Monday, April 13, 2009

Malaysian Income Tax - The Advantages and Disadvantages Of E-Filing

I have been thinking about the advantages and disadvantages of e-Filing by Inland Land Revenue (IRB) or Lembaga Hasil Dalam Negeri (LHDN). The points as below:

Advantages of e-Filing:

1) Fast and Convenient
E-Filing is fast and convenient. There is no need to send income tax form to the IRB or LHDN office. You will save your fuel and precious time and parking fees. Also, you no need to worry it gets lost in the post and didn't arrived at the IRB or LHDN office.

2) Environmental Friendly
Anything related to e-ways or electronic ways will save a lot of paperworks and plain papers as well. So, we are saving the planet by using e-filing.

3) Simpler and Easier
It's much easier to use e-filing as you no need to refer to the explanatory notes. You just need to select the options from the drop down menu. All the additional details are also just a click away. This saves you a lot of time.

4) More Efficiency
This is for IRB @ LHDN. It's much more efficient to process the form submitted through e-filing compare to the traditional hardcopy way. With this, e-filing is reducing a lot of headache of IRB @ LHDN personnel.

5) Faster Tax Refund
This is related to point number 4 above. When the IRB @ LHDN managed to process the form faster, you will get your tax refund faster as well. Of course this is only for those who has refund from their income tax.

Disadvantages of e-Filing:

1) Must be IT-Literate
One must be IT-Literate or at least with basic computer skills to file in their income tax through e-fling. For those with computer phobia, it's rather hard to file their income tax form the e-ways. Or for those older generations, they really have no idea how to operate with the computer. And it's hard for them to learn the computer skills. The solutions is to get a friend or family member to help to do the e-filing. Or can hire an income tax agent. But you will need to pay them for their services.

2) Access to Internet
Yes, you must have Internet access to access to the IRB @ LHDN e-filing website. If you don't have Internet access at home, you can use the Internet access from work. Just make sure you don't do it during office hours. Try to do in during lunch hour or after working hours. Or, you can go to cybercafe.

3) System Down
You will never have system down problem if you're using hardcopy. For e-filing, sometimes, the systems do have problem. System could also be slow as too many people access to the system at one time. Just make sure you don't file your e-filing during last minutes.

4) Forgot Your Password
It is easy to forget your password as nowadays there are so many pin numbers and passwords that we need to remember. If you've forgotten your password, just contact the IRB @ LHDN office for a new password. Or, the easiest and fastest is to visit the e-filing. Within minutes, you'll get your passwords.This is from my own experience.

Overall, I see more advantages in e-filing. If you still have problem with e-filing, the last solution is to bring along all your details to IRB @ LHDN e-filing centre. But, make sure you go weeks before the due date (30 Apr). Usually, the IRB @ LHDN office is very very packed and busy during the last few days of April.

Any points I missed out? Do share with me.


  1. question, would you know who are legible for income tax filing? if an expat comes to work in october 2008, does he need to file for income tax also? thanks.

  2. Hi Anonymous, you can get more details from this website: The best way is to go the the IRB @ LHDN offices and get their professional opinion.