Income Tax Relief 2024 Malaysia Lhdn for individual (personal) : List Income Tax Deduction, rebate & Exemption for lifestyle & medical expenses for parents
According to the Inland Revenue Board (LHDN), any individuals who earn at least RM34000 annually after EPF deductions need to pay the tax to the government. These individuals are called as taxpayer. The taxpayer whose fail to declare and pay their income tax will be liable to face any legal action.
However, based on the revised Budget, Dato’ Seri Anwar Ibrahim who is Minister of Finance (MOF) stated that any taxpayer will be given lhdn tax deduction or tax relief of their income taxable within RM35000 to RM100000 taxable income band.
Tax relief 2024 lhdn means the amount of tax that need to be paid by individual taxpayer will be reduced.
These reliefs are given with the purpose of to ease the burden of the taxpayer from paying high income tax annually.
What Is An Example Of A LHDN Income Tax Relief 2024 Malaysia
There are various 2024 tax relief malaysia that have been announced by the government.
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It includes individual and dependant relatives, medical expenses, education fees, lifestyle purchases, sport expenses, childcare fees and etc as stated by LHDN.
These tax exemption malaysia were given to taxpayer to reduce the chargeable income tax according to the limit given by government.
SOURCE: LHDN
1. LHDN Tax Relief For Personal Tax & Dependent
Personal tax means tax imposed on individual taxpayer.
Meanwhile, dependant tax means tax imposed on dependant of taxpayer such as parents and children.
Hence, taxpayer is allowed to claim the tax relief for personal income tax and for their dependant up to RM9000.
2. Income Tax Relief LHDN For Parents Medical Expenses Malaysia
Individual taxpayer who assists in the welfare of their parents in respect of medical expenses will be liable to claim amount limited to RM8000 for that basis year i.e 2024.
Medical expenses are included medical treatment, special needs, and carer expenses.
The medical condition of taxpayer’s parents needs to be certified by medical practitioner who is a registered doctor with the Malaysian Medical Council.
3. Tax Relief For Disabled Dependent (Child Parent Spouse)
Tax relief also been entitled for disabled dependent such as child, parent and spouse up to RM6000.
It is given for the purpose to purchase any of the necessary basic supporting equipment for their daily use.
4. Tax Relief For Disabled Person
According to Section 46(1)(e) of Income Tax Act 1967, taxpayer who is a disabled person, he/she entitled to additional amount of income tax reduction 2024 up to RM6000.
The disabled person means an individual certified in writing as disabled person by the Department of Social Welfare.
5. Tax Deduction For Fee Help (Master PHDN Degree Students)
Taxpayer who pursues their studies is allowed to claim up to RM7000 for tax deduction on fee incurred for any course or level of education.
The courses mentioned are included any course of study up to tertiary level for Degree, the courses are law, accounting, technical, Islamic financing, scientific, industrial, vocational or technology.
However, reduction will be given for any course of study for degree at Masters or Doctorate level (PHD) undertaken for any course of study.
Furthermore, this course of study needs to be for the purpose of self-enhancement and self-improvement.
Other than that, this course also needs to be approved by the Government or Minister.
6. Personal Tax Deduction 2024 For Critical Illness
Pursuant to Section 46(1)(g) of Income Tax Act 1967, a tax relief up to RM8000 will be allowed that incurred by taxpayer who suffering from a critical illness.
The critical illness defines as treatment of AIDS, immunity deficiency syndrome, cancer, leukaemia, Parkinson’s disease, heart attack, chronic level disease and any diseases that been categorised as critical illnesses.
A medical practitioner needs to provide receipt and certification in order to make a claim.
7. Personal Tax Deduction 2024 For Medical Expenses
Medical expenses by taxpayer on other that serious diseases will be liable for tax deduction limit up to RM1000.
It is part of the RM8000 threshold for medical expenses on critical diseases. In order to substantiate the claim, the receipt from medical practitioner is required as evidence.
8. Personal Tax Deduction 2024 For Electric Vehicle
Electric vehicle involves the cost of electric charging facilities such as installation, rental, hire-purchase, subscription fees and any other cost that related to this electric vehicle.
The tax deduction will be given up to RM2500 to the taxpayer.
However, the electric vehicle is not for a business use.
9. LHDN Tax Deduction For Travel Expenses
A tax deduction has been given to the taxpayer to support Malaysia’s domestic tourism industry.
It is one of the items tabled in Budget to enhance the development of the economy due to the COVID-19 pandemic.
Tax deductions up to RM1000 are liable for claim.
The expenses that are liable for this claim are the payment of accommodation for registered premises as stated by the Commissioner of Tourism under the Tourism Industry Act 1992, the payment of tourist attraction entrance fees, and the purchase of a domestic tour package with a licensed tour agent that is registered with the Commissioner of Tourism under the Tourism Industry Act 1992.
10. Tax Relief For Socso Malaysia
According to Section 46(1)(n) of the Income Tax Act 1967, a income tax reduction 2024 restricted to RM350 has been given for contributions made by taxpayers to the Social Security Organization (SOCSO).
11. Lhdn Individual Tax Relief For Health Insurance Malaysia
Any taxpayer who paid for premium health insurance for himself, his wife, and their child shall be liable for a tax relief claim up to RM3000.
This tax relief is stated pursuant to Section 49(4) of the Income Tax Act of 1967.
12. Tax Deduction For Deferred Annuity Premium Malaysia
A tax deduction shall be allowed, restricted to RM3000, for payment of a deferred annuity made by the taxpayer during the year of assessment.
13. Personal Tax Deduction 2024 For Education Insurance Malaysia
Any taxpayer who paid for premium education insurance for himself, his wife, and their child shall be liable for a tax relief claim up to RM3000.
This tax relief is stated pursuant to Section 49(1B) of the Income Tax Act of 1967.
14. Income Tax Deduction For Life Insurance Malaysia
Individual residents who pay tax shall enjoy a tax deduction up to RM3000 for any payment made for any life insurance, inclusive of takaful insurance.
This is applicable for retired public servants who receive pensions but do not contribute to EPF or any other approved schemes.
It is also applicable to any employees that are liable to pay tax, either public or private, who do not contribute to the EPF scheme or any other approved scheme can claim these tax deductions.
15. Personal Tax Deduction 2024 For EPF Contribution
Individual taxpayer, who made EPF contribution shall liable for tax deduction up to RM4000.
It can either individual taxpayer who work at public or private institution that includes self-contributions to EPF without employer input.
16. Tax Reduction 2024 For Child Disability Including Further Study
A child in this context is defined as a legitimate child, a stepchild or an adopted child in accordance with any law.
An individual who is a taxpayer would be entitled to claim child relief up to RM14000 if the child pursues their studies at any level of education and it is proven by the Director General that the child is physically or mentally disabled.
17. Tax Exemption Malaysia For Child At University
A tax credit has been given to the taxpayer who has an unmarried child 18 years of age or older receiving further studies in Malaysia in diploma or higher (other than matriculation or preparatory courses), receiving further studies outside Malaysia in degree or equivalent to that (including a Master or Doctorate), or any other education establishment approved by the relevant government authorities.
The restricted amount of the lhdn exemption 2024 is RM8000.
18. Tax Credits For Child With ADHD
Attention deficit hyperactivity disorder (ADHD) is one of the mental illnesses that has been proven by Malaysian Health.
A taxpayer who has a child with ADHD is liable for a lhdn exemption 2024 up to RM6000.
19. LHDN Tax Credit For Child With Autism
Autism is also one of the mental illnesses that has been proven by Malaysian Health. A taxpayer who has a child with Autism is liable for a tax credit up to RM6000.
20. Tax Benefit For Disabled Spouse
Disabled spouse means either husband or wife certified in writing by the Department of Social Welfare to be disabled.
There are tax benefits up to RM5000.
21. Tax Deduction For Alimony Payment
A tax deduction made for alimony payments entitled to the husband (individual taxpayer) for the assessment year to a wife, a former wife or in pursuance of a court order is restricted to an amount of RM4000.
However, according to Section 47(3), the total deduction for this relief shall not exceed RM4000.
22. Tax Relief For SSPN Malaysia
Tax relief up to RM8000 is allowed to taxpayers that deposit their savings in a Skim Simpanan Pendidikan Nasional Account.
It is counted based on the net deposit in SSPN.
23. LHDN Tax Exemption For Kindergarten Malaysia
The payment of child care to kindergarten registered under the Education Act 1996, either attending Taska or Tadika registered with the Social Welfare Department and Ministry of Education Malaysia, shall be liable to tax exemption.
However, this tax exemption malaysia is only allowed for children under 6 years old, and below that, it is restricted to RM3000.
24. Personal Tax Relief 2024 For Breastfeeding
A tax relief of up to RM1000 is given to individual wives who purchase breastfeeding equipment for their own children aged 2 years and below.
The claim can be made with evidence of a purchase receipt.
This lhdn exemption 2024 is available once every 2 years of assessment.
25. Lifestyle Tax Relief Malaysia LHDN
The taxpayer is liable for lifestyle tax relief lhdn incurred by himself or herself, his spouse, and children.
These categories of lifestyle tax relief are stated in The Finance Act 2017 as follows:
- Reading materials such as books, journals, magazines, printed newspapers, or any other similar publications;
- Technology equipment, such as a personal computer, smartphone, or tablet;
- Sport equipment for any sport activity;
- Gym membership; and
- Monthly internet subscription bills under the taxpayer’s name
Lifestyle that fall under these categories shall enjoy malaysia personal income tax relief up to RM2500.
26. Personal Tax Relief 2023 For Sport Equipment
Sport equipment for any sport activity shall be entitled to incoem tax relief claim of RM2500.
However, it excludes motorized 2 (two) wheel bicycles. Additional tax relief amounted RM500 is been given for any purchase of sport equipment as stated under Sports Development Act 1997, payment of rental and entrance fee for sport activity and payment of registration for sport competition.
27. Personal Tax Relief For Internet Subscription 2024
Internet subscriptions for monthly bills shall be entitled to tax relief of RM2500 as they fall under lifestyle categories.
28. Tax Relief For Books & Newspaper Subscription
Reading materials such as books, journals, magazines, printed newspapers, or any other similar publications purchased by the taxpayer for personal use shall be liable for malaysia personal income tax relief up to RM2500.
29. LHDN Tax Relief For Computer Tablet & Smartphone Malaysia
Technology equipment such as computer, tablet and smartphone purchased by the taxpayer for personal use and benefit of spouse or children also shall be liable for malaysia personal income tax relief 2024 up to RM2500.
30. Lhdn Individual Tax Relief For Mental Health Malaysia
Mental health expenses that include examination or consultation by the taxpayer, spouse, or children shall be liable for tax relief restricted to RM1000.
31. LHDN Individual Tax Relief For Vaccination
A taxpayer would enjoy a malaysia personal income tax relief up to RM1000 for any vaccination for individual, spouse and children.
32. Income Tax Relief For Fertility Treatment Malaysia
Individual taxpayers, their spouses, and children are entitled to a maximum amount of RM8000 for the fertility treatment made.
It is given with the purpose of easing the financial burden faced by taxpayers.
33. Income Tax Relief For Donation in Malaysia
Gifts or donations such as those to the government, state government, and local authorities, approved institutions, for any approved sports activity or sports body, for any approved project of national interest approved by the Ministry of Finance, gifts in terms of artifacts, manuscripts, or paintings, for the provision of library facilities or to libraries, for the provision of facilities in public places, to any healthcare facility approved by the Ministry of Health, and to the National Art Gallery or any state art gallery in terms of money or in kind shall be liable for tax relief.
Malaysia personal income tax relief up to a maximum of 10% of aggregate income.