It’s tax season, and in Malaysia, the government provides various reliefs to help individuals reduce their tax burden. These are specific deductions that can be claimed by individuals when filing their returns, and are also a way for the government to support certain expenses or encourage certain behaviours.

Here are the tax reliefs available to individuals paying income tax for last year, using information from the Inland Revenue Board (LHDN). Also, have you checked out FMT’s tips for newbie taxpayers?

1. Individual and dependent relatives

Individuals who support their dependents, such as children or elderly parents, are eligible for tax relief of up to RM9,000.

Medical expenses incurred by parents who have a medical condition certified by a health professional can be claimed for up to RM8,000.

Up to RM6,000 in tax relief is available for disabled individuals, while those with disabled spouses get a relief amount of up to RM5,000.

Individuals who purchase equipment to support disabled family members, including themselves, are entitled to a relief amount of up to RM6,000.

Individuals who pay alimony to their former wives or husbands are entitled to RM4,000.

2. Medical and lifestyle expenses

Individuals who incur medical expenses for themselves, their spouses, or children due to serious diseases, fertility treatment, or vaccination are entitled to a relief amount of up to RM8,000.

Medical examination, Covid detection tests, or mental health consultation can be claimed for up to RM1,000.

Individuals who incur the following expenses for themselves, their spouses, or children are entitled to relief for up to RM2,500:

• books, journals, magazines, newspapers, or other similar publications not banned by the government;
• personal computers, smartphones, or tablets not meant for business use;
• sports equipment for activities recognised by the government, as well as gym membership; plus an additional RM500 for sports equipment, rental or entrance fee to a sports facility, or registration fee for any sports organisation approved by the government;
• payment of monthly internet subscription, which must be under the taxpayer’s own name.

3. Childcare and education

Those who purchase breastfeeding equipment for children aged two and below may claim a relief amount of RM1,000, although this is allowed only once every two years.

Up to RM3,000 may be claimed for fees to childcare centres or kindergartens, for children aged six and below.

Individuals who pay for their education are entitled up to RM7,000, but certain restrictions apply based on the type of education pursued.

Those who make a net deposit in Skim Simpanan Pendidikan Nasional Prime are eligible for a relief amount of up to RM8,000.

Parents can claim tax relief of RM2,000 to RM8,000 for each unmarried child of 18 years and above who receives full-time education in or outside of Malaysia – such as A-levels, diploma, or masters degrees – from institutions approved by the relevant government authority.

Parents can also claim an additional exemption of RM8,000 for a disabled child aged 18 or above. He or she should not be married, and is pursuing a diploma or higher qualification in Malaysia, or a bachelor degree or above overseas. These programmes must be accredited by the related government authorities.

4. Insurance and retirement

Pensionable public servants who do not contribute to EPF or any approved scheme can claim tax relief of RM7,000 for life insurance premiums paid.

For others, tax relief of up to RM3,000 can be claimed for life insurance premiums, and tax relief of up to RM4,000 is available for those who contribute to EPF or any approved scheme.

Tax relief of up to RM3,000 can be claimed for contributions to a deferred annuity and private retirement scheme, while an additional RM3,000 can be claimed for premiums paid for education and medical insurance.

Employees who contribute Socso can claim relief of up to RM350.

5. Miscellaneous

Individuals can claim tax relief of up to RM1,000 for domestic tourism expenses. This includes payment for accommodation at premises registered with the Commissioner of Tourism under the Tourism Industry Act 1992; payment of entrance fees to a tourist attraction; and purchases of domestic tour packages through a licensed travel agent registered with the above commissioner.

Individuals can also claim tax relief of up to RM2,500 for expenses on charging facilities for electric vehicles that are not for business use.

For more detailed information, visit the LHDN website.

This article was written by Zack Lee for MyPF. To simplify and grow your personal finances, follow MyPF on Facebook and Instagram.