. The following gratuity is exempted from income tax:
(i) Retirement gratuity
(a) The Director General is satisfied that the retirement is due to ill-health; or
(b) The retirement takes place on or after reaching the age of 55, or on reaching the compulsory age
of retirement from employment and the individual has worked 10 years continuous employment with
the same employer or companies within the same group; or
(c) The retirement takes place on reaching the compulsory age of retirement pursuant to a contract of
employment or collective agreement at the age of 50 but before 55 and that employment has lasted
for 10 years with the same employer or with companies in the same group.
(ii) Gratuity paid out of public funds – Gratuity paid to an employee out of public funds on his retirement
from an employment under any written law.
(iii) Gratuity paid to a contract officer – Gratuity paid out of public funds to a contract officer on termination
of a contract of employment regardless of whether the contract is renewed or not.
(iv) Death gratuity – Sums received by way of death gratuity.

2. Partial exemption on gratuity

With effect from the Year of Assessment 2016, an employee who receives sums by way of gratuity:
(i) on retirement from an employment; or
(ii) upon termination of a contract of employment
other than gratuity qualified for exemption under paragraph 1 above, is eligible for an exemption of RM1,000
for each completed year of service. However, for the purpose of computing partial exemption, the period
of employment with other companies within the same group is NOT REGARDED as a period of employment
with the same employer.

Tax Allowance
The income tax of an employee borne by his employer is Tax Allowance which is chargeable to tax under the
provision paragraph 13(1)(a) of ITA 1967. Refer to the Working Sheet HK-2.3 and Appendix B2, as well as Public
Ruling No. 11/2016 regarding computation.

Subscriptions To Professional Bodies – Membership subscription paid to professional bodies to ensure

the continuance of a professional standing for practice such as medical or legal professional fees, can be
claimed as a deduction.

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Benefits In Kind (BIK)
Annual value of the benefits in kind provided by the employer such as motorcars, petrol, driver, household
furnishings, apparatus and appliances, hand phones, asset(s) provided for the purpose of entertainment and
recreation. Refer to the Working Sheet HK-2.4 and Appendix B3, and Public Ruling No. 11/2019 on computation.
Value Of Living Accommodation
Value of living accommodation provided in Malaysia by the employer. Working Sheet HK-2.5 and Appendix B4,
as well as Public Ruling No. 3/2005 (Original and Addendum) regarding computation.
Refund From Unapproved Pension Or Provident Fund, Scheme Or Society
Contributions made by an employer to an unapproved pension or provident fund from which payment is made to
his employee before or after the cessation of his employment. Refer to the Working Sheet HK-2.6 on computation.
Compensation For Loss Of Employment
Payment made by an employer to his employee as compensation for loss of employment or other reason. Refer
to the Working Sheet HK-2.7 and Appendix B5, and Public Ruling No. 1/2012 regarding computation.
Full or partial exemption on compensation for loss of employment:
(i) Full exemption – If the Director General is satisfied that the payment is made on account of loss of
employment due to ill health; or
(ii) Partial exemption – For termination of employment on or after 1 July 2008, compensation other than
paragraph (i) above is eligible for exemption of RM10,000 for each completed year of service with the
same employer or companies within the same group.

B8 Rents from sources Rental received in respect of houses, shop houses, land, plant, machines,
in Malaysia furniture and other similar assets.
B9 Interest from sources Income in respect of interest received by individuals resident in Malaysia from
in Malaysia money deposited with the following institutions is tax exempt:
(i) A bank or a finance company licensed or deemed to be licensed under the
Financial Services Act 2013;
(ii) A bank licensed under the Islamic Financial Services Act 2013;
(iii) A development financial institution prescribed under the Development
Financial Institutions Act 2002;
(iv) The Lembaga Tabung Haji established under the Tabung Haji Act 1995;
(v) The Malaysia Building Society Berhad incorporated under the Companies
Act 2016;
(vi) The Borneo Housing Finance Berhad incorporated under the Companies
Act 2016; and
(vii) Co-operative societies registered under the Co-operative Societies Act
1993.
Discounts from Earnings from discounting transactions involving treasury bills, bills of exchange
sources in Malaysia or promissory notes.
Royalties from Royalties received in respect of the use of copyrights / patents are taxable if they
sources in Malaysia exceed the following exemption limits:
No. Type of Royalty Exemption (RM)
(i) Publication of artistic works / 10,000
recording discs / tapes

(ii) Translation of books / literary works 12,000

(iii) Publication of literary works / 20,000

original paintings / musical compositions
Amount H from Working Sheet HK-5.

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 Pensions from (i) Pension derived from Malaysia and paid by the Government or from an
sources in Malaysia approved pension scheme to a person on reaching the age of 55 years or
compulsory age of retirement under any written law or if the retirement is due
to ill-health, are exempt from tax.
(ii) Where a person is paid more than one pension, only the higher or highest
pension is exempt from tax. Other pensions have to be reported.

Annuities from These are sums of money received in accordance with a will or an investment of
sources in Malaysia money entitling the annuitants or investors to a series of annual payments,
whether or not received regularly or for a limited period only.
Periodical payments
from sources in These refer to recurring payments received at fixed times.
Malaysia
Other gains or profits Other income such as payments received for part-time / occasional
from sources in broadcasting, lecturing, writing and so forth.
Malaysia
Additions pursuant to The following earnings / proceeds are deemed income and must be taken into
paragraph 43(1)(c) account as aggregate income.
from sources in
(i) Earnings / proceeds in relation to expenditure on prospecting operations
Malaysia
under Schedule 4 of ITA 1967.
(ii) These earnings / proceeds are taken into account in the tax computation if
claims for such expenditure have previously been made.
(iii) Refer to paragraph 43(1)(c) and paragraph 16 Schedule 4 of ITA 1967 for
computing the amount of income to be included as aggregate income.
(iv) Computations must be properly kept for examination.

B10 Aggregate of other This item has to be completed by individual resident that received other
statutory income statutory income from sources outside Malaysia received in Malaysia that
from sources outside including employment, dividend, interest, discount, rent,royalty, premium and
Malaysia received in other income.
Malaysia Please fill in the necessary information required in Part F.
B12 Approved investment (i) A tax incentive for investment made by a qualified angel investor in a qualified
under angel investor investee company. The amount of aggregate income exempted is an amount
tax incentive equal to the amount of investment made by the angel investor in the investee
company. The exemption is granted subject to the conditions specified by the
Minister in the approval letter for the investment, which include the following:
(a) the investment must not be disposed of (fully or in part) within two (2)
years from the date the investment is made; and
(b) the amount of investment made per annum must not be less than
RM5,000 and not more than RM500,000.
Applicable to make an investment in an investee company is made on or
after 1 January 2013 but not later than 31 December 2023 for the approval
of the Minister of Finance.
Refer to the Income Tax (Exemption) (No. 3) 2014 [P.U. (A) 167/2014] and
Income Tax (Exemption) (Amendment) 2019 [P.U. (A) 399/2019] and Public
Ruling No. 12/2020 for further information.
Amount in B12 is restricted to the amount in B11. If the amount in B12
exceeds the amount in B11, enter the amount as per B11 in this item.
OR
(ii) Tax incentive for an investment made by an individual resident in an investee
company on or after 1 January 2021 but not later than 31 December 2023
and made an investment in the form of holding shares which are paid in cash
to the investee company through en equity crowdfunding platform or through
a nominee company. The exemption granted is subject to terms that stated
in P.U.(A)142/2022 which includes the following:

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 (a) an amount equal to fifty per cent of the amount of investment made by
the qualifying individual and shall not exceed fifty thousand ringgit for
each year of assessment; and
(b) limited to ten per cent of the aggregate income of the qualifying individual
in the basis period for a year of assessment in which the exemption is
granted.
Refer to the Income Tax (Exemption) (No. 4) 2022 [P.U. (A) 142/2022] and
Public Ruling No. 12/2020 for further information.
Amount in B12 is restricted to 50% of the amount of investment (Not exceed
RM50,000) and 10% of B11.
B14 Current year Current year business / partnership losses can be deducted from the same
business losses year’s aggregate income.
Example: Business losses for the year 2023 can be deducted from the
aggregate income of the year 2023.
Transfer amount from Working Sheet HK-1.3 to this item. Amount in B14 is
restricted to the amount in B13. If the amount in B14 exceeds the amount in B13,
enter the amount as per B13 in this item.
B16 Other deductions:
Qualifying Expenditure on prospecting operations in searching for, discovering or winning
prospecting access to mineral deposits in an eligible area or in testing such deposits, is
expenditure deductible.
– Schedule 4
This amount is restricted to the amount in B15. Refer to paragraph 44(1)(b) and
Schedule 4 ITA 1967 regarding the eligibility to claim.
The computation must be properly kept for examination.
B17 Approved donations Transfer the amount from item G8, if any.
/ gifts / contributions
Refer to Public Ruling No. 5/2021
Receipts and supporting documents must be kept for a period of seven (7) years
after the end of the year in which the return form is furnished to LHDNM, for
future reference and inspection if required.
B19 TAXABLE PIONEER Pioneer status is a tax incentive as defined in section 5 to section 25 of the
INCOME Promotion of Investments Act (PIA) 1986. When granted to an individual, his
business income from participating in a promoted activity or producing a
promoted product in relation to agriculture (agro-based) shall be fully / partially
tax exempt.
Refer to Working Sheet HK-1E for the amount to be entered in this item.
B21 TOTAL INCOME ITEMS B21 AND B22 ARE ONLY TO BE FILLED IN BY THE INDIVIDUAL IN
TRANSFERRED WHOSE NAME THE JOINT ASSESSMENT IS TO BE RAISED.
FROM HUSBAND /
Transfer the total income of the spouse to be aggregated with the total income
WIFE* FOR JOINT
of the individual to this item.
ASSESSMENT
Note: Enter ‘1’ if the income transferred from the spouse includes income
* Type of income
carries on business or ‘2’ if, does not carry on business.
transferred from
HUSBAND / WIFE Items B21 and B22 NEED NOT be filled if:
(i) the individual’s status is single / a divorcee / a widow / a widower
(ii) the spouse of the individual has no income, no source of income or has
income which is tax exempt
(iii) the individual elects for separate assessment
(iv) the individual elects for joint assessment to be raised in the name of his /
her spouse

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B23 Total relief Transfer the amount from item H22.
CHARGEABLE
B24 Amount ( B20 minus B23 ) or ( B22 minus B23 ).
INCOME
B25 INCOME TAX COMPUTATION
B25a Tax on the first Match the chargeable income from item B24 with the range of chargeable
income in the tax schedule on page 35 of this explanatory notes.
B25b Tax on the balance

B26 TOTAL INCOME Example:

TAX Chargeable income in B24 45,500

Tax on the first 35,000 Use Category D 600.00

of Tax Schedule
Tax on the balance 10,500 @ 6% to compute
630.00
Total income tax 1,230.00
Enter in items B25a, B25b and B26 of the Form B as shown below:

B25a Tax on the first 35,000 .00 B25a 600 .00

B25b Tax on the balance 10,500 .00 Atas kadar 6 % B25b 630 .00
B26 TOTAL INCOME TAX (B25a + B25b) B26 1,230 .00

B27 Total rebate

Self A rebate of RM400 is granted to an individual whose chargeable income does
not exceed RM35,000.
Paragraph 6A(2)(a) of ITA 1967.
Husband and wife A rebate of RM400 is granted to an individual whose chargeable income does
not exceed RM35,000 and where he / she has been allowed a deduction of
RM4,000 for the spouse.
Paragraph 6A(2)(b) / Paragraph 6A(2)(c) of ITA 1967.
Departure levy for This tax rebate is granted to any individual who leaves Malaysia by air for the
umrah travel / purpose of performing umrah or other religious pilgrimage but NOT for the
religious travel for purpose of performing hajj.
other religions
The rebate granted is equivalent to the amount of departure levy paid but the
claim is limited to two (2) trips in a lifetime.
Eligibility to claim shall be evidenced by the following documents:
(i) the boarding pass; and
(ii) in the case of:
 umrah - a copy of the visa issued by the embassy of the Kingdom of
Saudi Arabia
 any other religious pilgrimage - A written verification by a religious
body recognised by the Committee for the Promotion of Inter Religious
Understanding and Harmony Among Adherents, Department of National
Unity and Integration in the Prime Minister’s Department.
Other than
ASEAN countries
AESAN countries
Country / Class Other than Other than
Economy Economy
economy economy
class class
class class
Rate of depature levy RM8 RM50 RM20 RM150
Note: ‘ASEAN countries’ means Brunei Darussalam, the Kingdom of Cambodia, Republic
of Indonesia, Lao People’s Democratic Republic, Union of Myanmar, Republic of the
Philippines, Republic of Singapore, Kingdom of Thailand or Socialist Republic of
Vietnam.

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 Departure Levy (Rate of Departure Levy) Order 2019 [P.U. (A) 213/2019] and
subsection 6A(2A) of ITA 1967.
For the following types of assessment:
(i) joint assessment;
(ii) separate assessment; or
(iii) assessment on self whose spouse has no income, no source of
income or no total income
The individual in whose name the assessment is raised, is:
 eligible to claim for the amount of departure levy paid on own self travel.
 NOT eligible to claim if the depature levy is paid for the behalf of spouse,
family member or other party.
 NOT eligible to claim if the depature levy for own travel is paid by other
party.

Zakat and fitrah Payment of obligatory zakat and fitrah in the basis year.
Subsection 6A(3) of ITA 1967.
B29 Tax deduction under Compute the tax deducted under section 110 by using Working Sheet HK-6 in
section 110 (others) respect of other income such as interest, royalties, section 4A income and
income from a trust.
Section 110 tax deduction (others) does NOT include withholding tax payment
pursuant to Section 107A of ITA 1967.
Please submit Working Sheet HK-6 if entitled to a tax refund.
Amount B from Working Sheet HK-6.
B30 Section 132 tax relief Tax relief in respect of income as follows:
(i) Income from sources in Malaysia brought into Malaysia
(ii) Income from sources outside Malaysia received in Malaysia by resident
and the income has been taxed in the country of origin that entered into
Avoidance of Double Taxation Agreements (DTA) with Malaysia.
Refer to Appendix F for the list of countries which have DTA with Malaysia.
Refer to the provisions of Schedule 7 of ITA 1967, Public Ruling No. 11/2021
and Guidelines On Tax Treatment In Relation To Income Received From Abroad
(Amendment) [LHDN.AG.600-1/7/3].
Use Working Sheet HK-8 to compute the amount of credit.
If the tax credit claimed for a year of assessment exceeds the Malaysian tax
payable on income from outside Malaysia received in Malaysia, the excess tax
credit shall be disregarded.

Section 133 tax relief Tax relief in respect of income as follows:

(i) Income from sources in Malaysia brought into Malaysia
(ii) Income from sources outside Malaysia received in Malaysia by resident
and the income has been taxed in the country of origin which does NOT have
Avoidance of Double Taxation Agreements (DTA) with Malaysia.
Refer to the provisions of Schedule 7 of ITA 1967, Public Ruling No. 11/2021
and Guidelines On Tax Treatment In Relation To Income Received From Abroad
(Amendment) [LHDN.AG.600-1/7/3].
Use Working Sheet HK-9 to compute the amount of credit.
If the tax credit claimed for a year of assessment exceeds the Malaysian tax
payable on income from outside Malaysia received in Malaysia, the excess tax
credit shall be disregarded.

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B31 TAX PAYABLE B28 minus total amount of B29 plus B30.
If the total amount of B29 plus B30 exceeds the amount in B28, enter ‘0’ in this
box.
B32 TAX REPAYABLE Total amount of B29 plus B30 minus B28.
B33 Payment made for Monthly Tax Deductions (MTD)
2023 income – SELF Enter the amount of deductions amount made by the employer in the year 2023
and HUSBAND / in respect of the following income in this item:
WIFE for joint
assessment (i) Income for the year 2023;
(ii) Employment income of preceding years (including bonus, director’s fee,
arrears, etc.) paid in the year 2023; and
(iii) Employment income in respect of other year(s) paid in advance in the year
2023.
Example: Salary for the month of January 2024 paid in December 2023 and
MTD is paid on or before 15 January 2024.
Section 107D
Enter the total amount of the tax deduction of 2% made by the payer company
for each cash payment to agents, dealers or distributors for the year 2022 in this
item.
Refer LHDNM Official Portal, https://www.hasil.gov.my > Legislation > Budget
>2022 > Soalan Lazim Berkaitan Potongan Cukai 2% Terhadap Pembayaran
Oleh Syarikat Pembayar Kepada Ejen, Pengedar Atau Pengagih.
Refer to the Media Statement dated 27 June 2023 on LHNDM Official Portal,
https://www.hasil.gov.my/kenyataatan-media/

Self-Instalments / CP500
Enter the amount of self-paid instalments / CP500 payment (tax instalment
according to the notice under section 107B) for the year 2023 in this item.
This does not include payments made in respect of outstanding tax for previous
years of assessment.
Use Working Sheet HK-10 for computation. Transfer amount E of Working Sheet
HK-10 to this item.
For joint assessment – Total up the MTD or self instalments / CP500 paid by the
husband / wife for entry in this item.

B34 Balance of tax B31 minus B33.

payable
The balance of tax payable must be paid within the stipulated period. Payment
can be made via:
(i) Payment by Bill Number
(a) Effective 1 January 2023, Bill Number will be the mandatory reference
number for payment of tax or balance of tax payable. Bill Number can
be obtained as follows:
 e-Filing Acknowledgement Receipt for submission via e-Filing.
 Generate Bill Number at MyTax portal at https://mytax.hasil.gov.my
> ezHasil services > e-Billing > Generate Bill if return form is
furnished manually.
 Printed on Notice of Asssement and letter of demands from LHDNM
(b) Payment using Bill Number can be made as follows:
 ByrHASiL service at https://byrhasil.hasil.gov.my
 Appointed commercial banks by LHDNM – Information is available
at https://www.hasil.gov.my.
 Pos Malaysia Berhad counter

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 (c) For payment purposes, please make sure the correct bill number is
used. Taxpayers may print the payment slips and scan the QR code on
the payment slips as a reference when payment is made.
(ii) Payment by Tax Identification No. (TIN)
(a) During the transition period, payment by TIN is still available as follows:
 ByrHASiL service at https://byrhasil.hasil.gov.my
 Virtual Account number (VA) generated through e-TT at
https://ett.hasil.gov.my.
 Appointed commercial banks by LHDNM – Information is available
at https://www.hasil.gov.my.
 Pos Malaysia Berhad counter
(b) If payment is made over the bank counter or Pos Malaysia Berhad
counter, write down the name, address, telephone number, TIN, year
of assessment, payment code 084 and number of installments on the
reverse side of the financial instrument. Check the payment receipt(s)
before leaving the payment counter.
Tax paid in excess B33 minus B31.
Enter ‘X’ in the box provided for tax paid in excess.
PART C: PARTICULARS OF HUSBAND / WIFE
C1 Fill in relevant information only. Where there is more than one wife, please furnish the information as per
– format C1 to C4 by using attachment(s) and submit together with the Form B.
C4
PART D: OTHER PARTICULARS
D1 Telephone no. Telephone number of office / tax agent’s firm / residence. Please ensure that the
information is correct and accurate. This information is for the official use of
LHDNM.
Handphone no. Please ensure that the information is correct and accurate. This information is
for the official use of LHDNM only.

D2 E-mail Please ensure that the information is correct and accurate. This information is
for the official use of LHDNM only.
Note:
E-mail (D2) information is compulsorily to be furnished during submission via e-
Filing.
D3 Employer’s no. Enter the latest employer’s E reference number and also complete item D4.
D4 Tax borne by Income tax liability of an employee is paid by the employer which this benefit falls
employer within the definition of a perquisite (tax allowance). Perquisite is part of the gross
income from employment under paragraph 13(1)(a) of the ITA 1967. Refer to
Public Ruling No. 11/2016
Enter ‘1’ for ‘Yes’ if tax borne by employer or ‘2’ for ‘No’ if tax not borne by
employer.

D5 Has financial Enter ‘1’ if there is / are financial account(s) at financial institution(s) outside
account(s) at Malaysia or ‘2’ if there is none / not relevant. Refer to the following information
financial institution(s) before make an option:
outside Malaysia
This declaration is a counter check measure to ensure compliance of the
Malaysian tax law, in line with Malaysia’s commitment to the Automatic
Exchange of Financial Account Information with other tax jurisdictions. Under
this commitment, Malaysia will also be receiving information on financial
accounts kept at overseas by Malaysian tax resident.

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 However, please note that having a financial account(s) in overseas is not an
indication that a tax non-compliance has occurred.
“Financial Account” refers to a financial account maintained by a financial
institution outside Malaysia which includes:

(i) Depository Accounts

 Savings account, current account and other deposit accounts.
(ii) Custodial Accounts
 An account (other than an Insurance Contract or Annuity Contract) for the
benefit of another person that holds any financial instrument or contract
held for investment.
(iii) Cash Value Insurance Contracts
 An insurance contract where the policyholder is entitled to receive
payment on surrender or termination of the contract. An insurance
contract will also be a Cash Value Insurance Contract where the
policyholder can borrow against the contract. It is an investment product
that has an element of life insurance attached to it. The life insurance
element usually is small compared to the investment element.
(iv) Annuity Contracts
A contract:
 Under which the issuer agrees to make payments for a period of time
determined in whole or in part by reference to the life expectancy of one
or more individuals; or
 That is considered to be an annuity contract in accordance with the law,
regulation or practice of Malaysia in which the contract was issued and
under which the issuer agrees to make payments for a term of years.
(v) Equity and Debt Interests in Investment Entities.

Further details on Automatic Exchange of Financial Account Information are

available at the LHDNM Official Portal, https://www.hasil.gov.my > International
> Automatic Exchange of Information (AEOI) > Common Reporting Standard
(CRS).
D6a Carries on Enter ‘1’ for ‘Yes’ if the individual carries on e-Commerce business If ‘Yes’, also
e-Commerce complete item D6b.
Enter ‘2’ for ‘No’ if the individual does not carry on any e-Commerce business,
or not relevant.
An individual or business is considered to be engaged in e-Commerce business
if the business operations are included in the e-Commerce business model as
describe in item D6b.
For more information, please refer to the Guidelines on Taxation of Electronic
Commerce Transactions dated 13th May 2019 that is accessible on the Official
Website of LHDNM, https://www.hasil.gov.my

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D6b E-Commerce Select the relevant e-Commerce business model. Selection can be made more
business model than one if there are multiple business models performed during the year of
assessment
e-Commerce
Descriptions Examples
Business Model
1. Online sales / Sales transaction on a. Business that use:
services goods and services i. Social media
performed online that e.g.: Instagram, Facebook,
fulfilled the following Whatsapp, Telegram, TikTok
criteria: and etc.
a. Using electronic / ii. e-Commerce Platform
internet network for e.g.: Lazada, Shopee, Zalora,
the purpose of e-Bay and etc.
making and iii. e-Commerce website
receiving orders. iv. Other mediums that not
mentioned above.
b. Payment and
delivery of goods or b. Online service providers /
services can be consultations such as online
done online or learning, health consultations
offline. and lifestyle, ebook services and
others.
(e.g.:www.doctoroncall.com.my/)
2. Online Using the Internet as a. Advertisers and search engine
advertising an advertising medium ads
for promoting products e.g.: Google Adsense, Facebook
or services to Ads, Blog, Instagram Ads,
customers. TikTok For Business and etc.
b. Users that generate income
through the online platform
e.g.: Youtube, Tik Tok,
Facebook, Instagram paid
review, online games, and etc.
c. Users who generate Affiliate
Marketing income through the
online platform programs
e.g.: Shopee Affiliate Program,
Lazada Affiliate Program, Zalora
Affiliate
Program, Sephora Affiliate
Program, TikTok Affiliate
Program and etc.
3. Cloud Provision of a. Infrastructure-as-a-service
computing standardised, e.g.: Amazon Web Services,
configurable, on- Windows Azure, Google
demand, online Compute Engine, Rackspace
computer services Open Cloud IBM SmartCloud
which can include Enterprise and etc.
computing, storage, b. Platform-as-a-service
software, data e.g.: Window Azure, Google App
management, using Engine, Force.com and etc.
shared physical and
c. Content-as-a-service
virtual resources.
e.g.: Spotify, Netflix and etc.
Users can access the
services using various d. Data-as-a-service
types of device e.g.: BrightPlanet DaaS
provided that they Platform, ATTOM
have internet Daas Platform, Third Eye Data,
connection. ScaleFocus, ScienceSoft and
etc.
e. Software-as-a-service

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 e.g.: Microsoft 365, Google
Workspace, Adobe Creative
Cloud and etc.
4. Payment Providers of online Online payment platform providers
services payment services that such as MOLPay, Ipay88, Boost
involve online and etc.
transactions by buyers
and sellers
5. Digital currency Selling, buying or Digital currency
/ Digital token mining or digital e.g.: Bitcoin, Ripple, Ethareum and
tokens. etc.
6. E-Hailing / a. E-Hailing and P- a. Provide applications that offer
P-Hailing Hailing Providers in subscription, ordering, booking
Apps Store / Play or income generating
Store / website that applications for e-hailing and p-
enable the users to hailing activities.
subscribe, place e.g.: Grab, Maxim, Airasia Ride,
orders, book or Foodpanda, Lalamove,
generate income Bungkusit, Beep, TheLorry and
through the online etc.
platform.
b. Generate income through the
b. Users who conduct online platform using service
e-commerce applications for e-hailing and p-
activities through hailing activities.
App Stores/Play
e.g.: Grab, Maxim, Airasia Ride,
Stores/Websites to
Foodpanda, Lalamove,
generate revenue
Bungkusit, Beep, TheLorry and
online such as e-
etc.
hailing and p-hailing
drivers/riders.
E-hailing refers to the
process of booking or
ordering a car, taxi,
limousine or other
public transportation
through a computer or
mobile device.
P-hailing refers to the
service of delivering
foods, drinks dan
goods using a vehicle
7. Others Others means
business models that
are not in the list above
.
D7 Address of business Address of main business is carrrying on.
premise
D8 Correspondence Address used when dealing with LHDNM.
Address
D9 Methods of payment Enter ‘1’ for payment via bank account, and also complete item D10 or ‘2’ for
for tax refund payment via “DuitNow”, and also complete item D11.
D10 Details of bank If D9 =1 Enter the name of the bank (D10a) and bank account number (D10b)
account for the purpose of electronic income tax refund. Ensure the bank account
provided is active and opened under own name to avoid payment issues.
D11 Information of If D9 = 2, tax refund will be made using the DuitNow ID registered at the bank of
DuitNow choice. "DuitNow" is a service provided that allows instant money transfer using
the recipient's DuitNow ID.
For the purpose of repayment through DuitNow, the individual’s DuitNow
registration with the bank of choice must use identification card number or

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 passport number. Ensure that the identification number registered at the bank of
choice is the same as the identification number in the LHDNM record as per item
3 of Basic Particulars.
D11a Identification type Enter ‘1’ for ‘Indentification card’ or “2” for ‘Passport’.

D11b Passport no. Enter passport number if D11a is “2”

D12a Disposal of asset Refers to chargeable asset under the Real Property Gains Tax Act 1976.
under the Real Enter ‘1’ for ‘Yes’ if there is disposal of asset, and also complete item D12b.
Property Gains Tax
Enter ‘2’ for ‘No’ if not applicable.
Act 1976
D12b Disposal declared to Enter ‘1’ (‘Yes’) if the disposal has been declared to LHDNM or ‘2’ (‘No’) if not.
LHDNM
If not yet declared, contact the LHDNM branch which handles the income tax file
of the disposer. Further details are available from the LHDNM Official Portal,
https://www.hasil.gov.my.

PART E: STATUTORY INCOME FOR BUSINESS AND PARTNERSHIP OUTSIDE

MALAYSIA RECEIVED IN MALAYSIA
Effective from 1 January 2022, all type of income from sources outside Malaysia received in Malaysia by a
resident is subject to tax. Refer Guidelines On Tax Treatment In Relation To Income Received From Abroad
(Amendment) [LHDN.AG.600-1/7/3].
Income from outside Malaysia received in Malaysia which has been taxed either with withholding tax or income
tax outside Malaysia is entitled to claim a bilateral or unilateral tax credit under the provisions of sections 132
and 133 of the ITA 1967. Original documents regarding the income and tax deducted in the country of origin must
be properly kept for the purpose of examination.
This item to be filled in by individual residents that received business / partnership income sources outside
Malaysia received in Malaysia.
Business and Partnership If has more than one (1) business / partnership, enter the total amount of
Identification statutory incomes from business 2 / partnership 2 into item ‘Business 2 +
Partnership 2 and so forth’.
For ‘Business 2 + Partnership 2 and so forth’, kindly list out separately as per
format Business 1 / Partnership 1 and keep it for future reference / examination
if required.
Business Code Business code for the relevant business is obtainable in Appendix G.
Enter the business code according to the type of business conducted outside
Malaysia .
Country Refer Appendix E for the country code.
Amount Of Tax Charged In Fill in the amount of tax charged in the country of origin where the income is
The Country Of Origin derived. Individual residents must keep income-related documents, notices of
assessment or other documents that show the income has been taxed outside
Malaysia.
Use the foreign currency exchange rate based on the date of remittance of
income to fill in this item.

Statutory Income Determine the amount of statutory income from the source of business /
partnership outside Malaysia remitted to Malaysia.
Use the foreign currency exchange rate based on the date of remittance of
income to fill in this column.
PART F: OTHER STATUTORY INCOME OUTSIDE MALAYSIA RECEIVED IN
MALAYSIA
Effective from 1 January 2022, all type of income from sources outside Malaysia received in Malaysia by a
resident is subject to tax. Refer Guidelines On Tax Treatment In Relation To Income Received From Abroad
(Amendment) [LHDN.AG.600-1/7/3].

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Income from outside Malaysia received in Malaysia which has been taxed either with withholding tax or income
tax outside Malaysia is entitled to claim a bilateral or unilateral tax credit under the provisions of sections 132
and 133 of the ITA 1967. Original documents regarding the income and tax deducted in the country of origin must
be properly kept for the purpose of examination.
This item to be filled in by individual resident that received other statutory income sources outside Malaysia
received in Malaysia including employment, dividend, interest, discount, rent, premium and other income.
Country Refer Appendix E for the country code.
Types of Income a) Employment e) Rents
b) Dividends f) Royalties
c) Interest g) Premiums
d) Discounts h) Other Income
Tax paid In The Country of Fill in the amount of tax charged in the country of origin where the income is
Origin derived. Individual resident must keep income-related documents, notices of
assessment or other documents that show the income has been taxed outside
Malaysia.
Use the foreign currency exchange rate based on the date of remittance of
income to fill in this item.
Statutory Income Determine the amount of other statutory income outside Malaysia remitted to
Malaysia.
Use the foreign currency exchange rate based on the date of remittance of
income to fill in this item.
PART G: DONATIONS / GIFTS / CONTRIBUTIONS
Note: Contribution in fighting against the COVID-19 pandemic
Tax deductions will be given to donors who donate cash or contribution in kind that will be used for fighting against
the COVID-19 pandemic as well as helping people affected by the pandemic. For classification purpose, please
refer to the LHDNM Official Portal, http://www.hasil.gov.my > Quick Links > FAQs PKP 3.0 > Soalan Lazim
Berkenaan Sumbangan / Derma (Available in Malay Language Only).
Gift of money to the Government / State Government / local authority
Subsection 44(6) of ITA 1967.
Gift of money to approved institutions / organizations / funds
Gift of money to institutions / organizations / funds approved by the Director General of
Inland Revenue. Subsection 44(6) and proviso, ITA 1967.
Gift of money for any sports activity approved by the Minister of Finance
Subsection 44(11B) and proviso, ITA 1967.
Gift of money or cost of contribution in kind for any project of national interest
approved by the Minister of Finance
Subsection 44(11C) and proviso, ITA 1967.
Restricted to
Gift of money in the form of wakaf to any religious authority / religious body / 10% of item B11
public university or gift of money in the form of endowment to a public university
Gift of money in the form of:
(i) wakaf made to any appropriate religious authority established under any written law,
body established by that appropriate religious authority or public university allowed
by that appropriate religious authority to receive wakaf; or
(ii) endowment made to a public university.
The wakaf or endowment must be made for the purpose of achieving the objective of
establishment of the appropriate religious authority, body or public university.
Subsection 44(11D), ITA 1967.
Gift of artefacts / manuscripts / paintings to the Government or State Government
Gift of artefacts, manuscripts or paintings to the Government will be based on the value determined by the
Department of Museums Malaysia or the National Archives.
Subsection 44(6A) of ITA 1967.

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Gift of money for the provision of library facilities or to libraries
Gift of money not exceeding RM20,000 for the provision of library facilities to public libraries and libraries of schools
and institutions of higher education provided that a claim for the same expenses is not made under paragraph
34(6)(g) of ITA 1967 in computing the adjusted income from business.
Subsection 44(8) of ITA 1967.
Gift of money or contribution in kind for the provision of facilities in public places for the benefit of
disabled persons
Gift of money or contribution in kind (the value to be determined by the relevant local authority) for the provision
of public facilities for the benefit of disabled persons.
Subsection 44(9) of ITA 1967.
Gift of money / cost / value of gift of medical equipment to any healthcare facility approved by the Ministry
of Health
Gift of money or the cost or value (as certified by the Ministry of Health) of any gift of medical equipment not
exceeding RM20,000 to any healthcare facility approved by the Ministry of Health.
Subsection 44(10) of ITA 1967.
Gift of paintings to the National Art Gallery or any state art gallery
The value of any gift of painting to be determined by the National Art Gallery or any state art gallery.
Subsection 44(11) of ITA 1967.
PART H: RELIEF
Receipts and supporting documents must be kept for a period of seven (7) years after the end of the year in
which the return form is furnished to LHDNM, for future reference and inspection if required.
Reference:
Taxation Of A Resident Individual
 Part I - Gifts Or Contributions And Allowable Deductions (Public Ruling No. 5/2021)
 Part II - Computation Of Total Income And Chargeable Income (Public Ruling No. 5/2018 and Public Ruling
No. 5/2022 ) and
 Part III - Computation Of Income Tax And Tax Payable (Public Ruling No. 6/2018)
H1 Individual and Relief of RM9,000 for an individual in respect of himself and his dependent
dependent relatives relatives is granted automatically.
Paragraph 46(1)(a) of ITA 1967.
H2 Medical treatment, Medical treatment, special needs and carer expenses incurred on parents is
special needs and allowed as a deduction up to RM8,000.
carer expenses for
Parents refer to natural parents or foster parents where the individual is an
parents
adopted child.
Expenses on medical treatment for parents which qualify for deduction include:
(i) medical care and treatment provided by a nursing home; and
(ii) dental treatment limited to tooth extraction, filling, scaling and cleaning but
excluding cosmetic dental treatment expenses such as teeth restoration and
replacement involving crowning, root canal and dentures.
 Such claim must be evidenced by a medical practitioner registered with
Malaysian Medical Council (MMC) certifying that the medical condition of
parents requires medical treatment, special needs or a carer.
 Parents shall be individuals resident in Malaysia.
 The medical treatment and care services are provided in Malaysia.
In the case of carer, a receipt or written certification from carer, or work permit of
the carer.
‘Carer’ shall not include that individual, his wife or her husband or the child of the
individual concerned.
Paragraph 46(1)(c) of ITA 1967.

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 H3 Basic supporting Expenditure incurred for the purchase of any necessary basic supporting
equipment for equipment is allowed as a deduction up to RM6,000 for the use by:
disabled self, (i) the individual, if he / she is a disabled person; or
spouse, child or
(ii) the spouse, if he / she is a disabled person; or
parent
(iii) his / her child, if the child is a disabled person; or
(iv) his / her parent, who is a disabled person.
This deduction will NOT be allowed if the disabled individual for whom the basic
supporting equipment is purchased, is not registered with the Department of
Social Welfare (DSW) as a disabled person.
Basic supporting equipment includes hemodialysis machine, wheel chair,
artificial leg and hearing aids but excludes spectacles and optical lenses.
Paragraph 46(1)(d) of ITA 1967.
H4 Disabled individual A further deduction of RM6,000 is allowed if the individual is a disabled person.
An individual is eligible to claim this deduction if he is certified in writing by the
Department of Social Welfare (DSW) as a disabled person.
Paragraph 46(1)(e) of ITA 1967.
H5 Education fees (Self) A deduction up to RM7,000 can be claimed on fees expended for any of the
following courses of study : -
(i) Other than a degree at Masters or Doctorate level
Any course of study up to tertiary level undertaken for the purpose of
acquiring law, accounting, Islamic finance approved by Bank Negara
Malaysia or Securities Commission, technical, vocational, industrial,
scientific or technological skills or qualifications undertaken in any institution
or professional body in Malaysia recognized by the Malaysian Government
or approved by the Minister of Finance:
(ii) Degree at Masters or Doctorate level
Any course of study undertaken for the purpose of acquiring any skill or
qualification undertaken in any institution or professional body in Malaysia
recognized by the Malaysian Government or approved by the Minister of
Finance:
Refer to the list of recognized local institutions or approved professional bodies
in Malaysia at the official portal of the Ministry of Higher Education Malaysia at
https://www.mohe.gov.my for deduction of H5(i) and H5(ii)
(iii) Course of study undertaken for the purpose of up-skilling or self-
enhancement
A deduction up to RM2,000 can be claimed on any skill area recognized by
Director General of Skills Development under National Skills Development
Act 2006 [Act 652]. Deduction is allowed for year of assessment 2022 to
2023.
Paragraph 46(1)(f) of ITA 1967.
H6 Medical expenses on:
H6(i) Serious diseases for Medical expenses on serious diseases include the
self, spouse or child treatment of Acquired Immune Deficiency Syndrome
(AIDS), Parkinson’s disease, cancer, renal failure,
leukemia and other similar diseases. “Other Similar Total deduction
Diseases” in relation to serious diseases include heart for H6(i), H6(ii),
attack, pulmonary hypertension, chronic liver disease, H6(iii), H7 and H8
fulminant viral hepatitis, head trauma with neurological restricted to
deficit, tumor in brain or vascular malformation, major RM10,000
burns, major organ transplant and major amputation of
limbs.

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 Amount expended on own self, husband / wife or child is
deductible up to a maximum of RM10,000.
Receipt of the treatment and a certification issued by a
medical practitioner registered with the Malaysian Medical
Council (MMC) must be kept for future reference and
inspection, if required.
Paragraph 46(1)(g)(i) of ITA 1967.

H6(ii) Fertility treatment for Expenses for fertility treatment include Intrauterine
self or spouse Insemination (IUI) treatment, In vitro fertilization (IVF) or
any other fertility treatments including consultation fees
and medicines on yourself or your spouse. Claim
conditions are:
(i) the claim for medical expenses has to be evidenced
by a receipt and certification issued by a medical
practitioner registered with the Malaysian Medical
Council (MMC) that the serious disease treatment
was provided to that individual, spouse or child; or
fertility treatment was provided to the individual or the
spouse; and
(ii) married individual.
Deductions of up to RM10,000 are allowed on the amount
expended or deemed to be expended on fertility treatment Total deduction
for yourself or your spouse. for H6(i), H6(ii),
H6(iii), H7 and H8
Receipt of the treatment and a certification issued by a restricted to
medical practitioner registered with the MMC must be kept RM10,000
for future reference and inspection, if required.
If the husband or wife chooses Joint Assessment, the
allowable deduction for expenses incurred by the spouse
will be deemed to be spent by the husband / wife whose
assessment is raised in his name is limited to RM10,000.
Paragraph 46(1)(g)(ii) of ITA 1967.
H6(iii) Vaccination for self, Vaccination expenses include the following:
spouse and child (i) Pneumococcal;
(ii) Human papillomavirus (HPV);
(iii) Influenza;
(iv) Rotavirus;
(v) Varicella;
(vi) Meningococcal;
(vii) Combination of tetanus-diphtheria-acellular-pertussis
(Tdap); and
(viii) Coronavirus Disease 2019 (COVID-19)
Deduction up to RM1,000 are allowed on the amount
expended on vaccination for own self, spouse or child.
Paragraph 46(1)(g)(iii) of ITA 1967.
H7 Expenses (Restricted to 1,000) on:
H7(i) Complete medical Complete medical examination refers Total
examination for self, to thorough examination as defined by deduction for
spouse or child the Malaysian Medical Council (MMC). H7 restricted to
Paragraph 46(1)(h)(i) of ITA 1967. RM1,000

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H7(ii) COVID-19 detection COVID-19 detection test expenses
test including include the following expenses:
purchase of self
(i) Fees for a COVID-19 detection
detection test kit for
test conducted in clinic or hospital.
self, spouse or child
Expenses must be evidenced by
receipt issued by a hospital or
clinic or medical practitioner
registered with the Malaysian
Medical Council (MMC)
(ii) Purchase of self detection test kit
evidenced by receipt
Paragraph 46(1)(h)(ii) of ITA 1967.
Total deduction
H7(iii) Mental health Mental health examination or
for H7 restricted
examination or consultation as evidenced by receipts
to RM1,000
consultation for iisued by the following :
himself, husband / (i) Psychiatrist within the meaning of
wife or child section 2 of Mental Health Act
2001 [Act 615];
(ii) Clinical psychologist registered
with Malaysia Allied Health
Professions Council under the
Allied Health Professions Act 2016
[Act 774]; or
(iii) Kaunselor Counsellor registered
woith Board of Counsellors under
the Counsellors Act 1998 [Act
580].
Paragraph 46(1)(h)(iii) ITA 1967. Total deduction
H8 Expenses (Restricted to 4,000) on child of the age of 18 years and below, in respect of: for H6(i), H6(ii),
H6(iii), H7 and
H8(i) Assessment for the The claim is evidenced by: H8 restricted to
purposes of RM10,000
(i) Receipt issued by a medical
diagnosis of learning
practitioner registered with the
disability
Malaysian Medical Council (MPM)
for initial examination for
diagnosis purposes;
(ii) Receipts issued by allied health
practitioners registered with the Total
Malaysian Allied Health deduction for
Professions Council under the H8 restricted
Allied Health Professions Act to RM4,000
2016 for early intervention
programs or rehabilitation
treatment;
H8(ii) Early intervention (iii) Expenses qualified as deductions
programme or for (i) and (ii) are for the following
rehabilitation categories:
treatment for
learning disability (a) Autism Spectrum Disorder;
(b) Attention Deficit Hyperactivity
Disorder (ADHD);
(c) Global Developmental Delay
(GDD);
(d) Intellectual Disability,
(e) Down Syndrome; and
(f) Specific Learning Disabilities.

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 (iv) Assessment for the purpose of
diagnosis, early intervention Total deduction
Total
programs and rehabilitation for H6(i), H6(ii),
deduction for
treatment should be carried out in H6(iii), H7 and
H8 restricted
Malaysia H8 restricted to
to RM4,000
RM10,000
Paragraph 46(1)(ha) ITA 1967.

H9 Lifestyle - Expenses for the use / benefit of self, spouse or child in respect of:
H9(i) Purchase or Expenditure for the purchase or subscription of books,
subscription of books / journals, magazines, newspapers and other similar
journals / magazines / publications (in the form of hardcopy or electronic but
newspapers / other EXCLUDING banned reading materials such as
similar publications morally offensive magazines) for the use by own self,
spouse or child.
Subparagraph 46(1)(p)(i) of ITA 1967.
H9(ii) Purchase of personal Expenditure for the purchase of personal computer,
computer, smartphone smartphone or tablet [Does NOT include additional
or tablet charge for warranty] for own use or for the use by own
husband / wife or child, and NOT being used for the
purpose of own business.
Subparagraph 46(1)(p)(ii) of ITA 1967.
H9(iii) Purchase of sports Expenditure for the use by own self, spouse or child in Total deduction
equipment for sports respect of the: for H9 restricted
activity defined under (i) purchase of sports equipment for any sports activity to RM2,500
the Sports Development as defined under the Sports Development Act 1997.
Act 1997 and payment Sports equipment includes equipment with short
of gym membership lifespan e.g. golf balls and shuttlecocks but
EXCLUDING motorized bicycles; and
(ii) payment for gym membership (EXCLUDING club
membership which provides gym facilities).
Subparagraph 46(1)(p)(iii) of ITA 1967.
H9(iv) Payment of monthly bill Payment of monthly bill for internet subscription
for internet subscription registered under own name for the use by own self,
spouse or child.
Subparagraph 46(1)(p)(iv) of ITA 1967.
H10 Lifestyle - Additional expenses for the use / benefit of self, spouse or child in respect of:
H10(i) Purchase of sports Expenditure for the purchase of sports equipment for any
equipment for sports sports activity listed under the Sports Development Act
activity defined under 1997 (EXCLUDING motorized two-wheel bicycles) for
the Sports Development the use by own self, spouse or child.
Act 1997
The amount of this deduction is in addition to the lifestyle
relief under H9(iii).

Example:
Total deduction
Mr Kevin bought sports equipment for the use of himself for H10
and his family members in 2023 worth RM3,000. The restricted to
amount eligible to be claimed for expenses for the RM500
purchase of sports equipment under paragraph 46(1)(p)
for YA 2023 is RM2,500 while the remaining expenditure
of RM500 is eligible to be claimed as additional relief
specifically for sports under paragraph 46(1)(u) for YA
2022
Paragraph 46(1)(p)(iii) and Subparagraph 46(1)(u)(i) of
ITA 1967.

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H10(ii) Payment of rental or Expenditure for rental or entrance fee to any sports
entrance fee to any facility for the use by own self, spouse or child.
sports facility
The amount of this deduction is in addition to the lifestyle
relief under H9(iii).
Paragraph 46(1)(p)(iii) and Subparagraph 46(1)(u)(ii) of
ITA 1967. Total deduction
H10(iii) Payment of registration Expenditure for payments of registration fee for any for H10
fee for any sports sports competition where the organizer is approved and restricted to
competition where the licensed by the Commissioner of Sports under the Sport RM500
organizer is approved Development Act 1997 for the use by own self, spouse
and licensed by the or child.
Commissioner of Sports
Subparagraph 46(1)(u)(iii) of ITA 1967.
under the Sport
Development Act 1997
H11 Purchase of (a) This deduction is allowed exclusively for women taxpayers, provided that
breastfeeding the individual:
equipment for own use (i) is a breastfeeding mother;
for a child aged 2 years (ii) has incurred expenditure for the purchase of breastfeeding equipment
and below for her own use to breastfeed her own child aged 2 years and below;
and
(iii) makes a claim that is evidenced by receipts issued in respect of the
purchase.
(b) Breastfeeding equipment which qualifies are:
(i) breast pump kit and ice pack;
(ii) breast milk collection and storage equipment; and
(iii) cooler set or cooler bag.
(c) The amount of deduction is limited to RM1,000 although the individual
has more than one child.
(d) This deduction is only allowed ONCE in every two (2) years of
assessment.
(e) In the case of a Combined Assessment, this deduction is only
allowed if the assessment is made in the name of the wife.
Example 1: Joint Assessment in the Wife’s Name
Madam Arina has given birth to a child in the year 2023 and has purchased
breastfeeding equipment at the cost of RM1,700. Her husband who is a non-
resident Malaysian citizen has elected for joint assessment in the name of
his wife.
Madam Arina is entitled to claim this deduction but limited to RM1,000.
Example 2: Joint Assessment in the Husband’s Name
Madam Sally has given birth to a child in the year 2023 and has purchased
breastfeeding equipment at the cost of RM1,300. Madam Sally has elected
for joint assessment in the name of her husband.
The claim for this deduction is NOT allowed because the joint assessment is
made in the name of Madam Sally’s husband.
Paragraph 46(1)(q) of ITA 1967.
H12 Child care fees to a This deduction is allowed in respect of child care fees for a child aged 6
registered child care years and below paid to a:
centre / kindergarten for (i) child care centre registered with the Department of Social Welfare
a child aged 6 years (DSW) pursuant to the Child Care Centre Act 1984 (Act 308) under the
and below Ministry of Women, Family and Community Development; or
(ii) kindergarten registered with the Ministry of Education Malaysia
pursuant to the Education Act 1996 (Act 550).
This deduction is restricted to RM3,000 even though the number of children
who fulfills the mentioned conditions exceeds one. If the amount of claim is

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 less than RM3,000, the amount of deduction allowed is limited to the
amount paid only.
Where a husband and a wife are assessed separately, the tax deduction
under this paragraph can only be claimed either by the husband OR the wife
who incurs the expenses.
Where a husband and wife are divorced, the tax deduction can be claimed by
the former husband and the former wife provided that they both made
payment for the fees of the child and that child is not the same child.

The claim for this deduction must be evidenced by the:

(i) birth document of the child (MyKid or birth certificate); and
(ii) receipts for the monthly fees issued by the child care centre or
kindergarden.
This relief takes effect until the Year of Assessment 2024.
Paragraph 46(1)(r) of ITA 1967.
Example 1: Husband and wife (living together)
Scenario No. of Expenditure on child Type of Who is entitled to Notes
Child (RM) assessment claim & amount
(RM)
a 1 Husband 1,600 Separate Husband - 1,600 Only one person is entitled to claim
Wife 1,500 OR (restricted to the amount expended)
Wife - 1,500
b 2 Husband 3,200 (child no. 1) Separate Husband - 3,000 Only one person is entitled to claim
Wife 3,400 (child no. 2) OR (restricted to the amount RM3,000)
Wife - 3,000
c 2 Husband 3,500 (child no. 1 & 2) Separate Husband - 3,000 Restricted to the amount RM3,000
d 3 Husband 5,200 (child no. 1 & 2) Separate Husband - 3,000 Only one person is entitled to claim
Wife 3,100 (child no. 3) OR (restricted to the amount RM3,000)
Wife - 3,000
e 2 Husband 1,900 (child no. 1) Separate Husband - 1,900 Only one person is entitled to claim
Wife 1,100 (child no. 2) OR based on the amount expended or
Wife - 1,100 restricted to the amount RM3,000
f 1 Husband 1,200 Joint Husband - 2,400 Expenditure incurred by the
Wife 1,200 OR spouse is deemed expended by
Wife - 2,400 the husband / wife in whose name
the assessment is raised
(restricted to the amount
expended)
g 2 Husband 1,600 (child no. 1) Joint Husband - 3,000 Expenditure incurred by the
Wife 1,500 (child no. 2) OR spouse is deemed expended by
Wife - 3,000 the husband / wife in whose name
the assessment is raised
(restricted to the amount RM3,000)

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 Example 2: Divorced husband and wife
Scenario No. of Expenditure on child Who is entitled to Notes
child (RM) claim & amount (RM)
a 1 Former husband 1,800 Former husband - 1,800 Only entitled to claim RM1,800
(restricted to the amount expended)
b 1 Former husband 3,400 Former husband - 3,000 Only one person is entitled to claim
Former wife 3,200 OR (restricted to the amount RM3,000)
Former wife - 3,000
c 2 Former husband 3,400 (child no. 1) Former husband - 3,000 - Former husband claims RM3,000
Former wife 3,200 (child no. 2) AND - Former wife claims RM3,000
Former wife - 3,000 (provided that the claim is made on
different child)
d 3 Former husband 3,200 (child no. 1) Former husband - 3,000 - Former husband claims RM3,000
Former wife 1,800 (child no. 2) AND - Former wife claims RM3,000
& 1,600 (child no. Former wife - 3,000 (provided that the claim is made on
3) different child)

H13 Net deposit in Skim This relief takes effect for the Years of Assessment 2023 until 2024.
Simpanan Pendidikan Amount deposited in SSPN by an individual for his children’s education is
Nasional (SSPN) deductible up to a maximum of RM8,000. The allowable deduction is limited
to the net amount deposited in that basis year only.
Example: For the year 2023,
Balance Brought Forward : RM4,500;
Total Deposit : RM2,000; and
Total Withdrawal : RM1,500.
Allowable deduction is RM500 (RM2,000 – RM1,500).
The Balance Brought Forward of RM4,500 is not taken into account.
Paragraph 46(1)(k) of ITA 1967.
H14 Husband / wife / (i) A deduction for husband of RM4,000 is given to the wife if the husband
payment of alimony to has no source of income / no total income or the husband has elected for
former wife joint assessment in the name of his wife. Only one wife is eligible to claim
this deduction although the husband has more than one wife.
Section 45A(1) of ITA 1967.
With effect from Year of Assessment 2017, the deduction for
husband is NOT allowed if the husband (not a husband who is a
disabled person) has gross income exceeding RM4,000 derived
from sources outside Malaysia.
Subsection 45A(2) of ITA 1967.
(ii) A deduction for wife of RM4,000 is given to the husband who has a
wife living together with him in the basis year, and the wife has no source
of income / no total income or the wife has elected for joint assessment
in the name of her husband.
Paragraph 47(1)(a) and subsection 47(5) of ITA 1967.
With effect from Year of Assessment 2017, the deduction for wife is
NOT allowed if the wife (not a wife who is a disabled person) has
gross income exceeding RM4,000 derived from sources outside
Malaysia.
Subsection 47(6) of ITA 1967.
(iii) Deduction for payment of alimony to a former wife is limited to RM4,000
or the actual amount paid if the amount of alimony paid is less than the
allowable deduction. The total deduction for a wife living together and
alimony payments to the former wife is restricted to RM4,000.
Voluntary alimony payments under a mutual agreement but without any
formal agreement do not qualify for deduction.
Subsection 47(2) and 47(3) of ITA 1967.

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H15 Disabled husband / wife A further deduction of RM5,000 is given in respect of a disabled husband / wife.
Section 45A and Paragraph 47(1)(b) and of ITA 1967.
H16 Child Refer to Working Sheet HK-17.
 No. No.
 100% Eligibility
 50% Eligibility Enter the total number of children on whom full relief (100% Eligibility) or
partial relief (50% Eligibility) is entitled to be claimed by the individual.
100% Eligibility
This item is to be completed by an individual entitled to claim full child relief.
50% Eligibility
This item is only relevant where two or more individuals (not husband and
wife living together) are each entitled to claim a deduction for payment made
in respect of the same child, and each of those individuals is entitled to claim
50% of the allowable relief as a deduction. For example, when divorce occurs
and there are two or more individuals entitled to claim a deduction on the
same child.
For separate assessment, the individual and his spouse are required to select
the relief in respect of each child on whom to claim respectively.
Example: Ali has five (5) children and elected for separate assessment. The
number of children on whom relief may be claimed by Ali and his
wife is:
Ali Wife Ali Wife
(i) 5 0 (iv) 2 3
(ii) 4 1 (v) 1 4
(iii) 3 2 (vi) 0 5
The deduction for child is not allowed if the child is in receipt of his own income
whereby his total income exceeds the amount of deduction otherwise due.
However, the following receipts are not treated as income of a child:
 Amount received as scholarship, grant or allowance of a similar nature
(paragraph 24 Schedule 6 of ITA 1967); and
 Payments received by a child who is serving an employer under articles
or indentures.
Subsection 48(5) of ITA 1967.

H16a Child - Under the age A deduction of RM2,000 per child is allowed if the child is unmarried and who
of 18 years at any time in the basis year is below the age 18 years.
Paragraph 48(1)(a) and 48(2)(a) of ITA 1967.

H16b Child - 18 years and (i) A deduction of RM2,000 per child is allowed if the child is unmarried, 18
above and studying years of age and above, and receiving full-time instruction.
Paragraph 48(1)(b) & (c) and 48(2)(a) of ITA 1967
OR
(ii) A deduction of RM8,000 is allowed if the child is unmarried, 18 years of
age and above, and satisfies the following conditions:
 receiving full-time instruction (excluding matriculation course / pre
degree / A-Level) at a university, college or other similar educational
establishment in Malaysia; or
 serving under articles or indentures with a view to qualify in a trade or
profession in Malaysia; or
 receiving full-time instruction outside Malaysia in respect of a degree
(including a degree at Master or Doctorate level) or the equivalent of
a degree.
Paragraph 48(3)(a) of ITA 1967.

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H16c Child - Disabled child (i) Relief allowed for a disabled child who is unmarried is RM6,000.
(ii) An additional relief of RM8,000 is allowed if the disabled child is
unmarried, 18 years of age and above, and satisfies the following
conditions:
 receiving full-time instruction (excluding matriculation course / pre
degree / A-Level) at a university, college or other similar educational
establishment in Malaysia; or
 serving under articles or indentures with a view to qualify in a trade or
profession in Malaysia; or
 receiving full-time instruction outside Malaysia in respect of a degree
(including a degree at Master or Doctorate level) or the equivalent of
a degree.
An individual is entitled to a child relief of RM14,000 if the above conditions
are complied with.
Paragraph 48(1)(d), 48(3)(a) and 48(2)(b) of ITA 1967.
H17 Life insurance and EPF
Working sheet, HK-14 can be used for the purpose of computation and record.
(i) Payment of life insurance premiums or takaful contribution on life insurance policy contracted on the
life of the individual husband or wife / wives or additional voluntary contribution to EPF is deductible
* Deduction is NOT allowed on premiums paid for life insurance policy contracted on the life of the
child.
(ii) Contribution to an approved scheme or voluntary contribution to EPF (other than private retirement
scheme) or contribution under any written law. Example of an approved scheme is the Employees
Provident Fund (EPF).
(iii) Voluntary contribution that allowed for deductions are contribution to:
(a) Self-employed under the definition of Employees Provident Fund Act 1991 (Act 452)
(b) Pensionable officers under definition of section 2 of Pension Act 1980 (Act 227)
(c) Employees other than (a) and (b) above.
(iv) Allowable deduction commencing from Year of Assessment 2023:
No. Type of Contribution Total Relief
i. Life insurance premium payments and takaful contributions or
RM3,000 (Restricted)
additional voluntary contribution to EPF [paragraph 49(1)(a)]
ii. Contribution to an approved scheme or voluntary contribution to EPF
(NOT including private retirement scheme) or contribution under any RM4,000 (Restricted)
written law [paragraph 49(1)(b)]
RM7,000 (Restricted)

Example 1:
Madam Sally is a public servant who has chosen a pension scheme. She has also contributed to the
EPF voluntarily. In 2023 she has made contributions to the EPF and life insurance premium payments
as follows:
Amount (RM)
Voluntary contribution to EPF for self 6,000
Life insurance premium payments for self 1,800

For Year of Assessment 2023, Madam Sally is eligible to claim relief for voluntary EPF contributions and
insurance premium payments as follows:

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 Amount
Deduction
Contribution /
Allowed (RM)
Payment (RM)
Voluntary contribution to EPF [Paragraph 49(1)(b)] 4,000 4,000 (restricted)
1,200 (restricted)
Additional voluntary contribution to EPF [Paragraph 49(1)(a)] 2,000
or 2,000
1,800 or
Life insurance premium payments [Paragraph 49(1)(a)] 1,800
1,000 (restricted)
TOTAL: 7,800 7,000 (restricted)

Example 2:
Mr. Manaf works with a private sector. In 2023, he made contributions to the EPF and family takaful
contributions as follows:
Amount (RM)
Compulsory contribution to EPF 36,000
Voluntary contribution to EPF 6,000
Family takaful contributions 3,600

The allowable deduction for the Year of Assessment 2023 is as follows:

Amount
Deduction
Contribution /
Allowed (RM)
Payment (RM)
Compulsory contribution to EPF [Paragraph 49(1)(b)] 36,000 4,000 (restricted)

Family takaful contributions [Paragraph 49(1)(a)] 6,000 3,000 (restricted)

Voluntary contribution to EPF [Paragraph 49(1)(b)] 3,600 Not entitled

TOTAL: 45,600 7,000 (restricted)

Example 3:
Madam Charlene is an independent consultant who makes voluntary EPF contributions. For 2023, her
total contribution is RM12,000. She did not make any life insurance premium payments.
For Year of Assessment 2023, Madam Charlene is eligible to claim RM7,000 for voluntary contributions
to the EPF as provided as follows:
Amount
Deduction
Contribution /
Allowed (RM)
Payment (RM)
Voluntary contribution to EPF [Paragraph 49(1)(b)] 4,000 (restricted)
12,000
Additional voluntary contribution to EPF [Paragraph 49(1)(a)] 3,000 (restricted)
JUMLAH: 12,000 7,000 (restricted)

Example 4:
Saiful is a public servant who has chosen a pension scheme. For 2023, he has made an insurance
premium payment of RM10,000. He did not make any contribution to the EPF.
Amount
Deduction
Contribution /
Allowed (RM)
Payment (RM)
Contribution to EPF [Paragraph 49(1)(b)] No contribution No contribution

Life insurance premium payments [Paragraph 49(1)(a)] 10,000 3,000 (restricted)*

TOTAL: 10,000 3,000 (restricted)

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 *With the cancellation of paragraph 49(1A)(c) from Year of Assessment 2023, pension scheme public
servants are only eligible to claim tax relief of RM3,000 for life insurance premium payments or family
takaful contributions under paragraph 49(1)(a).

H18 Private retirement scheme and deferred annuity

 This deduction is effective from the Year of Assessment 2012 until 2025.
 The deduction allowed shall not exceed RM3,000 in respect of contributions made to a Private Retirement
Scheme (PRS) approved by the Securities Commission and paid premiums for deferred annuity.
 The total deduction for PRS contributions and deferred annuity premiums is restricted to RM3,000 for an
individual and RM3,000 for the spouse who has source of income. If the husband or wife elects for
joint assessment, the deduction allowed for the aggregate amount of PRS contributions and deferred
annuity premiums is restricted to RM3,000.
 Refer to Working Sheet HK-14.
 Reference: Public Ruling No. 4/2014 (Deferred Annuity); and
Public Ruling No. 9/2021 (Private Retirement Scheme).
 Subsections 49(1D), 49(1E), 49(3), 50(2) and 50(3) of ITA 1967.

H19 Education and A deduction not exceeding RM3,000 is available on insurance premiums in
medical insurance respect of education or medical benefits for an individual, husband, wife, or
child.
An education policy must satisfy the following criteria:
(i) the policy must be contracted by the individual for himself or herself, his
or her spouse or child;
(ii) the beneficiary should be the child;
(iii) where the insured is the parent, the child must be the nominee;
(iv) where the child is the insured:-
(a) it is compulsory that the life of the person paying the premium
(parent) must be covered (payor benefit rider);
(b) the rider must also have the same duration as the basic policy;
(c) where the rider is packaged together with the basic policy in a single
premium, the whole premium paid will qualify for deduction; and
(d) where the parent does not qualify for payor benefit rider, the
premium paid for the basic policy will not qualify for deduction;
(v) in respect of a takaful policy, the participant is the parent and proceeds
of the policy must be made “hibah” (gift) to the child;
(vi) the maturity amount in respect of both conventional or takaful policy
must be scheduled to be payable when the child is between the ages of
13 and 25.
A medical policy must satisfy the following criteria:
(i) the expenses should be related to the medical treatment resulting from
a disease or an accident or a disability;
(ii) the policy coverage should be for a period of 12 months or more;
(iii) the policy can be a stand-alone policy or as a rider to a life insurance
policy. If it is a rider, only the rider premium can qualify for deduction;
(iv) where a dreadful disease cover is attached to a basic policy, the whole
amount of the rider premium paid is allowed as a deduction;
(v) where a dreadful disease cover is packaged together with a term
life/personal accident cover, 60% of the package premium is allowed as
a deduction;
(vi) group medical policy where the employee pays the premium for the
medical benefit also qualifies for deduction; and
(vii) premium for waiver benefit rider and travel and medical expenses
insurance are not allowable as a deduction.

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 The total deduction in respect of premiums paid for insurance on education
and medical benefits is restricted to RM3,000 for an individual and
RM3,000 for the wife who has source of income. If the husband or wife
elects for joint assessment, the deduction allowed for the total of premiums
paid for insurance on education and medical benefits is restricted to
RM3,000.
Refer to Working Sheet HK-14.
Subsections 49(1B), 49(4) and 50(2) of ITA 1967.
H20 Contribution to the Social A deduction not exceeding RM350 is allowed in respect of contribution to
Security Organization the Social Security Organization (SOCSO) made or incurred by the
(SOCSO) according to individual in the basis year that contribution in accordance to the following
Employees Social act:
Security Act 1969 or (i) Employees Social Security Act 1969
Employment Insurance (ii) Employment Insurance System Act 2017 for Employment Insurance
System Act 2017 System (EIS)
Paragraph 46(1)(n) of ITA 1967.
H21 Payment of installation, A deduction limited to a maximum of RM2,500 expended for the electric
rental, purchase including vehicle charging facility as follows:
hire-purchase of
(i) Cost of installation of electric vehicle charging;
equipment or subscription
(ii) Purchase including hire-purchase of electric vehicle charging;
for use of electric vehicle
(iii) Rental of electric vehicle charging; or
charging facility for his
(iv) Subscription for use of electric vehicle charging facility
own vehicle (Not for
business use) The allowable deduction effective for the Year of Assessment 2022 and 2023.
Paragraph 46(1)(v) of the ITA 1967.

H22 Total relief Sum of amounts from items H1 to H21.

Transfer this amount to item B23.
PART J: INCENTIVE CLAIM
J1 Claim for Special Use the claim codes (Appendix D) which can be obtained from the LHDNM
Deduction(s) / Further Official Portal:
Deduction(s) / Double
http://www.hasil.gov.my > Forms > Download Forms > Non-Company &
Deduction(s) /
Non-Individual > Computation Guide & Other Information.
Incentive(s) under
paragraph 127(3)(b) of Incentive claims are divided into four (4) categories as follows:
Income Tax Act 1967 (i) Special deduction
(ii) Further deduction
(iii) Double deduction
(iv) Incentive under paragraph 127(3)(b) of Income Tax Act 1967
Select the relevant code from the list of incentives provided for the above
categories of claims, and enter the amount.
For expenditure categorised as ‘further deduction’, the amount to be entered
in this section is the amount of deduction claimed in addition to the original
expenditure claimed in the accounts.
Paragraph 127(3)(b) of ITA 1967
Exemption given by the Minister of Finance to any class of persons from
complying with any provision of the ITA 1967, either generally or in respect
of any income.
Computation of the incentive amount and supporting documents should be
kept for future reference / examination by LHDNM, if required.

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 Example:
Mr. Alex runs a sole proprietership business and claims the following
incentives:
Code Subject Amount
225 Deduction for employment of senior citizen, ex- 12,000
convict, parolee, supervised person and ex-drug
dependant
532 Income in respect of qualifying expenditure for the 20,000
purpose of obtaining a green building index
certificate
620 Withdrawal from a private retirement scheme 10,000
before reaching the age of 55 and approved under
the Capital Market and Services Act 2007

Complete item J1 as follow:

Balance Brought Amount Amount Balance Carried
Claim Code
Forward Claimed Absorbed Forward
225 0 12,000 12,000 0
532 0 20,000 20,000 0
620 0 10,000 0 0

J2 Claim for incentive(s) Subsection 127(3A) ACP 1967

under subsection 127(3A)
of Income Tax Act 1967 Exemption given by the Minister of Finance to any specific person from
complying with any provision of the ITA 1967, either generally or in respect
of any income.
Enter the Serial Number of the Approval Letter issued by the Ministry of
Finance and the amount.
The Minister's Approval Letter, computation of incentive and supporting
documents should be kept for future reference / examination by LHDNM, if
required.
Example:
Mr. Faizal runs a business in relation to aquaculture. He has received an
exemption order (the serial number of the approval letter, CP 1234/2023)
from the Ministry of Finance. He is eligible for income tax exemption of
RM45,000 for Year of Assessment 2023.
Complete item J2 as follow:
Incentive Balance Brought Amount Amount Balance Carried
Approval No. Forward Claimed Absorbed Forward
CP1234/2023 0 45,000 45,000 0

PART K: NON-EMPLOYMENT INCOME OF PRECEDING YEARS NOT

DECLARED
K1 Income OTHER THAN from employment received in respect of preceding year(s) not previously
– declared.
K2 Example: Income from rents or interest
Please use attachment in case of insufficient writing space.

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PART L: TAX EXEMPT INCOME FROM SOURCES OUTSIDE MALAYSIA
RECEIVED IN MALAYSIA
Effective from 1 January 2022, all type of income from sources outside Malaysia received in Malaysia by a
resident is subject to tax.
Income from sources outside Malaysia received in Malaysia by individual residents which is exempted from tax
from 1 January 2022 until 31 December 2026 are as follows:

Taxpayer’s Category Types of Tax-Exempt Qualifying Conditions

Income
Individual partner in relation to a Dividend (i) The dividend income has been
partnership business in Malaysia subjected to tax in the country
of origin;
(ii) The highest tax rate (headline
tax) in the country of origin is
not less than 15%; and
(iii) Comply with the economic
substance requirements
Individual All types of income other than The income has been subjected to
partnership income tax in the country of origin
Refer Guidelines on Tax Treatment In Relation To Income Received From Abroad (Amendment)
[LHDNM.AG.600-1/7/3], Income Tax (Exemption) Order (No. 5) 2022 [P.U.(A) 234/2022]; and Income Tax
(Exemption) Order (No. 6) 2022 [P.U.(A) 235/2022].
This item to be filled in by individual residents that received income from outside Malaysia received in Malaysia
which is exempted from tax from 1 January 2023 to 31 December 2023.

Country Refer Appendix E for country codes.

Types of Income a) Business f) Discounts
b) Partnership g) Rents
c) Employment h) Royalties
d) Dividends j) Premiums
e) Interest k) Other income
Tax paid In The Country Of Origin Enter ‘1’ for ‘Yes’ if tax paid in the Country of Origin or ‘2’ for “if no”.
In determining whether foreign incomes that received in Malaysia have been
subjected to tax in the country of origin, the conditions are as follows:
(i) Tax paid or payable in the country of origin is income tax or withholding
tax; or
(ii) Tax is not imposed in the country of origin due to certain reasons as
follows:
(a) Foreign income received in Malaysia is not subject to tax in the
country of origin due to the country's taxation system.
(b) Foreign income received in Malaysia is not subject to tax in the
country of origin because the individual's income does not reach
the taxability amount in the country of origin.
(c) Income is given an exemption through a tax incentive
(d) Foreign dividend income received has been subjected to
underlying tax
(e) Foreign dividend income is paid from underlying profits arising out
of operating profits which has not been subjected to tax due to:
 Unabsorbed losses or capital allowances;
 Arising from capital gains;
 Enjoyed tax incentives in compliance with substantive
requirements in the country; or
 Tax regulations under the tax consolidation regime in the
country of origin

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Headline Tax Rate In The Enter the required information for dividend income only.
Country Of Origin
Headline tax rate in the country of origin refers to the highest corporate tax
rate in the country of origin in a year in which the foreign dividend is received
in Malaysia The headline tax rate must be at least 15% to qualify for
dividend income exemption.
Amount Of Tax Charged In The Fill in the amount of tax charged in the country of origin where the income is
Country Of Origin derived. Individual resident must keep income-related documents, notices
of assessment or other documents that show the income has been taxed
outside Malaysia.
Use the foreign currency exchange rate based on the date of remittance of
income is made to fill in this item.

Amount of Income Remitted Total amount of income from sources outside Malaysia received in Malaysia
according to types of income.
Use the foreign currency exchange rate based on the date of remittance of
income to fill in this item.
PART M: PARTICULARS OF BUSINESS INCOME
M1 Summary of business This section provides the space for reporting business / partnership losses
and partnership losses of the current year and previous year.
subjected to restriction
Losses Of Current Year Of Assessment
under subsection 44(5F)
of the Income Tax Act Current year of assessment business and partnership losses absorbed in
1967 the current year of assessment and the balance of losses carried forward for
deduction in the following year of assessment.
Losses Of Prior Years Of Assessment *
Reporting of prior years losses absorbed in the current year shall be made
according to the year of assessment in which losses are first incurred and
includes the following information:
 Unabsorbed losses position at the beginning of the current year of
assessment; and
 Losses absorbed / disregarded in the current year of assessment and
balance of losses carried forward to be disregarded absorbed in the
following year of assessment
* Note:
With effect from the Year of Assessment 2019, unabsorbed losses in the
current year are only allowed for carrying forward to be absorbed for a
maximum period of up to ten (10) consecutive years [Subsection 44(5F)].
Special provision relating to sections 43 and 44
This special provision allows the carrying forward of unabsorbed losses in
the Year of Assessment 2018 to be absorbed up to a maximum of ten (10)
years commencing from the Year of Assessment 2019.
Working Sheet HK-1.3.

M2 Business capital Balance of capital allowances unabsorbed in the computation of statutory

allowances carried income from business.
forward
Amount K6 from Working Sheet HK-1 / amount N6 from Working Sheet HK-1D.
M3 Partnership capital Balance of capital allowances unabsorbed in the computation of statutory
allowances carried income from partnership.
forward
Amount H5 from Working Sheet HK-1B.

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PART N: FINANCIAL PARTICULARS OF INDIVIDUAL (MAIN BUSINESS ONLY)
N1 Name of business Enter the name of the business for the main business only. If there is more than
one main business, enter the name of the business with the highest turnover.
Enter the business code for the main business.
N2 Business code Refer to Appendix G for list of codes for types of businesses at the LHDNM
Official Portal: https://www.hasil.gov.my > Forms > Download Forms >
Individual > Computation Guide & Other Information > Appendices
N2a Type of business activity Specify the type of activity of the business concerned in the box provided.
N3 Sales or turnover Gross income including accrued income from sales, fees and other receipts.
N4 Opening stock Opening stock of finished goods as per Trading Account.
N5 Purchases and  Gross amount of purchases minus discounts / rebates.
cost of production  Cost of production as per Manufacturing Account.
N6 Closing stock Closing stock of finished goods as per Trading Account.
N7 Cost of sales Total of N4 plus N5 minus N6. Enter ‘0’ if none.
N8 Gross profit / loss N3 minus N7. Enter ‘X’ in the box provided for loss.
N9 Other business(es) Total sales or turnover from sources other than N1.
For partnership income – Amount from item A13, CP30.
N10 Dividends, interest and Gross income from respective sources.
– discounts, rents, royalties
N12 and premiums
N13 Other income Sum of all gross income from other non-business sources not mentioned
above.

N15 Expenses Amount as per Profit and Loss Account.

– N15 : Loan Interest
N24 Total expenditure on interest excluding interest on hire purchase / lease.
N26 Net profit / loss Net profit or loss as per Profit and Loss Account.
N27 Non-allowable expenses Amount F1 from Working Sheet HK-1, HK-1D or HK-1E.
N28 Fixed assets Net book value as per Balance Sheet.
–
N31
N33 Investments Cost of investments and fixed deposits.
N34 Current assets Amount as per Balance Sheet.
–
N39
N42 Liabilities Amount as per Balance Sheet.
–
N44
N46 Capital account Amount as per Balance Sheet.
N47 Current account balance Current account balance carried forward from last year, excluding capital.
brought forward
N48 Current year profit / loss Amount as per Profit and Loss Account.
N49 Drawing / advance (Net) Takings of cash or stock in trade for personal use, or cash advance in the
current year.
N50 Current account balance Sum of amounts from items N47 to N49.
carried forward

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PART P: PARTICULARS OF TAX AGENT WHO COMPLETES THIS RETURN
FORM
P1  Tax Agent’s Approval No. is the approval number given to tax agent’s approved under subsection
– 153(3) of ITA 1967.
P9
 This section has to be completed and duly signed by the tax agent who completes this return form.
DECLARATION
A return form which is not duly signed, shall be deemed incomplete and will not be processed and a Notification
of Incomplete Return Form will be issued to inform you. The use of signature stamp is not allowed. Penalty will
be imposed in case of late resubmission of the return form to LHDNM.

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 TAX SCHEDULE YEAR OF ASSESSMENT 2023
RANGE OF COMPUTATION RATE TAX
CATEGORY CHARGEABLE INCOME RM % RM
(a) (b) (c) (d)

A 0 - 5,000 First 5,000 0 0

First 5,000 0
B 5,001 - 20,000 Next 15,000 1 150
First 20,000 150
C 20,001 - 35,000 Next 15,000 3 450
First 35,000 600
D 35,001 - 50,000 Next 15,000 6 900
First 50,000 1,500
E 50,001 - 70,000 Next 20,000 11 2,200
First 70,000 3,700
F 70,001 - 100,000 Next 30,000 19 5,700
First 100,000 9,400
G 100,001 - 400,000 Next 300,000 25 75,000
First 400,000 84,400
H 400,001 - 600,000 Next 200,000 26 52,000
First 600,000 136,400
I 600,001 - 2,000,000 Next 1,400,000 28 392,000
First 2,000,000 528,400
J Exceeding 2,000,000 For every next ringgit 30 ...............

COUNTRY CODES
The following are some of the country codes for selection. Please refer to Appendix E for the full list if country
is not listed below.
Country Code Country Code Country Code

Australia AU Iran (Islamic R.O.) IR Philippines PH

Bangladesh BD Iraq IQ Saudi Arabia SA
Brunei BN Japan JP Singapore SG
Cambodia KH Korea, D.P.R. KP South Africa ZA
Canada CA Korea, R.O. KR Sri Lanka LK
China CN Laos, D.P.R. LA Taiwan TW
Denmark DK Malaysia MY Thailand TH
Hong Kong HK Myanmar MM United Kingdom GB
India IN New Zealand NZ United States US
Indonesia ID Pakistan PK Vietnam VN

Note: R.O. = Republic of; D.P.R. = Democratic People’s Republic of

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