Taxpayers can begin filing their taxes for the year of assessment 2022 (YA2022) through e-Filing starting from 1 March 2023. The Inland Revenue Board (LHDN) said that taxpayers can access the e-Filing system through the official HASiL portal or directly via the MyTax website.
LHDN also reminded all taxpayers to keep all receipts, invoices and other relevant documents for future reference. According to LHDN, all relevant documents must be kept as records for at least seven years. This is to facilitate any future enquiries made by LHDN, in case more clarification is deemed necessary.
In this article, we highlight personal income tax reliefs that are eligible for taxpayers in 2023 as revised in Budget 2023. Make sure that you don’t miss out on any tax reliefs!
1. Tax Relief for Medical Expenses
Under Budget 2023, tax relief for medical treatment expenses now includes dental treatment and examinations. This tax benefit applies to:
- Serious illness for the taxpayer, spouse or child;
- Fertility treatment for taxpayer or spouse;
- Vaccination for the taxpayer, spouse or child limited to RM1,000;
- Full medical check-up, mental health check-up or consultation, COVID-19 detection test including the purchase of self-test kit for the taxpayer, spouse or child limited to RM8,000; and
- Dental treatment and examinations of up to RM1,000 performed by dental practitioners registered under the Malaysian Dental Council.
2. Tax Relief for COVID-19 Detection Test
The scope of the COVID-19 relief of up to RM1,000 is now expanded to cover expenses, including:
- COVID-19 detection test fees performed in a hospital or a clinic evidenced by a receipt issued by the hospital/clinic/medical practitioner registered under the Malaysian Medical Council;
- Purchase of a self-detection test kit supported with a receipt; and now including;
- Fees for tests carried out in a laboratory recognised by the Ministry of Health Malaysia
3. Tax Relief for Life Insurance Premiums
Previously, you can reduce chargeable income by claiming the reliefs offered for your life insurance premiums or takaful contributions:
- Pensionable public servants: limited to RM7,000
- Non-public servants: limited to RM3,000
Under Budget 2023, the scope of the life insurance relief is now expanded to cover contributions to EPF made voluntarily by individuals or pensionable public servants of up to RM3,000. Not just that, the self-contribution cap has also been raised from RM60,000 to RM100,000 per year.
4. Tax Relief for Payment of Nursery and Kindergarten Fees
For parents with young kids, you may receive up to RM3,000 of tax relief for nursery and kindergarten fees for children aged 6 years and below.
5. Tax Relief for the National Education Savings Scheme (SSPN)
A Tax relief is given to an individual for the net amount deposited in SSPN for his/her children’s education up to RM8,000 until YA 2024.
Other student debt reductions assistance include:
- 20% off outstanding PTPTN loan balance upon full settlement between 1 November 2022 to 30 April 2023
- 15% discount off outstanding PTPTN loan balance for debtors who pay off at least 50% of their remaining debt in a single payment or opt for salary deduction or scheduled direct debit between 1 November 2022 to 30 April 2023
6. Tax Exemption for Women Returning After Career Breaks
Under Budget 2023, women who return to the workforce after a “career break” will be entitled to income tax exemptions for five years from 2023 to 2028.
Other tax reliefs
- Stackable tax relief for the purchase of handphones, tablets, and personal computers: up to RM2,500
- Tax relief for SOCSO contributions: up to RM350, expanded to include contributions via Malaysia’s Employment Insurance System (EIS)
- Tax relief for deferred annuity and Private Retirement Scheme (PRS): up to RM3,000, extended until YA 2025
- Concessionary tax rate for C-suite in the Electrical & Electronic (E&E) sector: 15% flat tax rate
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