Income Tax relief 2016 oh Income Tax relief 2016

Another 2 more months, we are going to say Bye Bye to 2016.

Did you done anything yet to maximize your tax relief???

What is 2016 tax relief??

Tax Relief

You are entitle for tax relief for the items in the table below. (red colour means start from 2016 onwards)

No.	Individual Relief Types	Amount (RM)
1	Self and DependentSpecial relief of RM2,000 will be given to tax payers earning on income of up to RM8,000 per month (aggregate income of up to RM96,000 annually). This relief is applicable for Year Assessment 2013 only.	9,000
2	Medical expenses for parents	5,000 (Limited)
3	Basic supporting equipment	6,000 (Limited) – with effect from year of assessment 2015
4	Disabled Individual	6,000
5	Education Fees (Individual)	7,000 (Limited)
6	Medical expenses for serious diseases	6,000 (Limited) – with effect from year of assessment 2015
7	Complete medical examination	500 (Limited)
8	Purchase of books, journals, magazines and publications	1,000 (Limited)
9	Purchase of personal computer (once in every 3 years)	3,000 (Limited)
10	Tax relief for parental care	1,500 (Limited)
11	Net saving in SSPN’s scheme (with effect from yearassessment 2012 until year assessment 2017)	6,000 (Limited)
12	Purchase of sport equipment for sport activities	300 (Limited)
14	Interest expended to finance purchase of residential property. Relief of up to RM10,000 a year for three consecutive years from the first year the interest is paid.Subject to the following conditions:(i) the taxpayer is a Malaysian citizen and a resident;(ii) limited to one residential unit;(iii) the sale and purchase agreement is signed between 10th March 2009and 31st December 2010; and(iv) the residential property is not rented out.Where:(a) 2 or more individuals are eligible to claim relief for the same property ; and (b) total interest expended by those individuals exceeds the allowable amount for that year. Each individual is allowed an amount of relief for each year based on the following formula: A x B C where; A = total interest allowable in the relevant year; B = total interest expended by the relevant individual in the relevant year; C = total interest expended by all the individuals.	10,000 (Limited)
15	Husband/Wife/Alimony Payments	4,000 (Limited)
16	Disable Wife/Husband	3,500
17	Ordinary Child relief	2,000
18	Each unmarried child of 18 years and above who is receiving full-time education (“A-Level”, certificate, matriculation or preparatory courses).	2,000
19	Each unmarried child of 18 years and above that:(i) receiving further education in Malaysia in respect of an award of diploma or higher (excluding matriculation/preparatorycourses).(ii) receiving further education outside Malaysia in respect of an award of degree or its equivalent (including Master or Doctorate).(iii) theinstruction and educational establishment shall be approved by the relevant government authority.	8000
20	Disabled childAdditional exemption of RM4,000 disable child age 18 years old and above, not married and pursuing diplomas or above qualification in Malaysia @ bachelor degree or above outside Malaysia in program and in Higher Education Institute that is accredited by related Government authoritiesWith effect from year of assessment 2013 additional exemption is RM6,000	6,000 – with effect from year of assessment 2015
21	Life insurance dan EPF	6,000 (Limited)
22	Deferred Annuity and Private Retirement Scheme (PRS) – with effect from year assessment 2012 until year assessment2021	3,000 (Limited)
23	Insurance premium for education or medical benefit	3,000 (Limited)

Chinese version Income Tax  Link

Reference:

Tax Relief for Taxpayers with Non-Working Spouse and/or Pays Alimony to Former Wife

An individual resident taxpayer whose spouse has no income and/or pays alimony to his or her former spouse is entitled to tax relief, available as a tax deduction.  The government is proposing to raise the deductible amount from MYR 3,000 to MYR 4,000.

This is planned to be effective from 1 January 2016.

Tax Relief for Parental Care

The government is proposing to help individuals undertaking care of elderly and/or infirm parents by means of a new tax relief:

• MYR 1,500 for a mother; and 
• MYR 1,500 for a father.

The relief will be available as a tax deduction for individual resident taxpayers caring for their qualifying parents.  This relief can be shared with other siblings provided that the total relief claimed does not exceed MYR 1,500 for a mother and MYR 1,500 for a father.  

To claim this relief, the taxpayer must satisfy all the following conditions:

• The taxpayer does not claim expenses related to the medical treatment and care of parents. 
• The parents are the legitimate natural parents and foster parents in accordance with the law (subject to a maximum of two persons). 
• The parents are aged 60 years and above.
• The parents are tax residents in Malaysia in the current year of assessment. 
• The parents have an annual income not exceeding MYR 24,000 per annum for each parent.

This is planned to be effective from 1 January 2016 to 31 December 2020. 

Tax Relief for Children Below 18 Years of Age

To alleviate the cost of bringing up children, the tax relief, available as a deduction, for each unmarried child of an individual resident taxpayer is proposed to be increased from MYR 1,000 to MYR 2,000.

This is planned to be effective from 1 January 2016.  

Tax Relief for Children Studying At Tertiary Level

To help ease the financial burden on parents with children in tertiary education, the government is proposing to increase the tax relief, available as a deduction, from MYR 6,000 to MYR 8,000, for an individual taxpayer who is a tax resident.  The tax relief is available to the taxpayer for each unmarried child over 18 years old receiving full-time education at diploma level and above at a recognized institution of higher learning in Malaysia or at degree level and above at a recognized institution of higher learning outside Malaysia. The course undertaken and the institution must be approved by the Public Service Department of Malaysia.  

For an unmarried disabled child, there is an existing relief of MYR 6,000, available as a tax deduction.  Said child must be certified by the Department of Social Welfare as a disabled person.  Therefore, the taxpayer is eligible to claim relief of MYR 14,000 for each of his unmarried and disabled children.

This is planned to be effective from 1 January 2016.  

Tax Relief on Fees for Tertiary Education

The government is proposing to increase the tax relief, available as a tax deduction, from MYR 5,000 to MYR 7,000, per year for study fees incurred by an individual taxpayer who is a tax resident pursuing any course of study up to tertiary level in selected fields of study, or Master or Doctorate level in any field, at any institution or professional body in Malaysia recognized by the government or approved by the Minister of Finance.  The aim of this measure is to encourage life-long learning and to support the growth of Malaysia’s word-class talent. 

This is planned to be effective from 1 January 2016. 

Appendix A

* The yellow-shaded rows represent the taxpayer’s liability in this bracket after personal tax rebate of MYR 400 for chargeable income up to MYR 35,000.

Source: https://home.kpmg.com/xx/en/home/insights/2015/11/flash-alert-2015-134.html

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