It is that time of the year again to file our income tax for most eligible Malaysians. Personally, I prefer to file it as early as possible just to get it done & also to ensure that I am able to receive a refund for my overpaid taxes. To be honest, this year’s filing was more challenging compared to last year due to a change of format but after understanding the details & familiarised with the new format, I was able to get it done within 30 minutes.
There is a long list of tax relief items that Malaysians are able to enjoy below are some of the important ones that you can utilize depending on your current relationship.
Individual:
1. Individual Relief: RM9,000It is an auto deduction as long as you file your income tax.
2. Education Fee: RM7,000You can deduct up to RM7,000 for selected education that is recognized by higher learning institutions in Malaysia. There are also other upskill courses that can be claimed up to RM1,000 as long as is recognized under the National Skills Development Act 2006.
3. Alimony Relief: RM4,000If you are divorced & have a formal agreement on the alimony, you can claim up to RM4,000.
Lifestyle:
1. Domestic Travel Expenses: RM1,000If you did have your Cuti-Cuti Malaysia holiday for accommodation that is approved by MOTAC or entrance receipt for tourist attraction, you may use it to file your income tax.
2. Lifestyle Relief: RM2,500This is meant for the purchase of reading material, computer, laptop, tablet, smartphone, sports equipment, internet subscription, or gym membership.
3. Additional Lifestyle Relief: RM2,500This is additional relief for the purchase of a computer, laptop, tablet & smartphone.
4. Additional Lifestyle Related to Sports Activities: RM500Good news for those who are active in sports. You can enjoy up to RM500 for all sports equipment purchase, rental or entrance for any sports facility & also registration fee for sports competitions.
Contributions (EPF, Insurance & Other Approved Schemes):
1. Life Insurance & EPF for Public Servants: RM7,000If you are a retired public servant that is receiving a pension, you can claim up to RM7,000 for life insurance & also EPF.
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2. Life Insurance for Private or Public Sectors: RM3,000For some individuals that are paying for both life & medical insurance, please refer to your insurance statement for the exact amount.
3. EPF: RM4,000If you are self-employed, you can also contribute to enjoy the tax relief.
4. Private Retirement Scheme (PRS) or Deferred Annuity Scheme: RM3,000For PRS, you can also split to a monthly payment of RM250 per month instead of paying the full amount. It is valid from 2012 to 2025.
5. SOCSO: RM250
6. Education & Medical Insurance: RM3,000This applies to yourself, your spouse & also your children.
Medical Expenses:
1. Medical Expenses For Parents: RM8,000You can claim your parent treatment up to RM8,000 for medical expenses such as treatments, special care, or even special needs.
2. Medical Expenses For Yourself, Spouse & Children: RM8,000There are multiple expenses that you can claim such as serious illness or fertility treatment. Full medical check-ups & also Covid related screening or vaccination are also eligible for this.
3. Support Equipment For Disabled: RM6,000This applies to yourself, your spouse, child & parents.
Child Related Deductions:
1. Unmarried Child Under 18: RM2,000/eachThis can only be claimed by either the father or mother.
2. Unmarried Child Above 18 With Full Time Education: RM2000/eachThis applies to A-levels, foundation, matriculation & others.
3. Unmarried Child Above 18 With Further Education: RM8000/eachThis applies to diplomas & above for education in Malaysia.
4. Purchase Of Breastfeeding Equipment: RM1,000It is only subject to female taxpayers with children below age 2. The deduction is allowed every 2 years of assessment.
5. Skim Simpanan Pendidikan Nasional (SSPN): RM8,000This is to encourage parents to invest in their children’s higher education.
Disabled Individuals Or Family Registered In JKM:
1. Disabled Individual: RM6,000
2. Disabled Spouse: RM5,000
3. Disabled Child: RM6,000
4. Disabled Child Age 18 & Above With Full Time Education: RM8,000
Conclusion:
The due date for income tax filing will be on 30th of April 2022. If you are filing using e-Filing, there will be an extra 15 days grace period for you. Why do you have to wait since you can do it now? The faster you do it, the faster you are able to receive the refund. Since this is an annual practice for most of us, what do you think you can do better? Personally, I think it is important to fully utilize each tax relief as it is your right as a citizen of Malaysia. Do refer to Malaysia 2022 Budget details to identify the tax relief that you are able to enjoy.
OSS!
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