Personal relief 2016

Loh Boon How, CA
PersonalReliefs&Rates

Personal Reliefs
Sec 46 , Income Tax Act 1967 –
Deduction for personal Reliefs,
B. H. Loh & Associates 2

 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

Disability Reliefs
(Further Deduction)
 If the taxpayer is a disability, he / she will entitle a
further reliefs RM6,000.00,
 Therefore,
Description RM
Personal reliefs 9,000.00
Disability reliefs 6,000.00
Total 15,000.00

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.

Purchase Of Book And Magazine
 During the YA, if the taxpayer purchase of books,
journals, magazines and other similar publication will
entitle a max reliefs of RM1,000.00,
 However, the publication was excluded newspaper or
branded publications for the use of taxpayer, spouse
or children.

Purchase Of Sport Equipment
 Pursuit to Sport Act 1997, the purchase of sport
equipment will entitle a max relief of RM300.00,
 The example of the sport equipment, racket, ball, golf
stick, the purchase will be support by the receipt,
 However, the sport equipment does not include the
sport wear and sport shoes.

Purchase Of Computer
 The purchase of computer such as notebook, tablet
or desktop will entitle a max reliefs RM3,000.00,
 However, the definition of computer does not include
smartphone, scanner and printer,
 Such computer only for personal use and only
available once in every 3 years,
 If the spouse elect for combine assessment, the
spouse purchase of computer could claim under
taxpayer reliefs.

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.

Housing Loan Interest
 If the taxpayer who has incurred the housing loan
interest will entitle a relief RM10,000.00,
 The condition as follows :
a) The taxpayer who is a citizen and resident,
b) The resident unit is limited to one unit and not
be rented out,
c) The S & P Agreement has been executed
between 10.3.2009 – 31.12.2010.

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

Spouse Reliefs
Sec 45A , Income Tax Act 1967 –
Husband relief,
Sec 47, Income Tax Act 1967 – Wife or
former wife relief,
Sec 49, Income Tax Act 1967 –
Husband and wife living together

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.

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 RM
Spouse reliefs 4,000.00
Spouse disability reliefs 3,500.00
Total 7,500.00

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

Children Reliefs
Deduction For Child

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,

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.

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

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.

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

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.

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

 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

Medical And
Financial Related
Reliefs
Deduction for insurance premium.
Sec 49(1)(d), Income Tax Act 1967 –
Deduction for Private Retirement
Scheme and Annuity Premium.

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)

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.

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.

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.

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

Current tax rate – YA 2015 & proposed tax rate - YA 2016
32
Tax Rates For Individual Taxpayer
B. H. Loh & Associates

Tax Calendar
Residence status Source of income Form Deadline
Residence Business B 30 June
Employment BE 30 April
Knowledge worker BT 30 June
Non-residence Business M 30 June
Knowledge worker MT 30 June

Thank You
B. H. Loh & Associates
Address :
No. 1-3-15, Goldhill Complex,
Tingkat Paya Terubong 1,
11060 Penang.
H/P No. : 016-4893382
Email : bhlohass@gmail.com
Web-site : www.bhloh.com.my

Personal relief 2016

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Personal relief 2016