It’s tax filing season!
We’ve come to the time of year where everyone in Malaysia is busy filing taxes (or learning how to – we have just the guide for the tax filing process for you!).
Even though you have to pay tax on your chargeable income when your annual salary reaches a certain amount, did you know that you can get tax relief benefits from filing your taxes?
What’s better, the MADANI Government has made an exciting announcement for 2025 Budget Malaysia: first-time home buyers can now enjoy a tax break of up to RM7,000 when buying residential properties that cost up to RM500,000.
To qualify for this tax relief, you will need to finalise a home loan agreement from January 1, 2025, to December 31, 2027.
So make sure to keep all of your receipts! Let’s see what you can claim when filing your taxes with the Inland Revenue Board Malaysia:
List of Income Tax Relief for Year of Assessment 2025
1. Individual
| Item | Relief Amount |
|---|---|
| Individual & Dependent Relatives | RM9,000 |
| Disabled Individual | RM7,000 |
| Spouse / Alimony Payment | RM4,000 |
| Disabled Spouse | RM6,000 |
| Education Fees | RM7,000 |
| Skills Enhancement / Self-Development Courses | Up to RM2,000 |
| First Home Loan Interest Relief | RM7,000 |
| Residential property price up to RM500,000 | RM7,000 |
| Residential property price RM500,001 to RM750,000 | RM5,000 |
Key conditions:
- Sale and Purchase Agreement dated between 1 January 2025 and 31 December 2027
- Applicable to the first residential property only
2. Medical & Special Needs
| Item | Relief Amount |
|---|---|
| Self, Spouse or Child | RM10,000 |
| Early diagnosis, intervention & rehabilitation for learning disabilities (children ≤18 years) | Up to RM6,000 |
| Parents & Grandparents | RM8,000 |
| Full medical check-up & vaccination for parents | Up to RM1,000 |
| Basic supporting equipment for disabled persons | RM6,000 |
Includes:
- Serious illnesses
- Fertility treatment
- Vaccination (capped at RM1,000)
- Dental examination and treatment (capped at RM1,000)
- Mental health screening and consultation
- Self-test health kits and monitoring equipment
3. Lifestyle
| Item | Relief Amount |
|---|---|
| Lifestyle Expenses | RM2,500 |
| Additional Sports Relief | RM1,000 |
| Electric Vehicle Charger & Domestic Food Waste Composting Machine | RM2,500 |
a. Lifestyle expenses cover:
- Books and reading materials
- Personal computer, smartphone or tablet
- Internet subscription bills
- Skills development and self-improvement course fees
b. Sports-related expenses include:
- Sports equipment
- Facility rental or entrance fees
- Competition registration fees
- Gym membership or sports training fees
4. Insurance & Contributions
| Item | Relief Amount |
|---|---|
| Life Insurance & EPF (KWSP) | RM7,000 |
| SSPN (National Education Savings Scheme) | RM8,000 |
| SOCSO (PERKESO) Contributions | RM350 |
| Private Retirement Scheme (PRS) & Deferred Annuity | RM3,000 |
| Education & Medical Insurance | RM4,000 |
5. Child Relief
| Item | Relief Amount |
|---|---|
| Child below 18 years old, unmarried | RM2,000 |
| Child aged 18 and above, studying full-time (Diploma and above) | RM8,000 |
| Child aged 18 and above, studying pre-university / A-Level | RM2,000 |
| Disabled child, unmarried | RM8,000 |
| Additional relief for disabled child aged 18 and above, studying | RM8,000 |
| Registered childcare / kindergarten fees | RM3,000 |
| Breastfeeding equipment | RM1,000 |
Important notes:
- Childcare and kindergarten relief applies to children aged 6 and below
- Breastfeeding equipment relief is for female taxpayers only
- Claimable once every two years of assessment
If you’re thinking of saving more money, remember to fill in these tax deductions when you file your tax – and get additional relief from paying less tax, or no tax at all!
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