Is this your first time ever doing taxes? No idea how to start? Worry not because here is a list of how to do your tax efficiently.
Although filing taxes for the first time can be challenging, several steps can make it easier. Below are some helpful tips to remember as you prepare to tackle the complexities of tax season paperwork.
1. Avoid procrastinating
It is common for Malaysians to have a relaxed approach to tasks, especially when dealing with bureaucracy, which can often move at a sluggish pace.
However, when it comes to filing taxes, procrastination is not advisable because starting early provides ample time to gather all the necessary documents, such as the EA form and annual insurance statement.
Doing your tax early will also ensure you have all the required information. Delaying the process until the last minute may cause unnecessary stress and chaos, which should be avoided.
2. Document the receipts
Many individuals tend to dispose of their receipts promptly, as carrying a wallet or purse full of them can be cumbersome.
Nevertheless, keeping the receipts throughout the year has advantages, including the ability to monitor your expenses. Certain expenses, like internet subscriptions, book and magazine purchases, gym memberships, and charitable donations, may be tax-deductible.
As a result, it is always recommended to hold onto your receipts in case the Inland Revenue Board (LHDN) requests them.
3. Deductions
The Inland Revenue Board (LHDN) provides several claimable deductions for your investments into your mental health and spending on education. This allows you to take full advantage to see which ones apply to you.
If you work for a private organisation, contributing to your EPF and Socso is obligatory, so remember to include them in your calculations. You are also entitled to tax relief on your EPF and Socso contributions.
4. Ask away
Do not be shy or afraid to seek assistance and ask questions when it comes to taxes.
Do not hesitate to contact LHDN if you require assistance regarding your taxes. While your first time filing taxes may be challenging, you will eventually grasp the process.
Thanks to digitalisation, it is now simpler than ever to file your return, and after completing it, you can enjoy the remainder of the year without worrying about taxes.
5. Beware of the scammers
As the tax season approaches, scammers can constantly be found attempting to deceive people, and those unaware of their tactics may become victims. As a result, any phone calls or emails from individuals claiming to represent the tax department should be viewed with great scepticism.
If you have any inquiries, it is always best to visit the official LHDN website or contact the provided numbers for clarification.
Source: LHDN, FMT
