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Malaysia Individual Income Tax Exemptions, Deduction, Rates, Reliefs and Rebates for 2009

25th February, 2010

in Individual Income Tax

income tax

It is time of the year again for us to complete income tax return form for the year of 2009. For individuals, the last date to submit the form is on the 30th April 2010. This is what LHDN or IRB warn if you fail to do it by the dateline.

Any tax due and payable but has not been paid by the taxpayer by the due date shall be increased by 10% and any balance remaining unpaid upon the expiration of 60 days from the due date shall be further increased by 5% of the balance unpaid.

Read more to find out more information on tax exemption, deduction, rates, reliefs and rebates for individual for year 2009.

If you are not sure what are tax exemption, rates, reliefs and rebates, you can read here.

Which form to fill in?

B 2009 – For individuals with Business, Employment and Other Income

BE 2009 – For individuals with Employment and Other Income.

Taxable Income

Taxpayer is required to pay tax on all kind of earnings, including incomes from,
  1. Business or profession
  2. Employment
  3. Dividends
  4. Interest
  5. Discounts
  6. Rent
  7. Royalties
  8. Premiums
  9. Pensions
  10. Annuities
  11. Others

Tax Deduction

The following items are eligible for tax deduction.

No Contribution
1 Gift of money to the Government, State Government or Local Authorities
2 Gift of money to Approved Institutions or Organisations
(Amount is limited to 7% of aggregate income)
3 Gift of money or cost of contribution in kind for any Approved Sports Activity or Sports Body
(Amount is limited to 7% of aggregate income)
4 Gift of money or cost of contribution in kind for any Approved Project of National Interest Approved by Ministry of Finance
(Amount is limited to 7% of aggregate income)
5 Gift of artifacts, manuscripts or paintings
6 Gift of money for provision of Library Facilities or to Libraries
7 Gift of money or contribution in kind for the provision of facilities in Public Places for the benefit of disabled persons.
8 Gift of money or medical equipment to any healthcare facility approved by the Ministry of Health.
9 Gift of paintings to the National Art Gallery or any State Art Gallery.

Tax Exemption

The followings are exempted from tax.

  1. Leave passage
  2. Medical and dental benefit
  3. Retirement gratuity
  4. Compensation for Loss of Employment
  5. Pensions
  6. Death gratuities
  7. Scholarships
  8. Income of an individual resident in Malaysia in respect of his appearances in cultural performances approved by the Minister
  9. Interest
  10. Dividend
  11. Royalty
  12. Income Remitted from Outside Malaysia
  13. Fees or Honorarium for Expert Services
  14. Income Derived from Research Findings

Income Tax Rate

Chargeable Income Calculations (RM) Rate % Tax(RM)
0-2500 On the First 2,500 0 0
2,501-5,000 Next 2,500 1 25
5,001-10,000 On the First 5,000

Next 5,000

 

3

25

150

10,001-20,000 On the First 10,000

Next 10,000

 

3

175

300

20,001-35,000 On the First 20,000

Next 15,000

 

7

475

1,050

35,001-50,000 On the First 35,000

Next 15,000

 

12

1,525

1,800

50,001-70,000 On the First 50,000

Next 20,000

 

19

3,325

3,800

70,001-100,000 On the First 70,000

Next 30,000

 

24

7,125

7,200

100,001-150,000 On the First 100,000

Next 50,000

 

27

14,325

13,500

150,001-250,000 On the First 150,000

Next 100,000

 

27

27,825

27,000

Exceeding 250,000 On the First 250,000

Next RM

 

27

54,825

……….

Tax Relief

You are entitle for tax relief for the items in the table below.

No. Individual Relief Types Amount (RM)
1 Self and Dependent 8,000
2 Medical expenses for parents 5,000 (Limited)
3 Basic supporting equipment 5,000 (Limited)
4 Disabled Individual 6,000
5 Education Fees (Individual) 5,000 (Limited)
6 Medical expenses for serious diseases 5,000 (Limited)
7 Complete medical examination 5,00 (Limited)
8 Purchase of books, journals and magazines 1,000 (Limited)
9 Purchase of personal computer 3,000 (Limited)
10 Net saving in SSPN’s scheme 3,000 (Limited)
11 Purchase of sport equipment for sport activities 300 (Limited)
12 Interest expended to finance purchase of residential property. Relief of up to RM10000 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 2009

and 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)
13 Husband/Wife/Alimony Payments 3,000 (Limited)
14 Disable Wife/Husband 3,500
15 Ordinary Child relief 1,000
16 Child age 18 years old and above, not married and receiving full-time tertiary education 1,000
17 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 authorities 4,000
18 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 authorities 5,000
19 Life insurance dan EPF 6,000 (Limited)
20 Insurance premium for education or medical benefit 3,000 (Limited)



If you need more information kindly proceed to IRB webpage.

{ 4 comments… read them below or add one }

Potential Investor June 10, 2010 at 2:27 pm

For No.11 in Tax relief, am I eligible for tax relief if I purchase any type of sports equipment??

Reply

1-million-dollar-blog June 10, 2010 at 9:08 pm

I believe yes as IRB not giving any details.

Reply

Eva July 23, 2010 at 8:05 am

For No.3 in Tax relief. What is ment by basic supporting equipment? Thank you for your answer.

Reply

Sim September 1, 2010 at 1:29 pm

Under Tax Relief

Ques: Can I get exempted for one’s child education?
1. The child is not mine (he belongs to my friend).
2. I want to save an education fund for this child under an insurance company.
3. I’m not the guardian of the child.

Reply

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