Revealed: The Most Searched Tax Questions in Malaysia

If you’re running a small or mid-sized business in Malaysia, you will know that tax time can be challenging. Towards the end of each financial year, it’s common for business owners to experience tax-related stress. 

To better understand what Malaysian businesses are struggling with, Intuit QuickBooks analysed Google search data to uncover the most commonly searched business tax questions in Malaysia. Our aim was to gain insight into which tax topics cause the most confusion, so we can provide answers and tips. 

We’re sharing this research so you can feel confident and informed as you head into tax season. As a provider of powerful accounting tools, Intuit QuickBooks is committed to supporting SMBs and mid-size organisations with clear guidance and practical resources. By digging into the questions people are already asking, we hope to make tax season easier to navigate.

Top 15 most searched tax queries

Here are the top 15 tax questions that Malaysians have been searching for in the lead up to tax time:

1. What is VAT tax?

(720 combined monthly Google searches in Malaysia)

Our study revealed that VAT (value-added tax) is the tax topic that Malaysians most want to understand.

“VAT” refers to a form of taxation that is applied to consumer goods and services. Malaysia, however, does not have VAT. Instead, the country uses the Sales and Service Tax (SST) system, which replaced the Goods and Services Tax (GST) in 2018.

If someone is searching for “VAT tax,” they’re usually trying to understand how taxes work on goods and services, especially if they deal with international suppliers or customers.

To clear things up, here’s how Malaysia’s SST system works:

Sales Tax (ST)

A single-stage tax charged on taxable goods manufactured in Malaysia or imported into the country. Rates typically fall at 5 percent or 10 percent, depending on the product category.

Service Tax (SVT)

A 6 percent tax applied to specific taxable services, including:

• Hotels
• Restaurants and cafés
• Professional services
• Insurance
• Telecommunications
• Digital services provided by foreign service providers

If you’re selling to international customers or dealing with foreign suppliers, you may also encounter VAT from other countries, which is why this search term remains so common.

Understanding the difference matters for compliance. If your business provides taxable services or manufactures taxable goods, it’s essential to identify whether SST applies and how to charge it correctly. To make this process easier, the e-invoicing feature of Intuit QuickBooks ensures accurate SST calculation and compliance.

More information can be found here: VAT to SST changes in Malaysia.

2. What is withholding tax?

(480 combined monthly Google searches in Malaysia)

Withholding tax is one of the most frequently searched tax topics in Malaysia, and for good reason. It often catches business owners off guard, especially those who work with foreign suppliers, freelancers, or service providers. Many want to know when it applies, how much to deduct, and how to stay compliant with the Inland Revenue Board of Malaysia (LHDN).

Here’s the simple explanation: withholding tax is a tax deducted at the source when certain types of payments are made to non-resident individuals or companies.

Instead of the foreign party paying tax directly, you (the payer) withhold a portion and remit it to LHDN on their behalf.

Visit our income tax tables to find out more about the different rules and procedures for tax registration in Malaysia. 

3. What is deferred tax?

(320 combined monthly Google searches in Malaysia)

Deferred tax is one of those terms that sounds technical enough to make any business owner hesitate. At its core, deferred tax appears when there’s a timing difference between how profits are recorded in your financial statements and how they’re assessed for tax purposes by LHDN.

To put it more simply, deferred tax reflects tax you will pay later or tax you have already paid in advance (depending on how your accounting and tax calculations line up).

Accounting rules (such as the Malaysian Financial Reporting Standards) often allow businesses to recognise revenue or expenses at different times compared to tax laws. When those timing differences occur, you end up with one of the following:

• Deferred Tax Liability (DTL): This happens when you’ve reported higher profits in your accounts today than what’s taxable right now. It’s essentially tax you owe in the future.
• Deferred Tax Asset (DTA): This occurs when you’ve paid more tax now than what your accounting profit suggests. Think of it as tax you’ll recover or offset later.

If you’re a sole proprietor or very small enterprise, deferred tax may not appear unless you’re preparing formal financial statements. But once your business grows or you incorporate, deferred tax becomes part of understanding your overall financial picture.

4. What is PCB tax?

(260 combined monthly Google searches in Malaysia)

PCB tax is a highly searched term in Malaysia because it affects both employers and employees, yet the mechanics aren’t always clear. PCB stands for Potongan Cukai Bulanan, which translates to Monthly Tax Deduction (MTD). It’s the system employers use to deduct income tax from employees’ salaries every month and remit it to the LHDN.

If you’re familiar with “PAYE” systems in other countries, PCB functions much the same way—it spreads an individual’s income tax obligation across the year so they don’t face a large tax bill at filing time.

Employers calculate PCB based on:

• Total monthly salary
• Benefits-in-kind (if applicable)
• Allowances
• Marital status
• Number of dependent children
• Approved deductions (like EPF contributions, takaful premiums, or life insurance)

The deduction is then withheld from the employee’s salary and paid directly to LHDN.

You can find out more about PCB tax at the MyGovernment website. 

5. How to calculate earnings before interest and tax?

(170 combined monthly Google searches in Malaysia)

EBIT (short for Earnings Before Interest and Tax) is a popular metric among Malaysian business owners trying to understand their company’s operating performance. With many turning to Google each month to figure out how it’s calculated, it’s clear that EBIT remains one of those financial terms people know they should understand, but aren’t always sure how to approach.

Here’s the straightforward explanation: EBIT measures how much profit your business generates from its core operations, before factoring in interest expenses or income tax. It gives you a clean, unblurred view of how well your business performs on its own, independent of financing decisions or tax obligations.

EBIT gives you insight into:

• Operational efficiency
• Business performance trends
• Your ability to generate profit before financial and tax effects
• Comparisons across industries or competitors

It’s especially useful if you’re seeking financing, preparing for valuation discussions, or simply trying to understand the true earning power of your business.

6. How to check the company tax number Malaysia?

(170 combined monthly Google searches in Malaysia)

This question pops up often because many business owners aren’t entirely sure where their company tax number lives or how to retrieve it. In Malaysia, a company’s Trade Register Number is commonly referred to as the Income Tax Number (issued by the LHDN). You’ll need it for everything from filing returns to making tax payments to communicating with LHDN.

Your company tax number appears on almost all documents issued by LHDN, including:

• Tax payment receipts
• Notices of assessment
• Letters or statements
• Acknowledgement receipts for filed returns

If your business has been operating for a while, you’ll likely have this number on record. You can also log in to the My Tax portal to view your company’s registered tax information.

7. How to pay withholding tax Malaysia?

(140 combined monthly Google searches in Malaysia)

Withholding tax can feel intimidating for many businesses, which explains why so many turn to Google for guidance. Once you’ve identified that a payment to a non-resident is subject to withholding tax, the next question is, how do you actually pay it to the LHDN?

Here’s how:

Step 1: Determine the correct withholding tax category and rate

Before making any payment, identify:

• The type of payment (royalty, services, interest, rental of moveable property, etc.)
• The applicable tax rate
• Whether a Double Taxation Agreement (DTA) offers a reduced rate

This ensures you withhold and remit the correct amount.

Step 2: Deduct the tax before paying your non-resident supplier

Withholding tax must be deducted at the point of payment, not afterward.

For example, if a service payment is RM10,000 and the withholding tax rate is 10 percent, you would:

• Pay the supplier RM9,000
• Remit RM1,000 to the LHDN

Step 3: Submit the correct LHDN form

Use the form that matches your payment category. Common forms include:

• Form CP37 for royalty, interest, service fees, and similar payments
• Form CP37A or CP37C for contract payments
• Form CP37D for special classes of income

These forms capture key information such as payment type, amount withheld, and supplier details.

Step 4: Pay withholding tax to LHDN within one month

Once the payment is made to the non-resident, you must remit the withheld amount to the LHDN within 1 month of paying or crediting the supplier.

Step 5: Choose a payment method

LHDN offers several ways to pay withholding tax:

• Online via ByrHASiL
• Over the counter at LHDN branches
• Bank draft or cheque, if required (subject to LHDN’s latest payment policies)

Always keep the payment receipt and acknowledgment for your records.

Step 6: Provide proof of tax withheld to the non-resident

Many foreign suppliers require documentation showing the amount withheld, especially if they plan to claim tax credits in their home country. You should attach a copy of the submitted CP37 form and payment acknowledgment.

8. What is TDS tax?

(140 combined monthly Google searches in Malaysia) 

“TDS tax” is a term that pops up often in Malaysian search behaviour, even though it’s not something officially used by LHDN. Many people encounter it when dealing with international suppliers or researching tax systems in countries like India, where TDS (Tax Deducted at Source) is a common term.

In Malaysia, the closest equivalent to TDS is withholding tax.

So when Malaysians search “What is TDS tax?”, they’re usually trying to understand how tax deductions work when making payments to non-residents.

If your business uses Intuit QuickBooks, this guide explains how to use our business tools to record and pay TDS.

9. Are car lease payments tax deductible?

(90 combined monthly Google searches in Malaysia)

This question comes up often among business owners, especially those who rely on cars for day-to-day operations. Many want to know whether leasing a vehicle offers tax benefits and how much of the cost can be claimed. The short answer is yes, car lease payments can be tax deductible in Malaysia—but there are important rules and limits you need to know.

How car lease deductions work in Malaysia

For businesses, leasing a vehicle is generally treated as an allowable business expense, meaning the lease payments can be deducted against business income, as long as the vehicle is used for business purposes.

However, Malaysia has specific deduction caps depending on the type and value of the vehicle.

Deduction limits for leased passenger cars

Under LHDN rules, tax deductions for car lease payments are subject to restrictions based on the car’s cost when new:

• If the car’s cost does not exceed RM100,000 the lease payments are fully deductible.
• If the car’s cost exceeds RM100,000, the deductible amount is restricted (meaning you can claim only part of the lease expense).

These limits apply mainly to passenger vehicles, not commercial vehicles like vans, lorries, or pickups used exclusively for business.

Commercial vehicles

If the leased vehicle is used wholly and exclusively for business—such as delivery vans or trucks—the lease payments are typically fully deductible, regardless of cost.

Top tip: If you have Intuit QuickBooks accounting software, it’s easy to track expenses such as car lease payments.

10. How to add 10 percent tax to a price?

(90 combined monthly Google searches in Malaysia)

This is a surprisingly popular question in Malaysia, largely because many business owners and students want a quick way to calculate price markups, service charges, or SST-related amounts. Even though Malaysia’s Sales and Service Tax (SST) rates aren’t always set at 10 percent, plenty of businesses still need to apply a simple percentage increase to prices for internal calculations or customer estimates.

How to add 10 percent tax

To calculate a price plus 10 percent, you can use this formula:

Final Price = Original Price × 1.10

Intuit QuickBooks provides an easier alternative to calculating SST manually. Using the e-invoicing feature, you can automatically add SST to prices, helping you stay accurate when preparing invoices or quotes.

11. How to apply tax relief?

(90 combined monthly Google searches in Malaysia)

Tax relief is one of the most common areas of confusion for Malaysians during filing season, which explains why so many people search for guidance each month. Tax reliefs allow individuals to reduce their chargeable income, ultimately lowering the amount of tax they owe. Understanding how to apply them correctly can make a significant difference in your annual tax bill.

The good news is that applying tax relief in Malaysia is straightforward once you understand the process and know which categories you qualify for.

Step 1: Identify the tax reliefs you're eligible for

Malaysia offers a wide range of personal tax reliefs that cover expenses such as:

• EPF contributions and life insurance
• Lifestyle expenses (books, sports equipment, electronics, internet)
• Medical expenses for self, spouse, or parents
• Childcare fees
• Education fees for yourself
• Breastfeeding equipment (for mothers)
• PRS (Private Retirement Scheme) contributions
• SOCSO contributions

Each relief category has its own annual limit and qualifying rules, so it’s important to review LHDN’s current relief list each year.

Step 2: Keep records and receipts

LHDN requires taxpayers to keep proof of claims for seven years.

Make sure you retain:

• Receipts
• Invoices
• Bank statements
• Certificates (for insurance, PRS, or course enrollment)

These documents don’t need to be submitted with your tax return, but LHDN may request them during an audit.

Step 3: Claim the reliefs during your tax filing

When filing your income tax return (Form BE or Form B), you’ll see a dedicated section for Tax Reliefs.

This is where you enter:

• The amount spent
• The relief category
• Any subcategories or limits

If you use digital tax-filing tools like e-Filing on MyTax, the system will guide you through each relief and calculate your tax automatically.

Step 4: Submit your return

Once your reliefs are entered, the system will recalculate your chargeable income and determine your final tax payable or refund.

If you had high PCB deductions throughout the year, claiming tax reliefs can often result in a tax refund.

12. How to calculate pre-tax margin?

(90 combined monthly Google searches in Malaysia)

Pre-tax margin is one of those financial metrics that business owners know they should understand, yet many still find themselves turning to Google for a clear explanation. It’s a useful indicator of how profitable your business is before income tax is applied, making it a favourite tool for evaluating performance or comparing across industries.

Pre-tax margin shows the percentage of your revenue that remains after all operating expenses, interest, and other costs have been deducted, but before income tax is factored in. It’s a measure of operating efficiency and financial health—basically a snapshot of how well the business is earning before the government takes its share.

Here’s the standard way to calculate it:

Pre-Tax Margin = (Pre-Tax Income ÷ Revenue) × 100

Where Pre-Tax Income is also known as Earnings Before Tax (EBT).

Because it strips away the effect of tax rates, pre-tax margin gives a cleaner view of operating performance. This makes it one of the most valuable profitability metrics for growing businesses.

13. How to calculate tax on salary?

(90 combined monthly Google searches in Malaysia)

Many Malaysians search for this because salary tax isn’t always as straightforward as it seems. Between PCB deductions, reliefs, rebates, and progressive tax rates, it’s easy to get confused about how much tax you actually owe. The good news is that once you understand the basic structure, salary tax becomes much easier to calculate.

Here’s a clear breakdown to help you navigate it with confidence:

Step 1: Determine your total annual income

Start with your gross annual salary, which includes:

• Monthly wages
• Bonuses
• Overtime
• Commissions
• Allowances (unless specifically exempted)

This gives you your annual taxable income before deductions.

Step 2: Apply allowable deductions

Malaysia offers several deductions that help reduce your chargeable income, including:

• EPF contributions
• SOCSO/EIS contributions
• Lifestyle deductions
• Insurance premiums
• Medical expenses for parents
• Education fees
• PRS contributions

Your total income minus all allowable deductions gives you your chargeable income.

Step 3: Apply Malaysia’s progressive tax rates

Malaysia uses a tiered tax system, meaning higher portions of your income fall under higher tax brackets. As of YA 2024, rates range from 0 percent to 30 percent.

To calculate tax manually:

• Break your chargeable income into the appropriate tiers
• Apply the corresponding tax rate for each tier
• Add up the results

This gives you your gross tax payable.

Step 4: Apply tax rebates (if eligible)

Malaysia offers tax rebates such as:

• Self rebate (if chargeable income is below a certain threshold)
• Spouse rebate
• Zakat rebate (equivalent zakat payments can offset your tax)

Rebates directly reduce your tax payable.

Step 5: Subtract PCB deductions

PCB (Potongan Cukai Bulanan) is the amount your employer deducts from your salary for tax throughout the year. After calculating your total tax payable:

Final Tax Payable = Actual Tax Owed – PCB Already Deducted

• If PCB exceeds what you owe, you’ll receive a refund
• If PCB falls short, you’ll have to pay the balance

Accurate salary tax calculations help employees stay compliant and give businesses more confidence in their payroll processes.

14. How to calculate tax savings?

(90 combined monthly Google searches in Malaysia)

“Tax savings” is one of those phrases that sparks hope, relief, and confusion all at once. Malaysian taxpayers often want to know how much they’re actually saving when they claim reliefs, deductions, or rebates. With progressive tax rates and different types of tax incentives, it’s easy to lose track of the real financial impact.

In Malaysia, tax savings usually come from three sources:

• Tax reliefs (e.g., lifestyle, medical, insurance, EPF)
• Tax deductions (typically for business or rental income)
• Tax rebates (e.g., self rebate, spouse rebate, zakat)

If you want an instant snapshot of your tax savings, tools like the LHDN e-Filing calculator or accounting software such as Intuit QuickBooks can help simulate:

• Chargeable income
• Relief impact
• Final tax payable
• Expected refund

This is the easiest way to see how each relief affects your tax outcome.

15. How to get a tax write-off for donations?

(90 combined monthly Google searches in Malaysia)

Many people look up this question because they want to give to a good cause and enjoy the associated tax benefits. The key thing to understand is that not all donations are tax-deductible. To qualify for a tax write-off in Malaysia, your donation must meet specific conditions set by the LHDN.

Here’s how to make sure your generosity also reduces your tax bill:

Step 1: Donate to an approved organisation

Only donations made to Institutions or Organisations Approved Under Section 44(6) of the Income Tax Act qualify for tax deductions.

These typically include:

• Charitable foundations
• Public benevolent institutions
• Certain religious institutions
• Approved NGOs
• Government-approved disaster relief funds

Step 2: Understand the types of deductible donations

LHDN recognises several categories of deductible donations, such as:

• Cash donations to approved institutions
• Donations in kind, such as medical equipment or art pieces (subject to valuation rules)
• Gifts of money or artifacts to museums, libraries, or galleries
• Gifts of money for sports development
• Gifts for approved national projects

Each category comes with its own conditions, but all require proper documentation.

Step 3: Keep your receipts

To claim the deduction, you must keep:

• The official donation receipt
• The organisation’s name and Section 44(6) reference number
• Date and amount of donation

Receipts must list the donor’s name exactly as it appears in your tax records. LHDN may request supporting documents during an audit, so store them safely for seven years.

Step 4: Claim the deduction during e-filing

When filing your tax return:

• Go to the “Deductions / Reliefs” section
• Select the category that matches your donation
• Enter the total amount donated
• Ensure the donation does not exceed the allowable deduction limit

Most cash donations are deductible up to 10 percent of your aggregate income, though some categories allow more. The e-filing system automatically recalculates your chargeable income and tax payable.

Step 5: Understand the deduction limit

Even if you donate more than the allowable percentage, you cannot carry forward excess donations into the next year.

For example:

If your aggregate income is RM60,000, the maximum deductible amount is RM6,000 for most donation categories.

Methodology

To uncover the most searched tax questions in Malaysia, Intuit QuickBooks conducted a data-driven analysis using Google Keyword Planner, focusing specifically on high-volume tax-related queries in the lead-up to the end of the financial year. This period typically sees a surge in search activity as individuals and businesses prepare their records and look for guidance on compliance.

We began by isolating search terms commonly associated with Malaysian tax topics, such as “withholding tax,” “PCB,” “SST,” “tax relief,” and “income tax Malaysia.” GEO-targeting tools were used to ensure that only searches originating from Malaysia were included in the dataset.

Search volume data was averaged over a rolling 12-month window to reflect consistent interest throughout the year, while still capturing seasonal spikes in the months leading up to tax filing deadlines.

Once the data was collected, we grouped individual queries into broader thematic categories—such as tax calculations, salary tax questions, deductions, and business-related tax obligations. This allowed us to combine related search volumes and highlight the overarching areas where Malaysians are seeking clarity.

For example, questions included in the dataset ranged from practical calculations (“How to add 10 percent tax?”) to compliance-focused queries (“How to pay withholding tax Malaysia?”) and personal tax concerns (“How to apply tax relief?”).

This methodology helped us identify the topics most frequently searched by Malaysian individuals and businesses, offering a clear snapshot of the country’s tax-related pain points and information gaps.

Sign up to Intuit QuickBooks today

Tax season doesn’t need to feel overwhelming. With Intuit QuickBooks accounting software, Malaysian businesses can simplify their financial processes and stay prepared long before deadlines arrive.

Whether you’re managing salary calculations, tracking deductible expenses, or handling SST, QuickBooks gives you the tools to stay organised and tax compliant. You can also save time by using bank feeds to connect your banking to our platform. Explore our pricing to find a plan that’s right for you.