2024 Edition: Income Tax Reliefs for Employees in Malaysia for YA 2023

Disclaimer: This article should not be considered to be legal advice, and altHR is not liable for any actions taken based on this article.

It's tax season, and as always, it's important to be aware of the latest tax reliefs that are available to tax-paying individuals in Malaysia for the Year of Assessment 2023 — with deadlines fast approaching.

But first, in case you missed it, we've also compiled a breakdown of important information for employees here; if you're an employer or you're an HR manager for a business, you can read our employer's guide here.

Individual Relief Types & Amounts for YA 2023

Just like last year, remember to keep proof/documents/receipts and proof of documents for all of the categories/reliefs mentioned in this article for up to 7 years, as mandated by Section 82A of the Income Tax Act 1987.

Similar to last year, there are 21 categories of reliefs: 

1. Individual and dependent relatives: RM9,000

2. Medical treatment, special needs and carer expenses for parents (Medical condition certified by medical practitioner): RM8,000 (Restricted)

3. Purchase of basic supporting equipment for disabled self, spouse, child or parent: RM6,000 (Restricted)

4. Disabled individual: RM6,000

5: Education fees (Self): RM7,000 (Restricted)‍

• Other than a degree at masters or doctorate level – Course of study in law, accounting, islamic financing, tehcnical, vocational, industrial, scientific or technology
• Degree at masters or doctorate level – Any course of study
• Course of study undertaken for the purpose of upskilling or self-enhancement (Restricted to RM2,000)

6. Medical expenses: RM10,000 (Restricted)(includes points 7 and 8)

1. Serious diseases for self, spouse or child
2. Fertility treatment for self or spouse
3. Vaccination for self, spouse and child (Restricted to RM1,000)

7. Expenses: Restricted to RM1,000:

1. Complete medical examination for self, spouse or child
2. COVID-19 detection test including purchase of self-detection test kit for self, spouse or child
3. Mental health examination or consultation for self, spouse or child

8. Expenses (Restricted to RM4,000) for child aged 18 and below:

1. Assessment of intellectual disability diagnosis
2. Early intervention programme / intellectual disability rehabilitation treatment

9. Lifestyle – Expenses for the use / benefit of self, spouse or child: RM2,500 (Restricted)

1. Purchase or subscription of books / journals / magazines / newspapers / other similar publications (Not banned reading materials)
2. Purchase of personal computer, smartphone or tablet (Not for business use)
3. Purchase of sports equipment for sports activity defined under the Sports Development Act 1997 and payment of gym membership
4. Payment of monthly bill for internet subscription (Under own name)

10. Lifestyle – Additional relief for the use / benefit of self, spouse or child: RM500 (Restricted)

1. Purchase of sports equipment for any sports activity as defined under the Sports Development Act 1997
2. Payment of rental or entrance fee to any sports facility
3. Payment of registration fee for any sports competition where the organizer is approved and licensed by the Commissioner of Sports under the Sports Development Act 1997

11. Purchase of breastfeeding equipment for own use for a child aged 2 years and below (Deduction allowed once in every TWO (2) years of assessment): RM1,000 (Restricted)

12. Child care fees to a registered child care centre / kindergarten for a child aged 6 years and below: RM3,000 (Restricted)

13. Net deposit in Skim Simpanan Pendidikan Nasional (Net deposit is the total deposit in 2023 MINUS total withdrawal in 2023): RM8,000 (Restricted)

14. Husband / wife / payment of alimony to former wife: RM4,000 (Restricted)

15. Disabled husband / wife: RM5,000

16. Children

16a. Each unmarried child and under the age of 18 years old: RM2,000

16b. Each unmarried child of 18 years and above who is receiving full-time education ("A-Level", certificate, matriculation or preparatory courses): RM2,000

Each unmarried child of 18 years and above that: RM8,000

1. Receiving further education in Malaysia in respect of an award of diploma or higher (excluding matriculation/ preparatory courses).
2. Receiving further education outside Malaysia in respect of an award of degree or its equivalent (including Master or Doctorate).
3. The instruction and educational establishment shall be approved by the relevant government authority.

16c. Disabled child: RM6,000

Additional exemption of RM8,000 disable child age 18 years old and above, not married and pursuing diplomas or above qualification in Malaysia @ bachelor degree or above outside Malaysia in program and in Higher Education Institute that is accredited by related Government authorities: RM8,000

17. Life insurance and EPF: RM7,000 (Restricted)

Civil servants’ pension schemes, non-civil servants pension schemes and self-employed category:

1. Mandatory contributions to approved schemes or voluntary contributions to EPF (excluding private retirement schemes) or contributions under any written law (Restricted to RM4,000)
2. Life insurance premium payments or family takaful contributions or additional voluntary contributions to EPF (Restricted to RM3,000)

18. Deferred Annuity and Private Retirement Scheme (PRS): RM3,000 (Restricted)

19. Education and medical insurance: RM3,000 (Restricted)

20. Contribution to the Social Security Organization (SOCSO): RM350 (Restricted)

21. Expenses on charging facilities for Electric Vehicle (Not for business use): RM2,500 (Restricted)

Source: LHDN official website