PERSONAL RELIEFS AND

REBATES

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 Introduction
• Personal relief are given only to a resident
individual tax payer
• Relief are deducted from total income in order
to determine the chargeable income of
taxpayer.
• Rebates are deduction given to taxpayer
against his/her income tax liability (tax
payable)

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 Net income tax payable
Total aggregate income
[S 4(a) to S 4 (f)] XXXX
Less: current year business loss (xxx)
Approve donation (xxx)
Total Income XXX
Less : Reliefs (xxx)
Chargeable Income XXXX
___________________________________________
Income tax payable (Scale rates) xxxxx
Less: Rebates (xxxx)
Less: Sec. 110 set off (xxxx)
(tax credit on dividend income )
Net income tax payable xxxx

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 Assessment of husband and wife
• Separate assessment or Joint assessment
• With separate assessment, wife can enjoy the same relief as
her husband
• With effect of YA 1991, a wife would be separately assessed
on her income
• Joint assessment (only by request ); wife’s income will be
aggregated with husband’s income
• With effect of YA 2001, husband can elect to assess his
income with his wife. (usually when husband taxable
income is less than wife taxable income)

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 Conditions for joint assessment
• Husband and wife must be living together in that
calendar year
• The wife /husband make an election for joint
assessment before 1 April in that YA (usually
stated in the tax return form)
• Her/his income must be aggregated with her
husband/ his wife
• If wife/husband is non-resident for the YA, she/he
must be a Malaysian citizen.

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 RELIEF

Sec 46,47 48 and 49

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 1) Personal relief ; Section 46:
• 1. Individual /taxpayer – RM9000
• 2. Spouse – RM4000
• 3. Disable person (further deduction)
- Taxpayer –RM6000
- spouse – RM3500
-Supporting equipment – Max RM6000
• 4. Children

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 Child relief : Section 48
 Child reliefs – unmarried child
 Child: A legitimate child, a step child and an adopted child (in
accordance of any law)
 Unmarried – never been married

Disabled child
Above 18- studying in IPT
RM6,000/child
RM8,000

studying in IPT –local or oversea

Max. RM8,000/child
Above 18
Normal child
Below 18
RM2,000/child

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 Who can claim for child relief?
A husband or a wife?
• Prior to YA 1996; eligibility is on husband
– Wife only eligible when she separated from a husband and has
obtained full custody of the child
• With effect from YA 1996, either a husband or a wife can
claim for the relief.
– Sharing is not allowed for each child
– But, allocation of the number of child is permitted.
• For divorced couple: If expenses incurred by both husband and
wife, each individual eligible to 50% of the whole deduction
(50:50)
• *** tax planning: when husband has nill taxable income (has
business losses) -> tax efficient for wife to claim all the child
relief.
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 OTHER RELIEFS …. Cont. (evidences are
required)
1. Medical expenses for taxpayer, spouse and children on serious
diseases max RM6000 include max RM500 medical exam
expenses
2. Medical expenses for parents: Max RM5,000
– Normal medical expenses plus expenses to maintains the
parents in nursing home
– Max RM5000 is given to each child – provided showing
the official receipts.
– If joint assessment with husband, relief is only given to
husband’s parents, not wife’s parents.

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 RELIEFS …. Cont. (evidences are required)
3. Course Fees for self improvement in M’sia: Max RM7,000 (prior
to YA 2016 : max RM5,000)
– Cost for acquiring technical, vocational, industrial,
scientific or technological skills accounting and
management course
4. Purchase of books
 Books, magazines, journals and any publication for the
purpose of enhancing knowledge
 From YA 2001 to YA 2004 : max RM 500
 From YA 2005 max RM 700
 W.e.f YA 2007 max. 1,000
5. **Life Insurance and EPF –max RM7000
Insurance –RM3000
EPF RM4000
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 RELIEFS …. Cont. (evidences are required)
6. Education and medical Insurance
 Insurance for individual, his wife and his child
 Max amount RM3,000 (separate or joint assessment)
7.computer- max RM3000 9 (once in 3 years)
8.SSPN- max RM8000
9. Purchase of sport equipment- max RM300
10. Parental care w.e.f YA2016 until 2020- father and mother
RM1500 each with condition:
– no claim under medical treatment
– Age 60 above
– Resident and
– annual income less than RM24000
11. W.e.f. YA 2016- socso max 250

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 RELIEFS …. Cont. (evidences are required)
12. Lifestyle RM2500
13. Breastfeeding equipment RM1000
14. Fees for childcare center and kindergartens RM1000

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 TAX REBATES S. 6 A
Deductible against income tax payable
1. RM 400; when chargeable income does not exceed RM35,000
(available also for wife under joint assessment)
- 2001-2008 :RM350
– Prior to YA 2001;
• chargeable income ≤ RM10,000 : rebate RM 110
• Joint assessment with husband/wife: wife/husband shall be
given rebate RM60
2. Zakat and fitrah for muslim (evidence is needed)
• Unabsorbed rebate
– Shall not be refunded to the taxpayer
– Shall not be carried forward to future YA

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