Admins can quickly update employees’ income tax information via the Payroll > Compensation page
To update income tax information:
1. On the left panel of your admin dashboard, click Payroll > Compensation.
2. Search for the employee's name.
3. On the right of the employee's name, click View.
4. Click Income Tax.
5. Fill in the employee's tax information accordingly.
**IMPORTANT: For non-tax payer and tax-payer, Category is Mandatory as the information is REQUIRED during company's e-Filing.
***Resident Status & Category information are available at the bottom of this article.
6. Scroll down. Confirm by clicking Confirm.
**More information on Income Tax:
- (A) Resident: If you are a resident of Malaysia, the tax relief follows the LHDN employee categories. There are 3 categories available:
- Category 1 - Single: Taxpayer is single, only entitled to RM9000 personal tax relief
- Category 2 - Married, Spouse not working: Taxpayer is married and the spouse is unemployed, entitled to RM9000 personal tax relief + RM4000 spouse not working relief (Joint assessment)
- Category 3 - Married, Spouse working: Taxpayer is married and the spouse is employed, entitled to RM9000 personal tax relief. (Separated assessment)
NOTE: Compulsory to fill in Resident Status & Category
- (B) Non-Resident: Any foreign worker who stay less than 182 days in Malaysia. Their tax deduction is rather simpler as it is taxed at 30% of the monthly salary. This also means they are not entitled to any resident’s tax relief such as child relief and lifestyle relief
- (C) Knowledge Worker: These are for employees who work specifically in the Iskandar region of Johor state, where they will be taxed at a 15% flat rate.
- (D) Returning Expert: These are Malaysian professionals living abroad and returning to work in Malaysia, where they will be taxed at a 15% flat rate as well.
EMPLOYEE DISABLE STATUS
- If the employee is disabled, he/she is entitled to RM6000 extra tax relief on top of the RM9000 personal tax relief
SPOUSE DISABLE STATUS
- If the employee's spouse is disabled, he/she is entitled to RM5000 additional tax relief
Any taxpayers who are under Resident status are entitled to enjoy tax relief for their child/children. Please note that tax relief announced by LHDN might vary from a different year of assessment, altHR follows the latest tax relief table as per LHDN. For more information about tax relief for children, please visit the LHDN tax relief website to understand the latest tax relief eligibility and amount.
- Number of children eligible for relief: Fill in the total number of children eligible for tax relief including children who are under 18 years old - each child <18 years old is entitled to RM2000 tax relief
- Of that, how many are in tertiary education (≥ 18yrs)?: Fill in the total number of children who is receiving full-time instruction at an establishment of higher education in Malaysia (at diploma level and higher) or outside Malaysia (at degree level and above), or serving under article of indentures in a trade or profession, provided certain conditions are met. Entitled to RM8000 tax relief for each child.
- Of that, how many are disabled?: Fill in the total number of children who is disabled/OKU. Entitled to RM6000 tax relief for each child.
- Of that, how many are disabled and in tertiary education (≥ 18yrs)?: Fill in the total number of disabled children who is equal to or more than 18 years old in higher education or studying under articles or indentures in a trade or profession. Entitled to RM8000 tax relief for each child.