Examples for calculating taxes
Deep, Deep Dive
What is a tax relief?
Tax reliefs are expenses that LHDN allows you to deduct from your chargeable income. You should use the tax reliefs provided because it helps reduce your taxes.
For example, if you bought a personal computer last year, you will be eligible for a tax relief of up to RM2,500. However, LHDN has set a maximum relief amount for each expense. So, even if you’ve spent RM3,000 on your personal computer, you can only claim the maximum relief of RM2,500.
Three important things about tax reliefs:
- Tax reliefs are updated yearly. Do check the list of reliefs every year.
- Tax reliefs have conditions, so make sure you fulfil the criteria for the claims. Here is the link for the full list of tax reliefs and criteria.
- For the tax reliefs you wish to claim, you will need to keep your receipts for seven years as proof. (In case you get called for a tax audit)
Here are some tax reliefs which might apply to you:
|No.||Individual Tax Relief Types||Amount (RM)|
|1||Education fees for yourself||Up to 7,000|
|2||Medical expense spent on parents||Up to 5,000|
|If you don’t claim medical expenses for your parents, you can claim a tax relief of up to RM1,500 per parent.||Up to 3,000|
|3||Basic supporting equipment for disabled self, spouse, child or parent||Up to 6,000|
|4||Personal computer, smartphone, books, sports equipment and internet subscription||Up to 2,500|
|5||Childcare fees for child care centre or registered kindergarten (Can only be claimed by either husband or wife, not both)||Up to 1,000 (Per child)|