Personal Income Tax Malaysia – Tax Reliefs – YA2019

Table of Contents

Starting from 1 March 2020, the Inland Revenue Board of Malaysia (“IRBM”) has opened the e-Filing portal for the submission of Income Tax Return Form for the Year of Assessment (“YA”) 2019 (i.e. Forms E, BE, B, P, BT, M, MT, TF and TP).

If you’re a salaried working adult like me, you would understand the annual pain of gathering long lost receipts, adding up tax reliefs, and calculating whether you are eligible to get a tax refund or you need to cough up more taxes and remit it to the IRBM, is here. Or if you just stepped into the working world, be prepared to face the pain next year.

Generally, the company you’re working for would already deduct monthly tax deductions (“MTD”) from your pay, and remit it to the IRBM on your behalf. So, the only way for you to get back a bit of what you’ve paid (or sometimes all of it), is through maximising tax reliefs, tax deductions and tax rebates that are available to you.

I did an Excel sheet which you may download it here using this link -> Income Tax Calculation (Template for 2019). Basically, after inputting your income and those tax reliefs you are eligble for, you should be able to see your tax position for YA2019.

Do give comments if there are any errors in the calculation or in the explainations / limitations.

A snapshot of the reliefs available for individuals:

LimitNotes
1Individual and dependent relatives9,000
2Medical treatment, special needs and carer expenses for parents (Medical condition certified by medical practitioner)

OR

5,000Medical expenses for parents which qualify for deductions include:
– Medical treatment expenditures for parents who are diagnosed with diseases or physical/mental disabilities.
– Medical care for parents provided by a nursing home.
– Dental treatment limited to tooth extraction, filling, scaling and cleaning but excluding cosmetic dental treatment.
– Special needs expenditures such as nutritional food and disposable diapers.You must substantiate your claim for this income tax relief in Malaysia with written evidence/prescribed/endorsed by a certified medical practitioner registered with the Malaysian Medical Council (MMC) supported by purchase/payment receipt. Carer must have written certification or valid work permit, excluding the spouse or children, if any, of person receiving care.On top of that, the parents shall be resident in Malaysia and the medical treatment or care services must be provided in Malaysia.
Parent
Restricted to 1,500 for only one mother.
Restricted to 1,500 for only one father.
3,000This income tax relief can be shared with other siblings provided that the total tax relief claimed does not exceed MYR 1,500 for a mother and MYR 1,500 for a father.

a) If two or more children were to claim the tax deductions, each child is eligible to claim a portion of the total RM1,500 on behalf of the mother and another portion of the total RM1,500 on behalf of the father, where the cumulative total claims from all children are limited to RM3,000 only.

To claim this income tax relief, the Malaysian taxpayer must fulfill all the following conditions:
– The taxpayer does not claim expenses related to the medical treatment and care of parents.
– The parents are the legitimate natural parents and foster parents in accordance with the law (subject to a maximum of two persons).
– The parents are aged 60 years and above.
– The parents are tax residents in Malaysia in the current year of assessment.
– The parents have an annual income not exceeding MYR 24,000 per annum for each parent.

Income means any income that is obtained from salary, business gains, pensions, interest (including interest from fixed deposit) and etc.

3Basic supporting equipment for disabled self, spouse, child or parent6,000Basic supporting equipment includes haemodialysis machine, wheelchair, artificial leg and hearing aid but excludes optical lenses and spectacles.
4Disabled Individual6,000
5Education Fees (Self)7,000(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/Doctorate level-for acquiring any skills or qualification.
6
&7
(i) Medical expenses for serious diseases for self, spouse or child

(ii) Complete medical examination for self, spouse, child – 500 (Limited)

     6,000Cancer, heart attack, pulmonary hypertension, renal failure, chronic liver disease, fulminant viral hepatitis, brain tumour, major burns, major organ transplant, Parkinson’s Disease, HIV/AIDS, major amputation of limbs, head trauma, chronic skin disease, diabetes mellitus, major thalassemia, rheumatology and leukemia.

If you have mental health condition, you can claim for tax relief for your medications, therapy and check up.

8Lifestyle allowance2,500(i) Purchase of books journals, magazines, printed newspaper and other similar publications (except banned reading materials);
(ii) Purchase of a personal computer, smartphone or tablet (no hybrid computers [e.g. Microsoft Surface / personal computer and a tablet function together];
(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 [excluding sports attire];
(iv) Payment of monthly bill for internet subscription (Under own name).
9Purchase of breastfeeding equipment for own use for a child aged 2 years and below1,000Deduction allowed once in every 2 years of assessment.
10Child care fees to a registered child care centre / kindergarten for a child aged 6 years and below1,000
11SSPN Scheme (Nett)8,000Total deposit in 2019 MINUS total withdrawal in 2019.
12Husband / wife / payment of alimony to former wife4,000
13Disabled husband / wife3,500
14Each unmarried child and under the age of 18 years old2,000
15Each unmarried child of 18 years and above who is receiving full-time education (“A-Level”, certificate, matriculation or preparatory courses)2,000
16Each unmarried child of 18 years and above that:8,000(i) receiving further education in Malaysia in respect of an award of diploma or higher (excluding matriculation/ preparatory courses).
(ii) receiving further education outside Malaysia in respect of an award of degree or its equivalent (including Master or Doctorate).
(iii) the instruction and educational establishment shall be approved by the relevant government authority.
17Disabled child6,000
8,000Additional 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.
18Life insurance and EPF including not through salary deduction7,000(i) Pensionable public servant category
– Life insurance premium
(ii) OTHER than pensionable public servant category
– Life insurance premium (Restricted to RM3,000)
– Contribution to EPF / approved scheme (Restricted to RM4,000)
19Deferred Annuity and PRS3,000YA2012 to YA2021
20Education and medical insurance (INCLUDING not through salary deduction)3,000To qualify for the this income tax relief, the Malaysian insurance policy must be in your name (policy owner as the claimant).

(1) A medical policy must satisfy the following criteria –
(a) the expenses should be related to the medical treatment resulting from a disease or an accident or a disability;
(b) the policy coverage should be for a period of 12 months or more;
(c) the policy can be a stand-alone policy or as a rider to a life insurance policy. If it is a rider, only the rider premium can qualify for tax relief;
(d) where a dreadful disease cover is attached to a basic policy, the whole amount of the rider premium paid is allowed as a tax relief;
(e) where a dreadful disease cover is packaged together with a term life/personal accident cover, 60% of the package premium is allowed as a income tax deduction;
(f) group medical policy where the employee pays the premium for the medical benefit also qualifies for income tax deduction; and
(g) premium for waiver benefit rider and travel and medical expenses insurance are not allowable as a tax deduction.

21SOCSO contribution250

Do note that the above may be inaccurate, so please use at your own discretion.

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