Form B vs Form P: What’s the Difference and Which One Should You File in 2025?

If you're a freelancer, self-employed professional, or running a small business in Malaysia, understanding the difference between Form B and Form P is essential for tax compliance in 2025. Filing the correct income tax form with LHDN Malaysia ensures that you stay compliant and avoid unnecessary penalties.

 

In this guide, we’ll break down:

• What is Form B?

• What is Form P?

• The key differences between Form B and Form P

• Who needs to file each form

• 2025 e-Filing deadlines

• Tips to avoid common tax mistakes in Malaysia

 

What is Form B in Malaysia?

Form B is an income tax return form for individual taxpayers who earn income from business or self-employment. This includes:

• Freelancers

• Sole proprietors

• Gig workers

• Professionals offering personal services

If you run your own business as a sole proprietor, you must file Form B under your personal tax number.

 

Examples of Form B Filers:

• Online sellers (Shopee/Lazada sellers)

• Freelance designers or writers

• Grab drivers or food delivery rider

• Boutique or salon owners

 

What is Form P in Malaysia?

Form P is used to declare income for business partnerships. While partnerships do not pay tax as an entity, they are required to submit Form P to LHDN (Lembaga Hasil Dalam Negeri) annually to declare the total income, expenses, and profit distribution among partners.

 

The individual partners then include their profit share in their own Form B (if business income) or Form BE (if salary-based).

 

Examples of Form P Filers:

• Law firms

• Joint-venture construction businesses

• Medical clinics owned by multiple doctors

• Family-run businesses with more than one owner

 

Key Differences: Form B vs Form P

Feature	Form B	Form P
Who files it	Individual (sole proprietor/freelancer)	Business partnership (entity level)
Tax type	Personal income tax	Partnership income declaration
Tax number used	Personal Tax File Number	Partnership Tax File Number (C reference)
Filing portal	MyTax LHDN Portal	Same as Form B (via MyTax)
Tax payment	Individual pays tax	No direct tax; income flows to partners

 

Malaysia Income Tax Deadlines for 2025 (YA 2024)

Form	Manual Deadline	e-Filing Deadline
Form B	30 June 2025	15 July 2025
Form P	30 June 2025	15 July 2025

 

How to Choose: Should You File Form B or Form P?

Ask yourself the following:

• Are you operating alone as a freelancer or sole business owner? → File Form B

• Are you in a registered partnership with other individuals? → File Form P (for the business), and Form B or BE (for personal income)

If your business is registered as a partnership under SSM, you are legally required to file Form P.

 

Common Mistakes to Avoid

Filing the Wrong Form

Some sole proprietors mistakenly submit Form P, which is not applicable for solo businesses.

Late Filing

Filing after the deadline can result in late penalties or tax audits.

Omitting Business Income

Ensure your full business revenue is declared — especially for cash-based operations.

Wrong Tax Number

Make sure you're using the correct tax file number (C for partnerships, SG for individuals).

 

Quick Summary: Which Tax Form Should You File?

Your Status	Tax Form
Freelancer / Gig Worker	Form B
Sole Proprietor	Form B
Partnership Business	Form P (plus Form B or BE individually)

 

Final Thought

Whether you’re a freelancer, small business owner, or in a registered partnership, choosing the correct form — Form B or Form P — is vital to stay compliant with LHDN Malaysia. Don’t wait until the deadline. Organize your records early and submit your e-Filing on time to avoid stress and penalties.

 

Need help navigating your tax filing? Speak to a licensed tax agent in Malaysia or reach out to LHDN’s customer service via MyTax.

 

Looking for new career opportunities? Check out our latest job openings here: Job listings

Need hiring support? Connect with Reeracoen Malaysia today!

 

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Reference: 
https://www.hasil.gov.my/media/tvojk1ho/rf-filing-programme-for-2025.pdf
https://mytax.hasil.gov.my/
https://phl.hasil.gov.my/pdf/pdfam/PR_07_2021.pdf
https://phl.hasil.gov.my/pdf/pdfam/PR_08_2021.pdf
https://ringgitplus.com/en/blog/featured/malaysia-personal-income-tax-guide-2025-ya-2024.html