1. Relief under assessment (2020/2019 tax Relief)
1.1. Employees who earn RM34000/year
1.1.1. Deduct RM9000 automatically if more
1.2. Medical Expenses/Year = RM5000
1.2.1. Elderly People(Father/Mother) each entitled to have RM1500
1.3. Lifestyle = RM2500 relief
1.4. Public Servant tax relief up to RM7000
1.4.1. Non-public servant tax relief for life insurance RM3000
1.5. Education tax relief up to RM7000
2. Child Relief (Divorced Couple)
2.1. Education of Child
2.1.1. RM2000 per Child
2.1.2. 1. Above 18 years 2. Pursuing A-levels or Certificate
2.1.2.1. Deduct RM2000
2.1.3. 1. Above 18 years 2. Pursuing degree or diploma
2.1.3.1. Deduct RM8000 per child
2.2. Disable Children
2.2.1. Deduct RM6000
2.2.2. 1. Above 18 2. Not Married 3. Pursuing Education
2.2.2.1. Exemption of RM8000
2.3. Only one of the parent able to claim
2.3.1. Divorced Couple: Child Relief * 50%
3. Relief under Joint Assessment
3.1. All married couple can choose to file individual or joint taxes.
3.1.1. Separate Assessment
3.1.1.1. - Prepare their own assessment - Entitled to own personal relief and other relief - Husband not entitled to claim wife's relief of RM3000 & RM3500 for disabled wife - Only one party can claim for child relief, not both.
3.1.2. Joint Assessment
3.1.2.1. - Writing by 1st April - Elect in the name of husband or wife - Personal relief can only be claim once as husband and wife.
3.2. Wife or spouse relief
3.2.1. Available when wife has no income or when elected for joint assessment
3.2.1.1. RM4000(wife) + Alimony Payment + RM3500 (Disabled Wife)
3.3. Couple drew high income assessment
3.3.1. Advisable to opt for separate assessment to leverage on the tax relief and deductibles available.
4. LHDNM Rule
4.1. Taxpayers able to deduct certain amount from their total income to lighten their financial burden
4.2. TYPE
4.2.1. Personal Relief
4.2.1.1. Chargeable to tax under combined income
4.2.1.2. Represents the amount which can be deducted by an eligible person from tax payable by him
4.2.2. Joint Assessment