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|
|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) |
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.
|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
|16.||Breastfeeding equipment ||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.
|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.