21 TAX RELIEF INFORMATION THAT YOU SHOULD KNOW FOR E-FILING 2019

Hi everyone... it has been quite some time that our e-filing process for FY2019 is being hold due to the uncertainty and other subjective consequences that we might face resulted by the COVID-19 pandemic which hit the entire world badly... even until now, we are still in the run of searching the vaccine in order to ensure that this killing virus could be stopped from continuing to spread widely... nevertheless, I am feeling relieved that after the MCO, EMCO and now CMCO, our lovely Malaysia's frontliners including backliners with the support of entire Malaysians has managed to flattened the curve and I felt proud of it (being a Malaysian, oh, I am seriously in love with my Malaysia)...

As we are now in the CMCO phase, many industries have started to open back their businesses... this activity is slowly picking up the pace and hopefully we will manage to boost our country's economy and together we could face the world like before... talking about economy, we as a citizen would need to ensure that we are doing everything that we can to assist our country's development... thus, paying the income tax is one of our obligation (at certain salary range, please refer here, although it is based on 2018's data however, we could utilize it as a reference)...

Normally, this is the income tax simple flow for the employee:
1) PCB = Potongan Cukai Bulanan - Monthly Tax Deduction
(Will be performed by the employer for the employee and normally the details will be visible in the salary slip).
2) After the ending of FY, the employee needs to declare their income based on the BE (EA) form details from the employer WITH SOME TAX RELIEF and based on the e-filing that's being done, the employee may either obtain the refund or need to pay the amount differences back to the Inland Revenue Board. (LHDN).

This year, the LAST DATE TO SUBMIT THE e-FILING is by 30/06/2020...



So today, I would like to elaborate on the TAX RELIEF and I hope everyone will get the benefit of it upon completing the e-filing exercise, let's go...

Individuals Tax Relief:

1) Self and Dependent – RM9,000

This amount is granted to you automatically even if this is the first time that you are filing up your taxes...

2) Lifestyle - RM2,500

This category of tax relief is actually giving you back at least some of your expenses for your lifestyle which covers your spouse and children as well...

3) Medical expenses for parents OR Parent – RM5,000 (limited) or RM3,000 (limited)

Basically, the differences between the 5K and 3K is that:
a) If you take care of your parents (both or one of them) and you are also taking care of their medical needs, you can apply for a tax relief of up to RM5,000 from your annual income for both your parents...
b) If you are not claiming the medical expense tax relief, you can apply for a tax deduction for parental expenses of up to RM1,500 for your mother and your father each...

4) Life insurance and EPF INCLUDING not through salary deduction – up to RM7,000 (limited)

Working adults can claim up to RM4,000 for EPF (for those who are making EPF contributions) and RM3,000 for life insurance or takaful... see guys, even if we paid up for the life insurance and takaful's premium, we could still obtain back part of it... isn't it awesome!..

5) Contribution to the Social Security Organization (SOCSO) – RM250 (limited)

You could obtain tax relief of not exceeding RM250 per year for all your monthly contributions to SOCSO in the year of assessment. Please refer to SOCSO's official website for your contribution table and rates here...

6) Insurance premium for education or medical benefit INCLUDING not through salary deduction – RM3,000 (limited)

A relief not exceeding RM3,000 is available to the tax payers on insurance premiums paid in respect of education or medical benefits. This also extends to the tax payer’s spouse or child...

7) Education fees (self) – RM7,000 (limited)

You can apply for a tax relief of up to RM7,000 if you are supporting yourself in the Master’s or Doctorate-level degree... however, this is only applicable to studies that are not related to acquiring law, accounting, Islamic financing, technical, vocational, industrial, scientific, or technological skills or qualifications...

8) Medical expenses for serious diseases for self, spouse or child – RM6,000 (limited)

The tax relief for medical expenses expended on yourself, spouse or child of up to a maximum of RM6,000 is available when seeking treatment for such serious diseases. Serious disease includes AIDS, Parkinson’s, cancer, renal failure, and leukaemia for a start. Other similar diseases include heart attack, pulmonary hypertension, chronic liver disease, fulminant viral hepatitis, head trauma with neurological deficit, brain tumour or vascular malformation, major burns, major organ transplant or the major amputation of limbs.

a) Complete medical examination for self, spouse, child – RM500 (limited)

Undertaking a medical examination for yourself, your husband or wife, or child grants you a deduction of up to a maximum of RM500 on top of the RM6,000 that had been relieved in totality.

9) Deferred Annuity and Private Retirement Scheme (PRS) – with effect from year assessment 2012 until year assessment 2021 – RM3,000 (limited)

To drive Malaysians to increase their savings for retirement, contributions paid to PRS funds approved by the Securities Commission can be used as a deduction when calculating the chargeable income of an individual... for your kind iformation, under subsection 49 (1D) of the Income Tax Act, a maximum of RM3,000 in a year of assessment is inclusive of premiums paid for deferred annuity. This tax deduction is effective for ten years from the year of assessment 2012 until 2021... 

Further Tax Relief

10) Basic supporting equipment for disabled self, spouse, child or parent – RM6,000 (limited)

Basic supporting equipment that falls under this tax reduction includes items such as haemodialysis machines, wheelchairs and other walking aids, prosthetic limbs, and hearing aids but excludes optical lenses and spectacles.

11) Purchase of breastfeeding equipment – RM1,000 (limited)

According to the Income Tax Act 1967 Section 46 (1) (q) (a), breastfeeding equipment refers to a breast pump kit and an ice pack, a breast milk collection and storage equipment, and a cooler set or bag... HOWEVER, this deduction is allowed for a year of assessment immediately following that year of assessment... as an example, if you have already make a claim in 2018, you could make a claim in 2020 (if you happened to purchase a new set of breastfeeding equipment for a new baby or even the same baby)...

12) Net saving in SSPN’s scheme (total deposit in year 2018 MINUS total withdrawal in year 2018) – RM6,000 (limited)

Parents, guardians, and also legally adoptive parents who have SSPN-i accounts for their children will enjoy tax relief up to RM6,000 a year – on the net amount deposited.

13) Each unmarried child of 18 years and above who is receiving full-time education (“A-Level”, certificate, matriculation or preparatory courses) – RM2,000

The amount that you are entitled to claim is for each child guys... as an example, if you have four children currently studying full-time for their A-Levels, Foundation, matriculation and certificate at a local university, then you’ll be entitled to claim a combined tax relief of RM8,000 for the year...

14) Each unmarried child of 18 years and above that is:

(i) receiving further education in Malaysia in respect of an award of diploma or higher (excluding matriculation/preparatory courses)

(ii) receiving further education outside Malaysia in respect of an award of degree or its equivalent (including Master or Doctorate)

(iii) the instruction and educational establishment shall be approved by the relevant government authority

If you have a child studying for a diploma or higher (Foundation years are not to be counted) within Malaysia, you can claim RM8,000. Likewise, for each child studying outside Malaysia for a degree or higher, you can also claim RM8,000 for the year.

15) Child care fees to a Child Care Centre or a Kindergarten – RM1,000 (limited)

Parents are able to obtain a tax relief of RM1,000 when sending their children to childcare centres and kindergartens which are registered with the state education department under the Ministry of Education... HOWEVER, the employment of maids and private nannies do not count towards this tax relief.

16) Husband/Wife/Alimony Payments – RM4,000 (limited)

If you (the ex-husband) has been paying your ex-wife last year, you can deduct up to RM4,000... DO YOUR PART... BE A GOOD DADDY ya...

17) Disabled Wife/Husband – RM3,500

There is also an additional spousal relief of RM3,500 for your disabled wife or husband.

18) Ordinary child relief – RM2,000 (every child)

You are allowed to claim RM2,000 a year for every child you have... a child is defined as an unmarried dependent legitimate child or stepchild or adopted child...

19) Disabled child – RM6,000

For every physically or mentally disabled child in a household, a tax payer can claim RM6,000 a year regardless of age... if the disabled child is aged 18 years old and above, unmarried and currently pursuing a higher education that is accredited by related government authorities, the deduction could be up to RM8,000...

20) Disabled individual – RM6,000

A disabled person (OKU) is entitled to receive an additional deduction of RM6,000...

21) Other items which could obtain tax relief - RM2,500 (subject to alternate years or yearly claim)
a) Magazine.
b) Books.
c) Computer.
d) Smartphone.
e) Tablet.
f) Sporting gears for activities listed under the Sports Development Act 1997.
g) Gymnasium membership.

Okay gaissss, hopefully everyone of you will obtain at least an idea on how to complete your e-filing... it is 7 DAYS from now towards the last data ya... all the best...

xoxo