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This section details tax exemptions. It directly reduces the net income that is taxable by the government. The types of tax exemption and the respective limits are as follows.

(Form fields are listed from top to bottom)

• Individu dan saudara tanggungan (Individual and dependent relatives)

  Limit: RM8000.00
  An automatic exemption of RM8000.00 for individual expenditures and dependent relatives.

• Perubatan ibu bapa (Parents’ medical fees)

  Limit: RM5000.00
  If both your parents are no longer earning an income, you can claim up to RM5000.00 of exemption in the form of medical fees.

• Peralatan sokongan asas (Basic support equipment)

  Limit: RM5000.00
  Exemptions of up to RM5000.00 can be claimed for the purchase of basic support equipment. The purchase can be for self, spouse, or dependent parents.

• Individu yang kurang upaya (Individual disability)

  Limit: RM6000.00
  An automatic exemption of RM6000.00 is granted if you have a disability or are handicapped.

• Yuran pendidikan dalam bidang yang diluluskan [sendiri] (Individual education fees in an approved field)

  Limit: RM5000.00
  Expenditures in the form of education fees are given a deduction of up to RM5000.00. This exemption is limited to fees for education at any institute of higher learning in Malaysia (up to degree level) that is approved by the Malaysian government for the purpose of improviing skills and expertise in the fields of law, accountancy, technical skills, vocational, industrial, scientific, or information technology.

  The education fees must have been borne by the individual.

• Medical Expenditure

  Limit: RM5000.00
  This is categorised into two sections.

  • Perubatan bagi penyakit yang sukar diubati (Expenditures for medical conditions that are difficult to treat)

    Limit: RM5000.00
    Expenditures for medical conditions that are difficult to treat, such as AIDS, Parkinson’s Disease, cancer, kidney failure, leukemia, and other similar medical conditions. Similar medical conditions include stroke, pulmonary hypertension, chronic heart disease, fulminant viral hepatitis, deficient neurological head trauma, brain tumours, organ transplants, amputations, etc. Exemptions claims are limited to RM5000.00 for the individual, spouse, and children.

  • Pemeriksaan perubatan penuh (Full medical examination)

    Limit: RM500.00
    A deduction of up to RM500.00 is allowed for full medical examinations for the individual, spouse, and children.

  The exemption for medical expenditures for both sub-sections (listed below) in total must not exceed RM5000.00 (e.g. expenditure for medical conditions that are difficult to treat + full medical checkup must not exceed the limit).

• Pembelian buku/majalah (Purchase of books/magazines)

  Limit: RM700.00
  Purchase of books, magazines, journals, publications (except newspaper or prohibited literature) for individual, spouse, or children are allowed an exemption of up to RM700.00.

• Jumlah Pelepasan Anak (Exemption for children dependents)

  A separate worksheet is included for exemptions given to children dependents. To access this worksheet, click the file labeled Pelepasan Anak located next to the field. The value will be automatically updated after you’ve filled up the worksheet.

  
  - Exemption For Children Dependents (Enlarge) -

  There are two types of exemptions that an individual can qualify for for each child dependent:

  • 100% claim
    This type of claim is made by qualified individuals who bear the full expenditures for a child. For married couples, only one individual may make this claim for each child (e.g. either the husband or wife makes the claim but not both).
  • 50% claim
    This category is for two or more individuals (not married and staying together) who sponsor the child dependent together. Each individual that makes a contribution is allowed to claim 50% of the exemption allowed.

  For each child dependent, the following claims can be made depending on the child’s age, education expenditures and physical condition:

  • Anak - dibawah umur 18 tahun (Children - under 18)

    Limit: RM1000.00 (100%) or RM500.00 (50%) for each child
    A total of RM1000.00 can be exempted for each unmarried child below the age of 18.

  • Anak - 18 tahun dan ke atas yang masih belajar (Children - 18 years and above that are still studying)

    Basic Limit: RM1000.00 (100%) or RM500.00 (50%)
    A basic claim of RM1000.00 can be made for each child above the age of 18 who is still studying.

    Higher Education Limit: RM4000.00 (100%) or RM2000.00 (50%)
    For each unmarried child above the age of 18 who is pursuing higher education, a claim of RM4000.00 can be made. To qualify for this claim, the child must be:

    1. pursuing a diploma (or higher) at an institute of higher learning in Malaysia (excluding matriculation and pre-university courses),
    2. pursuing a degree (or higher) at an institute of higher learning overseas (outside Malaysia), or
    3. studying in a course and institute of higher learning that is recognised by the government.

    The two categories above do not stack. A claim can only be made for each child dependent in either one of the categories above, NOT both.

  • Anak - kurang upaya (Children - with disability/handicapped)

    Basic Limit: RM5000.00 (100%) or RM2500.00 (50%)
    A basic claim of RM5000.00 can be made for each child dependent with a disability.

    Extra Limit: RM4000.00 (100%) or RM2000.00 (50%)
    An additional claim of RM4000.00 can be made if the said child is aged 18 years or above and unmarried. To qualify for this additional claim, the child must be:

    1. pursuing a diploma (or higher) at an institute of higher learning in Malaysia (excluding matriculation and pre-university courses),
    2. pursuing a degree (or higher) at an institute of higher learning overseas (outside Malaysia), or
    3. studying in a course and institute of higher learning that is recognised by the government.

    A total of RM9000.00 can be claimed for each child with a disability subject to the qualification described above.

• Insurans nyawa dan KWSP (Life insurance and KWSP)

  Limit: RM6000.00
  An exemption of up to RM6000.00 is allowed for purchases of life insurance and contributions made to the Kumpulan Wang Simpanan Pekerja (KWSP / Employees Provident Fund - EPF).

  The KWSP contribution amount can be derived from the EA form issued by your employer. The life insurance premium is indicated in your insurance policy. You should also be issued a receipt from the insurance agency indicating the premium paid.

  The total deduction is for the total of KWSP contribution AND insurance premiums. For example, if you made KWSP contributions totaling RM4500.00 and have an annual life insurance premium of RM3000.00, the total deduction is RM6000.00 and NOT RM7500.00.

• Insurans pendidikan dan perubatan (Education and medical insurance)

  Limit: RM3000.00
  An exemption of up to RM3000.00 is allowed for payment of insurance premiums for education policies or medical insurance for the individual, spouse, or children.

The total from the previous section (Taxable Income) minus the total from this section is your nett taxable income.

Next: eFiling Part 6: 2006 BE Form - Rebate Claims/Tax Deductions/Tax Relief »