Form B Tax Filing in Malaysia: Deadlines, Download, and Key Insights

If your employees are earning money from side businesses, freelancing, or any non-salaried income, they need to be aware of Form B.

Form B is the official income tax return for individuals in Malaysia with business income.

As an employer, it’s important to guide your employees in understanding their tax filing obligations, especially if they also have additional income streams beyond their salary.

But don’t worry! It’s not as complicated as it sounds.

This article explains what Form B is, who needs to file it, and how employees can complete it without feeling overwhelmed.

What is Form B?

Form B is the income tax return form that individuals with business income must submit to the Inland Revenue Board of Malaysia (LHDN).

Employees who run their own business, freelance, or earn commission-based income will need to use Form B to report their income.

This includes income from side businesses, freelance work, commissions, rental income, or even side gigs.

As an employer, you should remind employees who are running businesses or earning from freelance work to file Form B to declare their earnings, business expenses, and any tax reliefs they may be eligible for.

This allows LHDN to calculate the taxes owed based on their overall income for the year.

Who is required to file Form B in Malaysia?

Form B is required for Malaysian tax residents who earn income through business activities. This includes:

Sole proprietors: Employees who run their own businesses will need to file Form B.
Freelancers and gig workers: Employees involved in freelance work, such as writers, designers, delivery riders, online sellers, and others.
Individuals with commission income: Employees who earn income through commissions, such as insurance agents, property agents, etc.
Partners in a partnership: Even if your employees' partnerships file Form P, each partner must file Form B to declare their share of profits.

It’s important for you as an employer to inform your employees that if they run a business or have freelance work, they don't need to file both Form BE (for salaried income) and Form B.

They only need to file Form B and declare all their income—whether it's from their salary or side business.

Components of Form B

When your employees fill out Form B, they’ll need to provide detailed information about their income and business activities.

As an employer, it’s helpful to guide them through what needs to be included in the form to ensure they report everything accurately:

1. Personal details

Your employees will need to provide their full name, identification number (IC or passport), and contact information.

2. Business information

Employees must list their business name, registration number, and the type of business they operate. This could include whether they’re a sole proprietor, freelancer, or part of a partnership.

3. Income declaration

Employees must declare all their sources of income. This includes business profits, freelance commissions, rental income, and any other earnings they receive.

This is important to ensure that all taxable income is reported.

4. Deductible expenses

Employees can list business-related expenses they can deduct from their taxable income.

This may include costs such as office rent, utilities, employee salaries, marketing costs, transportation, and other legitimate business expenses.

5. Tax reliefs and rebates

Employees need to include details about any personal or business-related tax reliefs they’re eligible for.

These reliefs can help lower their taxable income, reducing the total tax amount they owe.

As an employer, you can help your employees by reminding them to keep accurate records of all income and expenses, as this will make the filing process easier and help them claim eligible tax reliefs.

This ensures compliance and helps them avoid errors that could lead to penalties.

Step-by-Step Guide to Completing Form B

Filing Form B may seem complicated, but here’s a simple guide to help you through the process:

Before you start, collect all the necessary documents:
- Business registration details
- Income records (invoices, sales reports)
- Expense receipts
- Bank statements
- Previous tax filings (if any)
Go to mytax.hasil.gov.my and log in using your credentials. If you’re a new user, you’ll need to register first.

In the e-Filing section, choose e-Form. On the next page, choose Form e-B (for business income). Select the correct year of assessment.

Enter your personal information and details about your business, including income and expenses. Use LHDN’s MTD calculator or PCB table to help with accurate calculations.

Add any eligible deductions, like business-related expenses or personal tax reliefs, to reduce your taxable income.

Double-check all the information. Mistakes in figures or missing income can lead to problems later.

Once everything is accurate, submit the form by clicking Sign and Submit. To complete the process, enter enter your identification number and password, then click Sign. Don’t forget to save or print the acknowledgment slip as proof of submission.

Form B Submission Form and Deadline in 2025

Filing Form B comes with strict deadlines. Missing them can lead to penalties. Here’s what you need to know:

Manual Submission Deadline: 30 June 2025
e-Filing Deadline: 15 July 2025

If you prefer manual submission, you can download Form B from the LHDN website, fill it out, and submit it to the nearest LHDN branch.

Download Free Form B Submission Form Here

But e-Filing is faster, easier, and reduces the risk of errors.

Example of Form B Tax Filing for Freelancers in Malaysia

Section 1: Personal Details

Name: John Doe
NRIC Number: 800101-14-5678
Tax Reference Number: A123456789
Address: 123 Freelance Lane, Kuala Lumpur, Malaysia
Telephone Number: 012-3456789
Email Address: johndoe@email.com
Filing Status: Single

Section 2: Income

Income from Business/Freelance Work:

Total Gross Income: RM 80,000
Less: Allowable Expenses (e.g., business expenses, office supplies, etc.): RM 20,000
Net Income: RM 60,000

Section 3: Tax Reliefs and Deductions

EPF Contributions: RM 5,000
Insurance Premiums: RM 1,500
Medical Expenses: RM 500
Other Deductions (e.g., donations, tuition fees): RM 1,000

Section 4: Tax Calculation

Chargeable Income: RM 52,000 (Net Income RM 60,000 - Deductions RM 8,000)
Tax Rate: 1% on the first RM 5,000, 3% on the next RM 15,000, 8% on the next RM 15,000, 14% on income above RM 35,000.
Tax Payable:
- RM 50 for the first RM 5,000
- RM 450 for the next RM 15,000
- RM 1,200 for the next RM 15,000
- RM 2,380 for the remaining RM 17,000
- Total Tax Payable: RM 4,080

Section 5: Payment Information

Amount Payable: RM 4,080
Payment Method: Bank transfer
Payment Due Date: 30 June 2025

Section 6: Declaration

I, John Doe, hereby declare that the information provided is true and correct to the best of my knowledge.

Signature: John Doe
Date: 10 March 2025

Important Reminder:

Make sure to check your actual income, expenses, and eligible deductions before filling out your tax return.

The tax rates vary depending on your chargeable income, and you might be eligible for different reliefs or deductions.

Consequences of Late Submission or Non-Compliance

Failing to submit Form B on time or not submitting it at all can result in serious penalties:

Late Submission Penalty: RM200 to RM20,000
Imprisonment: Up to 6 months (or both fine and jail)
Failure to Keep Records: Fines ranging from RM300 to RM10,000 if you don’t maintain proper financial records

Late filings can also affect your business reputation, especially if you need tax documents for loan applications or business deals.

FAQ

What is Form B in Malaysia?

Form B is an income tax return form for individuals with business income. It’s used to declare earnings, business expenses, and tax reliefs to LHDN.

Who needs to file Form B?

Any Malaysian resident with business income, such as sole proprietors, freelancers, commission earners, and business partners, must file Form B.

When is the deadline for submitting Form B?

Manual submission: 30 June 2025
e-Filing submission: 15 July 2025

What are the penalties for late submission or non-filing of Form B?

Penalties range from RM200 to RM20,000. In some cases, you could face imprisonment for up to 6 months.

Can I file Form B online?

Yes, you can file Form B through LHDN’s e-Filing portal, which is the preferred method for most business owners.

Filing your taxes with Form B doesn’t have to be a last-minute scramble. With proper preparation, you can submit your tax return efficiently and avoid the stress that comes with missed deadlines and errors.

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