Complete list of things to claim for LHDN 2022 YA 2021 – Wired PR Lifestyle Story

The tax season is coming soon for the 2021 Assessment Year (YA) for Malaysians earning at least RMB 34,000.

Those who have received the Income Tax Return (EA) form can do so on the website ezHASiL portal logging in or registering for the first time.

Changes in tax cuts have been made in the year 2021, and some new additions have also been introduced to alleviate the financial burdens of Malaysia caused by the widespread pandemic. Claiming these incentives will help you lower your tax rate and pay less in general tax.

With that, here it is LHDNs Complete list of tax deductions for the 2021 YA.

1. Individual automatic relief: RM9,000

You only need to fill out the LHDN e-Filing form to receive an automatic tax deduction of RM9,000. As the name suggests, this will be done automatically by the system.

2. Additional tuition fees (individual): ≤7,000 RM

A tax reduction of up to RM 7,000 can be claimed if you pay for your studies at a recognized Malaysian higher education institution. Here are the criteria:

• This relief can be taken for any Master’s or Doctoral degree.
• Only law, technical, Islamic, technical, vocational, industrial, scientific or technological courses may be required for postgraduate or graduate courses.
• All courses of study to improve skills or self-improvement can be claimed, but only up to RM1,000. These courses should be recognized Skills Development Act, 2006.

3. Spouses and alimony: ≤4,000 RM

Those who pay alimony to ex-wives are entitled to a subsidy of RM 4,000, but only if there are formal agreements to protect them.

4. Medical expenses for parents: ≤8,000 RM

You can claim up to RM 8,000 if your parents have a disease that requires a specific treatment certified by a certified doctor.

It includes expenses incurred for medical treatment, special needs, and caregivers.

5. Medical expenses of the individual, spouse or children: ≤8,000 RM

You can claim up to 8,000 RM for yourself, your spouse, or children who are receiving medical treatment that is serious or difficult to treat. These diseases such as AIDS, Multiple Sclerosis, Kidney Failure, Alzheimer’s Disease, Chronic Liver Disease, Heart Disease, Major Organ Transplants, etc.

Fertility treatments such as IVF or IUI suffered by married couples can also be claimed in this category.

In addition, the relief of up to 1,000 RM is aimed at a complete medical examination for you, your spouse or your children. These verifications include COVID-19 testing or the cost of disease vaccines, including:

• Pneumococcal;
• Human papillomavirus (HPV);
• Influenza;
• Rotavirus;
• varicose veins;
• meningococcal;
• TDAP combination (tetanus-diphtheria-cellular-pertussis);
• COVID-19.

The total amount of relief increased by RM 2,000 from YA 2020 by RM 6,000 in this category.

6. Equipment for the disabled, spouses, children or parents: ≤6,000 RM.

A tax reduction of up to RM6,000 is available for you, your spouse, to purchase special support equipment for children or parents with disabilities.

People with disabilities should be registered with the Department of Social Welfare (JKM) and hold a certificate as an OKU.

7. Disabled person (Self): 6,000 RM

Disabled people registered with JKM are entitled to a further deduction of RM 6,000 under this allowance.

8. Disabled spouse: 5,000 RM

Those with a disabled spouse are entitled to a RM5,000 deduction. This category is an increase of RM 3,500 from YA 2020.

9. Children with disabilities

Disability support: RM 6,000

Parents with an unmarried child with a physical or mental disability are entitled to a tax reduction of RM6,000, regardless of their age. Children must have a JKM certificate as a disabled person.

Disabled child aged 18 or over pursuing higher education: 8,000 RM

An additional exemption of RM 8,000 applies to an unmarried unmarried person receiving full-time education in Malaysia or abroad. This deduction is in addition to disability benefits if they include:

• Full-time higher education to obtain a Malaysian diploma;
• Doing a full-time undergraduate or graduate program outside of Malaysia;
• Serving under recruitment or articles for a Malaysian trade or profession.

10. Purchasing a lifestyle for oneself, one’s spouse or one’s children: ≤2,500 RM

A tax deduction of up to RMB 2,500 is deductible for the purchase of personal, personal or personal lifestyle equipment for your children. Items include:

• Reading materials such as books, magazines, journals, print and electronic newspapers and other publications with the aim of enriching knowledge;
• Personal computer, phone or tablet;
• Gym memberships or sports equipment;
• Internet invoices in your name.

11. Additional lifestyle purchases

Additional technology relief: ≤2,500 RM

With the spread of online education and the WFH 2021 MCO, an additional 2,500 RM2 can be claimed on the lifestyle relief if you purchased a personal computer, phone or tablet in YA 2021.

Extra support for sports activities: 500 RM

In addition, there is an additional fee of RM 500 for the purchase of sports equipment, rental or entrance fees for any sports facilities and registration fees for any sporting competitions.

12. Breastfeeding equipment: ≤1,000 RM

Mothers who are breastfeeding a child 2 years of age or younger can deduct up to RM 1,000 if they purchase personal breastfeeding equipment.

This deduction can only be made once every 2 years of the evaluation.

13. Childcare fees: ≤3,000 RM

Parents with children in kindergartens or daycare can apply for a tax reduction of up to RM 3,000.

If the couple chooses to do it separately, this deduction can only be requested by the child’s mother or father.

14. SSPN: ≤8,000 RM

SSPN (Skim Simpanan Pendidikan Nasional) is a savings plan that encourages parents to invest in their children’s higher education.

Collaborating parents can receive a subsidy of up to RM 8,000 for their net annual savings (withdrawal of deposit in 2021 and withdrawal in 2021).

15. Unmarried child under 18: RM 2,000

Parents can get a tax reduction of RM RM 2,000 for each unmarried child under 18 years of age. In the case of separate parenting, this deduction may only be claimed by the child’s mother or father.

16. A child over the age of 18 who is studying full-time

Child over 18 years of age in Early Childhood Education: 2,000 RM

RM2,000 can be deducted for parents with children aged 18 and over, such as basics, A-Levels, tuition, etc.

Child 18 years of age or older studying: 8,000 RM

RM8,000 must be claimed for parents with unmarried children over the age of 18 if they are a full-time student:

• One or more diplomas (excluding the above training courses) in Malaysia;
• Non-Malaysian bachelor’s, master’s or doctoral degree (or equivalent);
• Any course in higher education institutions recognized by the Ministry of Higher Education (MOHE).

17. Life insurance, EPF or approved schemes

Retirement insurance for civil servants: ≤7,000 RM

Retired civil servants receiving a pension can claim a tax cut of up to RM 7,000 for their life insurance premiums or Takaful contributions. Members of this group are not eligible for EPF contribution services.

Employee life insurance: ≤3,000 RM

Private and public sector workers without pensions can receive a tax reduction of up to RM 3,000.

Employee EPF: ≤4,000 RM

These employees can also apply for up to RM 4,000 for EPF contributions or other approved plans. These investments include self-contributions to EPF without the contribution of employers.

18. Deferred Annual and PRS: ≤RM3,000

You are entitled to a reduced tax of RM3,000 if you have contributed to the Deferred Income Scheme or PRS (Private Retirement Scheme). This religion is in force from 2012 to 2025.

19. Education and medical insurance: ≤RM3,000

You are entitled to a tax reduction of up to RM3,000 if you pay insurance premiums related to education or health benefits for you, your spouse or your children.

20. SOCSO: ≤RM250

You can also apply for a subsidy from SOCSO (Social Security Organization) YA for contributions limited to 250 RM.

21. Home travel expenses: ≤1,000 RM

RM1,000 can be claimed for home travel expenses if you have stayed in a registered hotel, purchased tourist attraction tickets or tour packages through local travel agencies registered with the Ministry of Tourism, Arts and Culture.

This subsidy includes internal travel expenses for the period from 1 March 2020 to 31 December 2022.

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Before claiming the above tax deduction, remember to keep proof of all expenses, such as statements, invoices, and receipts. That is, to prepare for a future audit by tax authorities.

Under tax law, you must keep records that support your tax returns for 7 years.

• Read more about what we wrote about taxes here.

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