Common Tax Mistakes Malaysians Make (and How ZiggFin Advisors Can Help You Avoid Them)

Introduction

Let’s face it—when it comes to tax season, most Malaysians feel a bit “kan cheong.”Whether you’re a salary earner, business owner, freelancer, or just starting your side hustle, tax can be confusing. Sometimes, we think: “Just submit lah, shouldn’t be a big problem!”But actually, a small mistake can end up costing you time, money, or even attract the attention of LHDN.The good news? With the right help—from trusted, licensed tax advisors on ZiggFin—you can avoid these headaches and stay on the safe side.

Why Do Malaysians Make So Many Tax Mistakes?

• • Many of us “cincai” do our taxes last minute—rushing through the forms.
• • Not everyone keeps proper receipts or tracks deductible expenses.
• • The rules for personal, business, and SME tax change almost every year.
• • Some people are afraid to ask for help, thinking only “big companies” need tax advisors.
• • Google and WhatsApp groups can be full of outdated or half-true info.

But you don’t have to face tax season alone! Let’s look at the most common mistakes, and how ZiggFin advisors can help you avoid them.

1. Missing Out on Tax Reliefs & Deductions

The Mistake:So many Malaysians leave money on the table by forgetting to claim for things like:

• • EPF and life insurance
• • Parental medical expenses
• • Education, books, and sports equipment
• • Internet subscription or smartphone purchase
• • SSPN/education savings, childcare, and more

How ZiggFin Advisors Help:A good tax consultant on ZiggFin will review your documents, ask the right questions, and make sure you claim every eligible relief—nothing wasted, all by the latest LHDN guidelines.

2. Not Declaring All Income (Especially Side Hustles)

The Mistake:Some people think “small side income never mind lah.”But online business, Grab/food delivery, freelance gigs, rental income—all need to be reported.

How ZiggFin Advisors Help:Your advisor will explain what needs to be declared (and what doesn’t), so you’re fully compliant and won’t get a surprise audit letter from LHDN.

3. Mixing Personal and Business Expenses

The Mistake:Self-employed? SME boss? Many just use one bank account for everything, mixing personal spending and business costs.When audit comes, hard to justify and separate expenses—LHDN may reject your claims.

How ZiggFin Advisors Help:ZiggFin’s accountants and tax advisors can help you set up proper bookkeeping, guide you on what can/can’t be claimed, and make sure your records are “audit-ready”.

4. Poor Record Keeping

The Mistake:Didn’t keep receipts? Lost payment slips?LHDN can ask for supporting documents up to 7 years. Without proof, your reliefs or deductions may be disallowed.

How ZiggFin Advisors Help:Your advisor can teach you easy ways to store records—whether using apps, files, or cloud. Some even provide checklists and templates so you never lose track.

5. Incorrect Tax Filing—Wrong Category or Status

The Mistake:Filing as single when you’re actually married, using the wrong tax category, or putting your kids under the wrong spouse—these can affect your tax bill and cause unnecessary follow-up.

How ZiggFin Advisors Help:An experienced tax consultant will check your family, job, and investment status, then guide you on the best filing strategy for your household—maximising reliefs, minimising errors.

6. Not Reporting Foreign Income or Overseas Assets

The Mistake:Many Malaysians working abroad, investing overseas, or receiving remittances forget that some foreign income/assets must be declared (especially with changing LHDN rules).

How ZiggFin Advisors Help:ZiggFin advisors keep up with all new tax rules and double tax agreements—so you don’t miss out or end up accidentally breaking the law.

7. Submitting Late or Missing Payment Deadlines

The Mistake:Late submission means penalty and extra interest. Many only realise after receiving LHDN’s “love letter”.

How ZiggFin Advisors Help:Your advisor sends reminders, keeps you updated on deadlines, and can help you arrange instalment plans if you’re facing cash flow issues.

Real Malaysian Stories

Case 1:Pn. Siti, an online seller, used to “just tembak” her tax forms and under-declared her income. After using ZiggFin to find a tax consultant, she learned how to declare her Shopee and TikTok earnings properly, and now feels much safer (and sleeps better at night!).

Case 2:Mr. Gan, a small business owner in Johor, never claimed parental medical relief because he thought “not big amount, never mind lah.” His ZiggFin advisor helped him back-claim for three years—saving him over RM2,000!

FAQs

Q: I’m a freelancer/part-timer—do I need to declare all income?A: Yes. Whether you’re doing Grab, teaching tuition, selling online, or freelancing, you must declare all taxable income. ZiggFin advisors can show you what to include (and how to manage your records).

Q: Can I still get help if I receive an audit letter from LHDN?A: Of course! Many ZiggFin tax advisors have handled audits before and can help you respond, organise documents, and negotiate payment plans if needed.

Q: Is ZiggFin only for big companies?A: Not at all. ZiggFin helps everyone—from first-jobbers and freelancers, to business owners and even retirees.

Conclusion

Don’t let tax mistakes cost you money or peace of mind. With ZiggFin, you get access to trusted, licensed accountants and tax consultants who speak your language, know the local rules, and genuinely care about your success.

Get your tax sorted the Malaysian way: Visit the ZiggFin homepage or check out the [ZiggFin Blog] for more tips and true local stories. Register for free to connect with the right advisor for you.

🔍 Explore today: www.ziggfin.com

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“Disclaimer: For informational purposes only. ZiggFin does not sell financial products or provide investment advice. All advisors listed are independently licensed professionals. Past performance does not guarantee future results.”

ZiggFin Malaysia: Avoid Common Tax Mistakes—Trusted Local Tax Advisors

Make tax season easy—find real Malaysian experts with ZiggFin today.