If you’re a Malaysian who earns more than RM34,000 yearly, it’s time to file your income tax returns for the Year of Assessment (YA) 2020. So you should refer to your Income Tax Return (EA) form and complete your filing by April 30.
Ever wonder how you can maximise your tax deductions? It’s not that hard. Some of the lifestyle choices you’ve made in the past year can lead to tax reliefs and significant savings!
1. Take care of your parents
They cared for you when you were growing up, and now’s your chance to take care of them in their old age. There are also tax reliefs that you’re entitled to when it comes to parental care.
a) Medical expenses for your parents: Max. RM5,000 relief
If your parents are undergoing treatment for specific medical conditions in Malaysia, and this is proven by a certified medical practitioner, you can claim up to RM5,000.
b) Healthy parents: Max. RM1,500
If your biological or legally adoptive parents are Malaysian residents aged 60 and above, and they are in good health, you can claim up to RM1,500 each for your mum and dad.
If you’re paying for your own further education course at a recognised higher learning institution in Malaysia, you can claim up to RM7,000 in tax relief.
2. Invest in your education
There is always something new to learn in life – upskilling courses and university degrees to elevate your career, as well as books and articles to broaden your mind.
By improving yourself, you also claim for various tax reliefs.
a) Lifestyle purchases: Max. RM2,500
The lifestyle tax relief amounts up to RM2,500 a year. That’s why it’s important to save the receipts and bills for your purchases of:
- Books, journals, magazines, printed newspapers
- Sports equipment and gym membership fees
- Computer, smartphones, or tablets
- Monthly internet subscription
b) Lifestyle purchases for tech gadgets: Max. RM2,500
Claim an additional RM2,500 if you’ve bought a PC, smartphone, or tablet between 1 June and 31 December 2020.
c) Further education: Max. RM7,000
If you’re paying for your own further education course at a recognised higher learning institution in Malaysia, you'll be entitled to claim a tax relief of up to RM7,000 (any Masters or Doctorate courses, or an undergraduate degree/diploma in law, accounting, Islamic financing, technical, vocational, industrial, scientific, or technology).
3. Be a nurturing parent
Besides the joy of watching your child grow up, you can enjoy tax reliefs as a parent.
a) Breastfeeding equipment: Max. RM1,000
Claim up to RM1,000 if you’ve bought breastfeeding equipment for your child (aged two years and below).
b) Childcare expenses: Max. RM3,000
If you’re sending your kids aged six years and below to a daycare centre or kindergarten, you can claim up to RM3,000.
c) Skim Simpanan Pendidikan Nasional: Max. RM8,000
If you have contributed to the Skim Simpanan Pendidikan Nasional (SSPN) for your child’s higher education, you can claim up to RM8,000.
d) Each unmarried child under 18: RM2,000
Get a tax relief of up to RM2,000 for each one of your unmarried children below 18 years old.
e) Disabled child: RM6,000
Parents with an unmarried child who’s physically or mentally disabled can claim for a tax relief of RM6,000, regardless of their age.
If you have unmarried children aged 18 and above who are full-time students that are pursuing a diploma course (or higher) in Malaysia, you can claim RM8,000 in tax relief.
4. Send your child to university
Give your kids a great education and enjoy these tax reliefs.
a) Each unmarried child aged 18 and above in Pre-U courses: RM2,000
If you have children aged 18 and above who are currently pursuing an A-Level, certificate, matriculation or preparatory course on a full-time basis, you can claim RM2,000 relief for each of them.
b) Each unmarried child aged 18 and above who is pursuing further studies: RM8,000
If you have unmarried children aged 18 and above who are full-time students that are pursuing a diploma course (or higher) in Malaysia, you are entitled to RM8,000 relief. If your child is studying for an undergraduate, Masters or Doctoral degree outside Malaysia, you can also claim RM8,000 relief.
Just make sure the institution of higher learning they’re studying in is recognised by the Ministry of Higher Education (MOHE).
c) Disabled child who is pursuing further education: RM8,000
Claim RM8,000 in tax relief if your unmarried and disabled child is receiving a full-time higher education in Malaysia or overseas.
You can enjoy up to RM500 in tax relief if you, your spouse, or child has undergone a full medical checkup.
5. Take care of your health
Going for medical checkups and keeping your health in tip-top shape can be beneficial for your income tax deductions.
Medical expenses for yourself, spouse, or child: Max. RM6,000
If you, your spouse, or kids are undergoing medical/fertility treatments, you can claim up to RM6,000. Under this category, you can also enjoy up to RM500 relief if you, your spouse, or child has undergone a full medical checkup.
6. Go for a holiday
We could use a staycation after all that stay-at-home social isolation during various movement control orders. If you had travelled locally during YA 2020, you can benefit from this tax relief.
Domestic travel: Max. RM1,000
If you had stayed at a registered hotel or purchased entrance fees to tourist attractions during YA 2020, you can claim up to RM1,000 for domestic travel expenses.
Remember to file your income tax by April 30, 2021 at the ezHASiL platform.
Need more info about income tax filing? Check out these articles:
- Malaysia Income Tax e-Filing Guide For Newbies
- Income Tax Relief: What Can You Claim In 2021 For YA 2020?
- What’s The Penalty For Filing Your Income Tax Late?