Knowing the available tax reliefs for individual in Malaysia is the smart thing you can do to ensure you get the benefits that you are entitled to.

Paying taxes can be a daunting task for many individuals, especially if they are not familiar with the tax laws and regulations in their country. In Malaysia, the government provides various tax reliefs to help individuals reduce their tax burden.

Tax reliefs are specific deductions that can be claimed by individuals when filing their income tax returns. These deductions are also a way by the government to encourage certain behaviors or to support certain expenses.

Below is a list of tax reliefs available to individuals who are eligible to pay income tax for the year 2022. The information is based on the official website of the Inland Revenue Board of Malaysia (LHDN) and for a more comprehensive list, please refer to the site.

#1. Individual and Dependent Relatives

Individuals who support their dependents, such as children or elderly parents get a tax relief up to RM9,000.

Any medical expenses incurred by their parents who have a medical condition certified by a medical practitioner would get a relief amount up to RM8,000.

Individuals who purchase equipment to support their disabled family members, including themselves are entitled to a relief amount of up to RM6,000.

Disabled individuals, up to RM6,000 of tax relief is available, while those with disabled spouses get a relief amount of up to RM5,000

Individuals who pay alimony to their former wives or husbands are entitled to RM4,000 of relief.

#2. Medical and Lifestyle Expenses

Individuals who incur medical expenses for themselves, their spouses, or children due to serious diseases, fertility treatment or vaccination fees are entitled to a relief amount of up to RM8,000.

Medical examination, COVID-19 detection tests, or mental health consultation can be claimed for up to RM1,000.

Individuals who incur the following expenses for the use or benefit of themselves, their spouses, or children, are entitled for a relief amount of up to RM2,500;

a) Books, journals, magazines, newspapers or other similar publications that are not banned by the government.

b) Personal computers, smartphones, or tablets that are not meant for business use. An additional RM2,500 is available under the ongoing special lifestyle tax relief for the same items.

c) Sports equipment for sports that are recognized by the government, gym membership. An additional RM500 is available for sports equipment, rental or entrance fee to any sports facility, or registration fee to any sports organisation that is approved by the government.

d) Payment of monthly internet subscription which must be under the individual’s own name.

#3. Childcare and Education

For individuals who purchase breastfeeding equipment for their children aged two years and below, the relief amount is RM1,000 but is allowed only once in every two years of assessment.

Child care fees to a registered child care center or kindergarten for children aged six years and below, the relief amount is RM3,000.

Individuals who pay for their education are entitled up to RM7,000, but certain restrictions apply based on the type of education pursued.

Individuals who make a net deposit in Skim Simpanan Pendidikan Nasional Prime (SSPN Prime) are eligible for relief amount of up to RM8,000.

Parents can claim a tax relief of RM2,000 to RM8,000 for each unmarried child of 18 years and above who is receiving full-time education in or outside of Malaysia such as A-Level, further studies such as diploma or Masters, from an instituition that is approved by the relevant government authority.

Parents can also claim an additional exemption of RM8,000 for a disabled child who is 18 years old and above He or she should not be married and is pursuing either diplomas or above qualification in Malaysia, or bachelor degree or above outside of Malaysia. These programs must be accredited by the related government authorities.

#4. Insurance and Retirement

Under this relief, pensionable public servants who do not contribute to EPF or any approved scheme can claim a tax relief of RM7,000 for life insurance premium paid.

A tax relief of up to RM3,000 can be claimed for life insurance premium paid, and a tax relief of up to RM4,000 can be claimed for contribution to EPF or any approved scheme.

Tax relief of up to RM3,000 can be claimed for contribution to a deferred annuity and private retirement scheme (PRS) and an additional RM3,000 can be claimed for premium paid for education and medical insurance.

Employees who contribute to the Social Security Organization (SOCSO) can claim a tax relief of up to RM350.

#5. Everything else

Individuals can claim a tax relief of up to RM1,000 for domestic tourism expenses. This includes payment of accommodation at premises registered with the Commissioner of Tourism under the Tourism Industry Act 1992, payment of entrance fee to a tourist attraction, and purchase of domestic tour package through a licensed travel agent registered with the Commissioner of Tourism under the Tourism Industry Act 1992.

Individuals can claim a tax relief of up to RM2,500 for expenses on charging facilities for electric vehicles. This relief is applicable for expenses incurred on charging facilities that are not for business use.

Conclusion

In conclusion, understanding the different types of tax reliefs available can help individuals reduce their tax liability and effectively manage their finances.

It is important to note that the tax reliefs listed in this article are subject to specific terms and conditions. You are advised to refer to the official website of the Inland Revenue Board of Malaysia for more information.

 

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