Latest Tax Relief – Calculate and See How Much Income Tax You Need to Pay in 2020

Are you aware of the fact that you’re a tax resident if you have an income and reside in Malaysia for at least 182 days in a calendar year? Don’t worry if it’s your first time doing e-Filing. You can refer to the simple guide below. Before doing e-Filing, make sure you check the rates of tax and tax relief that you shouldn’t miss out.

Income Tax Rates

Kindly refer the table below for the latest income tax rates.

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Tax Relief

What is tax relief? Tax relief enables taxpayers to deduct a certain amount of money expended in the assessment year, from the total annual income. In other words, tax relief can help to reduce our chargeable income, and thus our taxes.

So now let’s find out how much tax relief you can get!

1. Individual and dependent relatives – RM 9000

2. Medical treatment, special needs and carer expenses for parents (Medical condition certified by medical practitioner) – RM 5000 (Restricted)

OR

Parent – RM 3000 (Restricted)
Restricted to RM 1500 for only one mother
Restricted to RM 1500 for only one father

3. Basic supporting equipment for disabled self, spouse, child or parent – RM 6000 (Restricted)

4. Disabled individual – RM 6000

5. Education fees (Self) – RM 7000 (Restricted)

  • Other than a degree at masters or doctorate level – Course of study in law, accounting, islamic financing, technical, vocational, industrial, scientific or technology
  • Degree at masters or doctorate level – Any course of study

6. Medical expenses for serious diseases for self, spouse or child – RM 6000 (Restricted)

  • Complete medical examination for self, spouse, child (Restricted to RM 500)

8. Lifestyle – Expenses for the use / benefit of self, spouse or child in respect of: – RM 2500 (Restricted)

  • purchase of books / journals / magazines / printed 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)

9. Purchase of breastfeeding equipment for own use for a child aged 2 years and below (Deduction allowed once in every 2 years of assessment) – RM 1000 (Restricted)

10. Child care fees to a registered child care centre / kindergarten for a child aged 6 years and below – RM 1000 (Restricted)

11. Net deposit in Skim Simpanan Pendidikan Nasional (Total deposit in 2019 MINUS total withdrawal in 2019) – RM 8000 (Restricted)

12. Husband / wife / payment of alimony to former wife – RM 4000 (Restricted)

13. Disabled husband / wife – RM 3500

14. Each unmarried child and under the age of 18 years old – RM 2000

15. Each unmarried child of 18 years and above who is receiving full-time education (“A-Level”, certificate, matriculation or preparatory courses) – RM 2000

16. Each unmarried child of 18 years and above that: – RM 8000

  • 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.

17. Disabled child – RM 6000

  • 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 – RM 8000

18. Life insurance and EPF INCLUDING not through salary deduction – RM 7000 (Restricted)

  • Pensionable public servant category
    • Life insurance premium
  • OTHER than pensionable public servant category
    • Life insurance premium (Restricted to RM 3000)
    • Contribution to EPF / approved scheme (Restricted to RM 4000)

19. Deferred Annuity and Private Retirement Scheme (PRS) – with effect from year assessment 2012 until year assessment 2021 – RM 3000 (Restricted)

20. Education and medical insurance (INCLUDING not through salary deduction) – RM 3000 (Restricted)

21. Contribution to the Social Security Organization (SOCSO) – RM 250 (Restricted)

How to Register for e-Filing

If you’re new to e-Filing, here’s how you can register. Just follow the steps below!

1. Log on to the website below and fill in your personal details. Make sure your details are correct.

http://daftarindividu.hasil.gov.my/dafsgjpnvdprd.php

2. Scan or take a photo of your Identity Card (I.C.) and upload it. (Must include both sides of your I.C.)

3. You will then be given a number which is your No. Permohonan. Jot down the number.

4. After three days, use your No. Permohonan to log onto the website below to get your No. Pin and No. Rujukan.

http://edaftar.hasil.gov.my/info.php/

5. After getting your No. Pin and No, Rujukan, log onto the official website below and choose Login Kali Pertama.

https://ez.hasil.gov.my/CI/

6. Choose relevant Borang to do e-Filing.

  • e-BE for individuals without business source (if you’re an employee)
  • e-B  for individuals with business source

7. Fill in your e-Borang and you’re done!

* You can start to do e-Filing starting from 1st March.

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