Every year, Malaysians who earn a salary exceeding a threshold are required to file the income tax return form and pay taxes to the Inland Revenue Board Malaysia (IRBM).
One of the steps when filing your income tax return form is claiming tax reliefs on certain expenses. The reliefs will be deducted from your taxable income and thus, reducing the tax amount you need to pay.
The list of tax reliefs that you can claim may change from year to year upon review by the government. Tax reliefs are usually announced during the annual budget tabling.
Read Also: Malaysia Budget 2025: 5 Things That Will Financially Impact Malaysians The Most
Medical Expenses
For the year of assessment 2025 (YA2025), the maximum tax relief amount that you can claim on medical expenses for children aged below 18 with learning disabilities has been increased from RM4,000 to RM6,000. This includes expenses for diagnosis, early intervention programmes and continuous treatments.
Relief for medical examinations, mental health check-ups and detection of Covid-19 is maintained at RM1,000, but is expanded to cover purchase of self-test kit, self-test medical devices such as glucometer, pulse oximeter, blood pressure monitor and thermometer and fees for medical exams conducted at a clinic or hospital such as blood test, ultrasound and mammogram.
Disability Expenses
Additionally, tax relief for individual taxpayers with disabilities who are registered with Malaysia’s Department of Social Welfare has been increased from RM6,000 to RM7,000.
Individuals with a disabled spouse are also eligible to claim tax relief of up to RM6,000. Individuals who have a disabled and unmarried child can claim up to RM8,000 of tax relief.
Elderly Care
In an aging nation, elderly care is increasingly become a priority in many households. Starting from year of assessment 2025, individuals will be able to claim tax relief of up to RM1,000 for sports equipment and activities not just for themselves, their children and spouse, but their parents as well.
Taxpayers will also get relief of up to RM1,000 on medical check-ups for their parents, which has been expanded to include vaccinations.
Additionally, tax relief on medical treatments for parents and parental care services will be expanded to cover grandparents. Existing tax relief on child care allowance, which is claimable for up to RM3,000, will be expanded to include elderly care for parents or grandparents.
Education And Medical Insurance
The government recognises the importance of getting access to education and medical services as an an essential need. With this, the maximum amount a person can claim on premiums paid for education and medical insurance will be increased from RM3,000 to RM4,000, starting from YA2025.
National Education Savings Scheme
Parents will be able to continue enjoying tax relief of up to RM8,000 on savings that go in the National Education Savings Scheme for the year.
The National Education Savings Scheme is a government-managed investment scheme that allows parents to save for their children’s higher education. This tax relief can only be claimed by one parent of the child.
Withdrawal from the scheme for the year will not be considered in the calculation of the savings in the scheme, thus not affecting the eligible amount for the tax relief.
Housing Loan Interest
Individuals who are planning to purchase your first home for your own stay in 2025 will be eligible to claim tax relief on interests paid for the housing loan.
The tax relief amount you will be able to claim differs depending on the purchase price of the property.
For homes priced up to RM500,000, you will be able to claim up to RM7,000 in tax relief per year. Meanwhile, those who bought homes priced between RM500,000 and RM700,000 will be able to claim RM5,000 per year.
Two or more individuals will be able to claim tax relief on interest paid for a housing loan according to the apportionment of interest payment.
Nursery Or Kindergarten Fees
The government will continue the allowance of tax relief of up to RM3,000 for fees paid to child care centres or kindergartens registered with relevant authorities for children up to six years old.
This tax relief is only claimable by one parent of the child.
Purchase Of Domestic Food Waste Composting Machine
In a bid to encourage more sustainable waste management practices, the government introduced tax relief for the purchase of a domestic food waste composting machine.
A food waste composting machine is not only able to reduce waste disposal at landfills, but also produce organic fertilisers and other end products that can be used for other purposes.
The government has expanded tax relief on expenses for electric vehicle (EV) charging equipment of up to RM3,000 to include the purchase of composting machine.
Read Also: Guide To Filing Your Personal Income Tax In Malaysia In 2024
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