As we go into April, aka the month of declaring your income to the Inland Revenue Board of Malaysia (LHDN), it’s time for every working Malaysian to rummage over old receipts in hope to use them to claim their tax money back. Whether if you have done it ten times or it’s your first time, there are some changes on tax relief items as listed on LHDN’s website.
This year, there are 21 items Malaysians can apply for tax relief. Among them, parents with young kids are in advantage because two of these are the new additions to the list:
- RM1,000 for breastfeeding equipment and
- RM1,000 for child care fees to a child care centre or a kindergarten
Here are some of the top picks that are more likely to be relevant for all Malaysians at large:
1. Complete medical examination (for self, spouse, child)
It’s not too late to run to the hospital and do a medical check-up just to claim this tax relief. You can claim up to RM500 if you, your spouse or your child have undergone a medical examination. Kiasu level increase! What are you waiting for? “Free” medical check-up leh…
2. Purchases of books, electronic devices, Internet subscription and sports membership/equipment
This is probably where you scramble to find the receipts. As stated on LHDN webpage, books, journals, magazines, printed newspaper and other similar publications (except banned reading materials) are all eligible to claim for tax relief.
If that’s not enough, purchases of electronic devices such as personal computer, smartphone or tablet are also included in this category. Gym membership, purchases of sports equipment (as defined under the Sports Development Act 1997, excluding motorized two-wheel bicycles), and internet subscription fees are all included.
This category is limited to RM2,500 tax relief for self, spouse, and child. It’s probably the category most Malaysians can utilize on.
3. Educational Fees (for self)
Source: Georgia Tech
Are you working and studying? Your effort is rewarded! Malaysians who are pursuing a Certificate/Diploma/Bachelor’s Degree in Law, Accounting, Islamic financing, Technical, Vocational, Industrial, Scientific or Technological skills or qualifications are eligible to claim up to RM7,000 tax relief! Postgraduates (Master or Doctorate degree) who are studying in any field are also eligible for it.
4. Net saving in Skim Simpanan Pendidikan Nasional’s (SSPN) scheme
If you have deposited your saving into SSPN account in 2017, you’re eligible to claim up to RM6,000 for it. However, the tax relief takes into account of the withdrawal you made from SSPN account as well. It’s calculated as the total deposit in year 2017 MINUS the total withdrawal in year 2017.
5. Life insurance dan EPF INCLUDING not through salary deduction
Most of us definitely have life insurance purchased through banks or insurance agencies. Well, the premium that you are paying for it is claimable through the tax relief. Add that up with the EPF contributions you made throughout the year, the total amount is claimable up till RM6,000.
6. Insurance premium for education or medical benefit INCLUDING not through salary deduction
Other than life insurance, the premium you are paying for medical and education can also be claimed. This allows you to claim up to RM3,000.
7. Deferred Annuity and Private Retirement Scheme (PRS)
If you are the one that contributes to private retirement scheme (PRS), you can claim up to RM3,000 similarly as the one stated above.
Here is the full list of tax reliefs. Make sure you don’t miss any: