Towards the end of 2024, the average Malaysian is surely thinking about more efficient financial management methods due to the increasing cost of living, festive celebrations and high tax determination next year.
In this article, we will share 13 categories of tax relief that can reduce the financial burden and manage it more wisely.
1. Self (RM9,000)
This amount is for individuals who meet the requirements as Malaysian tax residents, which is at least 182 days a year and meet the tax conditions specified in that year.
2. Spouses Without Income (RM4,000)
This initiative is for couples who are not working or have no fixed income, they can claim this relief to reduce the amount of income subject to tax.
3. Children Under 18 Years (RM2,000)
This means that if you have children under 18 years of age, you can claim this relief to reduce your taxable income for each child who meets the age requirements in the year of assessment.
4. Children Continuing to Study at University (RM8,000)
This relief can be claimed if your child is studying at a recognised university, either locally or abroad and is over 18 years of age.
5. Disabled Children (RM6,000 – RM8,000)
The tax relief for disabled children is RM6,000. If the disabled child continues his studies at a higher education level, an additional relief of RM8,000 can be claimed.
So, the total tax relief for disabled children studying at university can reach RM14,000. This relief helps to ease the tax burden for parents with disabled children.
6. Lifestyle (RM2,500)
This exemption covers the purchase of electronic devices, reading materials, internet subscriptions, gym memberships or sports activities. This is aimed at encouraging a healthier lifestyle and the use of technology among individuals.
7. Course Fees (RM7,000)
This is reserved for individuals who are taking courses related to improving skills or education, including courses for professional development or further studies.
The courses must be recognized by a valid educational authority or institution. This exemption is intended to encourage individuals to improve their skills and knowledge.
8. Preschool (RM3,000)
This exemption is given to parents who pay preschool or kindergarten fees for their children. This exemption is intended to ease the financial burden of families in providing early education for their children before they enter primary school.
9. Medical Treatment for Self/Spouse/Children (RM8,000)
This measure is made for medical expenses involving treatment for oneself, spouse, or children including expenses such as hospital bills, treatment of chronic diseases, surgery and other treatments required by the individual or family.
10. Treatment of Parents (RM8,000)
The exemption can be claimed by individuals for medical expenses incurred for the treatment of their parents. This includes the cost of hospital treatment, medicines or any other expenses related to the health of the parents.
11. Life Insurance/EPF (RM7,000)
Both of these contributions can reduce the individual's total taxable income, with the aim of promoting financial protection and savings for retirement.
12. SSPN (RM8,000)
SSPN is a scheme provided by the National Higher Education Fund Corporation (PTPTN) to help families plan financially for their children's higher education. This tax relief is intended to encourage people to save for their future education.
13. Donations (Up to 10% of Aggregate Income)
Tax relief for donations is up to 10% of aggregate income. This means that individuals can claim tax relief based on the amount of donations given to charities recognized by the government.
These donations can include cash or other forms of donations channeled to organizations or institutions that meet certain conditions set by the Inland Revenue Board (IRB).
Hopefully, this information on tax relief helps you plan your finances more wisely and take advantage of this opportunity to save more money in 2025!
