What is Personal Tax Relief?
Personal tax reliefs are deductions that individuals can claim to reduce their taxable income. By claiming these reliefs, you can lower the amount of tax you owe or even get a tax refund.
Key Personal Tax Reliefs for 2024
Here are some of the main personal tax reliefs you can claim for the year 2024:
1. Individual and Dependent Relatives: You can claim RM 9,000 for yourself and your dependent relatives.
2. Medical Expenses for Parents: You can claim up to RM 8,000 for medical treatment, dental treatment, special needs, and carer expenses for your parents.
3. Basic Supporting Equipment: You can claim up to RM 6,000 for the purchase of basic supporting equipment for disabled self, spouse, child, or parent.
4. Disabled Individual: If you are a disabled individual, you can claim RM 6,000.
5. Education Fees: You can claim up to RM 7,000 for education fees for yourself, including courses for upskilling or self-enhancement (restricted to RM 2,000).
6. Medical Expenses: You can claim up to RM 10,000 for medical expenses on serious diseases, fertility treatment, vaccination, and dental examination and treatment.
7. Lifestyle Expenses: You can claim up to RM 2,500 for lifestyle expenses, including the purchase of books, magazines, computers, smartphones, and sports equipment.
8. Childcare and Kindergarten Fees: You can claim up to RM 3,000 for fees paid to childcare centres and kindergartens for children aged 6 and below.
9. Net Savings in SSPN: You can claim up to RM 8,000 for net savings in the National Education Savings Scheme (SSPN) for your child.
Changes from 2023 Relief
Here are some of the key changes in personal tax reliefs from 2023 to 2024:
1. Medical Expenses for Parents: The relief amount remains the same at RM 8,000, but the scope has been expanded to include more types of medical treatments and expenses.
2. Education Fees: The relief amount remains the same at RM 7,000, but the restriction for upskilling or self-enhancement courses has been extended to the year of assessment 2026.
3. Medical Expenses: The relief amount has been increased from RM 8,000 to RM 10,000, and now includes expenses for fertility treatment, vaccination, and dental examination and treatment.
4. Lifestyle Expenses: The relief amount remains the same at RM 2,500, but the scope has been expanded to include more types of lifestyle expenses.
5. Childcare and Kindergarten Fees: The relief amount remains the same at RM 3,000, but the eligibility has been extended to the year of assessment 2027.
6. Net Savings in SSPN: The relief amount remains the same at RM 8,000, but the eligibility has been extended to the year of assessment 2024.
How to Claim Personal Tax Reliefs
To claim personal tax reliefs, follow these steps:
1. Gather Documentation: Collect all necessary receipts and documents to support your claims.
2. Fill Out Tax Return Form: Complete the tax return form (Form BE) provided by the Inland Revenue Board of Malaysia (LHDN).
3. Submit Your Tax Return: Submit your completed tax return form online through the e-Filing system or manually at any LHDN branch.
4. Keep Records: Keep all supporting documents for at least seven years in case of an audit.
Benefits of Claiming Personal Tax Reliefs
1. Reduce Taxable Income: Lower your taxable income and reduce the amount of tax you owe.
2. Increase Tax Refund: Potentially receive a tax refund if your tax reliefs exceed your taxable income.
3. Encourage Savings and Investments: Incentivize savings and investments in education, healthcare, and other essential areas.
