Complete Guide to Malaysian Tax Reliefs for 2025

Tax season is approaching, and understanding LHDN's tax reliefs can save you thousands of ringgit. This comprehensive guide covers all available tax reliefs for Year of Assessment (YA) 2025, helping Malaysian taxpayers maximize their tax refunds.

What Are Tax Reliefs?

Tax reliefs are deductions you can claim to reduce your chargeable income, which in turn lowers the amount of tax you owe to LHDN (Lembaga Hasil Dalam Negeri).

Individual Relief (RM9,000)

Every Malaysian taxpayer is entitled to claim RM9,000 as individual relief. This is automatic and applies to all tax residents.

How much you save: At the 24% tax bracket, this saves you RM2,160 in taxes.

Lifestyle Relief (RM2,500)

One of the most popular reliefs covers lifestyle expenses including:

• Books, journals, magazines, and newspapers (printed or digital)
• Personal computers, smartphones, and tablets
• Sports equipment and gym memberships
• Internet subscription fees

Pro tip: Keep all receipts! CukaiMax makes this easy by automatically tracking your lifestyle spending and alerting you when you're close to the RM2,500 cap.

EPF & PRS Contributions (RM4,000)

You can claim up to RM4,000 for voluntary EPF contributions beyond the mandatory 11%. This also includes Private Retirement Scheme (PRS) contributions.

Smart strategy: Contributing RM4,000 voluntarily not only reduces your tax but also boosts your retirement savings.

1// Calculate your tax savings
2const voluntaryEPF = 4000;
3const taxBracket = 0.24; // 24% bracket
4const savings = voluntaryEPF * taxBracket; // RM960 saved!
5const netCost = voluntaryEPF - savings; // Only RM3,040 actual cost

Education Relief (RM7,000)

Claim up to RM7,000 for:

• Fees for courses leading to degrees, diplomas, or certifications
• Skills development courses
• Children's education fees (preschool to tertiary)

Medical Treatment & Insurance (RM11,000)

This includes:

• Medical treatment for yourself, spouse, or children (RM8,000)
• Parents' medical expenses (RM8,000 - separate relief)
• Medical insurance premiums (RM3,000)
• Life insurance & EPF premiums (RM3,000)

Additional Reliefs You Might Miss

Disabled Person Relief

• Disabled taxpayer: RM6,000
• Disabled spouse: RM5,000
• Supporting equipment for disabled person: RM6,000

Parent Care

• Medical treatment for parents: RM8,000
• Supporting parents (each over 60): RM1,500

Donations

Approved donations to charitable organizations are fully deductible (up to 10% of aggregate income for most donations).

How to Maximize Your Tax Reliefs

1. Track expenses throughout the year - Don't wait until filing season
2. Keep digital receipts - Store them securely in CukaiMax
3. Plan major purchases - Time purchases like computers or sports equipment strategically
4. Contribute to EPF/PRS early - Spread contributions throughout the year
5. Claim everything you're entitled to - Many Malaysians miss out on thousands in deductions

Common Mistakes to Avoid

• Not keeping receipts (LHDN may audit and reject claims without proof)
• Claiming lifestyle relief twice (computer AND software - pick one!)
• Missing the deadline for voluntary EPF contributions
• Forgetting to claim medical expenses for parents

Summary Table

Make Tax Relief Tracking Easy

CukaiMax automatically categorizes your expenses, tracks relief caps, and alerts you when you're approaching limits. No more spreadsheets, no more missed deductions.

Start tracking your tax reliefs today with CukaiMax's 7-day free trial.

This guide is accurate as of January 2025. Tax laws may change. Consult LHDN's official website or a tax professional for personalized advice.