What kinds of tax deductions and rebates can be claimed in the year 2019?


Tax Deductions

The following compulsory and optional deductions in the year 2019 are deducted from your annual taxable income to arrive at your annual chargeable income, based on which the amount of tax payable will be calculated. Employees can claim optional deductions by submitting form TP1 to their employer. 


Compulsory Deductions

Deduction
Amount limited to (RM)
Individual 
Deduction for an individual in respect of himself and his dependent relatives is granted automatically.
9,000
Spouse
Deduction in respect of a spouse living together in the basis year on condition that the spouse has no source of income/total income or has elected for joint assessment.
4,000
Children 
See here for more details and additional deductions in relation to children.
2,000
Contribution to EPF 
Deduction for EPF employee contributions.
4,000
Disabled Person
Additional deduction given to a disabled individual.
6,000
Disabled Spouse
Additional deduction given to an individual living with a disabled spouse. 
3,500


Optional Tax Deductions

Deduction
Amount limited to (RM)
Medical Treatment, Special Needs or Carer Expenses of Parents
Medical treatment, special needs and carer expenses for parents. Medical expenses which qualify for deductions include:
  • medical care and treatment provided by a nursing home; and
  • dental treatment limited to tooth extraction, filling, scaling and cleaning but not including cosmetic dental treatment.
The claim must be supported by a certified medical practitioner registered with the Malaysian Medical Council that the medical conditions of the parents require medical treatment or special needs or carer.
The parents shall be resident in Malaysia. The medical treatment and care services are provided in Malaysia.
In the case of a carer, it shall be proved by a written certification, receipt or copy of carer’s work permit. “Carer” shall not include that individual's husband, wife or child.
5,000
Parental Care
Personal deduction given to a resident taxpayer subject to the following conditions:
  • Such taxpayer does not claim expenses on medical treatment and care of parents;
  • Parents are residents and aged 60 years and above;
  • Parents have an annual income not exceeding RM24,000 per annum each; and
  • Parents are the legitimate natural parents/foster parents in accordance with the respective law subject to a maximum of 2 persons.
  • This relief can be shared with other siblings provided that the total relief claimed shall not exceed RM1,500 for each parent.
3,000 total (1,500 for each parent)
Basic Supporting Equipment
The purchase of any supporting equipment for one’s own use, if he/she is a disabled person or for the use of his/her spouse, child or parent, who is a disabled person. Basic supporting equipment includes haemodialysis machine, wheelchair, artificial leg and hearing aid but excludes optical lenses and spectacles.
6,000
Higher Education Fees (Self)
Deduction for higher education fees for any course of study in an institution or professional body in Malaysia recognized by the Government of Malaysia or approved by the Minister of Finance for the purpose of enhancing any skill or qualification:
  • up to tertiary level (other than Master's and Doctorate) in law, accounting, Islamic finance, technical, vocational, industrial, scientific or technology; or
  • any course of study at Master's or Doctorate level.
7,000
Medical Expenses on Serious Diseases
Medical expenses on serious diseases include the treatment of acquired immune deficiency syndrome (AIDS), Parkinson’s disease, cancer, renal failure, leukaemia and other similar diseases.
‘Other similar diseases’ such as heart attack, pulmonary hypertension, chronic liver disease, fulminant viral hepatitis, head trauma with neurological deficit, brain tumour or vascular malformation, major burns, major organ transplant or major amputation of limbs. Amount expended on own self, husband/wife or child is deductible.
6,000
Complete Medical Examination
Amount expended on own self, husband/wife or child for complete medical examination. The total deduction for medical expenses on serious diseases and complete medical examination is limited to a maximum of RM6,000 a year.
500
Net Deposit in Skim Simpanan Pendidikan Nasional (SSPN)
Amount deposited in SSPN by an individual for his children’s education. The deduction is limited to the net amount deposited in that basis year only (deposits less withdrawals for the year).
8,000
Payment of Alimony to Former Wife
Payment of alimony to a former wife is deductible provided that the total deduction for wife and alimony payment is limited to RM4,000 per year. Voluntary alimony payment to a former wife under a mutual agreement but without any formal agreement does not qualify as a deduction.
4,000
Life Insurance
Deduction for life insurance premiums.
3,000
Contribution to a Private Retirement Scheme and Payment of Deferred Annuity
Deduction on contribution to Private Retirement Scheme approved by the Securities Commission under The Capital Markets and Services Act 2007 or payment of deferred annuity premium or both.
3,000
Education and Medical Insurance
Deduction for insurance premiums in respect of education or medical benefits for an individual, husband, wife or child.
3,000
SOCSO Contribution
Deduction for SOCSO employee contributions.
250



Lifestyle Relief
Combined tax deduction for reading materials, computers and sports equipment (Includes purchase of newspapers, smartphones and tablets, internet subscriptions & gymnasium membership fees).  
2,500
Breastfeeding
Deduction for purchase of breastfeeding equipment.
1,000 (once every 2 years
Early Education
For individual taxpayers who enroll their children aged 6 years and below in registered nurseries & preschools.
1,000


Tax Rebates

Unlike tax deductions which are reductions in your annual chargeable income, tax rebates are further reductions in the amount of tax you pay after you have calculated your tax for the year.


Rebate on Zakat

Zakat can be deducted via payroll, or paid directly by the employee and claimed through the TP1 form.


Rebates for Individuals with Annual Chargeable Income up to RM35,000

A rebate of RM400 is available to individuals with a chargeable income not exceeding RM35,000. Where the spouse does not receive an income or is jointly assessed, a further RM400 rebate can be claimed.




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