Tuesday, December 1, 2009

Maximize your 2009 personal income tax deduction

Now we still have until 31 December 2009, which is less than one month time, to utilize and maximize any of the following income tax relief and/or deduction items for 2009.

  • EPF contribution and life insurance premium (max RM6,000)
  • Education and/or medical insurance premium (max RM3,000)
  • Skim Simpanan Pendidikan Nasional (max RM3,000)
  • Parent's medical expenses (max RM5,000)
  • Annual medical check-up (health screening) for yourself, spouse and/or children (max RM500)
  • Course fees for technical, vocational, industrial, scientific, technology, law, accounting, Islamic financing trainings at tertiary or postgraduate level (max RM5,000)
  • Books, magazines, journals and other similar publications, either printed or electronic format, excluding newspaper (max RM1,000)
  • Purchase of new computer, applicable once every 3 years (RM3,000)
  • Sport equipments for any sport activity defined in Sports Development Act 1997 (RM300)
  • Donations to approved institutions (max 7% deduction from aggregate income)
  • Interest expended to finance purchase of residential property, with S&P signed between 10 March 2009 and 31 December 2010, and the residential property is not rented out (max RM10,000)
Note that if you subscribed for the deferred annuity retirement insurance scheme, you will get an additional RM1,000 relief under Section 49(1) of Income Tax Act 1967. Otherwise, the maximum relief under this category will remain as RM6,000 only. (applicable to assessment year 2010)

Do remember to keep all the relevant receipts for tax assessment purpose.


Kino said... Reply To This Comment

Individual relief automatically given (RM9,000, previously was RM8,000 only)
Broadband Internet subscription (max RM500)

This tax relief is for 2010 assesement, not 2009.

Can the blood test/screening park under rm300 healthscreen.

Voyager8 said... Reply To This Comment

Hi Kino,

Yes, you are correct. I have removed the 2 items applicable for 2010 not 2009. Thanks for the clarification.

The RM300 is for full medical check-up. You can ask the health screening centre whether the blood test expenses can be used for tax relief or not, before you proceed with the payment.

Vivien said... Reply To This Comment

what is the skim pendidikan national?

Voyager8 said... Reply To This Comment

Hi Vivien,

Click here for more information about Skim Simpanan Pendidikan Nasional (SSPN).

Wisee said... Reply To This Comment

Hi. What is "deferred annuity premium"? Which insurance company offers such scheme? I spoke to a few insurance agents, they don't seem to be very sure.

Voyager8 said... Reply To This Comment

Hi wisee,

Please refer to the link below:

EPF Conventional Annuity Scheme.

Unknown said... Reply To This Comment

hi, for the broadband internet deduction, which column should i use for the deduction? i am submitting via e-filing.

also, long time ago, i bought the annuity programme from hlb. they deducted about 14K from my account, does that mean that i can claim 9000 relief every year instead of 8000??

Voyager8 said... Reply To This Comment


The broadband relief started this year, and to be declared next year.

The annuity premium paid has to be within the same year of assessment in order to get the relief.

KCS said... Reply To This Comment

Hi, can I check for deferred annuity premium, which column should we key in for the extra RM1000 since the column for Life Premium & EPF max amount RM6000.

Voyager8 said... Reply To This Comment


It seems that the deferred annuity premium rebate is applicable starting from 2010.

Nina said... Reply To This Comment

wanna check, for interest expended on property, if it's under 2 names (husband and wife), how do we split the interest (we are doing separate tax comp). TQ.

Voyager8 said... Reply To This Comment

Hi Nina,

It depends on who is paying for the loan instalment. If only husband paid, then husband claim 100% of the rebate, if both paid 50/50, then both claim half of the rebate, and so on...

Please refer to the link below for more explanation:

List of Tax Relief for Resident Individual 2009

gavinykw said... Reply To This Comment

1. whats the cut off point for one to need declare tax? above 25k/ annum?
2. I am filing form-B, do i need to declare all my staff salary? there are 4 of them the salary range 2-3k/ mth.

Voyager8 said... Reply To This Comment

Hi gavinykw,

You can estimate the figure with the PCB 2010 deduction table here. Taxable income will have non-zero PCB.

Your staff salary will be part of your business expenses. I suggest you to get a tax agent to help you up for the calculation and declaration.

Anonymous said... Reply To This Comment

I havent been submitted my tax form since 2008, and I have received a letter from the income tax stating I need to pay for the tax and also penalty.

Now, I am trying to asking a freelance to do up the account for me. So, can I wait till them finish the a/c and also come out the actual tax figure then only I go for making the payment? Meanwhile, I will juz ignore the tax penalty and tax estimation?

Please help. Thanks....

Voyager8 said... Reply To This Comment


I think its better for you to contact LHDN to seek their advice.

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