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Malaysia
Individual - Deductions
Last reviewed - 27 June 2023Employment expenses
Employees are allowed a deduction for any expenditure incurred wholly and exclusively in the performance of their duties, but no allowance is given for tax depreciation. Expenses of a private or domestic nature are expressly excluded from deduction; for example, the cost of hiring domestic servants to help in housekeeping while one is away at work is not deductible.
Subscriptions to associations related to the individual's profession are deductible.
Personal deductions
Non-business expenses, for example, domestic or household expenses and taxes, are not deductible.
Charitable contributions
Donations to approved institutions or organisations are deductible, subject to limits.
Mortgage interest expenses
Mortgage interest incurred to finance the purchase of a house is deductible only if income is derived from the house.
Other personal deductions (reliefs)
| Reliefs (year of assessment 2023) | Maximum (MYR) |
| Medical expenses: | |
| Parents: Medical treatment, special needs, and carer expenses. | 8,000 |
| Self, spouse, or child: Treatment of a serious disease, expenses incurred on fertility treatment, vaccination (including medical examination fees, COVID-19 screening, and mental health examinations or consultations, subject to a limit of MYR 1,000), or learning disability diagnosis and early intervention and rehabilitation expenditure (up to MYR 4,000). | 10,000 |
| Disability-supporting equipment for the use of a disabled individual, spouse, child, or parent. | 6,000 |
| Pension/provident funds and insurance premiums: | |
| Approved pension/provident fund contributions by an individual, and additional voluntary contribution to EPF. | 4,000 |
| Life insurance premiums for an individual and/or spouse's life, and additional voluntary contribution to EPF. | 3,000 |
| Contributions made to Private Retirement Scheme and Deferred Annuity Scheme (from year of assessment 2012 to year of assessment 2025). | 3,000 |
| Premiums for insurance on education or for medical benefits incurred for the individual, spouse, or child. | 3,000 |
| Deposit under the National Education Savings Scheme (from year of assessment 2012 to year of assessment 2024). | 8,000 |
| Employee's contribution to SOCSO | 350 |
Education fees for self:
|
7,000 |
Lifestyle relief as follows:
|
2,500 |
| Additional relief for expenditure related to cost of purchasing sports equipment, entry/rental fees for sports facilities, and registration fees for sports competitions. | 500 |
| Purchase of breastfeeding equipment once every two years (for women taxpayers only). | 1,000 |
| Fees paid to childcare centre and kindergarten (for child / children below six years old). Additional deduction of MYR 1,000 for year of assessment 2020 to year of assessment 2024 (increased maximum to MYR 3,000). | 2,000 |
| Costs related to electric vehicle charging facilities, including installation, rental, hire-purchase of equipment, or subscription fees (years of assessment 2022 and 2023). | 2,500 |
The above are also available to a spouse who is separately assessed.
Personal reliefs
The following personal reliefs can also be deducted in arriving at chargeable income of the resident individual for year of assessment 2021:
| Reliefs (year of assessment 2021) | MYR |
| Self | 9,000 |
| Spouse (under joint assessment) | 4,000 |
| For each child: | |
| Below 18 years of age | 2,000 |
| Over 18 years of age who is receiving full-time instruction (matriculation course / pre-degree / A-Level), or | 2,000 |
| Over 18 years of age who is receiving full-time instruction at an establishment of higher education in Malaysia (at diploma level and higher) or outside Malaysia (at degree level and above), or serving under article of indentures in a trade or profession, provided certain conditions are met. | 8,000 |
| Disabled: | |
| Self (additional) | 6,000 |
| Spouse (additional) | 5,000 |
| Child: | |
| For each physically or mentally handicapped child | 6,000 |
| Additional relief if that child is over 18 and receiving higher education or studying under articles or indentures in a trade or profession. | 8,000 |
The above are also available to a spouse who is separately assessed.
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