Common Tax Reliefs in Malaysia

Below are some of the most common tax reliefs available to Malaysian residents.

1. Individual and Dependent Relatives

Every resident taxpayer automatically receives a personal tax relief.

Relief Amount: RM9,000

If you support dependent relatives such as parents, you may also claim additional relief.

2. Spouse Relief

If your spouse has no income or chooses joint assessment, you can claim spouse relief.

Relief Amount: RM4,000

3. Children Relief

Taxpayers with children can claim relief depending on the child's status.

Higher relief applies if the child is studying in higher education institutions.

4. Education Fees

You may claim tax relief for certain education expenses such as:

• Self-education
• Professional courses
• Postgraduate studies

Maximum Relief: RM7,000

5. Medical Expenses for Parents

Expenses for parents' medical treatment can qualify for tax relief.

Examples include:

• Medical treatment
• Special medical care
• Nursing care

Maximum Relief: RM8,000

6. Lifestyle Relief

Lifestyle relief is one of the most commonly claimed reliefs.

It includes purchases such as:

• Books and reading materials
• Computers and smartphones
• Internet subscription
• Sports equipment
• Gym membership

Maximum Relief: RM2,500

7. EPF and Life Insurance

Employees contributing to Employees Provident Fund (EPF) and life insurance are eligible for relief.

8. Medical Insurance

Premiums paid for medical insurance or education insurance qualify for tax relief.

Maximum Relief: RM3,000

9. Disabled Individual Relief

Taxpayers who are registered as disabled with the Social Welfare Department can claim additional relief.

Relief Amount: RM6,000

Additional reliefs are also available for disabled spouse or disabled children.

Why Tax Relief is Important

Understanding tax relief helps taxpayers:

✔ Reduce income tax legally
✔ Plan their finances better
✔ Avoid overpaying taxes
✔ Maximise available deductions

Many taxpayers miss out on legitimate reliefs simply because they are not aware of them.

Common Mistakes When Claiming Tax Relief

Some common mistakes include:

• Not keeping receipts
• Claiming expenses that are not eligible
• Claiming relief beyond the allowed limit
• Failing to update tax relief changes announced in the Budget

It is important to maintain proper documentation for at least 7 years as required by LHDN.

Need Help With Your Income Tax?

Understanding tax relief rules can be confusing, especially when tax laws change frequently.

At A. Razak & Co. PLT, we assist individuals and businesses with:

• Income tax planning
• Tax relief optimisation
• LHDN tax submissions (Form BE, B, M)
• Tax advisory services

Our experienced tax professionals ensure you claim the correct tax relief and remain compliant with Malaysian tax laws.