Personal relief 2017

Loh Boon How, CA

Personal Reliefs &

Rates

YA 2017

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Personal ReliefsIncome Tax Act 1967Sec 46 – Deduction for personal Reliefs,46(1)(p) – Lifestyle relief

B. H. Loh & Associates

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Every taxpayer will automatically entitled a reliefs RM9,000.00,

Regardless whether the spouse separate assessment or combine assessment,

The objective is to reduce the taxpayer burden.

Personal Reliefs


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Disability Reliefs (Further Deduction)

If the taxpayer is a disability, he / she will entitle a further reliefs RM6,000.00,

Therefore,Description RMPersonal reliefs 9,000.00Disability reliefs 6,000.00Total 15,000.00


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Basic Supportive Equipment

If the taxpayer incurred the supportive equipment, he / she will entitle for max relief of RM6,000.00,

The supportive equipment included wheelchair and hearing aids.


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Lifestyle Relief


The lifestyle including :

1) Purchase of printed daily newspaper,2) Purchase of smartphone or tablet,3) Internet subscription4) Gymnasium membership fee

The max relief RM2,500.00

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Tertiary Education Reliefs

If the taxpayer who has incurring fees for pursuing the tertiary education will entitle a max reliefs of RM7,000.00,

Those tertiary education such as : technical, vocation, industrial, scientific, technological, law, accounting, Islamic financing relevance skills or qualifications at tertiary level or any course study at post graduate level.


B. H. Loh & Associates 8

Every employee’s who contributed to Social Security Organisation (Socso) scheme, will entitle to a relief of RM250.00

Socso Reliefs

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Spouse ReliefsIncome Tax Act 1967 Sec 45A(2) – Husband relief,Sec 47(6) – Wife or former wife relief,Sec 49 – Husband and wife living together


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Spouse Reliefs

If the spouse of the taxpayer has not source of income, taxpayer will entitle a reliefs of RM4,000.00,

This reliefs grant automatically and need not to apply, with the condition if the spouse who stay together,

If the spouse who has divorced, where the taxpayer paid for an alimony, then the taxpayer will also entitle.B. H. Loh & Associates


Spouse Reliefs

If the spouse (whether husband or wife) who has income derived from outside Malaysia more that the amount of relief (RM4,000.00), then the taxpayer shall not entitle to claim the spouse relief.

However, if the spouse who is disable person, then the taxpayer will be entitle to claim such as relief.

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Spouse Disability Reliefs (Further Deduction)

If the spouse of the taxpayer is a disability, he / she will entitle a further reliefs RM3,500.00.

Therefore,Description RMSpouse reliefs 4,000.00Spouse disability reliefs 3,500.00Total 7,500.00


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If the taxpayer incurred the expenses for the spouse, the supportive equipment will entitle a max relief of RM6,000.00,



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Children ReliefsIncome Tax Act, 1967 Sec 48 – Deduction For Child,Sec 46(1)(r) – Child care fees,Sec 46(1)(q) – Breastfeeding

equipment,


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Child Reliefs

Child below 18 years – unmarried and study in the school, thus every child will entitle a reliefs of RM2,000.00,

Child above 18 years – unmarried and study either in local or oversea higher institution, thus every child will entitle a reliefs of RM8,000.00,

If the spouse who elect for separate assessment, each of them entitle half of every child reliefs,


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Child Disability Reliefs

If the child of the taxpayer is a disability, he / she will entitle a reliefs RM6,000.00,

If the disability child who was pursuing a tertiary education, the taxpayer who will entitle a reliefs of RM8,000.00.


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If the taxpayer incurred for their children, the supportive equipment will entitle a max relief RM6,000.00,



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Skim Simpanan Pendidikan Nasional

If the taxpayer who deposit for their children education fund into Skim Simpanan Pendidikan Nasional, will entitle a max relief of RM6,000.00,

The taxpayer will enjoy free takaful insurance for RM1,000.00.



If working women (for female taxpayer) who is incur the purchase of breastfeeding equipment will be entitle to max RM1,000.00 relief.

The equipment can be in complete set or separate parts,

The child from infant to 2 years old and can be claimed once in every 2 years.

Breastfeeding Equipment


The either parent (taxpayer or the spouse) could claims a max RM1,000.00 relief on the early childhood education cost for their child,

The child must be below 6 years old,

Child care centres that registered under the Child Care Centre Act 1984 or Education Act 1996.

Child Care And Kindergartens Fees

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Parent ReliefsSec 46(1)(o) Income Tax Act 1967 – Deduction for parents


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Parents Medical Reliefs

If the taxpayer who paid for parents medical fee or carer, will entitle a max relief of RM5,000.00,

For the parental carer : a) The parent should be regular treatment certified by a qualified medical doctor, b) A official receipt as a proof for claiming tax reliefs, c) The carer must not the taxpayer or the spouse or child of the taxpayer. B. H. Loh & Associates

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If the taxpayer incurred for their parents, the supportive equipment will entitle a max relief of RM6,000.00,




The parent will be given RM1,500.00 each for a mother or father.

Conditions :1) Taxpayer not claim the relief for the expenses incurred on medical treatment and care,2) Parent are legitimate natural parents and foster parents,3) Parents aged 60 years and above,

Parental Care Relief


(iv) Parents are resident in Malaysia in the current year of assessment,(v) Parents have an annual income not exceeding RM24,000.00 per annum for each year.

Parental Care Relief

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Medical And Financial Related ReliefsSec 49, Income Tax Act 1967 – Deduction for insurance premium.

Sec 49(1)(d), Income Tax Act 1967 – Deduction for Private Retirement Scheme and Annuity Premium.


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Medical Fee Reliefs

If the taxpayer incurred medical fee for themselves, spouse and children on critical disease will entitle a max relief of RM6,000.00,

Those critical diseases such as heart disease, kidney failure, Parkinson disease, stroke etc,

The medical relief also include the medical screening fee for a max of RM500.00. (Inclusive RM6,000.00)


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Medical And Education Insurance Reliefs

If the taxpayer who has contributed the medical and education insurance will entitle a max relief of RM3,000.00,

The beneficial could be taxpayer, the spouse or children.


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Life Insurance And An Approved Fund

If the taxpayer who has contributed the life insurance and an approved fund will entitle a max relief of RM6,000.00,

The beneficial could be the taxpayer or the spouse.


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PRS / Annuity Premium Reliefs

If the taxpayer who has contributed the PRS / annuity premium will entitle a max relief of RM3,000.00,

The withdrawal before the age of 55 years, the taxpayer will be subject the withholding tax of 8%. Unless the contributor :

a) Death,b) Permanently leaving Malaysia.



A one-off incentive of RM1,000.00 for a minimum cumulative investment of RM1,000.00 within 2 years,

The taxpayer who are currently 20 – 30 years,

The incentive within the period 1/1/2017 – 31/12/2018.

PRS / Annuity Premium Reliefs

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Tax Rates And CalendarSch 1, Income Tax Act 1967 – Personal tax rate.


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Tax Rates For Individual Taxpayer


Chargeable income Tax rate %1 - 5,000 0

5,001 – 20,000 120,001 – 35,000 535,001 – 50,000 1050,001 -70,000 16

70,001 - 100,000 21100,001 – 250,000 24250,001 – 400,000 24.5400,001 – 600,000 25

600,001 – 1,000,000 26Exceeding 1,000,000 28

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Tax Calendar


Residence status

Source of income

Form Deadline

Residence Business B 30 JuneEmployment BE 30 AprilKnowledge worker

BT 30 June

Non-residence Business M 30 JuneKnowledge worker

MT 30 June

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Thank YouB. H. Loh & Associates

Address :6761, 2nd Floor,

Jalan Kampung Gajah,12200 Butterworth, Penang.

H/P No. : 016-4893382Email : [email protected]

Web-site : www.bhloh.com.my


Economy & Finance

Personal relief 2017