Individual personal tax relief is only available for individuals who are considered tax resident in Malaysia. No tax relief is available for non-tax residents. Generally rule is, a person is a Malaysia tax resident if he/she stays more than 180 days in Malaysia. There are some other rules a person can be qualified as tax resident in Malaysia.
Below is a glance of individual tax relief available for year of assessment (YA) 2010. Take a look below and see which of the relief you may able to spend before 31 Dec 2010 and claim tax relief in your tax return by 30 April 2011.
Personal tax relief and deductions for YA 2010 & YA 2011 are essentially the same, it is just the scope is expanded under Budget 2011, but the relief and deduction amounts are the same for both year 2010 & 2011.
Click here for Personal Tax Rates & Table 2011
No | Type of individual tax relief – YA 2010 & YA 2011 | Amount (RM) |
1 | Self and Dependent |
9,000 |
2 | Medical expenses for parents (scope extended from YA 2011, see Budget 2011 summary) |
5,000 (max) |
3 | Basic supporting equipment |
5,000 (max) |
4 | Disabled Individual (in addition to self relief above) |
6,000 |
5 | Education Fees (Individual) |
5,000 (max) |
6 | Medical expenses for serious diseases |
5,000 (max) |
7 | Complete medical examination |
500 (max) |
8 |
Purchase of books, journals, magazines and publications |
1,000 (max) |
9 | Purchase of computer (once every 3 years) |
3,000 (max) |
10 | Net saving in Skim Simpanan Pendidikan Nasional |
3,000 (max) |
11 | Purchase of sport equipment for sport activities |
300 (max) |
12 | Subscription fees for broadband registered in the name of the individual (from 2010 to 2012) |
500 (max) |
13 | Income Tax Relief on Interest of Housing Loan (YA2010 only) |
10,000 (max) |
14 |
Husband/Wife (for joint assessment) /Alimony Payments |
3,000 |
15 | Disable wife/husband |
3,500 |
16 | Ordinary child relief (regardless number of children) |
1,000 per child |
17 | Child age 18 years old and above, not married and receiving full-time tertiary education |
1,000 |
18 | 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 |
4,000 |
19 | Disabled child Additional relief of RM4,000 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 |
4,000 |
20 | EPF and life insurance (scope extended from YA 2011, see Budget 2011 summary) |
6,000 (max) |
21 | Premium on new annuity scheme or additional premium paid on existing annuity scheme commencing payment from 01/01/2010 (amount exceeding RM1,000 can be claimed together with life insurance premium) |
1,000 (max) |
22 | Insurance premium for education or medical benefit |
3,000 (max) |
Under the self-assessment system for individual tax, you do not need to submit the relevant receipts or invoices to the tax authorities (IRB) for those relief expenses spent or incurred, but instead just keep those documents to yourself in case you may be selected by IRB for random tax audit or when you need tax clearance from IRB for previous years of assessment.
How long you need to keep those receipts or invoices for tax purposes? Tax rules require you to keep for 7 years. The calculation of the 7 year period begins from the end of the year in which the Income Tax Return Form is filed. Effectively, you need to keep it for 9 years. How to calculate to 9 years? You spent/incurred relief expense in Year 1, submit the Income Tax Return Form by 30 April in Year 2, and then keep the receipts pursuant to tax rules for 7 years. Total number of years is 1+1+7 = 9 years.
Tax rebate:
An individual with a chargeable income not exceeding RM35,000 entitle to a rebate of RM400 effective from year of assessment 2009. Where the wife is not working or the wife’s income is jointly assessed, she also enjoys a further rebate of RM400. Similarly, a wife who is assessed separately will also enjoy a RM400 rebate, provided her chargeable income does not exceed RM35,000.
Tax rebate is offset against tax payable calculated based the scale income tax rates, whereas tax relief is offset against gross income level before calculating the tax payable based on the scale income tax rates.
Taxable income RM28,000
Less: Tax relief (RM 8,000)
Chargeable income RM20,000
Calculated tax RM475
Less: Tax rebate (RM400)
Tax payable RM75
Related post: |
Tax Return Form B 2010 and Form P 2010 |
Submit your Form B 2010 tax return by 30 June 2010 |
Personal Tax Rates for YA 2010 |
Husband/Wife (for joint assessment) /Alimony Payments, what does this mean – if Wife is not working can be claimed as 3000
Thank you for the post & sharing and I have bookmarked this page for my coming submission. Keep it up, Well done!
hi Parthiban,
Yes, the 3000 is considered as a additional relief to you.
Complete medical examination 500 (max)
I understand that Executive Health Screening is not covered under this. To my understanding medical examination & health screening is the same only terminolgy difference.
What is the difference between Medical examination & Health Screening
Please refer to the following section in describing Complete medical examination expenses :
Section 46(1)(h) of Income Tax Act 1967:
An amount limited to a maximum of five hundred ringgit in respect of complete medical examination expenses expended or deemed expended under subsection (3) in that basis year by that individual on himself or on his wife or on his child, or in the case of a wife, on herself or on her husband or on her child, as evidenced by receipts issued by a hospital or a medical practitioner:
Explanation:
Total deduction: up to a maximum of RM500 and forms a part of the deduction of RM5,000 under paragraph 46(1)(g) ITA.
Details:
i. The individual must have incurred expenses for complete medical examination on himself/herself, spouse or child;
ii. “Complete medical examination” for the purposes of the deduction under this paragraph would mean full medical checkup as defined by the Malaysian Medical Council (MMC).
iii. Where the expenses for complete medical examination up to a maximum of RM500 is already claimed, the deduction for medical expenses for serious diseases which can be claimed by the individual is limited to an amount of RM4,500.
As such, Normal health screening like visiting to Pathlab is not deductible.
What about children’s education n insurance premium? Covered under item#22? max of rm3k?
Yes, SC, the children’s education & medical premium as well as the personal’s medical are classified under the item 22 & subject to max RM3k.
Please take note that life insurance for children is not tax deductible.
i just purchase a house in yr 2011, may i know is there any tax relief for new purchase house?
@shirley Sorry to say that the tax relief for housing loan interest is only available for S&P agreement entered into between 10 March 2009 and 31 December 2010.
For further information, check this out
http://www.nbc.com.my/blog/loan-interest-tax-relief-rm10000-for-3-years/
Hi
I am an expatriate and working in Kuala Lumpur more than 2 years.
What are bills I can claim from Income tax dept.
Regards/Mini
This comment section is closed. Please leave your comment or question in our new article about Personal Tax Relief 2011:
http://www.nbc.com.my/blog/personal-income-tax-relief-for-ya-2011-submit-your-tax-return-before-30-april-2012/