Borang BE 2008 - Section D (Personal Reliefs)

D1. Personal Relief – RM8,000 fixed.

D2. Parents’ medical expenses – Maximum RM5,000
Payments made for the medical treatment of parents must be supported by invoices and receipts. This can either be outpatient treatments or hospitalisation.
If payment is shared by a number of children, then each children can claim his/her share provided he/she can show proof that he/she has incurred such payment. To be on the safe side, get the hospital to “Certify True Copy” on photocopies of invoices and receipts.

D3. Basic supporting equipment for own usage, wife/husband, children or parents who are disabled. – RM5,000
To be eligible to claim, the claim must be supported by invoices and receipts. There must be a confirmation from the relevant authorities (eg. The Social Welfare Dept) to certify the disability of the person affected.

D4. Disabled individuals – RM6,000
This is in addition to the Personal Relief in D1. Again, certification by the relevant authority is required.

D5. Own study fees – Maximum RM5,000
Fees expended for courses at institute of higher learning in Malaysia or any institution or professional body in Malaysiar ecognised by the government or approved by the Ministry of Finance
i) For studies up to tertiary level in the field of law, accounting, technical, vocational, industrial, scientific, information and technology and Islamic financing
ii) For Masters level and above, any subject
Note for tax planning : If you need to pay RM10,000 for a course, try to spread out so that you pay RM5,000 in Dec and RM5,000 in Jan the following year, in that case, you will be able to claim the full RM10,000 in 2 years.

D6. Medical expenses incurred for chronic or serious diseases for self, husband/wife or children (Note that parents are not included) – Maximum RM5,000
Chronic or serious diseases include AIDS, Parkinson’s syndrome, cancer, renal failure, leukaemia, heart attacks, pulmonary hypertension, chronic heart diseases, fulminant viral hepatitis, neurological deficit head trauma, brain tumour, etc.
Note : Get the medical doctor to certify that it is a serious disease. Receipts must be kept to justify claim.

D7. Full medical examination for self, husband/wife or children (Note that parents are not included) – Maximum RM500
Only FULL medical examinations can be claimed. If you just do a blood test, this is not included.
The total claim for D6 and D7 must not exceed RM5,000.

D8. Purchase of books/magazines/journals (Note that newspaper is not included) – Maximum RM1,000
All original book receipts are acceptable. The IRB had stated that even receipts issued by road-side book sellers are valid.

D8A. Purchase of personal computer – Maximum RM3,000
You can only claim this relief once every 3 years.

D8B. Net savings in the National Education Savings Scheme (SSPN) – Maximum RM3,000
Net savings refers to the amount deposited minus amount withdrew during the year.

D8C. Purchase of sports equipments for sports activities under the Sports Development Act – Maximum RM300.
Note not all sports are eligible. Refer to "Purchase of Sports Equipment for Tax Deductions"

D9. Husband/wife relief – Maximum RM3,000
For ex-husband or ex-wife, if the actual alimony paid is less than RM3,000 a year, then the amount claim is restricted to the actual amount paid.

D10. Disabled husband/wife – RM3,500

D11. Child relief

D11a – Children below 18 years of age – RM1,000 per child
D11b – Children above 18 years of age
- RM1,000 if the child is studying full time
- RM4,000 if the child is studying full time at diploma level and above in Malaysia
- RM4,000 if the child is studying full time at degree level and above overseas.
D11c – Disabled child – RM5,000
- RM9,000 if the child is 18 years of age and above and studying as D11b above

Why is there a 50% column ? This is only for cases where husband and wife wishes to claim half the child relief, for example for divorced parents where each bears half of the children’s expenses.

D12. Life Insurance & EPF – Maximum RM6,000
Only life insurance and EPF is included in this category. For medical insurance, you can claim under D13.

D13. Education and Medical Insurance – maximum RM3,000
This include medical and educational insurance for self, husband/wife and children.

Additional Tax Deductions Available for Individuals

The following is a list of tax deductions available for individuals to make a claim when filing his/her Income Tax Borang BE or B for 2008 onwards.

For employees, if you have any of these expenses, you can request your employers to reduce your PCB deductions by filing up the Borang TP1.

1. Medical expenses for own parents certified by medical practitioner (limited to RM5,000 a year);
2. Basic supporting equipment for disabled self, spouse, child or parents (limited to RM5,000 a year);
3. Disabled person (self) (RM6,000 a year);
4. Education fee (self) up to tertiary level for the purpose of acquiring law, accounting, Islamic financing, technical, vocational, industrial, scientific or technological skills or qualifications or for a Masters or Doctorate level, undertaken the purpose of acquiring any skill or qualification (limited to RM5,000 a year);
5. Medical expenses on serious diseases for self, spouse or child (limited to RM5,000 a year);
6. Complete medical examination for self, spouse or child Limited to RM500 a year (total deduction for para 4.5 and 4.6 is limited to RM5,000 a year);
7. Purchase of books / journals / magazines / similar publications for self, spouse or child (limited to RM1,000 a year);
8. Purchase of personal computer for individual. Deduction allowed once in every 3 years. (Limited to RM3,000);
9. Net deposit in Skim Simpanan Pendidikan Nasional (limited to RM3,000 a year);
10. Purchase of sports equipment for any sports activity as defined under the Sports Development Act 1997 (limited to RM300 a year). This is explained here;
11. Payment of alimony to former wife (Total deduction for wife and alimony payments shall not exceed RM3,000 a year);
12. Disabled husband / wife (RM3,500 a year);
13. Life insurance (and EPF limited to RM6,000 a year);
14. Education and medical insurance (limited to RM3,000 a year);
15. Zakat other than monthly zakat deduction from salary;
16. Fees / Levy paid by a holder of an employment pass, visit pass (temporary employment) or work pass.

Further, the IRB has released a list of tax-free income and perquisites available to individual taxpayers. This list is listed here.

Traditional Medical Expenses For Tax Deduction

Not all Traditional medical expenses are recognised by the IRB.

The IRB only recognises medical receipts issued by traditional medical practitioners who are registered with :-

1. Persatuan Perubatan Tradisional Melayu Malaysia (PUTRAMAS)
2. Pertubuhan Perubatan Tradisional India Malaysia (PEPTIM)
3. Federation of Chinese Physicians and Chinese-Dealers Association of Malaysia (FCPMDM)
4. Federation of Chinese Physicians & Acupuncturist Association of Malaysia (FCPAAM)
5. Chinese Physicians’ Association of Malaysia (MCPA).