Malaysian taxpayers now have a wider range of assessment disputes that can be submitted through the e-Assessment Appeal, or e-Rayuan Taksiran, service on the MyTax portal. When the online facility was introduced on 1 June 2026, it allowed taxpayers to submit assessment appeals and applications for additional time electronically. Its scope has since expanded beyond Additional Assessments to include Estimated Assessments, certain Deemed Assessments and Reduced Assessments, subject to the conditions governing each category.
The expansion does not change the legal basis for an appeal, but it should make the process more convenient by reducing the need to prepare and deliver physical forms to an LHDN office.
What an Assessment Appeal Actually Means
Receiving a tax assessment does not automatically mean the taxpayer has done something wrong. An assessment is LHDN's determination of the income and tax payable for a particular year.
A taxpayer who believes the assessment is incorrect may have the right to challenge it under Section 99 of the Income Tax Act 1967.
An appeal may involve disagreement over the income assessed, disallowed expenses, tax treatment, penalties, audit adjustments or the interpretation of a tax rule.
However, an assessment appeal should not be confused with simply correcting a mistake in a previously submitted tax return. The correct process depends on how the assessment arose and what the taxpayer is disputing.
Estimated Assessments Can Now Be Appealed Online
An Estimated Assessment, also known as a best-judgement assessment, may be issued when a taxpayer fails to submit an Income Tax Return Form or submits it after the prescribed deadline.
Because LHDN may not have the taxpayer's complete information, it estimates the amount of taxable income and tax payable using the records available to it.
That estimate may be significantly higher than the taxpayer expected, particularly when the taxpayer has not provided business expenses, deductions, reliefs or supporting documents.
LHDN confirms that a best-judgement assessment may be appealed. For companies, limited liability partnerships, trust bodies and co-operative societies, an appeal against certain estimated assessments must also be accompanied by the relevant Income Tax Return Form.
The expanded MyTax service means eligible taxpayers can now submit this type of appeal electronically rather than relying entirely on the manual route.
Deemed Assessments Have More Limited Appeal Rights
A Deemed Assessment generally arises when the information declared by a taxpayer in a return is automatically treated as an assessment.
Because the figures originally came from the taxpayer, these assessments are generally not open to a normal appeal.
There is, however, an important exception. A taxpayer may be able to appeal when the disagreement involves the tax treatment stated in an LHDN Public Ruling or an established position, ruling or practice of the Director-General of Inland Revenue that applied when the assessment was made.
For example, a taxpayer might agree with the income figures declared but disagree with the way a particular deduction, exemption or transaction was treated under LHDN's prevailing interpretation.
The expanded online service does not mean every Deemed Assessment can now be challenged. Taxpayers must still demonstrate that their case falls within the permitted grounds.
Reduced Assessments May Be Appealable in Specific Situations
A Reduced Assessment is issued when an earlier assessment is revised and the amount of tax is lowered.
Since it reduces rather than increases the taxpayer's liability, it is generally not treated as an assessment that can be appealed in the usual way.
An appeal may nevertheless be allowed when the Reduced Assessment introduces or involves a new issue that was not previously considered.
This distinction is important. A taxpayer cannot simply reopen every matter covered by an earlier assessment because a reduced figure has been issued. The appeal should relate to the new matter arising from the latest decision.
Notifications of Non-Chargeability Can Also Be Challenged
Taxpayers may also have appeal rights concerning a Notification of Non-Chargeability, sometimes issued following an audit or investigation.
Although the notification states that no tax is chargeable, it may still include findings or tax treatments that affect losses, allowances, credits or future tax positions.
LHDN's published appeal guidance confirms that a Notification of Non-Chargeability issued under Section 97A following audit or investigation findings may be appealed.
This is a useful reminder that a dispute is not always about an immediate amount of tax payable. A decision made in one year can sometimes affect how a taxpayer is treated in later years.
Other Situations Where an Appeal May Be Available
The appeal framework can also cover selected disputes involving withholding tax, tax refunds and appointments made under the Income Tax Act.
For withholding-tax matters, the disputed tax generally needs to be paid to the Director-General before the appeal proceeds.
Taxpayers who disagree with the amount of a refund notice may also need to file their appeal within 30 days of receiving the notice.
A person appointed as an agent under Section 68 of the Act may similarly challenge that appointment within the permitted period when they disagree with the decision.
Because these situations involve different statutory provisions, taxpayers should confirm that they are using the correct appeal category and supporting documents before submitting anything through MyTax.
The 30-Day Deadline Remains Important
Moving the process online does not remove the legal deadline.
A standard assessment appeal must generally be filed within 30 days from the date the notice of assessment is served. LHDN's official guidance identifies Form Q as the form used for an appeal submitted within this period.
Taxpayers should therefore check the date on the assessment notice immediately rather than waiting until they have gathered every possible document.
Missing the deadline does not necessarily end the matter, but it makes the process more complicated because the taxpayer must apply for an extension of time.
Form N Is Used When the Appeal Is Late
When the normal appeal period has expired, taxpayers may apply for additional time through Form N.
The application must explain why the appeal was not submitted within the original period. LHDN expects strong and reasonable grounds, such as prolonged hospitalisation, being outside Malaysia, a natural disaster or another circumstance outside the taxpayer's control.
For appeals from the Year of Assessment 2020 onwards, an application for an extension generally needs to be made within seven years after the original appeal period expired. Approval is not automatic simply because Form N has been submitted.
When an extension is approved, LHDN will notify the taxpayer of the new deadline for submitting the actual appeal.
Online and Manual Filing Cannot Be Used Together
Although e-Rayuan Taksiran is being expanded, the existing manual process remains available while implementation continues.
Taxpayers may choose either:
Submitting duplicate appeals could create confusion, delay processing or result in inconsistent records. Once a method has been selected, the taxpayer should complete the case through that route unless advised otherwise by LHDN.
It is also worth noting that older guidance stating that Form Q and Form N cannot be submitted electronically refers to the traditional forms themselves. The new MyTax facility is a dedicated electronic service introduced specifically for online appeals.
Why the Grounds of Appeal Matter
An appeal is more than a statement saying that the taxpayer disagrees with the amount.
The submission should clearly explain:
For example, a business disputing an estimated assessment should not merely state that the amount is too high. It should provide the outstanding tax return, accounts, invoices, expense records and calculations showing the appropriate taxable income.
A clearly structured appeal makes it easier for LHDN to understand the dispute and reduces the risk of unnecessary follow-up questions.
Supporting Documents Can Make or Break the Case
The strength of an appeal often depends on the evidence provided.
Relevant documents may include financial statements, receipts, contracts, bank records, payroll information, tax computations, correspondence and extracts from applicable Public Rulings.
Taxpayers should ensure that the documents directly support the grounds stated in the appeal. Uploading a large collection of unrelated records does not necessarily improve the case.
For an online submission, it is sensible to prepare and organise all files before logging in. LHDN has advised users to complete the application in a single session, which means interruptions or missing documents could make the process unnecessarily difficult.
Copies of the completed submission, uploaded documents and acknowledgement should also be retained.
An Appeal Does Not Automatically Suspend Tax Obligations
Taxpayers should not assume that filing an appeal automatically removes or postpones the amount payable.
Depending on the assessment and applicable provisions, the tax may still need to be paid while the dispute is being reviewed. If the appeal is later allowed, the resulting overpayment may be refunded or credited accordingly.
Anyone facing a large disputed amount should confirm the payment requirements with the LHDN office handling the file or obtain advice from a qualified tax professional.
Ignoring the payment notice while waiting for the appeal outcome could potentially lead to late-payment increases or collection action.
Why the MyTax Expansion Matters
Tax appeals have traditionally involved printed forms, multiple copies, signatures and physical submission to the office managing the taxpayer's file.
Providing a dedicated online route should make the process more accessible, particularly for taxpayers who live far from an LHDN branch or rely on tax agents located in another state.
It may also improve recordkeeping because taxpayers can submit supporting information through a central digital account and retain electronic confirmation of the transaction.
However, convenience does not reduce the need for accuracy. Selecting the wrong assessment category, providing vague grounds or missing the deadline can still affect whether an appeal is accepted.
Final Thoughts
The expansion of e-Rayuan Taksiran is another useful step in moving Malaysia's tax administration towards a more complete digital service.
Taxpayers can now use MyTax for a wider range of disputes, including Estimated Assessments and certain cases involving Deemed or Reduced Assessments. The manual Form Q and Form N routes remain available, but taxpayers must choose one submission method rather than filing the same appeal twice.
The most important rules remain unchanged: act within the required timeframe, identify the correct grounds, explain the disagreement clearly and provide supporting evidence.
An online system makes submitting the appeal easier. Building a convincing and properly documented case remains the taxpayer's responsibility.
Comments