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: 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 (where RM9000 will be deducted from the gross annual salary)
- Category 2: Married and spouse is not working (where RM4000 will be deducted from the gross annual salary)
- Category 3: Married and spouse is working (when no deduction applied for individual filing)
- (B) Non-Resident: 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.
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 relief including children who is under 18 years old
- Of that, how many are in tertiary education (≥ 18yrs)?: Fill in the total number of children who is equal or more than 18 years old and in tertiary education (college/university)
- Of that, how many are disabled?: Fill in the total number of children who is disabled/OKU
- 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 and is in tertiary education