When it comes to tax reliefs in Malaysia, personal reliefs and deductions can be helpful for reducing your taxable income. This, in turn, can lower your taxes and help you save a considerable amount on taxes with proper planning.
Every taxpayer in Malaysia is allowed to deduct their personal reliefs once their income reaches a taxable level. To get this number, first you’ll need to know your annual income and the corresponding tax rates for the relevant year of assessment. Apart from this, you can also take advantage of various other reliefs that are deductible from your chargeable income if your money is spent in an eligible category.
Listed below are the personal income tax reliefs you can claim for YA 2023 / 2024:
| Types of tax reliefs | Limit (RM) |
|---|---|
| Individual | 9,000 |
| Disabled individual (additional) | 6,000 |
| Wife / husband / payment of alimony to former wife | 4,000 |
| Disabled wife / husband | 5,000 |
| Cost of basic supporting equipment for disabled individual (self, spouse, child or parent) | 6,000 |
| Medical expenses for: 1) Self, spouse or child suffering from a serious disease: – 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 – Rheumatology – Leukaemia 2) Expenses incurred on fertility treatment 3) Vaccination up to RM1,000 (including fees incurred by self, spouse or child for complete medical examination, COVID-19 detection test and mental health examinations or consultations) 4) Diagnostic assessment of learning disability or early intervention program or rehabilitation treatment for learning disability for a child below 18 years old; up for RM4000 5) Dental examination or treatment by dental practitioners registered with the Malaysian Dental Council for self, spouse or child, limited to RM1,000 (w.e.f YA 2024) | 10,000 |
| Education fees (self) – Any course of study for a Certificate / Diploma / Bachelor Degree in the following areas: Law, Accounting, Islamic Financing, Technical, Vocational, Industrial, Scientific or Technological – Any course of study for a degree at Masters or Doctorate level – Any course of study for the purpose of upskilling and self-enhancement, limited to RM2,000 (extended to YA 2026) | 7,000 |
| Net deposit in Skim Simpanan Pendidikan Nasional (SSPN) for children – Total deposit in the year minus Total withdrawal in the year | 8,000 |
| 1) Purchase of books, journals, magazines, printed daily newspapers and other similar publications (excluding banned publications) 2) 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 3) Purchase of computer, smartphone or tablet 4) Subscription of broadband internet & Gymnasium membership fee | 2,500 |
| Deduction for children: 1) Under the age of 18 2) 18 and above (not in higher education) 3) 18 and above (in higher education) – Studying within Malaysia for a diploma or higher – Studying outside of Malaysia for a degree or higher 4) Disabled children – Disabled children in higher education | 2,000 2,000 8,000 8,000 6,000 14,000 |
| Life insurance premiums or voluntary contribution to Employee Provident Fund (EPF) or for both | 3,000 |
| Voluntary or obligatory EPF contributions and contributions to pension schemes by individuals or public servants | 4,000 |
| Private retirement scheme and deferred annuity approved by the Securities Commission | 3,000 |
| Education and medical insurance premium (self, spouse and child) | 3,000 |
| Social Security Organisation (SOCSO) | 350 |
| Medical treatment, special needs and care expenses for parents | 8,000 |
| Breastfeeding equipment – Can claimed once every 2 years by working women with children aged up to 2 years old | 1,000 |
| Fees paid to childcare centres and kindergartens | 3,000 |
| Purchase of sports equipment, rental/entry fees for sport facilities and registration fees in sport competition Note: This relief can be claimed 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. | 500 |
| Expenses on Electric Vehicle charging facilities, including installation, rental, hire-purchase of equipment, or subscription fees (extended to YA 2027) | 2,500 |
Reduce Your Income Tax Further with Tax Rebates
Additionally, there are a number of tax rebates available for Malaysian resident individuals:
- RM400 for individuals with chargeable income not exceeding RM35,000
- RM400 (each) for husband and wife filing separate assessment with individual chargeable income not exceeding RM35,000
- RM800 for husband and wife filing joint assessment with joint income not exceeding RM35,000
- Actual amount expended for Zakat, Fithrah or other Islamic religious dues paid
- Actual amount expended (twice in a lifetime) for departure levy paid for performing umrah and pilgrimage to holy places.
Tax Reliefs vs. Tax Rebates – What’s The Difference?
This is a commonly asked question when it comes to tallying income tax.
Most people confuse income tax rebate with income tax relief. The difference between the two is: a tax relief is deduction from the total income to derive your chargeable income, whereas a tax rebate is deducted from the actual taxed amount
Here’s an example of calculation to help you understand the distinction clearly:
| Chargeable income after deducting applicable tax reliefs | RM32,500 |
| Total tax amount | RM525 |
As the chargeable income is less then RM35,000, this taxpayer is eligible for an additional RM400 tax rebate:
| Final tax amount after tax rebate | RM525 – RM400 = RM125 |
Head over to our personal income tax calculator to find out your total income tax amount payable quickly and easily.
Maximise Your Tax Reliefs This Year
Bispoint is your go-to point of advice and assistance when it comes to all things tax. If you’re looking for help to maximise tax reliefs, exemptions and rebates on your personal income tax filling, feel free to speak to our team of experienced tax consultants.