Tax season will be coming up early next year for Malaysians making an income of at least RM34,000 for the Year of Assessment (YA) 2023.
Those who have received their Income Tax Return (EA) Form can do this on the MyTax portal by logging in or registering for the first time.
Some amendments in tax reliefs were made for YA 2023, and there are new additions introduced too. Claiming these incentives can help to lower your tax rate and pay less in overall taxes.
With that, here’s LHDN’s full list of tax reliefs for YA 2023.
Self, parents, and spouse
1. Automatic individual relief: RM9,000
By filling in the LHDN e-Filing form, you’re eligible for an automatic tax deduction of RM9,000. As the name suggests, this will be automatically done by the system.
2. Further education fees (self): ≤ RM7,000
A tax relief of up to RM7,000 is claimable if you’re paying for your own further education at a recognised higher learning institution in Malaysia. Here are the criteria:
- Any course of study at a Master’s or Doctorate level is eligible for this relief.
- Only courses in law, accounting, Islamic financing, technical, vocational, industrial, scientific, or technology are claimable for undergraduate degrees or lower.
- Any course of study taken for the purposes of upskilling or self-enhancement are claimable, but only up to RM2,000. Such courses must be recognised under the National Skills Development Act 2006.
3. Spouses and alimonies: ≤RM4,000
This relief is claimable only if your spouse has no source of income, or if they opt for a joint assessment in your name. However, if your spouse has a gross income exceeding RM4,000 derived from sources outside of Malaysia, you cannot claim this.
Husbands who are paying alimony to a former wife can claim this relief for the amount of alimony paid, or up to a limit of RM4,000. Only formal alimony agreements qualify for this tax relief.
Medical
4. Medical expenses for parents: ≤ RM8,000
You can claim a maximum of RM8,000 if you’ve paid for your parents’ medical treatment, special needs, and caretaker expenses.
5. Medical expenses for self, spouse, or child: ≤ RM10,000
You can now claim up to RM10,000 for yourself, your spouse, or children undergoing medical treatments for serious or difficult-to-treat diseases. These illnesses include AIDS, Parkinson’s disease, cancer, renal failure, leukaemia, and heart attack.
Vaccinations and fertility treatments (like IVF or IUI undergone by married couples) are also claimable under this category.
Furthermore, up to RM1,000 in relief is dedicated to a full medical checkup, mental health checkup or consultation, and COVID-19 detection test for yourself, spouse, or child.
For YA 2023, the scope has expanded to include intervention expenditure for Autism, Attention Deficit Hyperactivity Disorder (ADHD), Global Developmental Delay, Intellectual Disability, Down Syndrome, and specific learning disabilities.
These are limited to RM4,000 where:
- Diagnostic assessment is certified by a medical practitioner registered with the Malaysian Medical Council
- Early intervention and rehabilitation programme is conducted by a health profession practitioner that’s registered under the Allied Health Profession Act 2016
Disabled persons
6. Equipment for disabled self, spouse, child, or parent: ≤RM6,000
If you’ve purchased special support equipment for yourself, your spouse, children, or parents who are disabled, you’re eligible for tax relief of up to RM6,000.
Disabled individuals would need to be registered with the Department of Social Welfare (JKM) and be certified as OKU.
7. Disabled individual (Self): RM6,000
Disabled persons registered under JKM are eligible for a further deduction of RM6,000 under this relief.
8. Disabled spouse: RM5,000
Those who have a disabled spouse are entitled to a further relief of RM5,000 under this relief.
9. Disabled children
Disabled child relief: RM6,000
Parents with an unmarried child who is physically or mentally disabled, regardless of their age, are eligible for a tax relief of RM6,000. Children must be certified by JKM as a disabled person.
Disabled child aged 18 and above pursuing higher education: RM8,000
Additionally, there’s an exemption of RM8,000 if parents have an unmarried disabled child receiving a tertiary education. This deduction is an add-on to the disabled child relief if they are:
- Pursuing a diploma and above in Malaysia; or
- Pursuing a degree level and above outside Malaysia; or
- Serving under articles or indentures in a trade or profession in Malaysia
Lifestyle
10. Lifestyle purchases for self, spouse, or child: ≤RM2,500
A tax relief of up to RM2,500 is deductible for the purchases of lifestyle equipment for personal use by yourself, your spouse, or children. Items include:
- Purchase or subscription of books, journals, magazines, newspapers, or other similar publications (in the form of hardcopy or electronic) for the purpose of enhancing knowledge;
- Purchase of personal computer, smartphone, or tablet;
- Purchase of sports equipment and gym memberships; and
- Internet subscription
Extra relief for tech: ≤ RM2,500
On top of the lifestyle purchases relief, there is an additional relief of up to RM2,500 for the purchases of a personal computer, smartphone, or tablet.
Extra relief for sports activities: ≤ RM500
An extra deductible of up to RM500 is claimable for expenses related to the cost of purchasing sports equipment, entry/rental fees for sports facilities, and registration fees for sports competitions.
Parenthood
12. Breastfeeding equipment: ≤ RM1,000
Mothers who are breastfeeding a child aged two years and below can claim a relief of up to RM1,000 if they’ve purchased personal breastfeeding equipment.
This deduction can only be made once every two years of assessment.
13. Childcare and kindergarten fees: ≤ RM3,000
Parents with children aged six and below, who are in daycare centres or kindergartens, can claim a tax relief limited to RM3,000.
This deduction can only be claimed by either one of the child’s mother or father.
14. Skim Simpanan Pendidikan Nasional (SSPN): ≤ RM8,000
SSPN (Skim Simpanan Pendidikan Nasional) is a savings plan that encourages parents to invest in their children’s higher education.
Parents who make a deposit into the SSPN account established under Perbadanan Tabung Pendidikan Tinggi Nasional Act 1997 are eligible for a relief of up to RM8,000 for their annual net savings (total deposit in 2023 minus total withdrawal in 2023).
15. Unmarried child under 18: RM2,000
Parents can get a tax relief of RM2,000 for each child of theirs under 18 years old. This deduction can only be claimed by either one of the child’s mother or father.
16. Child aged 18 and above pursuing a full-time education
Child aged 18 and above in Pre-U Courses: RM2,000
Parents can claim a tax relief of RM2,000 for each unmarried child aged 18 and above, who is undergoing preparatory courses, such as foundation, A-Levels, or matriculation.
Child aged 18 and above pursuing further studies: RM8,000
RM8,000 is claimable for parents with unmarried children aged 18 and above if they are a full-time student pursuing:
- A diploma or higher (excluding the above mentioned preparatory courses) in Malaysia;
- Any courses at institutions of higher learning recognised by the Ministry of Higher Education (MOHE)
Insurance and investments
17. Life insurance, EPF, or approved schemes
Life insurance for retired public servants: ≤RM7,000
Retired public servants receiving a pension can claim tax relief of up to RM7,000 for their life insurance premiums or Takaful contributions. Effective YA 2023, those in this group can qualify for EPF contribution reliefs of up to RM3,000 made voluntarily.
Employees’ life insurance: ≤RM3,000
Employees in private and public sectors with no pensions are eligible for a tax relief of up to RM3,000.
Employees’ EPF: ≤RM4,000
Such employees can also claim up to RM4,000 for EPF contributions or other approved schemes. These investments include self-contributions to EPF without employer input.
18. Deferred annuity & PRS: ≤ RM3,000
You are eligible for a tax relief limited to RM3,000 if you’ve made contributions in the deferred annuity scheme or the PRS (Private Retirement Scheme). This relief is in effect from YA 2012 to 2025.
19. Education and medical insurance: ≤ RM3,000
You are eligible for a tax relief of up to RM3,000 if you pay insurance premiums related to education or medical benefits for yourself, spouse, or children.
20. SOCSO & EIS: ≤ RM350
You can also claim a relief of up to RM350 for contributions made to SOCSO (Social Security Organisation) and EIS (Employment Insurance System) for YA 2023.
Local EV expenses
21. Costs related to EV (electric vehicle): ≤ RM2,500
Those who own an EV can claim costs related to EV charging facilities, including installation, rental, hire-purchase of equipment, or subscription fees. This is extended to YA 2027.
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Before claiming the tax reliefs above, remember to keep all proof of spending such as statements, invoices, and receipts. This is to prepare for a possible audit by tax authorities in the future.
Under the tax laws, you are required to keep the records supporting your tax returns for up to a period of seven years.
- Read more about what we’ve written on taxes here.
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