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This time I would like to talk to you about the reduction and exemption project (Pelepasan Cukai) and tax deductions (Potongan Cukai).
If you have an annual income of more than RM 34,000马来西亚Citizens, then you have to pay attention.
- Migrant workers: Form BE must be submitted on or before April 4
- Self-employed: Form B must be filed on or before June 6
When filing a tax return, we can see tax exemptions for personal computers, books, sports equipment, insurance premiums, parental medical expenses, medical exams, etc. How much are these exemptions?
How to file taxes in Malaysia?In the following 2 tables, the relief items and tax items are listed.
Items that can be deducted when taxpayers file tax returns (Potongan Cukai)
| Serial number | Items that can be deducted when filing tax returns | Amount (RM) |
|---|---|---|
| 1 | personal burden | 9000 |
| 2 | Parental care and medical expenses Supporting parents (1500 each) | 5000 or 3000 |
| 3 | basic aids | 6000 |
| 4 | OKU people | 6000 |
| 5 | Educational expenses (taxpayers themselves) | 7000 |
| 6 | Medical expenses for difficult-to-treat diseases | 6000 |
| 7 | Fertility Support Treatment Fees | |
| 8 | Physical examination (500) | |
| 9 | 优质Life: Books, magazines and other publications Buy PCs, Smartphones and Tablets Sports Equipment Internet access fee | 2500 |
| 10 | Buy a mobile computer to work from home* (June 2020, 6 – December 1, 2020) | 2500 |
| 11 | baby feeding equipment | 1000 |
| 12 | Preschool education for 6 year olds | 3000 |
| 13 | SSPN Higher Education Fund* | 8000 |
| 14 | Husband/Wife (not working) | 4000 |
| 15 | OKU husband/wife | 3500 |
| 16 | Children under 18 | 2000 |
| 17 | Children 18 or older who are in education | 2000 |
| A-Levels, Diplomas, Foundation Studies and other equivalent courses | ||
| 18 | Children 18 or older who are in education | 8000 |
| Diploma Diploma, Ijazah Bachelor's Diploma and other equivalent courses | ||
| 19 | OKU kids | 6000 |
| 20 | Life Insurance and Provident Fund (KWSP)* | 7000 |
| Life Insurance (3000) Provident Fund (4000) | ||
| 21 | Deferred Annuity | 3000 |
| 22 | Education and Medical Insurance | 3000 |
| 23 | Social Insurance (SOSCO/PERKESO) | 250 |
| 24 | Domestic travel* | 1000 |
Deductible items for taxpayers when filing tax returns (Potongan Cukai)
| Serial number | Tax deductible items when filing a tax return | Relevant laws and regulations |
|---|---|---|
| 1 | Cash donations to government, state or government departments | Subseksyen 44(6) |
| 2 | Cash donations to recognized institutions or organizations (up to 7% of income) | Subseksyen 44(6) |
| 3 | Donate to any approved sporting activity or organization (up to 7% of income) | Subseksyen 44(11B) |
| 4 | Donate to any national interest project approved by the Treasury Department (up to 7% of income) | Subseksyen 44 (11C) |
| 5 | Donate cultural heritage, pictures | Subseksyen 44(6A) |
| 6 | donate to the library | Subseksyen 44(8) |
| 7 | Donate to disabled facilities or cash in public spaces | Subseksyen 44(9) |
| 8 | Donate medical equipment or medical expenses to health organizations | Subseksyen 44(10) |
| 9 | donate to art gallery | Subseksyen 44(11) |
Malaysia Tax Filing (Tax Filing) Income Tax Frequently Asked Questions
1. What is the difference between filing a tax return and paying a tax (paying tax)?
- To file a tax return is to declare your income to the tax office;
- Taxation is when a person's income is higher than the amount set by the government and must pay tax to the government.
2. Why do we need to file a tax return (tax return)?
- Tax records can build a good "reputation" for an individual.This so-called "credit" can help us later apply for a home loan, car loan, personal loan, or any bank financing, make the bank trust us, and make it easier to get our loan approved.
3. When do I file my taxes?How much income do I need to start filing taxes?
- Before 2010, when a person worked (individual) in Malaysia and had an annual income (Yearly Income) of RM 25501 or a monthly income (Monthly Income) of RM 2125 or above, he had to file a tax return.
- Since 2010, when a person works (individual) in Malaysia and has an annual income (Yearly Income) of RM 26501 or a monthly income (Monthly Income) of RM 2208 or above, he must file a tax return.
- Since 2013, when a person is working (individual) in Malaysia and has an annual income (Yearly Income) of RM 30667 or monthly income (RM 2556) or above, he has to file a tax return.
- From 2015, when a person works in Malaysia (individual), the annual income (Yearly Income) RM 34000 needs to be taxed.
4. When will the tax be paid?
- Migrant workers/employees (individuals without business source): on or before April 4 each year
- Individuals with business source: on or before June 6 each year
5. PCB is deducted from wages, do I still need to file taxes?
- Tax filing is required.Because PCB is only a rough tax.
- After tax filing, LHDN will refund our overpaid PCB tax.
- If you give less PCB, you will have to pay a little more tax when filing tax returns.
Malaysia Income Tax Filing Deadline, please click the following link to view▼
How do self-employed persons in Malaysia file tax returns?Please click the link belowBrowse ▼
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