As you prepare to file your taxes, it's important to be aware of the changes for the year of assessment 2024 (YA 2025). Recognising these changes will help you avoid missing out on new benefits or making accidental mistakes during the process. We have put together a list of income tax relief changes that Malaysians should be aware of for YA 2024.
Tax Relief For Medical Expenses Expanded To Include Dental Treatment
Malaysians can now claim dental treatments as tax relief for YA 2024! This includes dental examinations and treatments by practitioners registered with the Malaysian Dental Council, capped at RM1,000 within the total RM10,000 relief.
Previously, medical tax relief for self, spouse, and children, was raised from RM8,000 to RM10,000 under Budget 2023 to cover various expenditures. These include serious illnesses, fertility treatments, full medical check-ups, COVID-19 tests, and mental health examinations and rehabilitation for children with learning disabilities.
Broader Tax Relief For Parents’ Care, Including Full Medical Check-Ups
Taxpayers can currently claim up to RM8,000 for medical treatments, special needs, and carer expenses for their parents. This includes treatments at clinics, hospitals, nursing homes, and daycare centres, as well as non-cosmetic dental care. Starting YA 2024, this relief now includes full medical examinations for parents, limited to RM1,000 within the total RM8,000 relief.
Lifestyle Expenses Tax Relief Now Covers Self-Improvement Courses
The RM2,500 tax relief for lifestyle expenses currently applies to reading materials, personal computers, smartphones, tablets, and internet subscriptions. From YA 2024, this relief has been expanded to include fees for self-improvement courses such as language, photography, and sewing.
New Tax Relief For Sports Equipment And Activities
A new tax relief of up to RM1,000 has been introduced for sports-related expenses to promote a healthier lifestyle. Its scope covers the following expenditures:
- Sports training fees imposed by associations and clubs registered with the Sports Commissioner or Companies Commission of Malaysia, carrying out sports activities as listed under the Sports Development Act 1997
- Purchase of sports equipment
- Rental or entry fees to sports facilities
- Registration fees for participating in sports competition
- Gym membership fees
Extended Tax Relief For Upskilling And Self-Enhancement Courses
Taxpayers were previously allowed to claim RM2,000 out of the total RM7,000 education fees tax relief for upskilling and self-enhancement course payments under YA 2023. This allowance will now be extended until YA 2026 under Budget 2024, in an effort to encourage Malaysians to improve their skills and venture into new fields.
Tax Exemption For Childcare Allowance Increased From RM2,400 To RM3,000
The tax exemption for childcare allowances provided by employers has been raised from RM2,400 to RM3,000 per year, effective from YA 2024. This includes direct payments from employers to childcare centres.
Continued Tax Relief for SSPN
The National Education Savings Scheme (Simpan SSPN) continues to offer tax relief of up to RM8,000. Initially, the government planned to discontinue this relief under Budget 2023 but reversed the decision following public feedback. The relief has now been extended until YA 2024.
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