Serious Diseases That Qualify for Medical Tax Relief

When filing your personal income tax in Malaysia, you may claim a tax relief of up to RM10,000 on medical expenses incurred for yourself, your spouse, or your children — but only if the condition involved qualifies as a serious disease under Paragraph 46(1)(g) of the Income Tax Act 1967 (ITA 1967). Understanding which diseases qualify is critical to ensuring your claim is valid and supported.

What counts as a serious disease?

According to LHDN's guideline, a serious disease that qualifies for medical expense tax relief under Paragraph 46(1)(g) ITA 1967 is generally one that is acute or chronic in nature, cannot be fully cured, requires prolonged medical treatment, and may depend on medications that carry significant side effects. The disease must also exhibit at least one of the following characteristics: it is life-threatening, involves continuously high medical costs, or requires acute hospitalisation.

The full list of qualifying serious diseases

LHDN's Appendix A under Subsection 46(2) ITA 1967 sets out the following conditions:

1. Cancer — including leukaemia, lymphoma, and Hodgkin's disease, confirmed by histology. Benign tumours and all skin cancers (except malignant melanoma) are excluded.

2. Heart attack — including heart valve replacement or repair, coronary artery bypass surgery or angioplasty, and aortic surgery.

3. Pulmonary hypertension

4. Chronic kidney disease — where both kidneys have failed and the patient requires renal dialysis or transplant.

5. Chronic liver disease — presenting with jaundice, ascites, or hepatic encephalopathy.

6. Fulminant viral hepatitis — resulting in liver failure, confirmed by liver function tests.

7. Head injury due to accident — causing severe neurological deficit or permanent disability; confirmation from a neurologist or neurosurgeon is required.

8. Brain tumour or vascular defects of the brain — requiring specialist confirmation.

9. Burns due to fire — third-degree burns covering at least 40% of the body, leading to death upon first hospitalisation or requiring reconstructive surgery.

10. Major organ transplant — involving the kidney, liver, heart, lungs, pancreas, or bone marrow.

11. Parkinson's disease

12. HIV and AIDS

13. Amputation of limb(s) — where a hand, arm, leg, or hip joint must be amputated due to disease or accident. Minor amputations (e.g., a finger or toe) do not qualify.

14. Chronic skin disease — specifically psoriasis, pemphigus, and Stevens-Johnson Syndrome.

15. Mental illness — bipolar disorder, schizophrenia, and major depression.

16. Endocrine disease — diabetes mellitus with complications.

17. Rheumatological conditions — including rheumatoid arthritis, systemic lupus erythematosus (SLE), scleroderma, mixed connective tissue disorder, ankylosing spondylitis, and chronic tophaceous gout.

18. Thalassaemia major

19. Major organ transplant (also listed separately to encompass broader transplant scenarios)

How to make a valid claim

To claim this medical expense tax relief under Paragraph 46(1)(g) ITA 1967, you must retain receipts and a written certification from a registered medical practitioner (registered with the Malaysian Medical Council) confirming that treatment was given for a qualifying serious disease. Note that LHDN will only accept a final diagnosis — a provisional diagnosis or a symptom list is not sufficient. Your name and income tax reference number should be written on the back of all receipts, and documents must be kept for audit purposes.

Can diseases not on the list qualify?

In certain cases, conditions not found in the list above may still be considered, provided a registered medical specialist recommends them and the patient has a permanent disability or has incurred significant medical expenditure. You would need to apply to the LHDN branch handling your tax file for consideration on a case-by-case basis.

Understanding which serious diseases qualify for the medical expense tax relief under Paragraph 46(1)(g) ITA 1967 can make a meaningful difference to your tax position, particularly when managing the financial burden of long-term or critical illness for yourself or your loved ones. When in doubt, consult a registered tax agent or contact your nearest LHDN branch.