Personal Tax Relief 2023
With the personal tax return period looming, are you ready to optimize your personal tax relief before the end of 2023? We've compiled a list of available personal tax reliefs for the year of assessment 2023 to help you prepare for your tax return.
Tax Relief for Self, Spouse, Child or Parent
1. Self - RM9,000
2. Disabled individual - additional RM6,000
3. Husband / wife / payment of alimony to former wife - maximum RM4,000*
4. Disabled husband / wife - RM5,000
5. Medical treatment, special needs and carer expenses for parents - maximum RM8,000*
6. Purchase of basic supporting equipment for disabled self, spouse, child or parent - maximum RM6,000
7. Education fee for self - maximum RM7,000*
~ Include course of study undertaken for the purpose of upskilling or self-enhancement - maximum RM2,000
~ Any course of study up to tertiary level, other than a degree at masters or doctorate level - course of study in law, accounting, islamic financing, technical. vocational, industrial, scientific or technology
~ Degree at masters or doctorate level - any course of study
8. Medical expenses - maximum RM10,000*
~ Including vaccination for self, spouse and child - maximum RM1,000
~ Including expenses on complete medical examination for self, spouse or child, COVID-19 detection test including purchase of self-detection test kit for self, spouse or child and mental health examination or consultation for self, spouse or child - maximum RM1,000
~ Serious deseases for self, spouse or child
~ Fertility treatment for self or spouse
Child
1. Each unmarried child and under the age of 18 years old - RM2,000
2. Each unmarried child of 18 years and above who is receiving full-time education - RM2,000
~ A-Level, certificate, matriculation or preparatory courses
3. Each unmarried child of 18 years and above - RM8,000
~ Receiving further education in Malaysia in respect of an award of diploma or higher (excluding matriculation/preparatory courses)
~ Receiving further education outside Malaysia in respect of an award of degree or its equivalent (including Mater or Doctorate)
~ The instruction and educational establishment shall be approved by the relevant government authority
4. Purchase of breastfeeding equipment for own use for a child aged 2 years and below - RM1,000*
~ Deduction allowed once in every 2 (two) years of assessment
5. Child care fee to a registered child care centre / kindergarten - maximum RM3,000*
~ For child aged 6 years and below
6. Net deposit in Skim Simpanan Pendidikan Nasional - maximum RM8,000
7. Disabled child - additional RM6,000
8. Disabled child age 18 years old and above, not married and pursuing diplomas or above qualification in Malaysia - additional RM8,000
~ Including Bachelor degree or above outside Malaysia in program and in Higher Education Institute that is accredited by related Government authorities
Lifestyle
1. Lifestyle - maximum RM2,500
~ Purchase or subscription of books/journals/magazines/newspaper/other similar publications (not banned reading materials)
~ Purchase of personal computer, smartphone or tablet (not for business use)
~ Purchase of sport equipment for sport activity defined under the Sport Development Act 1997
~ Payment of gym membership
~ Payment of monthly bill for internet subscription (under own name)
2. Lifestyle (additional) - maximum RM500*
~ Purchase of sport equipment for any sports activity as defined under the Sport Development Act 1997
~ Payment of rental or entrance fee for any sports facility
~ Payment of registration fee for any sports competition where the organiser is approved and licensed by the Commisioner of Sports under the Sport Development Act 1997
3. Expenses on charging facilities for Electric Vehicle (not for business use) - maximum RM2,500
Saving and Insurance
1. Life insurance and EPF - maximum RM7,000
~ Pensionable public servant category who do not contribute to EPF or any approved scheme - Life insurance premium, or
~ Other than the above category - life insurance premium (maximum RM3,000) and EPF/approved scheme (maximum RM4,000)
2. Deferred Annuity and Privite Retirement Scheme (PRS) - maximum RM3,000
3. Education and medical insurance - maximum RM3,000
4. Contribution to the Social Security Organisation (SOCSO) - maximum RM350
* Please refer to the below detail of tax relief.
DETAILS OF TAX RELIEF
Husband / wife / payment of alimony to former wife
Tax Relief for Self, Spouse, Child or Parent
1. Self - RM9,000
2. Disabled individual - additional RM6,000
3. Husband / wife / payment of alimony to former wife - maximum RM4,000*
4. Disabled husband / wife - RM5,000
5. Medical treatment, special needs and carer expenses for parents - maximum RM8,000*
6. Purchase of basic supporting equipment for disabled self, spouse, child or parent - maximum RM6,000
7. Education fee for self - maximum RM7,000*
~ Include course of study undertaken for the purpose of upskilling or self-enhancement - maximum RM2,000
~ Any course of study up to tertiary level, other than a degree at masters or doctorate level - course of study in law, accounting, islamic financing, technical. vocational, industrial, scientific or technology
~ Degree at masters or doctorate level - any course of study
8. Medical expenses - maximum RM10,000*
~ Including vaccination for self, spouse and child - maximum RM1,000
~ Including expenses on complete medical examination for self, spouse or child, COVID-19 detection test including purchase of self-detection test kit for self, spouse or child and mental health examination or consultation for self, spouse or child - maximum RM1,000
~ Serious deseases for self, spouse or child
~ Fertility treatment for self or spouse
Child
1. Each unmarried child and under the age of 18 years old - RM2,000
2. Each unmarried child of 18 years and above who is receiving full-time education - RM2,000
~ A-Level, certificate, matriculation or preparatory courses
3. Each unmarried child of 18 years and above - RM8,000
~ Receiving further education in Malaysia in respect of an award of diploma or higher (excluding matriculation/preparatory courses)
~ Receiving further education outside Malaysia in respect of an award of degree or its equivalent (including Mater or Doctorate)
~ The instruction and educational establishment shall be approved by the relevant government authority
4. Purchase of breastfeeding equipment for own use for a child aged 2 years and below - RM1,000*
~ Deduction allowed once in every 2 (two) years of assessment
5. Child care fee to a registered child care centre / kindergarten - maximum RM3,000*
~ For child aged 6 years and below
6. Net deposit in Skim Simpanan Pendidikan Nasional - maximum RM8,000
7. Disabled child - additional RM6,000
8. Disabled child age 18 years old and above, not married and pursuing diplomas or above qualification in Malaysia - additional RM8,000
~ Including Bachelor degree or above outside Malaysia in program and in Higher Education Institute that is accredited by related Government authorities
Lifestyle
1. Lifestyle - maximum RM2,500
~ Purchase or subscription of books/journals/magazines/newspaper/other similar publications (not banned reading materials)
~ Purchase of personal computer, smartphone or tablet (not for business use)
~ Purchase of sport equipment for sport activity defined under the Sport Development Act 1997
~ Payment of gym membership
~ Payment of monthly bill for internet subscription (under own name)
2. Lifestyle (additional) - maximum RM500*
~ Purchase of sport equipment for any sports activity as defined under the Sport Development Act 1997
~ Payment of rental or entrance fee for any sports facility
~ Payment of registration fee for any sports competition where the organiser is approved and licensed by the Commisioner of Sports under the Sport Development Act 1997
3. Expenses on charging facilities for Electric Vehicle (not for business use) - maximum RM2,500
Saving and Insurance
1. Life insurance and EPF - maximum RM7,000
~ Pensionable public servant category who do not contribute to EPF or any approved scheme - Life insurance premium, or
~ Other than the above category - life insurance premium (maximum RM3,000) and EPF/approved scheme (maximum RM4,000)
2. Deferred Annuity and Privite Retirement Scheme (PRS) - maximum RM3,000
3. Education and medical insurance - maximum RM3,000
4. Contribution to the Social Security Organisation (SOCSO) - maximum RM350
* Please refer to the below detail of tax relief.
DETAILS OF TAX RELIEF
Husband / wife / payment of alimony to former wife
- In the event of a divorce or death of the wife in the basis year, the individual would still be entitled to a full deduction
- The deduction is for husband / wife with no total income
- Deduction for the payment of alimony or maintenance made by an individual to a former wife and that individual is required under law to make those payments
- Voluntary payments of alimony to a former wife under a mutual agreement without any formal agreement would not qualify for a deduction
- Where a husband / wife (other than a hsuband / wife who is a disabled person) has an income which is derived from sources outside Malaysia and her gross income from those sources is more than the amount of deduction allowed for a husband / wife, the taxpayer is not eligible to claim a deduction for husband / wife
- "Serious desease" means acquired immunity deficiency, syndrome, Parkinson's disease, cancer, renal failure, leukaemia or other similar diseases
- The claim for fertility treatment is only eligible for married individual
- "Fertility treatment" means intrauterine insemination or in vitro fertilisation treatment or any other fertility treatment. Consultation fees and medicines are also part of the fertility treatment for the purpose of claiming this deduction
- The claim for medical expenses has to be evidenced by a receipt and certification issued by a medical pratitioner registered with the MMC
- The vaccinations which qualify for deduction are:
- Pneumococcal;
- Human papillomavirus (HPV);
- Influenza;
- Rotavirus;
- Varicella;
- Meningococcal;
- TDAP combination (tetanus-diphtheria-acellular-pertussis); and
- Coronavirus Disease 2019 (COVID-19)
- "Complete medical examination" means full medical check-up as defined by the MMC which include:
- Physical examination such as eye, ear, nose, throat, neck, chest, heart, breast, abdomen, hand, foot, body weight examinations, blood pressure;
- X-ray examination;
- Blood and urine test; and
- Discussion with the physician conducting the test on the results of the examination
- A person who undergoes laboratory test such as blood tests, urine analysis and x-ray examination is not eligible for this deduction
- Parents refer to natural parents or foster parents where the individual is an adopted child
- Expenses on medical treatment for parents which qualify for deduction include:
- Medical treatment and care services provided by a nursing home; and
- Dental treatment limited to tooth extraction, filing, scaling and cleaning but not including cosmetic dental treatment expenses such as teeth restoration and replacement involving crowning, root canal and dentures
- Expenses on medical treatment and care for parents who suffer from diseases or with physical or mental disabilities and who need regular treatment certified by qualified medical practitioners regitered with the MMC. Certification of a medical practitioner is needed to confirm that the medical condition of the parent requires medical treatment, special needs or a carer
- The relief are subject to the following conditions:
- The carer for parents shall not include that individual, his wife or her husband or the child of the individual;
- The parents shall be individuals resident in Malaysia;
- The Medical treatment and care services are provided in Malaysia; and
- The medical practitioner is registered with the MMC
- The deduction allowed is the fees for courses undertaken to obtain law, accounting, Islamic financing, technical, vocational, industrial, scientific or technological qualification or skill
- Scientific skills means the study of the nature or behaciour of the material and physical universe such as studies in the field of biology, physics, chemistry, mathematics, information technology, engineering or medicine
- The course must be undertaken in any institution or professional body in Malaysia recognised by the Government or approved by the Minister
- For Islamic finance, the course of study must be approved by the Bank Negara Malaysia or the Securities Commission and can be undertaken at any institution or professional body in Malaysia recognised by the Government or approved by the Minister of Finance, including at the International Center for Education in Islamic Finance (INCEIF)
- The course of study is extended to any course undertaken for the purpose of upskilling of self-enhancement and that course is conducted by a body recognised by the Director General of Skills Development under the National Skills Development Act 2006
- The deduction is allowed provided that the individual:
- is a breastfeeding mother;
- Breastfeeds her child aged up to 2 years;
- Expended on the purchase of breastfeeding equipment for her own use; and
- Makes a claim that is evidendced by receipts issued in respect of the purchase
- Breastfeeding equipment that qualifies for a deduction under this paragraph are as follows:
- A breast pump kit and an ice pack;
- Breast milk collection and storage equipmentl and
- A cooler set or a cooler bag
- The establishment of the child care centre must be registered with the DSW under the Child Care Centre Act 184 under the Ministry of Women, Family and Community Developement
- The kindergarten is subject to the Education Act 1996 and must be registered with the State Education Department under the Ministry of Education
- This deduction can only be claimed by a husband or a wife and must be supported by:
- Birth document of the child such as MyKid or birth certificate; and
- Receipts of the monhtly fees issued by such chid care centre or kindergarten
- The deduction allowed for:
- For the purchase of sports equipment for any sport activity as defined under the Sports Development Act 1997 (excluding motorised two-wheel bicycles;
- For the payment of rental or entrance fee to any sports facility; and
- For the payment of registration fee for any sports competition where the organiser is approved and licensed by the Commissioner of Sports under the Sports Development Act 1997
16 Dec 2023
