How to File Form B: The Complete Borang B Guide for Malaysia (YA2025)

If you earn business income (sole proprietorship, freelancing, commissions, an online store, a share of partnership profits), you file Form B (Borang B) — not Form BE, which is for salaried employees. Here is the whole process, start to finish.

Who must file Form B?

You're a Form B filer if you had any of these during the year of assessment:

• Profits from a sole proprietorship / enterprise
• Freelance or professional services (design, consulting, doctors, lawyers, etc.)
• Commission income (insurance, real estate agents, etc.)
• Online sellers / gig economy work
• Your share of partnership profits

People with employment income (salary) only and no business income file Form BE. The moment you have business income — even if you also hold a job — you file Form B (your salary goes in the "employment income" section).

Form B vs Form BE

	Form B	Form BE
For	Resident individuals with business income	Resident individuals with employment income only
Paper deadline	30 June	30 April
e-Filing deadline	15 July	15 May
Tax rates	Individual progressive 0%–30%	Individual progressive 0%–30%

Non-resident individuals use Form M; companies (Sdn Bhd) use Form C.

Prepare before you file

• Your business profit & loss statement (revenue, cost, expenses)
• A list of equipment / machinery / vehicles (for capital allowances)
• Your EA form (if you also have employment income)
• Receipts for reliefs (EPF, insurance, lifestyle, medical, education, etc.)
• A bank account number (for any refund)

Step-by-step e-B filing

1. Log in to the MyTax portal (mytax.hasil.gov.my)
2. Choose e-Filing → e-B and select the correct year of assessment (YA)
3. Enter business income: revenue − allowable expenses − capital allowances = adjusted business income
4. Enter other income: employment, rental, interest, etc.
5. Enter reliefs and rebates: individual RM9,000, EPF, insurance, lifestyle, children, parents' medical, etc.
6. The system computes the tax at progressive rates automatically
7. Submit, then pay the balance of tax before the deadline

The math in one line:

revenue − allowable expenses − capital allowances = adjusted business income
+ other income − personal reliefs = chargeable income → progressive rates (0%–30%)

The 5 most common mistakes

1. Claiming private/household expenses as business expenses — only costs incurred "wholly and exclusively" to earn income are deductible.
2. Using accounting depreciation — depreciation isn't deductible; claim capital allowances instead (unused amounts carry forward).
3. Ignoring CP500 instalments — people with business income usually receive a CP500 instalment notice; don't skip it.
4. Not registering for SST — register once your taxable turnover crosses the threshold.
5. Filing late — late Form B filing is penalised under the Income Tax Act; don't leave it to the last day.

Don't forget

• Keep accounts and receipts for 7 years.
• As profits keep rising, consider switching to a Sdn Bhd (SME rates 15%/17%/24% + limited liability) — see sole proprietor vs company.
• First time e-Filing? See the step-by-step e-Filing guide.

Want a quick estimate first? Use the free sole proprietor tax calculator — enter revenue, expenses and capital allowances to see your Form B tax at individual rates. Or just ask the AI tax assistant.