1. What is the LHDN Tax Calculator?

The LHDN (Lembaga Hasil Dalam Negeri) Tax Calculator estimates your tax liability based on income, tax rate, and allowable deductions according to Malaysian tax regulations.

2. How Does the Calculator Work?

The calculator uses the basic tax formula:

Where:

• \( Income \) — Total taxable income in MYR
• \( Rate \) — Applicable tax rate (as decimal, e.g., 0.15 for 15%)
• \( Deductions \) — All allowable deductions in MYR

Explanation: The calculator multiplies your income by the tax rate and subtracts any eligible deductions to determine your tax liability.

3. Importance of Tax Calculation

Details: Accurate tax calculation helps with financial planning, ensures compliance with Malaysian tax laws, and helps avoid underpayment penalties or overpayment.

4. Using the Calculator

Tips: Enter your income in MYR, the applicable tax rate as a decimal (e.g., 0.25 for 25%), and any deductions in MYR. All values must be non-negative.

5. Frequently Asked Questions (FAQ)

Q1: What income should I include?
A: Include all taxable income according to LHDN guidelines - employment income, business income, dividends, etc.

Q2: How do I find my tax rate?
A: Refer to the latest LHDN tax rate schedules based on your income bracket and resident status.

Q3: What deductions are allowed?
A: Common deductions include EPF contributions, life insurance, medical expenses, and education expenses. Check LHDN guidelines for full list.

Q4: Is this calculator official?
A: This is a simplified calculator for estimation purposes. Always verify with official LHDN calculations.

Q5: What if my tax calculation is negative?
A: The calculator will show 0 MYR as minimum tax liability (negative results are treated as 0).