9 Different Methods to Pay Income Tax in Malaysia

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Well, it is the income tax filing season and the due date is just around the corner. You’ll be well-advised to get done with it as soon as possible to avoid last day stress.

In any case, income tax filing is no longer a stressful process, especially when the convenient and user-friendly e-filing system is in place. If you’re unsure how to go about it, read our infographic blog on How to File Income Tax Returns Online in 6 Easy Steps.

To file your income tax returns, you’ll require some basic understanding of the current income tax rates and other reliefs you can claim to save income tax. For that, don’t forget to read our blog on new income tax measures and tax reliefs to find answers to your queries. 

After filing your tax returns, you may find that you still owe some income tax to the government. There are various methods to make the income tax payment, and this guide will explain all the available 9 options.

Choose the one that is most convenient for you.

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1. FPX services

You can make income tax payments through the Financial Process Express or FPX gateway. All you need is an account with internet banking facility in any FPX associated bank.

How to do it?

  • Log in to https://byrhasil.hasil.gov.my.
  • Click on “Payment through FPX”.
  • Enter your identification number and the security code.
  • Complete the payment information.
  • Confirm and submit the payment.

List of FPX associated banks in Malaysia:

  • Affin & Affin Islamic Bank
  • Alliance & Alliance Islamic Bank
  • Ambank & AmBank Islamic
  • Bank Islam
  • Bank Muamalat
  • Bank Rakyat (not available for corporate tax)
  • Bank Simpanan Nasional
  • CIMB & CIMB Islamic Bank
  • Deutsche Bank
  • Hong Leong & Hong Leong Islamic Bank
  • HSBC & HSBC Amanah Bank
  • Kuwait Finance House
  • Maybank & Maybank Islamic
  • OCBC & OCBC Al-Amin Bank
  • Public & Public Islamic Bank
  • RHB & RHB Islamic Bank
  • Standard Chartered & Standard Chartered Saadiq Bank
  • UOB Bank

Related: 7 Intelligent Tips to Help You Save for Your Retirement

2. Credit card

You can use any American Express, Visa and MasterCard issued in Malaysia to pay your income tax.

How to do it?

  • Log in to https://byrhasil.hasil.gov.my.
  • Click on “Payment through Credit Card”.
  • Enter your identification number and the security code.
  • Complete the payment information.
  • Confirm and submit the payment.

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3. Over-the-counter

You can pay income tax by cheque, cash or standing instructions over-the-counter at any LHDNM agent branches across Malaysia.

The details you have to include in your payment slip are:

  • Name of taxpayer or employer
  • Income Tax Number or Employer Number
  • Identity number
  • Year of Assessment of the tax payment
  • Payment amount
  • Payment code

How to do it?

  • Find your nearest branch of LHDNM agent banks.
  • Visit the branch and submit all details at the tax counter.
  • Get a receipt for your tax payment.

List of LHDNM agent branches in Malaysia:

  • Affin Bank
  • Bank Rakyat
  • Bank Simpanan Nasional
  • CIMB Bank
  • Maybank
  • POS Malaysia
  • Public Bank
  • RHB Bank

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4. Online payment

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You can make tax payments through electronic channels provided by Pos Malaysia Berhad and other appointed agent banks. You can refer to the list of banks that provide FDX services as they also allow you to make online payments.

How to do it?

  • Click on the electronic portal for online payments on your bank website.
  • Fill in your banking details.
  • Make a tax payment.

5. Telebanking

You can make tax payment via telebanking if you prefer. Only Maybank Berhad provides this facility. You can call Maybank to make a payment.

How to do it?

  • Call Kawanku Phone Banking on 1 300 88 6688.
  • Use the telebanking service to pay your income tax.

Related: 8 Top E-Wallets in Malaysia and How They Work

6. Cheque Deposit Machine (CDM)

You can pay your tax through a cheque. Only Public Bank provides this facility.

How to do it?

  • Visit your nearest Public Bank CDM.
  • Deposit your cheque for tax payment.
  • Obtain a receipt.

7. Cash Deposit Machine (CAM)

You can pay your tax through cash. Only CIMB Bank provides this facility.

How to do it?

  • Visit your nearest CIMB bank CAM.
  • Deposit cash for tax payment.
  • Obtain a receipt.

8. Auto Teller Machine (ATM)

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You can pay your income tax via ATM at appointed agent banks.

How to do it?

  • Visit your nearest ATM of an agent bank.
  • Use your ATM card of that bank to make a payment.
  • Key in your income tax reference number to complete your transaction.

List of agent banks that allow tax payment via ATMs

  • CIMB Bank Berhad
  • Maybank Berhad
  • Public Bank Berhad

List of payment codes

Payment Code Description

084

Individual – Tax Instalment Payment

085

Company – Tax Instalment Payment

095

Income Tax Payment (excluding instalment schemes)

196

Tax Settlement

197

Tax Settlement – Employer

9. Overseas Monetary Transfer

You can pay your income tax through overseas monetary transfer in two ways.

A) Bank draft

You can use a bank draft to make a tax payment. You cannot buy a bank draft in Malaysian Ringgit (RM), so be sure that the foreign currency exchange is accurate for the tax amount you have to pay.

How to do it?

  • Buy a bank draft.
  • Make it payable to the Director General of Inland Revenue.
  • Add the name and address of the payer bank (Keep in mind that payer bank must be a local correspondence bank or a local paying bank so that your bank draft becomes a local cheque).
  • Write the details of the payer and the payment on the back of the draft.
  • Post the bank draft to Inland Revenue Board Malaysia, Payment Counter, Ground Floor, Block 8A, Government Offices Complex, Jalan Tunku Abdul Halim, 50600 Kuala Lumpur

B) Electronic Fund Transfer (EFT), Telegraphic Transfer (TT) or Transfer Interbank Giro (IBG)

You can pay your tax through EFT, TT or IBG. Only CIMB Bank provides this facility.

How to do it?

  • Make a tax payment to Inland Revenue Board of Malaysia (IRBM) bank account. Account Number: 8000766957
  • Make it payable to Ketua Pengarah Hasil Dalam Negeri.
  • Add the name and address of the bank.
  • Name: CIMB Bank Berhad
  • Address: Cawangan Jalan Tunku Abdul Halim Tingkat Bawah, Blok 8, Kompleks Pejabat Kerajaan, 50480 Jalan Tunku Abdul Halim, Kuala Lumpur, Malaysia.
  • Use CIMB Swift Code for telegraphic transfers (RENTAS). Code: CIBBMYKL

To get an official receipt from IRBM, follow the steps mentioned below.

Keep detailed information about your income tax payment ready. The required details are:

  • Taxpayer Name
  • Tax Reference Number
  • Tax Assessment Year
  • Date of Payment
  • Payment Amount
  • Payment Code
  • TT/IBG/ EFT Transaction Reference Number
  • Instalment Number (if applicable). IRB will consider current month as instalment number if no number is provided.
  • Send the above information to IRBM office through fax or email. Fax Number: 03 6201 9637 (on the same day as the transaction). Email ID: [email protected] or [email protected]

You will receive an official receipt from IRBM once they receive the details mentioned above and when your payment is confirmed by the bank.

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Pay your income tax on time

Use any method that is convenient for you if you need to pay income tax. Even if one way doesn’t work for you, there are other options.

Remember that not paying your taxes on time can incur a late penalty charge. The deadline to pay your income tax ends on April 30, 2018, however, it’s May 15, 2018, for e-filing.

Make your income tax payment on time so that you don’t have to worry about it for another year.

Click here for more information on income tax payment methods

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