Thursday, December 28, 2017

Personal Relief - Taxation Malaysia

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2017 tax return e-filing will be available generally from 1 March every year, I decided to go through all of my receipts accumulated in a box just to make sure I had them all accounted correctly. Personal relief:
  • Medical expenses for parents – RM5,000 – medical treatment for own parents; also includes expenses to care for parents, for example, through a carer. It includes treatment and care at home, day care or home care centres. Claims must be evidenced by a medical practitioner certifying that the medical condition of the parent requires medical treatment or special needs.  

  • Medical expenses (including RM500 for medical examination) – the annual medical check-up should not be missed. Timely, too, to call the hospital for an appointment, especially after all the festive bingeing! 

  • Purchase of support equipment for disabled taxpayer, spouse, children or parent – RM6,000  

  • Claim for wife or husband if either has no source of income or elects for combined assessment – RM4,000

  • Life insurance premium/ approved fund contributions/ Private pension fund – RM6,000 – a note to remember that the contributions to EPF will need to be accounted with the life insurance premium for claim of the RM6,000 deduction.

  • Private Retirement Scheme – RM3,000 – a separate relief for contributions made by individuals to the Private Retirement Scheme approved by the Securities Commission. 
  • Insurance premiums for education or medical benefits – RM3,000

  • Fees for acquiring technical, vocational, industrial, scientific, technological, law, accounting, Islamic financing, skills or qualifications at tertiary level or any course of study at postgraduate level – RM7,000 – the institution or professional body must be in Malaysia and recognised by the Government or approved by the Ministry of Finance. 

  • Lifestyle – RM2,500 – this tax relief will now replace the previous tax relief for the purchase of reading materials, sports equipment, computer and subscription of broadband internet. It now includes:
    i)Purchase of books, journals, magazines, printed daily newspapers and other similar publications (excluding banned publications); 
    ii)Purchase of sports equipment for sports activities as defined under the Sports Development Act 1997; 
    iii)Purchase of computer, smartphone or tablet;
    iv)Subscription of broadband internet; and, 
    v)Gymnasium membership fee.   

  • Amount deposited into Skim Simpanan Pendidikan Nasional – RM6,000 

  • Interest paid on housing loans – RM10,000 – the relief is given for 3 consecutive years from the year the housing loan interest is paid, subject to the following conditions:
    i)the taxpayer is a Malaysian citizen and a resident;
    ii)limited to 1 residential house including flat, apartment or condominium; 
    iii)the sale and purchase agreement is executed between 10 March 2009 and 31 December 2010; and,
    iv)the taxpayer has not derived any income in respect of that residential property. 

  • Parental care – RM1,500 for either parent – this claim is subject to the following conditions:
    i)Taxpayer does not claim the relief for expenses incurred on medical treatment and care of parents;
    ii)Parents are the legitimate natural parents and foster parents in accordance with the respective law subject to a maximum of 2 persons;
    iii)Parents are aged 60 years and above; 
    iv)Parents are residents in Malaysia in the current year of assessment; and
    v)Parents have an annual income not exceeding RM24,000 per annum for each parent. 

  • SOCSO – RM250 – employee contribution to SOCSO 
  • Breastfeeding equipment – RM1,000 – for purchases of breastfeeding equipment by working women with child aged up to 2 years and can be claimed once every two years. 

  • Fees paid to childcare centres and kindergartens – RM1,000 – for taxpayers who enrol their children up to 6 years of age in childcare centres or kindergartens registered with the 
  • Department of Social Welfare or the Ministry of Education. This tax relief can be claimed by either parent of the children.

Article by Ang Weina

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