BDCM-B-Week11: Personal Tax Relief (Updated from the Budget 2020)

PERSONAL RELIEF – For Resident Individual

No.	Individual Relief Types	YA 2019	YA 2020
1	Self	9,000	9,000
2	Disabled individual - additional relief for self	6,000	6,000
3	Spouse	4,000	4,000
4	Disabled spouse - additional spouse relief	3,500	3,500
5	Child • Each child (below 18 years old) • Each unmarried child (over 18 years old): -receiving full-time instruction of higher education :     a) diploma level and above in Malaysia; or     b) degree level and above outside Malaysia • Each disabled child (below 18 years old) • Each disabled child (over 18 years old) :   - receiving full-time instruction of higher education :     a) diploma level and above in Malaysia; or     b) degree level and above outside Malaysia	2,000 8,000 6,000 14,000	2,000 8,000 6,000 14,000
6	Parental care relief (until YA2020): • Father • Mother	1,500 1,500	1,500 1,500
7	Net saving in SSPN's scheme (total deposit in the year MINUS total withdrawal in the year) – extended to YA 2020	8,000 (Limited)	6,000 (Limited)
8	Deferred Annuity and Private Retirement Scheme (PRS) (from YA 2012 to YA 2021)	3,000 (Limited)	3,000 (Limited)
9	Life / Takaful insurance (self or spouse) Employee’s contribution to EPF	3,000 4,000 (Limited)	3,000 4,000 (Limited)
10	Education and medical insurance - self, spouse or child	3,000 (Limited)	3,000 (Limited)
11	Employee’s contribution to SOCSO	250 (Limited)	250 (Limited)
12	Medical expenses for parents	5,000 (Limited)	5,000 (Limited)
13	Medical expenses for serious diseases for self, spouse or child (including fees of up to RM500 for complete medical examination)(include cost of fertility treatment for YA 2020)	6,000 (Limited)	6,000 (Limited)
14	Basic supporting equipment for disabled self, spouse, child or parent	6,000 (Limited)	6,000 (Limited)
15	Education Fees (Self) •Other than a degree at Masters or Doctorate level-for acquiring law, accounting, Islamic financing, technical, vocational, industrial, scientific or technological skills or qualifications; •Degree at Masters or Doctorate level-for acquiring any skills or qualification	7,000 (Limited)	7,000 (Limited)
16	Purchase of breastfeeding equipment	1,000 (Limited)	1,000 (Limited)
17	Child care fees to a Child Care Centre or a Kindergarten	1,000 (Limited)	2,000 (Limited)
18	Lifestyle relief: (for self, spouse or child) • Purchase of books, journals, magazines, printed newspaper and other similar publications for the purpose of enhancing knowledge • Purchase of personal computer, smart phone or tablet • Purchase of sports equipment and gym memberships • Internet subscription	2,500 (Limited)	2,500 (Limited)

Comments on Budget 2020 Tax Relief Changes :

1. Parent care relief (RM3,000) and SSPN (RM8,000) ended on year 2020, no extension granted on this budget, resulting losing of potential tax relief RM 11,000 in future.
2. Child care fees to a Child Care Centre or a Kindergarten increase from RM 1,000 to RM 2,000. It’s logic to increase this due to high costs living. In main city example Kuala Lumpur, monthly fees easily can hit RM 500.
3. Medical expenses for serious diseases RM 6,000 introducing new coverage on cost of fertility treatment. Purpose of this, Government might want to help on build up Malaysian population.