5 Tax Relief That You Must Know!

 

It’s coming to the end of April, the deadline of filing tax return for 2018 (employment income).

If you did not manage to maximize your tax relief for 2018, no worries.

Below please find 5 areas where you can maximize your tax relief, therefore reducing your payable tax.

Happy Liberation Day!

Remember to keep proper documentations for tax relief that you claim!


1. Life insurance & EPF

Effective 2019

Tax relief for EPF contribution = RM 4000

Tax relief for Life Insurance/ Takaful = RM 3000

 

If you are under employment, you are recommended to sign up for life insurance up to RM 3000 to reduce your tax. Please note that both endowment plan and life insurance from insurance companies are eligible for tax relief.

If you are a sole proprietor/ business owner who does not contribute to EPF, you may consider to self contribute EPF, since tax relief for life insurance is capped at RM3000.

 

2. Education and Medical Insurance

Tax relief for education and medical insurance = RM 3000

Medical insurance for own, spouse and children is eligible for tax relief.

Children education plan is eligible for tax relief.

 

3. Medical Examination

Tax relief of RM 500 for full medical check up. Simple blood test is not eligible.

 

4. Course Fee for Self Improvement

Tax relief of RM 7000 of fees for MQA approved & accredited courses

(eg acquiring technical, vocational, industrial, scientific, technology, law, accounting, skills or qualification with any institution or professional body recognised by the government of Ministry of Finance)

 

5. Lifestyle Relief

Total of RM 2500 for the following:

  • Purchase of books, magazine, newspapers
  • Purchase of laptop, smartphone or tablets
  • Purchase of sports equipment for sports activity defined under the Sports Development Act 1997
  • Gym membership
  • Broadband subscription

 

If you have a dollar today, would you want it to be taxed or belonged to you?

Therefore, it is important not to under-estimate the tax relief mentioned above. The tax relief indirectly saves you money, lots of money in the long run.

Drop me a message if you have any question. I am more than happy to be able to assist.

 

 

Posted in Tax

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