Tax Relief 2024 Malaysia: List, Eligibility, Calculation & How to Claim

As an employer in Malaysia, staying updated on tax relief opportunities can make a significant difference in your company’s financial planning.

The Malaysian government has introduced several tax relief options for 2024, helping businesses manage expenses while supporting employees.

By taking advantage of tax relief 2024, employers can ease financial burdens, invest in employee welfare, and comply with tax regulations effectively.

Whether it’s contributions to employee benefits, education subsidies, or healthcare support, these incentives help you reinvest in your workforce while ensuring compliance with tax laws.

Below is a detailed breakdown of available tax relief options in 2024, including eligibility criteria and deduction amounts.

Make informed decisions and take full advantage of these incentives to support both your employees and your business’s financial growth.

Tax Reliefs 2024 (Last Updated on 17 Dec 2024)

The table below summarizes the key tax reliefs available to employees.

Employers can use this information to educate employees and integrate it into financial wellness programs.

No	Tax Relief Category	Description	Maximum Deduction (RM)
1	Personal and dependent relatives	General relief for individuals and their dependents	9,000
2	Parental medical and dental care	Covers specialist medical care, dental treatments, and caregiving expenses	8,000 (Capped)
3	Purchase of support equipment	Includes wheelchairs, prosthetics, and other mobility aids for disabled individuals (self, spouse, child, or parents)	6,000 (Capped)
4	Disabled individual relief	Additional relief for individuals with disabilities	6,000
5	Education fees (Self)	Covers approved courses for skill enhancement and higher education, including diploma, degree, master’s, and PhD programs	7,000 (Capped)
6	Medical expenses (self, spouse, children)	Covers serious diseases, fertility treatments, vaccinations, and dental check-ups	10,000 (Capped)
7	Health-related expenses	Includes full medical check-ups, COVID-19 tests, and mental health consultations	1,000 (Capped)
8	Child disability-related expenses	Covers assessments for intellectual disabilities, early intervention programs, and rehabilitation	4,000 (Capped)
9	Lifestyle-related expenses	Covers purchases of books, digital devices (PCs, tablets, smartphones), internet subscriptions, and personal development courses	2,500 (Capped)
10	Additional lifestyle relief	Covers sports-related expenses such as equipment, gym memberships, competition registration, and facility rental fees	1,000 (Capped)
11	Breastfeeding equipment	Covers the purchase of breastfeeding tools for mothers with children aged two years and below (allowed once every two years)	1,000 (Capped)
12	Childcare fees	Covers payments made to registered childcare centers and kindergartens for children aged six and below	3,000 (Capped)
13	National Education Savings Scheme (SSPN)	Encourages savings for children's education through SSPN deposits	8,000 (Capped)
14	Spouse support or alimony	Deduction available for maintenance payments made to a spouse or ex-wife (legally recognized)	4,000 (Capped)
15	Disabled spouse relief	Additional tax relief for individuals with a disabled spouse	5,000
16a	Child relief (under 18 years old)	Applies to unmarried children below 18 years old	2,000
16b	Child relief (higher education)	For unmarried children aged 18 and above pursuing full-time studies (A-Level, diploma, degree, etc.)	2,000 - 8,000
16c	Disabled child relief	Additional relief for parents of disabled children; further exemption for those pursuing higher education	6,000 (Additional RM8,000 for higher education)
17	EPF and life insurance	Covers mandatory and voluntary EPF contributions, life insurance, and takaful payments	7,000 (Capped)
18	Private Retirement Scheme (PRS) and annuity plans	Encourages long-term retirement savings	3,000 (Capped)
19	Education and medical insurance premiums	Covers premiums for insurance policies related to education and health protection	3,000 (Capped)
20	SOCSO contributions	Covers employees' contributions to SOCSO for social security protection	350 (Capped)
21	Electric vehicle (EV) charging facilities	Covers costs for installing EV charging stations at home (non-business use)	2,500 (Capped)

Source: LHDN Malaysia

How to Claim Tax Relief

Employers can assist employees by providing tax workshops or resources on how to file taxes correctly.

Employees can claim tax relief when filing their income tax returns with the Lembaga Hasil Dalam Negeri (LHDN).

The process is as follows:

1. Gather Supporting Documents

Employees must keep receipts and proof of eligible expenses, such as education fees, medical bills, or insurance payments.

2. Submit the Tax Return (e-Filing or Manual Submission)

Employees can file their income tax via e-Filing on the LHDN website or manually submit Form BE (for individuals without business income).

3. Declare Tax Reliefs Accurately

Employees must enter the correct tax relief categories in the e-Filing system under "Tax Reliefs."

4. Retain Documents for Audit

Employees should keep receipts and supporting documents for at least 7 years in case of an audit by LHDN.

5. Claim Refunds (If Applicable)

If the total tax paid exceeds the final tax due, employees can receive a refund from LHDN.

How to Calculate Tax with Tax Reliefs

Employees can reduce their taxable income by claiming eligible tax reliefs. Here’s a simple formula to calculate taxable income:

Formula:

Taxable Income = Total Annual Income - Tax Reliefs - Tax Exemptions

Example Calculation:

Total Annual Income: RM 80,000
Eligible Tax Reliefs: RM 25,000
Tax Exemptions (e.g., Zakat, donations): RM 5,000

Taxable Income = RM 80,000 - RM 25,000 - RM 5,000 = RM 50,000

After calculating the taxable income, the amount of tax payable is determined based on Malaysia’s progressive tax rates.

How Employers Can Help Employees Maximize Tax Reliefs

Organize tax briefing sessions or send guides explaining tax reliefs.
Offer allowances or reimbursement programs for expenses that qualify for tax relief, such as internet subscriptions, gym memberships, or education courses.
Promote contributions to EPF, PRS, or annuities, which qualify for tax relief.
Offer childcare benefits and health-related perks to help employees save on taxes.
Partner with financial advisors to help employees plan their taxes efficiently.

Are you hiring in 2025?

Start your hiring journey with Ajobthing today! Post your job ads, connect with top talents, and streamline your recruitment process with our easy-to-use platform.