Personal Reliefs

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PERSONAL RELIEFS

  w.e.f.
Y/A
2000
(cyb)
RM
w.e.f.
Y/A
2001
(cyb)
RM
w.e.f.
Y/A
2004
(cyb)
RM
w.e.f.
Y/A
2005
(cyb)
RM
w.e.f.
Y/A
2006
(cyb)
RM
w.e.f.
Y/A
2007
(cyb)
RM
w.e.f.
Y/A
2008
(cyb)
RM
w.e.f.
Y/A
2009
(cyb)
RM
w.e.f.
Y/A
2010
(cyb)
RM
w.e.f.
Y/A
2011
(cyb)
RM
w.e.f.
Y/A
2012
(cyb)
RM
 
Taxpayer 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 9,000 9,000 9,000  
Medical expenses for parents (max) 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 (Note 1)
Medical expenses for taxpayer, spouse and children on serious diseases [include RM5-- for medical examination expenses (max)] 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 (Note 2)
Disabled person (further deduction):                        
  • Taxpayer
  • Spouse
5,000
2,500
5,000
2,500
5,000
2,500
6,000
3,500
6,000
3,500
6,000
3,500
6,000
3,500
6,000
3,500
6,000
3,500
6,000
3,500
6,000
3,500
 
Supporting equipment for disabled taxpayer, spouse, children or parent (max) 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000  
Wife - if she has no source of income or elects for combined assessment 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000  
Husband - if he has no source of income or elects for combined assessment 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000  
Children (claimed by either husband or wife):                        
  • Per child (below 18 years of age)
  • Disabled child (unmarried)
  • Per child (over 18 years of age)
    Overseas universities, colleges or similar establishments
    Local universities, colleges or similar establishments
    Disbled child pursuing tertiary education

800
5,000

800
4x800
-

800 5,000

800
4x800
-

1,000 5,000

1,000
4x1,000
-

1,000 5,000

1,000
4x1,000
-

1,000 5,000

4,000
4,000
4,000

1,000 5,000

4,000
4,000
4,000

1,000 5,000

4,000
4,000
4,000

1,000 5,000

4,000
4,000
4,000

1,000 5,000

4,000
4,000
4,000

1,000 5,000

4,000
4,000
4,000

1,000 5,000

4,000
4,000
4,000
(Note 3)
Life insurance premiums/Approved fund contributions/Private pension fund:
Taxpayer (max) 5,000 5,000 5,000 6,000 6,000 6,000 6,000 6,000 7,000 7,000 6,000 (Note 4)
Further deduction for amount paid by wife under combined assessment (max) 5,000 - - - - - - - - - -  
Private Retirement Scheme/Annuuity Scheme                        
Taxpayer (max) - - - - - - - - - - 3,000  
Further deduction for amount paid by wife under combined assessment (max) - - - - - - - - - - -  
Insurance premiums for education or medical benefits:
Taxpayer (max) 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000  
Further deduction for amount paid by wife under combined assessment (max) 3,000 - - - - - - - - - -  
Annuity premium on annuity purchased through EPF Annuity Scheme
Taxpayer (max) 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 - - (Note 6)
Further deduction for amount paid by wife under combined assessment (max) 1,000 - - - - - - - - - -  
Fees for acquiring technical, vocational, industrial, scientific, technological, law, accounting, Islamic financing, skills or qualifications at tertiary level or any course of study at post graduate level (max) 2,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 (Note 7)
Purchase of books, journals, magazines and other similar publications (excluding newspaper or banned publications) for the use of taxpayer, spouse or children - 500 500 700 700 1,000 1,000 1,000 1,000 1,000 1,000  
Purchase of computer - - - - - 3,000 3,000 3,000 3,000 3,000 3,000 (Note 8)
Interest expended to finance the purchase of a first residential property (if the taxpayers fulfil the requirements as stipulated in S. 46A of the ITA 1967) - - 3,000 (max) 2,000 (max) - - - - - - - (Note 9)
Amount deposited into Skim Simpanan Pendidikan Nasional for his child (max) - - - - - 3,000 3,000 3,000 3,000 3,000 3,000 (Note 10)
Purchase of sports equipment - - - - - - 300 300 300 300 300 (Note 11)
Interest paid on housing loans - - - - - - - 10,000 10,000 10,000 10,000 (Note 12)
Broadband subscription fees - - - - - - - - 500 500 500 (Note 13)

 

Explanatory notes

1. With effect from Y/A 2011, the medical treatment for own parents is extended to include expenses to care for parents. Such expenses relate to care provided through a carer, for parents who suffer from diseases, physical or mental disabilities and need regular treatment certified by a qualified medical practitioner. Such treatment and care provided include treatment and care at home, day care centres or home care centres. However, such claims must be evidenced by a medical practitioner certifying that the medical condition of the parent requires medical treatment or special needs.
2. With effect from Y/A 2001, relief for medical expenses for taxpayer, spouse and children includes complete medical examination expenses of up to RM500.
3. With effect from Y/A 2006, an unmarried child over 18 years old receiving full-time education at a recognised local institution of higher learning at diploma level and above or serving under articles/indentures with the view to qualifying in a trade or profession will be eligible for a relief of RM4,000. If the child is receiving full time education at a recognised institute of higher learning outside Malaysia, it must be an award at degree level and above. The second addendum to Public Ruling No 2/2005 on Computation of Income Tax Payable by a Resident Individual dated 3 January 2009, provides that a taxpayer is only entitled to the increased child relief of RM4,000 if the child pursues study in courses and educational establishments recognised by the Government of Malaysia. The courses and Universities recognised by the Government are available in the website of the Public Service Department (www.jpa.gov.my).
4. For Y/A 2010 and Y/A 2011, the relief is increased from RM6,000 to RM7,000. The increased relief amount of RM1,000 is given solely on deferred annuity scheme premium from insurance companies contracted with effect from 1 January 2010. The increased relief amount is also applicable to additional premium paid on existing deferred annuity scheme commencing payment from 1 January 2010. With effect from Y/A 2011, the relief of RM6,000 on contributions made for life insurance premiums and/or approved fund contributions will be extended to include contributions made to the Private Pension Fund to be launched by the Government in 2011.
With effect from Y/A 2012, tax relief on deferred annuity premium is combined with the relief of contribution to private retirement scheme that is approved by Securities Commission. The relief of RM6,000 will only be applicable to contributions made for life insurance premium and/or approved scheme other than a private retirement scheme.
5. With effect from Y/A 2012, relief of RM3,000 is given to contributions made by individuals to Private Retirement Scheme approved by the Securities Commission and/or deferred annuity. This is applicable from Y/A 2012 to Y/A 2021.
6. With effect from Y/A 2011, relief on annuity premiums made on an annuity purchased through the EPF Annuity Scheme is abolished.
7. With effect from Y/A 2001, relief for fees expended on courses at institutions of higher learning in Malaysia (up to tertiary level) for the purpose of acquiring technical, vocational, industrial, scientific or technological skills or qualifications. With effect from Y/A 2006, the relief has been extended to include any course of study up to tertiary level in any institution or professional body in Malaysia recognised by the Government or approved by the Ministry of Finance as the case may be, undertaken for the purpose of acquiring law, accounting skills or qualifications. With effect from Y/A 2007, the relief has been extended to include courses in Islamic Financing. With effect from Y/A 2008, the relief has been extended to any course of study for a degree at Masters and Doctorate level.
8. With effect from Y/A 2007, the relief for purchase of a computer of up to RM3,000 is given once in 3  years. In the case of separate assessment, each spouse is eligible to claim the relief. If it is a combined assessment, such expense is deemed incurred by the spouse who pays income tax.
9. The maximum deduction is RM5,000 for Y/A 2003: RM3,000 for Y/A 2004 and RM2,000 for Y/A 2005.
10. With effect from Y/A 2007, relief of up to RM3,000 is given for amount deposited into Skim Simpanan Pendidikan Nasional established under the Perbadanan Tabung Pendidikan Tinggi Nasional Act 1997 for his or her child.
11. The relief is in respect of purchase of sports equipment for any sport activities as defined under the Sports Development Act 1997. Sports equipment does not include attire and shoes. The claim for the relief must be evidenced by a receipt issued for the purchase.
12. With effect from Y/A 2009, relief of up to RM10,000 a year is given for 3 consecutive years from the first year the housing loan interest is paid. The claim for deduction is subject to the following conditions:
  1. the taxpayer is a Malaysian citizen and a resident;
  2. limited to 1 residential house including flat, apartment or condominium;
  3. the sale and purchase agreement is executed between 10 March 2009 and 31 December 2010; and
  4. the taxpayer has not derived any income in respect of that residential property.
where:
(a)  2 or more taxpayers are each entitled to claim deduction for the relevant year for interest expended in respect of the same residential property; and
(b)  the total amount of interest expended by the taxpayer in the basis year for the relevant year exceeds the amount of deduction allowable for that relevant year,
each taxpayer shall be allowed, for that relevant year, an amount of deduction to be determined in accordance with the following formula:
A x (B/C)
where
A is the total amount of deduction allowed for that relevant year
B is the total interest expended in the basis year for that relevant year by that taxpayer; and
C is the total interest expended in the basis year for that relevant by all such taxpayers.
13. With effect from Y/A 2010 until 2012, relief of up to RM500 per year is given on broadband subscription fees. Based on the IRB’s guidelines issued on 12 April 2011, the RM500 relief can be given for fees paid for internet connection via cable or Digital Subscriber Line with the speed of 256kbps or more but not for fees paid for dialup service (56kbps) for internet connection. The fees must be those paid by individuals for broadband subscriptions that are registered under their personal name in the basis period for a year of assessment.

EXPENSES CLAIMED AGAINST EMPLOYMENT INCOME

A person having employment income could claim expenses incurred in the performance of work such as:
  1. Travelling expenses which are incurred by the individual in the course of exercising his duties as an employee against the traveling allowance.
  2. Annual subscription paid to professional bodies when membership to such bodies is relevant to the performance of duties.
  3. Entertainment expenses which are incurred by the individual in entertaining existing client on behalf of the employer. However, this is limited to the amount of entertainment allowance paid by the employer.

DONATION TO APPROVED FUND

Generally, a person is allowed a deduction against its aggregate income, any gift of money made by him in a basis year for that year to the Government, a State Government, a local authority or an institution or organisation approved for the purpose of S. 44(6) by the Director General on the application of the institution or organization concerned. However, this is provided that the amount to be deducted from the aggregate income of a person other than a company in respect of any gift of money made to any approved institution or organisation does not exceed 7% (with effect from Y/A 2007) of the aggregate income.

SEPARATE ASSESSMENT

Separate assessment for wife’s income from employment, from pension granted on optional retirement or from the exercise of a profession Y/A 1990 and prior
Separate assessment for wife’s income from all sources and allowing the wife to elect for combined assessment with husband Y/A 1991 onwards
Separate assessment for wife’s income from all sources and allowing the husband to elect for combined assessment with wife Y/A 2001 onwards

 

 

 

(Extracted from 2012 Budget Commentary And Tax Information)