In Malaysia, the tax system offers individuals many
tax deductions. Are you aware of it and are you taking advantage to reduce your
tax burden? Find out the deductions that
you are entitled:
Relief
1. Personal
tax relief for self and dependent: RM9000
2. Relief
for spouse/alimony payments: It is limited to RM3000
3. An
additional relief to a disabled
taxpayer: RM6000
4. Disable
wife/ husband: RM3500
5. Life
support equipment for the taxpayer, a child, spouse or parent: The maximum claimable amount is RM5000
6. Parents’ medical expenses: A maximum tax
relief of up to RM5000 is given to the taxpayer.
7. Books,
journals, magazines and publications (excluding newspapers): Maximum
amount claimable is RM1000
8. Treating
serious diseases: The tax relief is up to a maximum of RM5000 for the taxpayer,
spouse or child treating such illnesses like AIDS and cancer. Expenses for full
medical examination of up to RM500 are included in this relief.
9. Studies:
There is a tax relief up to RM5000 for a taxpayer who takes up certain courses
such as law accounting, Islamic finance and IT.
10. A personal computer: An amount of up to RM3000
is claimable once every three years.
11. Sports
equipment: Purchase of sports equipment for certain sports activities is
claimable up to RM300.
12. Broadband
services: The amount is limited to RM500 to any taxpayer who has a monthly
broadband subscription.
13. Net
saving in SSPN (The National Education Savings Scheme): it is limited to RM3000 per year.
14. Donations:
This tax deduction cannot exceed 7% of the taxpayer’s aggregate income.
15. Insurance
premiums: Premiums paid for education
and medical policies in the name of the taxpayer or for your spouse or child up to RM3000
16. EPF (Employee Provident fund) and life insurance: A personal tax relief of up to
RM6000 is claimable. In addition, you can claim up to RM1000 for payments into deferred
annuity schemes.
17. Child
Relief for parents: A tax relief of RM1000 per unmarried child each year until
he or she turns 18. For a child who is 18 and above pursuing full-time
education locally or overseas, one parent may claim tax relief of RM4000. For
an unmarried child who is over 18 and continuing full-time education at a
secondary school entitles the taxpayer to an RM1000 relief. The tax relief for
an unmarried and disabled child is at RM5000. Additional relief of RM4000 if
your disabled child pursues a full-time tertiary education.
18. Tax
deduction for property owners: Residential property owners can claim tax
deductions on interest paid on the mortgages. Only one property qualifies for
this deduction, and the taxpayer must be a citizen and resident of the country.
You will get a relief of up to RM10000 a year for three consecutive years, from
the first year that interest is paid.
Rebates
19. Zakat (tithe payments for Muslim) or
Fitrah: It is claimable up to the maximum of tax
charged.
20. A tax rebate of RM400 for a resident individual with chargeable income
less than RM35000 is given
21. As in No. 20 where husband or wife is not
working, a tax rebate of RM400 is also given.
Tax is subject to change from time to time. You can
refer to https://e.hasil.gov.my/ for more information.
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