Personal Tax Reliefs in Malaysia

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Personal Tax Reliefs in Malaysia

Reliefs are available to an individual who is a tax resident in Malaysia in that particular YA to reduce the chargeable income and tax liability. Companies are not entitled to reliefs and rebates.

The conditions of entitlement for each relief must be satisfied in order to minimize the income tax liability.

In the event the total relief exceeds the total income, the excess cannot be carried forward to the following YA. The chargeable income is nil and no income tax is payable for that YA.

Tax reliefs which can be claimed by resident individuals in Malaysia (for YA 2020 and 2021).

		Ya 2020	Ya 2021
No.	Types of reliefs	Limit	Limit
1.	Individual	RM9,000	RM9,000
2.	Disabled individual (additional)	RM6,000	RM6,000
3.	Wife / husband / payment of alimony to former wife	RM4,000	RM4,000
4.	Disabled wife / husband	RM3,500	RM5,000
5.	Cost of basic supporting equipment for disabled individual (self, spouse, child or parent)	RM6,000	RM6,000
6.	Medical expenses on serious diseases (including, complete medical examination up to RM500 (RM1,000 for YA 2021) for self, spouse or child) Cost of fertility treatment Cancer Heart Attack Pulmonary Hypertension Renal Failure Chronic Liver Disease Fulminant Viral Hepatitis Brain Tumour or Vascular Malformation Major Burns Major Organ Transplant Parkinson’s Disease HIV & AIDS Major Amputation of Limbs Head Trauma with Neurological Chronic Skin Disease Mental Illness Diabetes Mellitus Thalassemia Major Rheumotalogy Leukaemia Note: With effect from YA 2021, the relief includes an increase in complete medical examination of up to RM1,000. Further, the scope is also expanded to include vaccination expenses of up to RM1,000 for taxpayer, spouse and child.	RM6,000	RM8,000
7.	Education fees (self) The course which eligible for Certificate / Diploma / Bachelor Degree – Law, Accounting, Islamic Financing, Technical, Vocational, Industrial, Scientific or Technological Any course of study for a degree at Masters or Doctorate level NOT ELIGIBLE for scholarship holder	RM7,000	RM7,000
8.	Net deposit in Skim Simpanan Pendidikan Nasional (SSPN) for children Total deposit in the year minus Total withdrawal in the year	RM8,000	RM8,000
9.	i) Purchase of books, journals, magazines, printed daily newspapers and other similar publications (excluding banned publications) ii) Purchase of sports equipment (for any sports activity as defined under the Sports Development Act 1997) NOT ELIGIBLE for the purchase of sports clothing and shoes iii) Purchase of computer, smartphone or tablet iv) Subscription of broadband internet & Gymnasium membership fee	RM2,500	RM2,500
10.	Deduction for children Under 18 years 18 years and above – Schooling 18 years and above – Studying at Higher Educational Institute Disabled child (unmarried) Disabled child studying at Higher Educational Institute	RM2,000 RM2,000 RM8,000 RM6,000 RM14,000	RM2,000 RM2,000 RM8,000 RM6,000 RM14,000
11.	EPF Takaful or payment of life insurance	RM4,000 RM3,000	RM4,000 RM3,000
12.	Private retirement scheme and deferred annuity approved by the Securities Commission	RM3,000	RM3,000
13.	Education and medical insurance premium (self, spouse and child)	RM3,000	RM3,000
14.	Social Security Organisation (SOCSO)	RM250	RM250
15.	Medical treatment, special needs and care expenses for parents; or Deduction for parents: Father Mother ü Subject to criteria under section 46(1)(o) Income Tax Act 1967 ü Did not claim medical treatment, special needs and care expenses for parents in the same year of assessment	RM5,000 RM1,500 RM1,500	RM8,000 RM1,500 RM1,500
16.	Breastfeeding equipment Claimed by working women with children aged up to 2 years old Can claimed once every 2 years	RM1,000	RM1,000
17.	Fees paid to childcare centres and kindergartens	RM3,000	RM3,000
18.	Purchase of smartphone, personal computer or tablet This additional relief is available for purchases made between 1 June 2020 and 31 December 2020, provided that the total amount claimed under the special tax relief has not been claimed under lifestyle tax relief.	RM2,500
19.	Qualifying domestic travel expenses – accommodation at premises registered with the Commissioner of Tourism under the Tourism Industry Act 1992 and entrance fees to a tourist attraction (1 March 2020 to 31 December 2021)	RM1,000	RM1,000
20.	Purchase of sports equipment, rental/entry fees for sport facilities and registration fees in sport competition Taxpayer is allowed to claim this relief in addition to the existing lifestyle relief, provided that the total amount claimed under this relief has not been claimed under the existing lifestyle tax relief.		RM500