March and April are the months to file your taxes for employees across Malaysia. This time of year, everyone is busy filling out tax forms and fulfilling their responsibilities as office workers.
Although employees need to pay taxes when their annual salary reaches a specified amount, the government also provides tax relief benefits as a way to reduce the burden on the people.
The government has released the personal income tax relief which includes up to 26 tax relief incentives, totaling up to RM109,350. Let’s have a look at what can be deducted!
| Relief types | Amount |
|---|---|
| Personal relief | |
| Personal tax deduction | RM9000 |
| Spouse | RM4000 |
| Ex-wife/ex-husband alimony | RM4000 |
| Individual Tuition Fees (Master/PhD)Individual training course (RM1000 only) | RM7000 |
| Disabled person | RM6000 |
| Disabled spouse | RM5000 |
| Statutory contributions | |
| Life Insurance (Individual and Spouse) | RM3000 |
| Education or medical insurance | RM3000 |
| EPF | RM4000 |
| SOCSO & EIS | RM350 |
| Private Retirement Scheme (PRS) | RM3000 |
| SSPN Net Savings | RM8000 |
| Life, medicine and health-related equipment | |
| Parents’ medical expenses | RM8000 |
| Serious illness medical expenses:VaccinationHealth check-upCOVID-19 Detection KitFertility treatment | RM8000 |
| Lifestyle:BooksSports equipmentGym membership feeMonthly internet fee | RM2500 |
| Lifestyle:Personal computer, tablet, smartphone | RM2500 |
| Additional sports-related activitiesSports equipmentSports venue hire/entry feeEntry fee | RM500 |
| Domestic tourism spendingAccommodation costs registered with the Ministry of Tourism and CultureEntrance fees for tourist attractions | RM1000 |
| Electric vehicle equipmentPurchasing, installing and renting related facilitiesEV Charging Costs | RM2500 |
| Breastfeeding equipment (female only)Children under 2 years oldEvery 2 years | RM1000 |
| Assistive devices for persons with disabilities (individuals, spouses, children, parents) | RM6000 |
| Child relief | |
| Unmarried children under the age of 18 (per person) | RM2000 |
| Unmarried, full-time students over the age of 18A-LevelMatriculation/FoundationDiploma Program (Certificate) | RM2000 |
| Unmarried student over the age of 18 studying for a higher education diploma or aboveDiplomaBachelor, Masters, Doctorate | RM8000 |
| Nursery / Kindergarten (under 6 years old) | RM3000 |
| Disabled children | RM6000 |
If you’re thinking of saving more money, remember to fill in these 26 tax deductions when you file your tax returns – and you get to pay either less tax, or no tax at all!
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Originally published on IQI Global Blog
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