When it comes to tax relief, there is an RM9,000 relief for self and dependent which is automatically deducted. Other than that, the most common tax reliefs include:
1. Employee Provident Fund (EPF)
This includes all contributions that have been made in the year 2019 to Kumpulan Wang Simpanan Pekerja (KWSP) that has been reflected in your monthly payslips.
2. SOCSO
Monthly contributions made to the Social Security Organization (SOCSO) which provides a scheme that protects an employee in the event of any injury while at work. This should be reflected in your monthly payslips as well.
3. Life and Medical/Education Insurance
Premiums for both life and medical insurance are claimable, provided the taxpayer is the policy owner. Education insurance is also included here and combined with medical insurance up to a maximum of RM3,000. Life Insurance allows a tax relief of up to RM6,000.
4. Savings
A great way to maximize your tax reliefs is via savings you’ve made over the year, but not just any deposits that you make into a savings account.
Savings for your Retirement
The tax relief is applicable for contributions made to your Private Retired Scheme (PRS) not exceeding RM3,000.
Education Savings
The Skim Simpanan Pendidikan Nasional (SSPN) was introduced by Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN) to help parents to save for their child’s education. This one is a sure winner for parents as it allows a tax deduction of RM8,000.
5. Lifestyle
Good habits are great to have, especially when it gives you a tax deduction. All reading materials and sports equipment are claimable while your monthly internet subscription and devices purchased will also fall in this category. Devices include personal computers, smartphones or tablets.
