You Can Claim These Tax Reliefs for Year of Assessment 2020

For e-Filing 2021 (YA 2020), you can claim up to 18 types of personal income tax relief, including travel expenses, SOCSO, and lifestyle.

For the year of assessment (YA) 2020, the government has extended the income tax exemption limit. You may begin submitting the Income Tax Return Form starting on 1 March 2021. The 2020 income tax deadline is on 30 April 2021.

 

Tax relief for the YA 2020

1. Individual

For the individual and dependent relatives category, there's an automatic tax relief of RM9,000 every time they fill out the LHDN e-Filing form.

 

2. Disabled individual

For individuals who have been certified by the Social Welfare Department (JKM) as Persons with Disabilities (OKU), they can claim additional tax relief of RM6,000. 

 

3. Parents 

• Medical treatment, special needs, including carer expenses for parents. If a Malaysian Medical Council (MMC) medical practitioner confirms that a parent's health condition requires treatment, their children can claim any cost related to equipment or care for RM5,000 tax relief.

• Birth and adopted children of healthy parents can claim relief of RM3,000, RM1,500 for each parent. 

4. Basic supporting equipment for disabled persons

Individuals can claim up to RM6,000 tax relief for basic support equipment purchase for the OKU. They must be registered with the JKM. The purchase of the equipment is restricted for the personal use of disabled individuals, spouses, children or parents.

 

5. Further education fees (for an individual)

For individuals who are pursuing higher education (Diploma, Bachelor, Master's or PhD), they can claim tax relief of RM7,000 on annual tuition fees. 

They must also meet these conditions:

• Master's and PhD level: any field or course of study.

• Levels that are not Master's and PhD: law, accounting, Islamic finance, technical, vocational, industrial, scientific or technological fields.

• The Higher Education Ministry must recognise the institution.

 

6. Medical expenses for serious diseases and full medical examination

Individuals can claim tax relief of up to RM6,000 for medical treatment expenses of a severe or incurable illness, whether it is suffered by themselves, their spouse, or their children. 

Individuals who want to claim tax relief in this category must have all medical treatment receipts and certificates issued by MMC medical practitioners for documentation reasons.

Full medical checkup tax relief of RM500 for individuals, spouses, or their children, as long as the checkup is done at an accredited medical centre registered with the Ministry of Health (MoH).

 

7. Lifestyle

Individuals can also apply for tax relief for lifestyle expenses to benefit themselves, their husbands, or their wives and children. The claimable tax relief is up to RM2,500.

Here are claimable lifestyle expenses: 

• Purchases for books, journals, magazines, printed newspapers and other similar publications in addition to illicit or obscene reading material.

• Purchase of personal computer, smartphone or tablet.

• Purchase of sports equipment for sports activities per the Sports Development Act 1997 but does not apply to motor-type bicycles.

• Gym membership fees.

• Monthly bill payment for broadband or internet subscriptions made in your name.

8. SSPN 

For individuals with a National Education Savings Scheme (SSPN), they can claim tax relief for annual net savings or savings of RM8,000 maximum for both SSPN-i and SSPN-i Plus accounts.

 

9. Husband/wife/alimony payment to former wife

For wives who are unemployed or have a total income that does not reach the minimum amount taxable, the husbands can claim tax relief of up to RM4,000 and vice versa. 

A man who pays for alimony to his former wife can claim a maximum relief of RM4,000.

 

10. Disabled husband or wife

For individuals with a disabled husband or wife, they can claim tax relief of RM3,500. The disabled person must be certified by JKM as OKU.

 

11. Deduction for children

• Children under 18 years old receive tax relief of RM2,000.

• Children over 18 years old who are unmarried and receiving full-time education (A-Level, certificate, matriculation or preparatory courses) get tax relief of RM2,000.

• RM8,000 tax relief for children over 18 who are unmarried and receiving a Diploma and Higher education in Malaysia.

• RM6,000 tax relief for physically or mentally disabled children.

• Additional exemption of RM8,000 tax relief for disabled children over 18 who receive a Diploma and Higher education in Malaysia. 

12. Purchase of breastfeeding equipment

Tax relief of RM1,000 maximum is eligible for women who meet these requirements:

• Supported by a purchase receipt for expenses incurred to obtain breastfeeding equipment for breastfeeding her child aged two years and under.

• The deduction amount allowed for the breastfeeding equipment purchase is limited to RM1,000 maximum spent in that basis year for that YA. The deduction is allowed only once in every two assessment years.

 

13. Childcare centre and kindergarten fees

Parents who send their kids to a daycare centre can claim tax relief of RM3,000. The childcare centre must be approved by the JKM, and the kindergarten must be registered with the State Education Department.

 

14. Life insurance, EPF, and approved schemes

• For the life insurance category, the tax relief for retired civil servants is RM7,000 maximum. For workers from other categories (private sector employees), they can claim limited tax relief of RM3,000.
• For EPF contributions and approved schemes, civil servants without pension and private-sector employees can claim RM4,000 tax relief.

 

15. Domestic travel expenses

You can claim RM,1000 tax relief for the accommodation payment at premises registered with the Commissioner of Tourism and entrance fee to a tourist attraction. You can check the registered accommodation premises through this link: http://www.motac.gov.my/en/check/registered-hotel.

16. Premium for insurance on education or medical benefits

You can claim RM3,000 tax relief for the insurance premium or Takaful education policy or medical benefits, either for yourself, your spouse, or your children. 

Medical insurance includes medical cards that pay for treatment, hospital charges, and benefits that cover critical illness risks.

 

17. Deferred annuity and private retirement scheme

Tax relief of RM3,000 for those who make premium payments in the deferred annuity scheme or join or contribute to the PRS scheme approved by the Securities Commission.

 

18. SOCSO Tax Relief

RM 250 tax relief is given for contributions made in the YA to the Social Security Organisation (SOCSO) by individuals or borne per the Employees Social Security Act 1969.

 

Check out the full size of the infographics here

 

Source: IRBM

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