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15 Ways to Save Money With Tax Reliefs

Taxpayers, rejoice! The Inland Revenue Board of Malaysia (LHDN) provides quite a long list of ways for you to save money as you pay your taxes. They’re also known as tax reliefs, which the Malaysian government implements to assist citizens in different life situations, as well as to encourage education.

Check out this list to see which ones you qualify for and find out how you can take advantage.

Life Conditions

There are individual situations that are out of your control, which the government would be glad to help you out with. If your monthly income is RM8,000 or less, you are qualified for a tax relief of RM2,000, no questions asked.

If you’re disabled in some way, you may also qualify for a tax exemption of RM6,000. On top of that, extra expenses for supporting equipment can get you another tax relief of up to RM5,000.

Another medical condition that you can ask help for is serious diseases. Up to RM5,000 exemption is granted for expenses—including treatments, consultations, and medicines—to those eligible. Early detection and treatment is encouraged, so a complete medical examination will also get you another RM500 in relief.

Remember to file for exemptions of RM1,000 for every dependent child, and RM3,500 for a disabled spouse. A disabled child, on the other hand, will qualify you for RM5,000.

Education and Self-improvement

On top of the exemption for children’s disability, you’ll get assistance of RM4,000 if your disabled child is 18 years old and above, not married, and pursuing a diploma in the country. This also applies if your child is pursuing a Bachelor’s degree, a Masters degree, or a PhD in another country, in an institution accredited by the Malaysian government.

A non-disabled child of 18 years and above, unmarried, and taking up a full-time education (in A-levels, certificates, or prep courses) will qualify you for RM1,000 in tax exemptions.

If you yourself are pursuing either a Bachelor’s degree, Masters, or PhD, you can also qualify for up to RM5,000.

As part of government’s efforts to encourage reading and the formation of a knowledge society, you can also get up to RM1,000 in tax relief when you buy books, journals, magazines, and other publications.

Once every three years, you can apply for exemption of up to RM3,000 if you buy a personal computer, and up to RM500 for a broadband subscription.

You can also qualify for up RM300 if you buy sports equipment.

Others

If either or both of your parents require a caregiver, that falls under medical expenses and can save you up to RM5,000 in taxes. Just make sure that you get a certification from a doctor. Other medical expenses, like check ups, procedures, and medicine also qualify.

Alimony for an ex-spouse can also get you tax relief of up to RM3,000.

Unmarried children 18 years old and above, who are getting further education inside or outside the country because of an award, qualifies you for exemption of RM6,000.

You can also get exemptions of up to RM6,000 for life insurance, retirement plans, or SSPN savings.

Property taxes can also be granted up to RM10,000 for three consecutive years in relief if the owner is a Malaysian citizen and resident, and the property is not being rented out. This is limited to one residential unit.

Be familiar with tax information so you can take full advantage of all the assistance you can get. Also, remember to keep all documents at hand, like doctor’s certifications, diplomas, and land titles, to make facilitation easy. Keep receipts for seven years in case of audits.

CompareHero is the leading Malaysian financial comparison platform, aimed at helping Malaysians save time and money. Visit CompareHero here.