Form B Malaysia 2026: 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 heavy penalties.

In this updated 2026 guide, we walk you through everything you need to know about Form B Malaysia 2026, including eligibility, the latest deadlines, step-by-step e-filing, and common mistakes to avoid for Year of Assessment (YA) 2025.

 

What is Form B in Malaysia?

Form B (Borang B) is the income tax return form specifically for individuals who carry on a business. This includes:

• Sole proprietors (registered with SSM)

• Freelancers and Gig workers

• Self-employed individuals

• Partners in a partnership

Form B vs. Form BE: While salaried employees with no business income use Form BE, Form B is mandatory for anyone earning income from a trade, profession, or vocation.

 

Who Needs to File Form B in 2026?

If you earned business income in the calendar year 2025, you must file Form B for YA 2025. This applies to:

• Digital Content Creators: YouTubers, TikTokers, and influencers.

• Service Providers: Tutors, Grab/Lalamove drivers, and consultants.

• E-commerce Sellers: Individuals running stores on Shopee, Lazada, or TikTok Shop.

• Professional Practitioners: Independent accountants, designers, or agents.

 

Form B Malaysia 2026 Deadlines

LHDN has confirmed the following deadlines for YA 2025 filings:

• Manual Submission: 30 June 2026

• e-Filing Deadline (Recommended): 15 July 2026

Pro Tip: LHDN highly encourages the use of e-Filing via the MyTax portal, as it automatically calculates your tax and provides a 15-day grace period compared to manual filing.

 

Step-by-Step Guide to File Form B (2026)

1. Register for a Tax Identification Number (TIN)

If you are a first-time filer, you must register via the MyTax Portal. Ensure your contact details and bank account information are up to date to receive any tax refunds quickly.

2. Prepare Your Financial Statements

Since you are a business owner, you need to summarize your 2025 finances:

• Gross Income/Sales: Total revenue collected.

• Allowable Business Expenses: Rent, utilities, and marketing costs.

• Capital Allowance: Deductions for business assets like computers or machinery.

 

3. Log in to MyTax Portal

Visit mytax.hasil.gov.my and select e-Filing > e-Borang > Form e-B (Year of Assessment 2025).

 

4. Declare Income & Claim 2026 Tax Reliefs

Enter your net business income and non-business income (if any). Then, maximize your tax savings by claiming the latest reliefs (see below).

 

5. Submit and Save Your e-Ack

Review your summary, sign digitally, and submit. Always download and save your Acknowledgment Receipt (e-Ack) and the e-Borang PDF for your records (keep them for 7 years!).

 

Latest Tax Reliefs for YA 2025 (Filing in 2026)

Based on the latest updates, here are the key reliefs you can claim to reduce your chargeable income:

No	Individual Relief Types	Amount (RM)
1	Individual and dependent relatives	9,000
2	Expenses for parents and grandparents:  i) Medical treatment, dental treatment, special needs and carer expenses(Medical condition certified by medical practitioner) ii) Complete medical examination (Restricted to RM1,000)	8,000 (Restricted)
3	Purchase of basic supporting equipment for disabled self, spouse, child or parent	6,000 (Restricted)
4	Disabled individual	7,000
5	Education fees (Self): i) Other than a degree at masters or doctorate level – Course of study in law, accounting, islamic financing, tehcnical, vocational, industrial, scientific or technology ii) Degree at masters or doctorate level – Any course of study iii) Course of study undertaken for the purpose of upskilling or self-enhancement (Restricted to RM2,000)	7,000 (Restricted)
6	Medical expenses on: i) Serious diseases for self, spouse or child ii) Fertility treatment for self or spouse iii) Vaccination for self, spouse and child (Restricted to RM1,000) Dental examination and treatment (Restricted RM1,000)	10,000 (Restricted)
7	Expenses (Restricted to RM1,000) on: i) Complete medical examination for self, spouse or child ii) COVID-19 detection test including purchase of self-detection test kit for self, spouse or child iii) Mental health examination or consultation for self, spouse or child iv) Purchase of self-health monitoring equipment v) Fees for disease detection tests
8	Expenses (Restricted to RM6,000) for child aged 18 and below: i) Assessment of intellectual disability diagnosis ii) Early intervention programme / intellectual disability rehabilitation treatment
9	Lifestyle Expenses for the use / benefit of self, spouse or child in respect of: i) Purchase or subscription of books / journals / magazines / newspapers / other similar publications (Not banned reading materials) ii) Purchase of personal computer, smartphone or tablet (Not for business use) iii) Payment of monthly bill for internet subscription (Under own name) iv) Skill improvement / personal development course fee	2,500 (Restricted)
10	Lifestyle Additional relief for the use / benefit of self, spouse, child and parents in respect of: i) Purchase of sports equipment for any sports activity as defined under the Sports Development Act 1997 ii) Payment of rental or entrance fee to any sports facility iii) Payment of registration fee for any sports competition where the organizer is approved and licensed by the Commissioner of Sports under the Sports Development Act 1997 iv) Gymnasium membership fee / sports training	1,000 (Restricted)
11	Purchase of breastfeeding equipment for own use for a child aged 2 years and below (Deduction allowed once in every TWO (2) years of assessment)	1,000 (Restricted)
12	Child care fees to a registered child care centre / kindergarten for a child aged 6 years and below	3,000 (Restricted)
13	Net deposit in Skim Simpanan Pendidikan Nasional (Net deposit is the total deposit in 2025 MINUS total withdrawal in 2025)	8,000 (Restricted)
14	Husband / wife / payment of alimony to former wife	4,000 (Restricted)
15	Disabled husband / wife	6,000
16a	Each unmarried child and under the age of 18 years old	2,000
16b	Each unmarried child of 18 years and above who is receiving full-time education ("A-Level", certificate, matriculation or preparatory courses).	2,000
16b	Each unmarried child of 18 years and above that: i) receiving further education in Malaysia in respect of an award of diploma or higher (excluding matriculation/ preparatory courses). ii) receiving further education outside Malaysia in respect of an award of degree or its equivalent (including Master or Doctorate). iii) the instruction and educational establishment shall be approved by the relevant government authority	8,000
16c	Disabled child	8,000
16c	Additional exemption of RM8,000 disable child age 18 years old and above, not married and pursuing diplomas or above qualification in Malaysia @ bachelor degree or above outside Malaysia in program and in Higher Education Institute that is accredited by related Government authorities	8,000
17	Life insurance and EPF Civil servants’ pension schemes, non-civil servants pension schemes and self-employed category: i) Mandatory contributions to approved schemes or voluntary contributions to EPF (excluding private retirement schemes) or contributions under any written law (Restricted to RM4,000) ii) Life insurance premium payments or family takaful contributions or additional voluntary contributions to EPF (Restricted to RM3,000)	7,000 (Restricted)
18	Deferred Annuity and Private Retirement Scheme (PRS)	3,000 (Restricted)
19	Education and medical insurance	4,000 (Restricted)
20	Contribution to the Social Security Organization (SOCSO)	350 (Restricted)
21	Expenses on charging facilities for Electric Vehicle and domestic food waste composting machine (Not for business use)	2,500 (Restricted)
22	Payment of housing loan interest for first home ownership (Sale and purchase agreement from 1 January 2025 to 31 December 2027) Relief Limit: i. Residential house price up to RM500,000         or ii. Residential house price exceeding RM500,000 up to RM750,000	7,000       5,000

 

 

Common Mistakes to Avoid

• Missing the Deadline: Late submission can result in a penalty of 10% on the tax payable.

• Mixing Personal and Business Expenses: Only expenses "wholly and exclusively" incurred for business should be claimed.

• Not Reporting Side Income: Even small amounts from affiliate marketing or part-time gigs must be declared.

• Failure to Keep Receipts: You must keep all supporting documents for 7 years in case of an LHDN tax audit.

Filing Form B Malaysia 2026 doesn't have to be stressful. By preparing your accounts early and understanding the latest LHDN tax reliefs, you can ensure full compliance and maximize your tax savings.

 

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Reference:

• Lembaga Hasil Dalam Negeri Malaysia (LHDN): Return Form (RF) Filing Programme for the Year 2026.

• Ministry of Finance (MOF) Malaysia: Budget 2026 Speech and Tax Appendices.

• Laws of Malaysia: Act 53 (Income Tax Act 1967).

• LHDN Public Ruling No. 2/2024: Deduction for Expenses in Relation to Occupational Health and Safety.

• LHDN Public Ruling No. 5/2022: Taxation of a Resident Individual Part I – Gifts or Contributions and Allowable Deductions.