Simplifying Tax Filing: What You Need to Know

TAX filing can often feel overwhelming and intimidating for many. However, with the right support and guidance, the process can be made simple and manageable.
Any individual earning over RM34,000 annually after EPF deductions (approximately RM2,833.33 per month) is required to register a tax file. This figure includes not only your monthly salary but also any other income sources such as business or professional earnings, employment income, dividends, interest, rent, royalties, premiums, pensions, annuities, and more.
For salaried individuals, it’s essential to include any additional taxable income beyond your regular salary, such as bonuses, overtime, and commissions. Freelancers and part-timers are also required to file their taxes if their annual income exceeds RM34,000.
Below is a detailed guide to the tax reliefs available for the 2024 Year of Assessment (YA):
Under Individual and Spouse:

1. Individual & Dependent Relatives
   Claim: RM9,000. This relief is automatically granted to individuals for themselves and their dependents.
2. Husband/Wife/Alimony
   Claim: Up to RM4,000. You can claim this relief if your spouse has no income or opts for joint assessment in your name. If your spouse’s gross income exceeds RM4,000 from outside Malaysia, you cannot claim this relief. Husbands paying alimony to a former wife may claim the actual amount paid, up to a maximum of RM4,000, which includes both support for a current spouse and alimony payments.
3. Education Fees in Malaysia
   Claim: Up to RM7,000. This covers tertiary or postgraduate education fees. If the course is for upskilling or self-improvement, the claim is capped at RM2,000, and the relief extends to YA 2026.

Under Insurance & Contributions:

1. Life Insurance and EPF Contributions
   Claim: Up to RM7,000. This covers both life insurance premiums and EPF contributions, where you can claim:
2. Up to RM3,000: Life insurance premiums/takaful contributions and additional voluntary EPF contributions
3. Up to RM4,000: Mandatory or voluntary EPF contributions (or other approved schemes)
4. Private Retirement Scheme (PRS) and Deferred Annuity
   Claim: Up to RM3,000. This relief is limited to RM3,000 for individuals and RM3,000 for a spouse with income. Married couples opting for joint assessment are restricted to RM3,000.
5. SOCSO Contributions
   Claim: Up to RM350. Contributions to SOCSO and Employment Insurance System (EIS) are eligible for tax relief.
6. Net Deposit in SSPN
   Claim: Up to RM8,000. Contributions to the National Education Savings Scheme (SSPN) for children’s higher education are eligible for tax relief, with a limit of RM8,000 per individual.

Under Lifestyle Purchases for Self, Spouse, or Child:

1. Lifestyle
   Claim: Up to RM2,500. This covers expenses for:
2. Books, journals, magazines, and other printed/electronic publications
3. Personal computers, smartphones, or tablets
4. Internet subscriptions
5. Skill improvement or personal development courses
6. Sports Activity Expenses
   Claim: Up to RM1,000. This includes expenses for:
7. Sports equipment
8. Facility rental or entrance fees
9. Sports competition registration fees
10. Gym memberships or sports training
11. Electric Vehicle (EV) Charging Equipment
    Claim: Up to RM2,500. This tax relief covers the purchase, installation, or rental of EV charging equipment, including subscriptions for EV charging services. This was introduced under Budget 2022 and extended to YA 2027.

Under Medical and Special Needs:
Claim: Up to RM10,000 (total).
⦁ Medical Expenses for Parents: Up to RM8,000. This includes treatment, special needs, or carer expenses. A complete medical examination is capped at RM1,000, as per Budget 2024.
⦁ Medical Expenses for Family: This includes:
⦁ Fertility treatment for married couples
⦁ Complete medical examination (up to RM1,000)
⦁ Vaccination (up to RM1,000)
⦁ Expenses for children with learning disabilities (up to RM4,000) such as Autism, ADHD, GDD, Intellectual Disability, and Down Syndrome
⦁ Dental treatments (up to RM1,000)
⦁ Basic supporting equipment for disabled individuals (up to RM6,000)
Under Child Relief:

1. Childcare Fees
   Claim: Up to RM3,000. Parents with children aged 6 years or younger can claim this for childcare expenses paid to registered childcare centers or kindergartens.
2. Ordinary Child Relief (under age 18)
   Claim: RM2,000 per child. Available for unmarried children under 18.
3. Child (18+) in Full-Time Education
   Claim: RM2,000 or RM8,000 per child. You can claim RM2,000 for unmarried children above 18 in full-time education. If the child is pursuing a full-time degree (or equivalent), including Masters or Doctorate, outside Malaysia, the claim can be up to RM8,000.
4. Disabled Child
   Claim: RM6,000. Parents with disabled children can claim this relief.
5. Additional Relief for Disabled Child (18+) in Higher Education
   Claim: RM8,000. This is additional to the RM6,000 relief, provided the child is unmarried, above 18, and in full-time education (whether in Malaysia or abroad).
6. Breastfeeding Equipment
   Claim: Up to RM1,000. Female taxpayers can claim for breastfeeding equipment like breast pumps, ice packs, and storage equipment for children aged 2 years and below. This can only be claimed once every two years and applies if the assessment is made in the wife’s name in joint assessments.

We hope these clarifications on the tax reliefs, deductions, and rebates for the 2024 Year of Assessment will assist you in navigating the tax filing process.