Income Tax Reliefs That Might Not be Available in 2024 in Malaysia

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.

For taxpayers in Malaysia, it's important to be aware of the tax reliefs you're entitled to for each year of assessment ahead of time. In layman terms, be sure to check if certain purchases you make in 2023 is eligible for relief when filing your tax returns in 2024 — that's to say, for the Year of Assessment 2023.

But first: here are some need-to-know articles that must read on the altHR Resources centre regarding income tax in Malaysia: 

Additionally, we've also compiled a comprehensive list of income tax reliefs that was available for the previous year of assessment (YA 2022) — read that here.

Which tax reliefs will be available in 2024 for the Year of Assessment 2023?

At the moment, only tax reliefs for YA 2022 have been announced (full breakdown for all years of assessment available on LHDN's official website here. The final set of reliefs will only be confirmed once Budget 2024 has been put forward. This is a process that will begin on the 13th of October 2023 in Dewan Rakyat.

However, it's worth noting that there are two separate categories of tax reliefs that might not be included for YA 2023, as they were introduced as part of the government's efforts to react to the COVID-19 pandemic and its economic effects.

These include: 

1. Purchase of personal computer, smartphones, or tablet for self, spouse, or child (up to RM2,500)

Tax relief for the purchase of personal devices stated here was initially introduced for YA 2020, as the pandemic saw the onset of remote working and work-from-home (WFH) arrangements in Malaysia, and throughout the rest of the world. This was extended not once, but twice till the end of 2022. As such, unless there is another extension announced or included as part of the budget, you may not be able to use this category to claim tax reliefs for these purchases.

Do note, however, that there is still the general lifestyle tax relief that covers similar devices.

2. Domestic tourism expenses (up to RM1,000)

Similar to the point above, the government announced a relief of up to RM1,000 for expenses incurred while travelling throughout Malaysia. This was designed to help stimulate the local travel and tourism industry, and was also extended up to 31 December 2022. It covered: 

1. Payment of accommodation at the premises registered (Click here) 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

Again, this relief might not be available for individuals filing tax returns for YA 2023 in 2024, unless there is yet another extension made.

Meanwhile, if you're an employer, it's worth reading this article for a guide on preparing EA forms — as well as deadlines.

Be sure to subscribe to the altHR Resources blog for the latest updates, as we'll also be providing the latest news on income tax reliefs for YA 2023 (and everything HR/employee/employer-related in Malaysia) very soon!