fbpx
Connect with us

News

First-Time Tax Payer? Here’s What You Need To Know About Malaysia’s Tax Relief 2021

Published

on

Pjimage 5 1 1
Source: Harian Metro & Tengku Azrul and Co

Follow us on Facebook, Youtube, Twitter, and Instagram for the latest stories and updates daily.

It’s that time of the year again!

If you’re a first-time taxpayer and you’re not really sure what tax reliefs are, it just means that you’re able to deduct a certain amount of money expended in the year from your total annual income. These are typically used for activities that the government encourages to supposedly lighten our financial load, as reported by iMoney.

Starting 1 March of every year, taxpayers are encouraged to start submitting their income tax return forms through the e-Filing system. With this system, taxpayers no longer need to print out the income tax form and fill it in manually.

Business Tax Checklist C

For illustration purposes only.

Tax relief

According to Lembaga Hasil Dalam Negeri Malaysia (LHDN), here’s a list of tax relief to look forward to this tax season:

 

1. Automatic Individual Relief (RM9,000)

An individual taxpayer is eligible for up to RM9,000 tax relief.

 

2. Disabled persons (RM6,000)

Any disabled person registered with the Department of Social Welfare (JKM) and certified as OKU is eligible to claim up to RM6,000. Spouses of disabled persons can claim up to RM3,500.

RM6,000 is eligible for parents with mentally or physically disabled children. Relief is claimable if the child is unmarried, regardless of their age.

For an unmarried and disabled child who is receiving full-time education in Malaysia or overseas, another relief of RM8,000 is claimable. However, they are only eligible if they are:

  • Pursuing a full-time diploma or higher qualifications in Malaysia
  • Pursuing a full-time Master’s or Doctorate course overseas
Asian Parents Kissing Baby

For illustration purposes only.

 

3. Parents (RM5,000)

You can claim up to RM5,000 if you have parents with medical conditions that require special treatment that is medically certified. This also includes purchases of equipment, costs of healthcare, and treatment for their health condition.

Citizens can claim up to RM3,000 for both parents (RM1,500 for each parent) if their elderly parents are:

  • Biological or adoptive parents
  • Malaysian residents aged 60 and above
  • Aggregated annual income does not exceed RM24,000

However, if siblings are making these claims under the same parent, they have to divide the allocated amount equally.

 

4. Medical expenses (RM6,000)

RM6,000 can be claimed for self, spouse, or children who are undergoing medical treatments for serious diseases.

Tax relief is also claimable for the cost of fertility treatment like IVF or IUI and also RM500 relief is for full medical checkups. Note that, this can only be done at medical institutions that are registered with the Ministry of Health (MOH).

 

5. Lifestyle purchases (RM2,500)

Purchases of lifestyle equipment can also be claimed for amounts of up to RM2,500 for yourself, your spouse, and children. This form of tax relief includes personal computers and smartphones, reading materials, sports equipment purchases, gym memberships, and personal internet bills.

Plus, an additional relief of RM2,500 can be claimed if one has purchased a smartphone, computer, or tablet for personal use between the period of 1 June to 31 December 2020.

Cityuni

For illustration purposes only.

 

6. Self-education fees (RM7,000)

Tax relief of up to RM7,000 is eligible for those studying Doctorate, Masters, and undergraduate degrees or lower. Any course or programme for Doctorate and Masters is eligible for this tax relief. However, for undergraduate degrees or lower, only these selected programmes are eligible for claims – law, accounting, Islamic financing, technical, vocational, industrial, scientific, or technology.

 

7. Parenthood (RM3,000)

The purchase of breastfeeding equipment for personal use (for children aged 2 years & under) is claimable to an amount of up to RM1,000. Preschool and kindergarten fees for children 6 years & below can also be claimed for amounts up to RM3,000.

 

8. SSPN (RM8,000)

Parents who have contributed to the Skim Simpanan Pendidikan Nasional (SSPN) are eligible for tax relief of up to RM8,000 for their annual net savings.

 

9. Life insurance & investments (RM7,000)

This tax relief covers retired public servants’ life insurance, employees’ life insurance, and EPF. For retired public servants, RM7,000 is claimable for premium life insurance. Tax relief of up to RM3,000 is eligible for those who work in private sectors and public servants that are not given pension.

For their EPF contributions and other approved schemes, employees are eligible to claim up to RM4,000. Another tax relief of up to RM3,000 is eligible for any taxpayer who is making contributions in the deferred annuity scheme or the Private Retirement Scheme (PRS).

10. SOCSO

Taxpayers who made contributions to SOCSO are eligible to claim relief of RM250.

For more information on the kinds of tax relief that are available, visit LHDN’s website here.

 

Also read: New Zealand Raises Minimum Wage To RM58 Per Hour & Taxes For Top 2% To 39%

Pjimage 2021 04 02T125601.525 1

 

Source: Parents


Follow us on Facebook, Youtube, Twitter, and Instagram for the latest stories and updates daily.



Just In

Picture 1 9 Picture 1 9
News1 day ago

106 Factories Ordered To Close For Violating FMCO SOPs

A total of 106 factories were ordered to close for violating the standard operating procedures of the Movement Control Order...

Pjimage 8 Pjimage 8
News2 days ago

“He speaks better than some MPs” M’sians Impressed By US Ambassador’s Fluency in BM

This guy speaks better Bahasa than some Malaysians!  In a recent video by the U.S. Embassy Kuala Lumpur, Ambassador Brian...

Images Images
News2 days ago

Annoyed By Baby’s Cries, Sabah Man Flees After Beating 1yo & Threatening To Hang Wife

A 27-year-old man from Sabah allegedly beat his one-year-old child and threatened to hang his own wife after he was...

Poss Poss
News2 days ago

Selangor Man Charged For Possessing 58 Pieces Of Women’s Clothing, Pleads Not Guilty

A 23-year-old man was charged in the Magistrate’s Court today (18 June) for the possession of 58 pieces of women’s...

Shipping Ft Shipping Ft
News3 days ago

Prices Of Toys, Coffee & Furniture May Rise Due To Outrageous Shipping Costs

Who doesn’t love online shopping? With Covid-19 not showing any signs of slowing down, lockdown online shopping has become a...

Ear Ft Ear Ft
News3 days ago

Young People In China Are Getting ‘Elf Ear’ Procedures To Look Thinner & Slimmer

Ever wondered what it’s like to have pointy elf-like ears like Spock from Star Trek?  Well, pointy ears are now...

Pjimage 62 1 Pjimage 62 1
News3 days ago

KJ: Walk-Ins For Vaccinations Allowed Once Registered Individuals Receive Their Vaccines

PPV vaccination centres across the country will be open their doors to those who want to get vaccinated on a...

Ascscascc Ascscascc
News3 days ago

JB Man Pleads Not Guilty For Beating Pregnant Wife Until She Went Into A Coma

A 38-year-old man pleaded not guilty at the Johor Bahru Sessions Court today (17 June) for beating his pregnant wife...

Announcement

Latest Videos



TRENDING TODAY