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 2019 and 2020).
|Ya 2019||Ya 2020|
|No.||Types of reliefs||Limit||Limit|
|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||RM3,500|
|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 for self, spouse or child)||RM6,000||RM6,000|
|7.||Education fees (self)|
|8.||Net deposit in Skim Simpanan Pendidikan Nasional (SSPN) for children||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)
iii) Purchase of computer, smartphone or tablet
iv) Subscription of broadband internet & Gymnasium membership fee
|10.||Deduction for children|
18 years and above – Studying at Higher Educational Institute
Takaful or payment of life insurance
|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:|
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
|17.||Fees paid to childcare centres and kindergartens||RM1,000||RM2,000|