Last Chance To Get Up To RM2,500 Income Tax Relief 2019
Do you know what is income tax relief? Tax reliefs are set by Lembaga Hasil Dalam Negeri (LHDN), where a taxpayer is able to deduct a certain amount for cash expended in that assessment year, from the total annual income. These are for certain activities that the government encourages to lighten our financial loads.
For income tax, Malaysia, tax reliefs can help reduce your chargeable income, and thus your taxes. If planned properly, you can save a significant amount of taxes.
Things To Do Now To Maximise Income Tax Relief
There are various items included for income tax relief within this category which are:
- books, journals, magazines, printed newspapers
- sports equipment and gym membership fees.
- computer (annually)
- payment of a monthly bill for internet subscription
The maximum income tax relief amount for the lifestyle category is RM2,500. So if you bought a computer that costs more than that, you can no longer include your gym membership, internet subscription, and others for income tax relief.
Do also take note :
If you have a golf club membership which also has gym facilities, it would not qualify for this income tax relief.
Here are some of the other things that you can claim for.
|Tax Relief Year 2019|
|Individual Relief Types||Amount (RM)|
|Self and Dependent||9,000|
|Medical expenses for parents|
|Basic supporting equipment for disabled self, spouse, child or parent||6,000 (Limited)|
|Education Fees (Self)|
(i) Other than a degree at Masters or Doctorate level-for acquiring law, accounting, Islamic financing, technical, vocational, industrial, scientific or technological skills or qualifications;
(ii) Degree at Masters or Doctorate level-for acquiring any skills or qualification
|Medical expenses for serious diseases for self, spouse or child||6,000 (Limited)|
|Complete medical examination for self, spouse, child||500 (Limited)|
(i) Purchase of books journals, magazines, printed newspaper and other similar publications (except banned reading materials) for self, spouse or child;
(ii) Purchase of a personal computer, smartphone or tablet for self, spouse or child;
(iii) Purchase of sports equipment for any sports activity as defined under the Sports Development Act 1997 (excluding motorized two-wheel bicycles) and gym memberships for self, spouse or child; and
(iv) Payment of monthly bill for internet subscription
|Purchase of breastfeeding equipment||1,000 (Limited)|
|Net saving in SSPN’s scheme||8,000 (Limited)|
|Child care fees to a Child Care Centre or a Kindergarten||1000 (Limited)|
|Interest expended to finance purchase of residential property. Relief of up to RM10,000 a year for three consecutive years from the first year the interest is paid.|
Subject to the following conditions:(i) the taxpayer is a Malaysian citizen and a resident;
(ii) limited to one residential unit;
(iii) the sale and purchase agreement is signed between 10th March 2009
and 31st December 2010; and
(iv) the residential property is not rented out.
(a) 2 or more individuals are eligible to claim relief for the same property ; and
(b) total interest expended by those individuals exceeds the allowable amount for that year. Each individual is allowed an amount of relief for each year based on the following formula:
A x B
A = total interest allowable in the relevant year;
B = total interest expended by the relevant individual in the relevant year;
C = total interest expended by all the individuals.
|Husband/Wife/Alimony Payments||4,000 (Limited)|
|Ordinary Child relief||2,000|
|Each unmarried child of 18 years and above who is receiving full-time education (“A-Level”, certificate, matriculation or preparatory courses).||2,000|
| Disabled child|
Additional exemption of RM8,000 disable child age 18 years old and above, not married and pursuing diplomas or above qualification in Malaysia @ bachelor degree or above outside Malaysia in program and in Higher Education Institute that is accredited by related Government authorities
|Life insurance dan EPF||EPF (4000)|
Life Insurance (3000)
|Deferred Annuity and Private Retirement Scheme (PRS) – with effect from year assessment 2012 until year assessment 2021||3,000 (Limited)|
|Insurance premium for education or medical benefit INCLUDING not through salary deduction||3,000 (Limited)|
|Contribution to the Social Security Organization (SOCSO)||250 (Limited)|
Source: Inland Revenue Board of Malaysia
As a final note, when filing for your income tax remember to not under-declare your income. Many people tend to do so. You will then have LHDN come after you for all of your under-declared income down the road plus you will also be fined and risk being jailed.