The Lembaga Hasil Dalam Negeri Malaysia (LHDN) has officially extended the tax filing deadline for the 2025 tax year to 15 May 2026, giving taxpayers an additional 15 days to complete their submissions.
While this may sound like a small change, it has a meaningful impact on payroll operations, HR compliance workflows, and employee tax planning across Malaysia.
If your organisation handles payroll or supports employees with tax-related queries, here’s a clear breakdown of what this extension means and how to stay compliant without last-minute stress.
New Tax Filing Deadline: 15 May 2026
LHDN has confirmed the updated timeline:
- Original deadline: 30 April 2026
- New extended deadline: 15 May 2026
- Tax year: 2025
- Submission method: Mandatory e-Filing via MyTax
Taxpayers are required to submit their Borang Nyata (BN) through the official portal:
This extension applies to non-business individuals and certain non-business entities.
Who Is Affected by This Extension?
This update primarily applies to:
- Salaried employees (non-business income earners)
- Freelancers without business registration
- Estates (harta pusaka) without business activities
- Hindu joint families (keluarga sekutu Hindu) not conducting business
If your employees fall under these categories, they now have additional time to complete their filing.
Why Did LHDN Extend the Deadline?
The extension is part of Malaysia’s ongoing shift toward mandatory e-Filing adoption.
With paper submissions being phased out, LHDN is:
- Encouraging full digital adoption of tax filing systems
- Allowing taxpayers time to adapt to MyTax platform usage
- Reducing system overload during peak filing periods
For HR teams, this also signals a broader move toward digital-first compliance processes in Malaysia’s tax ecosystem.
HR Impact: Why This Matters for Employers
Even though tax filing is an individual responsibility, HR and payroll teams often play a supporting role.
Here’s what this extension means operationally:
1. Reduced early payroll queries (temporarily)
Employees may delay filing, which means fewer immediate requests for EA forms or income clarification—but expect a surge closer to the deadline.
2. Higher risk of last-minute congestion
As seen in previous years, MyTax system traffic spikes near deadlines, leading to:
- Slow submissions
- Login issues
- Employee frustration directed at HR teams
3. Continued need for accurate EA Forms
HR must ensure EA forms and payroll records are:
- Accurate
- Issued on time
- Easily accessible for employees
Key Reminder: Filing Is Now Mandatory via e-Filing
All submissions must be completed digitally. Manual or physical submissions are no longer the standard process.
Employees should be guided to:
- Prepare income statements early
- Collect receipts and tax relief documents
- Verify data before submission
Don’t Wait Until the Last Minute
Although the extension gives more time, LHDN has clearly reminded taxpayers:
Late submission remains an offence under the Income Tax Act 1967.
Penalties may still apply if submissions are not completed by 15 May 2026.
From an HR perspective, last-minute filing also leads to:
- Increased employee support requests
- Payroll documentation confusion
- Higher risk of incorrect submissions
HR Best Practices to Support Employees
To reduce compliance risk and employee confusion, HR teams can:
✔ Share early reminders
Send internal communication about:
- Deadline changes
- e-Filing instructions
- Required documents
✔ Encourage early submission
Advise employees not to wait until the final week.
✔ Provide payroll documents promptly
Ensure EA forms and supporting documents are distributed early.
✔ Centralise tax FAQs
Reduce repetitive queries with a simple internal guide or HR portal section.
Final Takeaway
The 15-day extension may feel like extra breathing room, but it’s not a reason to delay.
For HR teams in Malaysia, this update is a reminder that digital tax compliance, employee education, and payroll accuracy are now tightly connected.
The smartest approach?
Prepare early, file early, and avoid the annual “MyTax crash panic” entirely.
