Not Eligible To Receive eMADANI? It's Likely Because You Didn't File Your Tax This Year

It is too late even if you file your income tax now.

Cover image via SAYS & New Straits Times

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Many Malaysians have voiced their grievances online after they were notified that they were not eligible to receive the RM100 eMADANI credits

From claims of false duplicate eMADANI applications to outright rejections, many individuals who believe they are eligible to receive the e-wallet credits have turned to social media to express their frustration.

One applicant even told SAYS that their submission was only successful after selecting 'Indian' as their race, despite them being categorised as 'lain-lain' (other races), a term they also disdain.

Image via X via SAYS

While there are many possible reasons for the rejections, one of the factors that might have contributed to the widespread problem is that many people likely did not file their income tax before 15 July 2023

According to the Manfaat microsite by the Ministry of Finance (MOF), there are three criteria Malaysians need to meet to be eligible for the RM100 hand-outs:

1. Malaysian citizens; and
2. Aged 21 years and above as of 2023; and
3. Recipients of Sumbangan Tunai Rahmah (STR) based on record as of 7 November 2023 OR earning an annual income of RM100,000 and below based on the Inland Revenue Board's (LHDN) record as of 15 July 2023.

Perhaps many people have overlooked the last portion of the criteria that led them to believe that they are eligible to receive eMADANI credits despite earning less than RM100,000 annually.

The frequently asked question (FAQ) section on the microsite also clearly states that eBeliaRahmah recipients (Malaysian full-time tertiary students aged between 18 and 20) are not eligible to receive eMADANI credits.

Image via SAYS

SAYS spoke to two individuals who did not receive eMADANI credits

In a brief interview with 24-year-old Athirah, she said she started working August last year, but did not file her income tax this year.

However, she said it was not her fault as she was hired on a contract basis and did not receive an EA Form from her company. She only became a full-time employee in March 2023.

"It is my first year of working and I didn't know I have to declare or do any e-filing. No one told me to do it. Now, I'm struggling to learn how to file my income tax," she said.

As for 28-year-old Imelda, she said she has been working since she was 18 years old.

"I always thought I have to reach certain amount of annual income before I need to start filing my income tax," she said.

She indicated to SAYS that the eMADANI system stated she is "not an eligible recipient".

While Malaysians earning less than RM34,000 annually are not legally obligated to file their income tax, it is still advisable to do so to prevent instances where one might miss out on government cash handouts

Without filing your income tax, the government would not know how much money you make.

Besides that, the benefit of filing your income tax even if you are not bound by the law to pay any levy is that having official documentation of your earnings helps you obtain financial services such as loans, apply for visas, or demonstrate your financial standing.

Some employers in Malaysia may require proof of filing income tax returns as a condition of employment.

Individuals running businesses or engaged in certain professions may also need to file tax returns as part of their regulatory obligations.

For individuals earning more than the taxable income of RM34,000, evading tax is considered an offence under Section 114 of the Income Tax Act 1967.

This could result in a fine ranging from RM1,000 to RM20,000, in addition to 300% of the tax amount attempted to be avoided.

All and all, you are always encouraged to file your income tax. However, if you want to do it now for the sake of receiving the eMADANI credits, it is already too late as the handouts are given out based on LHDN's record as of 15 July 2023.

Meanwhile, check out this story on the hurdles Malaysians faced while applying for eMANDANI:

Here is the step-by-step guide on how to claim your eMADANI credits:

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