Individual Tax Reliefs: Yay or Nay

The Tax season is just around the corner. Let's take a look at some of the claims that are eligible to be claimed for a Malaysian Tax Resident Individual for the Year of Assessment 2019.

a) Self and Dependent relatives - RM9,000

b) Spouse/payment of alimony to former wife - RM4,000

c) Each unmarried children below 18 years old - RM2,000

d) Each unmarried children above 18 years old & receiving further education - RM8,000

e) Disable child and disable individual - RM6,000

f) Disable spouse - RM3,500

g) EPF contributions - RM4,000

h) Breastfeeding equipment - RM1,000

     * Child 2 years and below and claimable only for women tax payers once every 2 years

i) Child care fees- RM1,000

    * must be a registered child care centre and claimable for child 6 years and below

 j) Sosco - RM250

k) Life Insurance - RM 7,000 (Pensionable Public servant category)

                             - RM3,000 (Other than Publis servant category)

l) Medical Expenses - RM6,000 (For serious disease)

                                  - RM500 (Full medical examination) 

      For Parents          - RM 5,000 (For parents undergoing treatments/special needs)

                                                          

                                                              OR

                                  - RM1,500 (For mother) 

                                  - RM1,500 (For father) 

                                  

m) Private Retirement Scheme - RM3,000

n) Education and medical insurance - RM3,000

o) Education fees - RM7,000 

p) Net deposit is SSPN - RM8,000

q) Lifestyle - RM2,500 (includes reading materials, Purchase of PC, Smartphone/Tablet, internet bill and sports equipment.) 

r) Supporting equipment - RM6,000 (For disable self, child, spouse or parent)

Happy BE filing everyone! :-)



Lochana Nanthacumar

Content Management Analyst

Wolters Kluwer Malaysia 

Budget 2020

Since we will be entering 2020 soon, lets take a recap of some of the exciting Tax highlights of our Budget 2020. It was presented by our Finance Minister YB Lim Guan Eng on 11 October 2019.

Budget 2020 Higlights:-

* Corporate income tax rate for SME's will now be taxable at 17% for the first 600,000 of the company's chargeable income. 

* Also if SMEs are focusing on adopting digitization or if they are undertaking pilot projects on digital applications, then they might be entitled to grants and loans in 2020. 

* To encourage companies to participate in export fairs, the government will provide a tax relief up to RM 25,000 compared to RM 10,000 previously. Please note, this relief is upon approval and submission of certain documents required by Inland Revenue Board Of Malaysia (IRB). 

* Companies are allowed to claim or deduct 10% of approved donations made for the year. Cash Wakaf is now entitled to be deducted as well. 

* The Government has increased the relief for childhood care (Taska) to RM 2,000. It was RM 1,000 previously. 

* Individuals are now eligible to a tax relief of up to RM 6,000 for medical expenses which includes fertility for YA 2020. 

* Individuals with taxable income of RM 2 million and more will now be taxed at 30% instead of 28%. 

Lochana Nanthacumar
Content Management Analyst
Wolters Kluwer Malaysia