It’s time to look into filing your income tax and the deadline for filing income tax in Malaysia is 30 April for manual filing and 15 May via e-Filing. But before you file your taxes this year whether online on the Lembaga Hasil Dalam Negeri website or on-site at their offices, did you know that family caregivers can get further rebates?
Malaysian caregivers are entitled to a number of tax deductions for the year’s expenses. In this article, we break down everything you need to know about relevant tax relief as a family caregiver.
Here are 9 types of tax reliefs you can claim to maximise your tax refund and reduce your chargeable income.
1. Self, parents & dependents
A total claim amount of RM9000 is granted automatically to each individual and any dependents that they have upon filling in the Inland Revenue Board Of Malaysia (LHDN) E-Form.
2. Medical treatment, special needs and carer expenses for parents
Children who are caring for parents with medical conditions verified by a medical practitioner are entitled to an additional relief of RM5000 for any cost incurred from special treatments or medical needs. This includes any medical care or treatment provided by a nursing home or even dental treatment such as tooth extraction, filling and scaling. Cosmetic dental treatment, crowning, root canal and dentures are NOT included in the deduction.
If the parents under the child’s care are regarded as healthy, a total claimable amount of RM3000 is available where relief of RM1500 is allocated for each parent. It is important to note that only one (1) child is permitted to claim relief for parents for any given year and each parent’s annual income must not exceed RM24,000.
3. Basic supporting equipment for disabled self, spouse, child or parent
Total tax relief of RM6000 is available for the purchase of basic supporting equipment for a disabled loved one under an individual’s care. This includes a hemodialysis machine, wheelchair, artificial leg and hearing aids but excludes spectacles and optical lenses. It is also important to note that the senior loved one must be first registered with the Department of Social Welfare (DSW) as a disabled person for the equipment to be claimable.
4. Medical expenses for serious diseases for self, spouse or child
Other than the medical expenses of parents, a total amount of RM6000 is also claimable for yourself, a spouse or a child. This includes treatments for serious diseases such as:
- Acquired Immune Deficiency Syndrome (AIDS)
- Parkinson’s disease
- Renal failure
You can also claim for other similar diseases such as heart attack, pulmonary hypertension, chronic liver disease, fulminant viral hepatitis, head trauma with neurological deficit, tumour in the brain or vascular malformation, major burns, major organ transplant and major amputation of limbs.
5. Complete medical examination for self, spouse or child
Full medical check-ups for spouses or children are claimable to a total amount of RM1000. However, this amount is also included within the maximum RM6000 exemption for the medical expenses of serious diseases.
6. Disabled husband/wife
Individuals caring for a disabled husband or wife are also entitled to an additional deduction of RM3500.
7. Disabled child
A total relief amount of RM6000 is given to a disabled child who is unmarried. If the unmarried, disabled child is pursuing higher education in Malaysia or overseas at a degree level or higher, an additional RM8000 is claimable. This brings the total tax claimable amount to RM14,000 for a child.
8. Life insurance and EPF INCLUDING not through salary deduction
As a means to encourage Malaysians to sign up for life insurance, a total claimable amount of RM7000 is granted for life insurance and EPF for pensionable public servants. For individuals working in the private sector, a total claimable amount of RM3000 is available for Y2020 assessment. This tax relief includes insurance premium paid for a spouse but not for children under an individual’s care.
9. Education and Medical Insurance
Lastly, caregivers can enjoy a tax relief total of RM3000 for any payment made on insurance premium for education or medical needs of a spouse or child.
For more information on the tax relief of the year of assessment 2020, please refer to the exemplary notes here.
Tax Relief YA 2020
- Inland Revenue Board of Malaysia. (2019). Explanatory Notes. [online] Available at: http://phl.hasil.gov.my/pdf/pdfam/Explanatory_Notes_BE2019_2.pdf.
Tang, A. (2020). Budget 2021: Tax relief on medical treatment raised, including for parents | The Star. [online] www.thestar.com.my. Available at: https://www.thestar.com.my/news/nation/2020/11/06/budget-2021-tax-relief-on-medical-treatment-raised-including-for-parents.