1. Of course you’ve bought a new smartphone. Claim for it!
Type: Lifestyle-related purchases
Maximum relief amount: RM2,500
Did you know that in 2016, the reading material and personal computer-slash-smartphone income tax relief used to have a combined worth of RM4,000? If you didn’t make the most out of the lifestyle income tax relief before, now is the time to do it! Who knows when the government might change the lifestyle income tax relief again *sobs*.
If you’re not a big fan of gadgets or books, go ahead and make a claim for your monthly gym membership fees, sport equipment purchases, or monthly internet subscription bills instead. Just remember that you can only claim up to RM2,500 and keep all of your receipts. Check out the full list of the eligible purchases under the lifestyle income tax relief below:
- Books, magazines, and printed newspaper (except banned reading materials)
- Personal computer, smartphone, or tablet
- Sports equipment (except motorised two-wheel bicycles)
- Monthly internet subscriptions
- Gym memberships
2. Get your cholesterol and sugar level checked!Type: Medical check-up
Maximum relief amount: RM500 for medical check-ups, and RM6,000 for a serious disease-related medical expenses
We don’t mean to scare you, but how sure are you that you’re 100% healthy? What with the countless preservatives in our everyday foods and the pollutions around us, it’s better to get a full medical check-up and put your mind at ease once and for all. The government allows up to RM500 income tax relief for a complete medical check-ups annually, so if you haven’t had one this year, make use that benefit and make an appointment with your doctor today!
IF *knocks on wood* you are diagnosed with a serious disease, you can claim up to RM6,000 income tax relief for your medical expenses. Bear in mind that you're only allowed to claim for the listed serious diseases by the Inland Revenue Board of Malaysia, so check first before you make a claim for your medical expenses!
3. Get tax relief for your EPF and life insurance premiumsType: EPF and life insurance
Maximum relief amount: RM6,000 (combined)
We know, we know, life is hard enough without having to pay for the adult stuff left and right. But if our super nice government gives us an income tax relief for both our EPF deductions and life insurance premiums of up to RM6,000, be a smart Malaysian and make sure you claim it to the max!
If you don’t have a medical or life insurance policy, it’s not too late to get one! Check out our list of questions you need to ask your insurance agent before signing up for one.
Also, here’s a secret income tax tip that not everyone knows; did you know that if you have a life insurance policy with an attached Major/Critical Illness rider, you can claim 60% of the total annual premium paid under the medical insurance tax relief category (limited to RM3,000)? Here’s how this can work out to your advantage, let’s just say your..
EPF deductions/contributions: RM6,000
Life insurance annual premium: RM800
Medical insurance annual premium: RM2,600
So you’ve maxed out your income tax relief with your EPF deductions/contributions. But does that mean you can't claim for the premiums you've paid for your life insurance policy at all? NO. First, check if your life insurance policy has a Major/Critical Illness rider (die-die must check or you could be fined up to RM10,000 or imprisoned!). You can call your insurance provider directly if your agent goes MIA, but you might be able to find this information on your annual statement, here's a sample on how it might look like:
Once you've made sure that your life insurance policy qualifies for the 60% income tax relief, calculate it according to your annual statement. For example, from the above scenario we can take 60% of the total life insurance premium (60% x RM800 = RM480) and include it with the medical insurance/education insurance tax relief claim (RM2,600 + RM480 = RM3,080).
Of course, you can only make claim for RM3,000, but hey at least you can now claim the maximum amount for BOTH income tax relief categories!
4. Even MORE tax relief if you have medical and education insuranceType: Medical/education insurance
Maximum relief amount: RM3,000 (combined)
Sure, you have employee medical benefits, but what will you do if *double knock on wood* you get fired or can no longer work due to whatever reason? How will you pay for your medical bills if you get sick or injured then?
If it’s the premium costs you’re worried about, you can stop worrying now. Are you aware that you’re entitled to up to RM3,000 income tax relief for both medical and education (for your children) insurance premiums? Not only you’ll have your very own medical insurance coverage, you also get to reduce a lot of taxable income!
5. Another Reason To Give Money To Your ParentsType: Parental living and medical expenses
Maximum relief amount: RM5,000 (medical expenses only) or RM3,000 (both parents)
We kid, we kid. We know you’re a good son/daughter and give duit belanja to your parents every month. But did you know that you can claim income tax relief of up to RM3,000 (limited to RM1,500 for each parent) for parental expenses or up to RM5,000 for their medical expenses?
This is not a drill, people. Start saving all the medical bills and living expenses that you’ve paid for your parents and save on income tax today!
Don’t wait until the last minute, start drafting your YA 2018 income tax NOW
If it means you can save more of your hard earned money, feel free to be as kiasu as you want when filing your income tax! In fact, go on the Inland Board Revenue of Malaysia's website and find out if you're entitled to other income tax reliefs.
It only takes a few seconds, and it might help you get more income tax refund and finally buy that new car you've been dreaming about! In the meantime, prep your finances and use our comparison tool to find out the best car loans in the market today!