Income Tax Reliefs for Employees in Malaysia for YA 2022 (2023 filing)

Blog
·
March 9, 2023
·
By
Nicholas K

Disclaimer: This article should not be considered to be legal advice, and altHR is not liable for any actions taken based on this article. As of 1 July 2023, altHR no longer offers a Payroll module.

When filing your tax return forms in 2023, there are a couple of important things for both employers and employees to take into consideration. As always, we’ve compiled all need-to-know information on the altHR Resources centre: 

If you’ve already covered those and you’re looking for a comprehensive list of tax reliefs you can claim when filing in 2023 for the Year of Assessment 2022 (YA 2022), you’ve come to the right place. 

Individual Relief Types & Amounts for YA 2022

The official list on the LHDN website provides for 21 specific categories of individual reliefs for YA 2022 filing tax returns in 2023. 

You’ll need to keep proof/documents/receipts and proof of documents for all of the categories/reliefs above for up to 7 years, so be sure to keep receipts for all purchases that are eligible for tax reliefs (Section 82A of the Income Tax Act 1987).

1. Individual & dependent relatives 

You’ll be able to claim relief of up to RM9,000 in claims for individuals†al and dependents that you might have when filing for your tax returns. 

2. Medical treatment, special needs, and carer expenses for parents 

For medical conditions for parents as certified by a medical practitioner, you’re entitled to a claim limit of up to RM8,000. 

3. Purchase of basic supporting equipment for disabled self, spouse, child, or parent 

For basic supporting equipment for this category, the tax relief limit stands at RM6,000. 

4. Disabled individual

Disabled individuals can claim relief of up to RM6,000. 

5. Education fees (Self)

This relief applies to courses of study in law, accounting, islamic financing, technical, vocational, industrial, scientific, or technology — for non-masters or doctorate degrees. For masters or doctoral level degrees, any course of study qualifies for this relief, which amounts up to RM7,000. 

Meanwhile, a course of study for upskilling or self-enhancement is restricted to RM2,000. 

6. Medical expenses

RM8,000 for medical expenses on serious diseases for self, spouse, or child, as well as

fertility treatment for self or spouse; RM1,000 for vaccination for self, spouse and child. 

7. COVID-19 

Meanwhile, this limit also covers RM1,000 for complete medical examination for self, spouse, or child; COVID-19 detection test including purchase of self-detection test kit for self, spouse or child; mental health examination or consultation for self, spouse or child.

8. Lifestyle expenses (self, spouse, child)

Purchase or subscription of books / journals / magazines / newspapers / other similar publications (not banned reading materials); purchase of personal computer, smartphone or tablet (not for business use); purchase of sports equipment for sports activity defined under the Sports Development Act 1997 and payment of gym membership; payment of monthly bill for internet subscription (Under own name) with a limit of up to RM2,500. 

9(a). Lifestyle (additional relief)

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

Additional reliefs above are limited up to RM500. 

9(b). PC, smartphone, tablet

RM2,500 to cover purchase of personal computer, smartphone or tablet for own use / benefit or for spouse or child and not for business use.

10. Purchase of breastfeeding equipment

Purchase of breastfeeding equipment for own use for a child aged 2 years and below of up to RM1,000. However, this relief is only available once every two years of assessment. 

11. Childcare/kindergarten

Child care fees to a registered child care centre / kindergarten for a child aged 6 years and below of up to RM3,000.

12. SSPN

Net deposit in Skim Simpanan Pendidikan Nasional (net deposit is the total deposit in 2022 MINUS total withdrawal in 2022) of up to RM8,000.

13. Alimony payments

Husband / wife / payment of alimony to former wife of up to RM4,000.

14. Disabled husband / wife

Claim limit of up to RM5,000

15(a). Unmarried child

Expenses for each unmarried child under the age of 18 years old amounting to RM2,000.

15(b). Unmarried child’s education

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

Each unmarried child of 18 years and above that is:

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

Entitles you to relief of up to RM8,000.

15(c). Disabled child

The amount of claimable tax relief is RM6,000.

An additional exemption of RM8,000 for disabled children aged 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) stands at up to RM8,000

16. Life insurance and EPF

Up to RM7,000 for 

  • Pensionable public servant category who does not contribute to EPF or any approved scheme or life insurance premiums or
  • Life insurance premiums (restricted to RM3,000)
  • Contribution to EPF / approved scheme (restricted to RM4,000)

17. PRS

Up to RM3,000 in relief for deferred Annuity and Private Retirement Scheme (PRS).

18. Educational and medical insurance

Up to RM3,000 for education and medical insurance.

19. SOCSO 

Up to RM350 for contributions to the Social Security Organisation (SOCSO).

20. Domestic tourism expenses

Up to RM1,000 for expenses on domestic tourism: 

  1. Payment of accommodation at the premises registered with the Commissioner of Tourism under the Tourism Industry Act 1992
  2. Payment of entrance fee to a tourist attraction
  3. Purchase of domestic tour package through a licensed travel agent registered with the Commissioner of Tourism under the Tourism Industry Act 1992

21. EV charging stations

You’ll also be able to claim relief of up to RM2,500 for expenses on charging facilities for Electric Vehicles (not for business use).

Read the full breakdown on LHDN’s official website here.

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