Running a business? Form B in plain words (YA 2025)
If you are a sole proprietor, a partner, or you earn from a profession or vocation, you file Form B (e-B on MyTax), not Form BE. This guide follows LHDN’s own guide, Tatacara Pengisian Borang B — Peniaga Bijak Cukai, for YA 2025, with the Income Tax Act where it adds something.
The deadline
For YA 2025, e-B was due by 30 June 2026 (e-BE, for people without a business, by 30 April 2026). The basis period is the calendar year: 1 January to 31 December.
Five common mistakes, from LHDN’s guide
“My business made a loss, so I don’t need to file” — wrong: profit or loss, Form B must still be filed. “I only sell online, so it isn’t a business” — wrong: online or offline, it is a business. “If I register with LHDN I’ll pay tax straight away” — not so: registering is a duty, and a loss means no tax. “I pay zakat, so I don’t need to file” — wrong: zakat does not replace filing. “All my spending is claimable because it’s my capital” — wrong: only expenses related to the business count.
Which costs count
The test is whether a cost was incurred wholly and exclusively in producing the business’s income, within the basis period. LHDN’s examples of costs that count include business premises’ rent and utilities, staff wages with their EPF and SOCSO, advertising, professional fees, repairs, stock, stationery, business insurance and business internet. Costs that do not count include capital spending such as buying equipment, personal spending, the owner’s own salary, depreciation, drawings, fines and compounds, and income tax itself. Both lists are examples, not complete rules.
If the business makes a loss
A loss in the year is deducted from your aggregate income (s.44(2)). Whatever is left can be carried forward to later years (s.43(2)) — from YA 2019, for at most 10 consecutive years of assessment, after which the remainder is disregarded (Public Ruling No. 1/2022, paragraph 10).
Keep your records
Keep sufficient records for seven years from the end of the year to which the income relates (s.82(1)(a)), make entries within 60 days of each transaction (s.82(6)), and keep the records of a business in Malaysia in Malaysia (s.82(8)). Records include the books of account and the invoices, vouchers and receipts behind them (s.82(9)). If you also receive a CP500 instalment notice for your business income, see our CP500 guide.
This article is general information, not tax advice for your specific situation. Figures refer to YA 2025 and cite LHDN's official sources; rules can change between years.
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