Form B Malaysia 2025: Complete Guide for Sole Proprietors and Freelancers

Are you a freelancer, gig worker, or small business owner in Malaysia? Then you’re likely required to file your income tax return using Form B. Understanding how to file Form B correctly is crucial to stay compliant with Lembaga Hasil Dalam Negeri (LHDN) regulations and avoid penalties.

 

In this article, we’ll walk you through everything you need to know about Form B Malaysia 2025 including eligibility, deadlines, step-by-step filing, and common mistakes to avoid.

 

What is Form B in Malaysia?

Form B is an income tax form used by:

• Sole proprietors

• Freelancers

• Self-employed individuals

• Partners in a partnership

Unlike Form BE, which is used by salaried individuals with no business income, Form B is specifically for those with business income.

 

Who Needs to File Form B?

If you fall into any of the categories below, you must file Form B for the Year of Assessment (YA) 2024, due in 2025:

• Freelancers and gig workers (e.g. Grab drivers, content creators, tutors)

• Small business owners and home-based entrepreneurs

• Individuals running side hustles or part-time e-commerce stores

• Sole proprietors registered with SSM (Suruhanjaya Syarikat Malaysia)

Form B Malaysia 2025 Deadlines

The Inland Revenue Board (LHDN) has announced the deadlines for 2025 filings:

• Manual submission: 30 June 2025

• e-Filing deadline: 15 July 2025

It’s highly recommended to use e-Filing via the MyTax portal for easier, faster processing.

 

Step-by-Step Guide to File Form B (2025)

1. Register with LHDN (If You Haven’t)

You must first register for income tax and get your Tax Identification Number (TIN). This can be done online via the MyTax Portal.

 

2. Gather Required Documents

Have these documents ready:

• Business income statement

• Receipts for business-related expenses

• Previous tax return (if any)

3. Log in to MyTax Portal

Go to https://mytax.hasil.gov.my and select e-Filing > e-Borang > Form B.

 

4. Declare Your Income and Deductions

Accurately report your gross income, business expenses, and eligible tax reliefs. This includes:

• EPF contributions

• Insurance premiums

• Lifestyle expenses (books, electronics, etc.)

• Parental support or childcare fees

5. Submit and Save Acknowledgment

Submit before the 15 July 2025 deadline and save your acknowledgment receipt (e-Ack).

 

Common Mistakes to Avoid When Filing Form B

1. Using the Wrong Form:

Salaried workers should use Form BE, not Form B.

2. Underreporting Business Income:

Freelancers often forget to include side income from clients or digital platforms.

3. Not Claiming Deductibles:

You can claim expenses such as phone bills, internet, laptop purchases, and transportation — as long as they are business-related.

4. Late Submission:

Missing the deadline may result in fines ranging from RM200 to RM20,000 or imprisonment under Section 112(1) of the Income Tax Act 1967.

Tax Reliefs Sole Proprietors & Freelancers Can Claim

Some common tax reliefs in Malaysia for YA 2024 include:
 

Tax Relief	Maximum Amount
EPF	RM4,000
Life Insurance	RM3,000
Lifestyle (books, electronics, fitness)	RM2,500
SOCSO / PERKESO	RM350
Self-Education	RM7,000
Parents’ Medical Expenses	RM8,000

 

Is Income Tax Mandatory for Freelancers in Malaysia?

Yes. According to LHDN, anyone earning above the tax threshold (RM34,000/year after EPF) must file taxes. Failure to do so is an offence.

 

Where to Get Help for Form B?

If you need assistance:

• Visit the nearest LHDN office

• Call Hasil Care Line at 03-8911 1000

• Use LHDN’s chat feature on MyTax

You can also consult a tax agent or accounting firm if your situation is complex.

 

Final Thoughts: File Early and File Right

Filing Form B in Malaysia for 2025 doesn't have to be stressful especially if you prepare early. Whether you’re a sole proprietor or a freelancer in Malaysia, this tax guide ensures you stay compliant and possibly save more through strategic claims and deductions.

 

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://ringgitplus.com/en/blog/featured/malaysia-personal-income-tax-guide-2025-ya-2024.html