What are the top ten most common Malaysian tax relief for year assessment 2019 and filing in 2020? Have you maximized your eligible tax relief?

10 Common Malaysian Tax Relief for Year of Assessment 2019

1. EPF Contribution

Maximum Tax Relief: RM4,000

Criteria: Total employee contribution to EPF capped at RM4,000 (Previously EPF + Life Insurance was combined as a single tax relief and capped at RM6,000). EPF contribution through non-salary deduction (i.e. voluntary contribution) is included as well for tax relief purposes.

 

2. Life Insurance Premium

Maximum Tax Relief: RM3,000

Criteria: Payment of life insurance premiums in the year of assessment. Previously Life Insurance was combined as a single tax relief with EPF contribution and capped at RM6,000.

  • For Life, 100% of premiums paid eligible for tax relief as life policy.
  • For Education/Life, 100% of premiums paid eligible for tax relief as education policy OR life policy.
  • For Medical/Life, 60% of premiums paid eligible for tax relief as medical policy OR 100% of premiums paid eligible for tax relief as life policy.
  • Accidental/ waiver riders premiums paid are not eligible for tax relief.
  • Automation premium loans are not eligible for the tax relief.

 

3. Insurance Premium for Medical/Education

Maximum Tax Relief: RM3,000

Criteria: Payment of medical insurance premiums in the year of assessment.

  • For Education/Life, 100% of premiums paid eligible for tax relief as education policy OR life policy.
  • For Medical/Life, 60% of premiums paid eligible for tax relief as medical policy OR 100% of premiums paid eligible for tax relief as life policy.
  • Accidental/ waiver riders premiums paid are not eligible for tax relief.