Newbies becoming lost in taxation

The Star

10-05-2025

Paying dues: Some first-time tax filers say the complexities of LHDN's e-filing platform pose a hurdle. — LOW LAY PHON/The Star
Confusing terms and steps spark calls for help
PETALING JAYA: Navigating the complexities of tax filing can be a daunting task for many young Malaysians, particularly those new to the workforce.
As the deadline for filing tax returns is fast approaching, the unfamiliarity with tax terms and processes has become a significant hurdle for this demographic.
For Siti Fatimah Abdul Halim, a 27-year-old lecturer who recently completed her master's degree and started her first job last year, the 2024 tax assessment year posed a steep learning curve.
'The sheer amount of information required was overwhelming, and I had to look up unfamiliar terms online,' she said.
Her confusion was exacerbated by the complexities of the Inland Revenue Board's (LHDN) e-filing platform.
'I felt confused by some of the sections, especially the deductions part, because I wasn't sure which ones I needed to fill in,' said Siti Fatimah, who is from Kuala Lumpur.
To overcome this, she asked her colleagues to help her navigate her first tax return filing.
She hopes that individual companies or organisations can provide training on tax filing, especially for those who have just started their careers.
'I think it would be beneficial if workplaces offered sessions on e-filing and income tax, as many new workers like me, or even fresh graduates, lack awareness in this area.
'Given that tax filing is a crucial responsibility for all working individuals, early guidance in the workplace could help ease the transition and promote financial literacy,' said Siti Fatimah.
Jessica Wong, a 25-year-old executive, echoed these sentiments.
'The website was confusing and overwhelming. When I filed my tax returns for the first time last year, I didn't understand how to navigate it,' she said.
Fortunately, a friend with a finance background guided her through the process.
'Before meeting her, I had zero clue regarding income tax. I also did not understand how tax returns work,' she said, adding that she also referred to some financial blogs to better understand the whole process.
LHDN has extended the deadline to file last year's personal income tax returns to May 15 for individuals with employment income only and June 30 for individuals with business income.
When junior marketing executive Gerald Lim, 26, first filed his tax returns last year, he missed out some tax relief offers.
'I left out a lot of fields such as health insurance and lifestyle – at first I wasn't aware that I could get tax relief for my health insurance,' he said.
After learning from his senior colleagues, Lim has a better understanding of the whole process now.
Graphic designer Farid Nazmi, 28, expressed his initial fears of making mistakes.
'I was intimidated by the process, worried about the repercussions of any errors,' he said.
With help from his parents and friends in the auditing sector, Farid successfully filed his first tax return last year.
'It feels daunting at first as I was not sure about the filing process. Which part should I fill? What should I fill in? How about the receipts?
'I was intimidated, fearing that I would mess up the process and land in trouble with LHDN for wrongly filing my tax returns,' he added.