Comprehensive Guide to Malaysian Tax Reliefs for 2025
1. Overview of Tax Reliefs for 2025
The following are the key tax reliefs available to Malaysian taxpayers for the Year of Assessment 2025:
Personal Reliefs
| Type of Relief | Amount (RM) |
|---|---|
| Self (Personal Relief) | 9,000 |
| Spouse (Without Income) | 4,000 |
| Disabled Individual (Self) | 7,000 |
| Disabled Spouse | 6,000 |
| Child Relief (Under 18 Years Old) | 2,000 per child |
| Disabled Child | 8,000 per child |
| Child in Higher Education (>18 Years Old) | 8,000 per child |
| Life Insurance Premiums and EPF | Up to 7,000 |
| SOCSO Contributions | Up to 350 |
Lifestyle Reliefs
| Type of Expense | Amount (RM) |
| Purchase of Books, Magazines, Newspapers | Up to 2,500 |
| Personal Computer, Smartphone, or Tablet | Up to 2,500 |
| Internet Subscription | Up to 2,500 |
| Sports Equipment (Excluding Attire) | Up to 500 |
Health-Related Reliefs
| Type of Expense | Amount (RM) |
| Medical Expenses for Parents | Up to 8,000 |
| Medical Check-Ups | Up to 1,000 |
| Vaccination Expenses | Up to 1,000 |
| Medical Insurance Premiums | Up to 4,000 |
Education Reliefs
| Type of Expense | Amount (RM) |
| Education Fees (Self) | Up to 7,000 |
| SSPN (National Education Savings Scheme) | Up to 8,000 |
Additional Reliefs
| Type of Relief | Amount (RM) |
| Donations to Approved Charities | Up to 10% of income |
| Zakat (Tithe) | Full deduction |
| Breastfeeding Equipment | Up to 1,000 |
| Childcare Fees (Registered Centers) | Up to 3,000 |
2. Formula for Taxable Income
To calculate your taxable income:
- Start with Total Annual Income:
- Include salary, allowances, bonuses, commissions, and other taxable income.
- Deduct Allowable Expenses:
- Statutory deductions such as EPF (up to RM4,000), SOCSO, and EIS contributions.
- Subtract Applicable Tax Reliefs:
- Add up all personal, lifestyle, medical, and other reliefs listed above.
Formula:
taxable income = total annual income – allowable expenses – total tax reliefs
3. How to Submit Tax Reliefs
To claim tax reliefs, follow these steps:
Step 1: Register with LHDN
- Visit the LHDN MyTax Portal.
- Register for an e-Filing account and obtain a PIN from LHDN if you’re filing for the first time.
Step 2: Log In to e-Filing
- Access the e-Filing system via MyTax.
Step 3: Fill in Income Details
- Declare your income from all sources (e.g., salary, rental income).
Step 4: Declare Tax Reliefs
- Navigate to the “Tax Reliefs” section in the e-Filing system.
- Enter the amounts for each applicable relief (e.g., RM2,500 for lifestyle purchases).
Step 5: Submit Supporting Documents
- Retain receipts for all declared reliefs. LHDN may request them during an audit (keep these for 7 years).
Step 6: Review and Submit
- Verify your details and submit the return. Print the confirmation for your records.
4. Tax Filing Deadlines
| Form Type | Deadline |
| Form BE (Employment Income Only) | April 30, 2025 |
| Form B (Business Income) | June 30, 2025 |
5. Important Tips
- Keep Receipts and Documents:
- Maintain proof of expenses (e.g., medical bills, purchase receipts) for 7 years.
- Use the PCB Calculator:
- Verify if Potongan Cukai Bulanan (PCB) aligns with your annual tax liability using the LHDN calculator.
- Consult LHDN for Assistance:
- If unsure about relief eligibility, contact LHDN or a tax consultant.
- Avoid Late Filing:
- Penalties for late filing include fines or interest on unpaid taxes.
This guide provides a concise summary of Malaysian Tax Reliefs for 2025. Ensure you file your taxes accurately to maximize your reliefs and minimize tax liability. For more detailed assistance, visit LHDN MyTax Portal.