Tax Relief 2024 Malaysia: Complete LHDN Guide & Personal Deductions
Tax Relief 2024 Malaysia: Complete Guide on Income Tax Deductions, Eligibility & MyTax Filing
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Tax Relief 2024 Malaysia: Complete Guide on Income Tax Deductions, Eligibility & MyTax Filing

Posted on 13 November 2025 in Business | Suki Bajaj

The tax season is just around the corner, and for HR teams in Malaysia, that means ensuring your employees are prepared to maximise their savings with available tax reliefs 2024.

This guide breaks down the income tax relief options, highlights key changes, clarifies eligibility criteria, and outlines your key HR obligations. Let's dive in and make sure your team is fully equipped and informed!

In this guide, we’ll talk about:

What Is Tax Relief in Malaysia?

Simply put, tax relief reduces the portion of an employee's income that is subject to taxation. For HR, it's essential to understand that maximising these relief options can directly help your employees reduce their final payable tax rate in Malaysia.

Tax Relief vs. Tax Rebate (Explained Simply)

Definition
Tax Relief Deduction from total income before tax is calculated.
Tax Rebate Deduction from the final tax amount payable.

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Malaysian Income Tax Reliefs 2024

The 2024 Year of Assessment introduces key changes centred on employee welfare and financial planning. HR needs to be prepared to guide employees through these updates.

For YA 2025 rates, read our Ultimate HR Guide to Malaysia Tax Reliefs 2025 and learn everything you need to know, from the eligibility to filing and claiming process.

Tax Relief Malaysia 2024 Schedule (Full List)

The table below provides a structured overview of the main categories of income tax relief 2024 and their respective maximum allowable amounts.

No Individual Relief Types Amount (RM)
1 Individual and dependent relatives 9,000
2 Expenses for parents:
  1. Medical treatment, dental treatment, special needs, and carer expenses for parents (Medical condition certified by medical practitioner)
  2. Complete medical examination (Restricted to RM1,000)
8,000
(Restricted)
3 Purchase of basic supporting equipment for disabled self, spouse, child, or parent 6,000
(Restricted)
4 Disabled individual 6,000
5 Education fees (Self):
  1. Other than a degree at masters or doctorate level – Course of study in law, accounting, islamic financing, tehcnical, vocational, industrial, scientific or technology
  2. Degree at masters or doctorate level – Any course of study
  3. Course of study undertaken for the purpose of upskilling or self-enhancement (Restricted to RM2,000)
7,000
(Restricted)
6 Medical expenses on:
  1. Serious diseases for self, spouse, or child
  2. Fertility treatment for self or spouse
  3. Vaccination for self, spouse, and child (Restricted to RM1,000)
  4. Dental examination and treatment (Restricted RM1,000)
10,000
(Restricted)
7 Expenses (Restricted to RM1,000) on:
  1. Complete medical examination for self, spouse, or child
  2. COVID-19 detection test including purchase of self-detection test kit for self, spouse, or child
  3. Mental health examination or consultation for self, spouse, or child
8 Expenses (Restricted to RM4,000) for child aged 18 and below:
  1. Assessment of intellectual disability diagnosis
  2. Early intervention programme / intellectual disability rehabilitation treatment
9 Lifestyle – Expenses for the use / benefit of self, spouse, or child in respect of:
  1. Purchase or subscription of books / journals / magazines / newspapers / other similar publications (Not banned reading materials)
  2. Purchase of personal computer, smartphone, or tablet (Not for business use)
  3. Payment of monthly bill for internet subscription (Under own name)
  4. Skill improvement / personal development course fee
2,500
(Restricted)
10 Lifestyle – Additional relief for the use / benefit of self, spouse, or child in respect of:
  1. Purchase of sports equipment for any sports activity as defined under the Sports Development Act 1997
  2. Payment of rental or entrance fee to any sports facility
  3. Payment of registration fee for any sports competition where the organizer is approved and licensed by the Commissioner of Sports under the Sports Development Act 1997
  4. Gymnasium membership fee / sports training
1,000
(Restricted)
11 Purchase of breastfeeding equipment for own use for a child aged 2 years and below (Deduction allowed once in every TWO (2) years of assessment) 1,000
(Restricted)
12 Childcare fees to a registered childcare centre / kindergarten for a child aged 6 years and below 3,000 (Restricted)
13 Net deposit in Skim Simpanan Pendidikan Nasional (Net deposit is the total deposit in 2023 MINUS total withdrawal in 2023) 8,000
(Restricted)
14 Husband / wife / payment of alimony to former wife 4,000
(Restricted)
15 Disabled husband / wife 5,000
16a Each unmarried child and under the age of 18 years old 2,000
16b Each unmarried child of 18 years and above who is receiving full-time education ("A-Level", certificate, matriculation, or preparatory courses). 2,000
Each unmarried child of 18 years and above that:
  1. receiving further education in Malaysia in respect of an award of diploma or higher (excluding matriculation/ preparatory courses).
  2. receiving further education outside Malaysia in respect of an award of degree or its equivalent (including Master or Doctorate).
  3. the instruction and educational establishment shall be approved by the relevant government authority.
8,000
16c Disabled child 6,000
Additional exemption of RM8,000 disable child age 18 years old and above, not married and pursuing diplomas or above qualification in Malaysia @ bachelor's degree or above outside Malaysia in program and in Higher Education Institute that is accredited by related Government authorities 8,000
17 Life insurance and EPF
Civil servants’ pension schemes, non-civil servants pension schemes and self-employed category:
  1. Mandatory contributions to approved schemes or voluntary contributions to EPF (excluding private retirement schemes) or contributions under any written law (Restricted to RM4,000)
  2. Life insurance premium payments or family takaful contributions or additional voluntary contributions to EPF (Restricted to RM3,000)
7,000
(Restricted)
18 Deferred Annuity and Private Retirement Scheme (PRS) 3,000
(Restricted)
19 Education and medical insurance 3,000
(Restricted)
20 Contribution to the Social Security Organization (SOCSO) 350
(Restricted)
21 Expenses on charging facilities for Electric Vehicle (Not for business use) 2,500
(Restricted)

Always refer to the official LHDN Malaysia website for the most current and complete tax relief 2024 rates.

Who Is Eligible for Tax Relief in 2024?

An individual is eligible for tax relief if they earn income in Malaysia and fall into one of these categories:

  • Salaried individuals earning an annual income exceeding RM37,333 or a monthly salary of approximately RM3,111 or more, after mandatory EPF deductions.
  • Self-employed individuals, freelancers, and gig economy workers (e.g. e-hailing drivers and food delivery riders) with an income that reaches the taxable threshold as mentioned above.
  • Entrepreneurs or registered business owners in Malaysia who need to file taxes based on their business profits.
  • Anyone registered with the Inland Revenue Board of Malaysia (LHDNM) and has been assigned a tax number, including those without a fixed income or haven’t earned the taxable amount.

If you are unsure whether an employee needs to file, you may use the LHDNM's Income Tax Calculator to check their eligibility.

What Types of Income Are Taxable & Exempted?

To ensure accurate and compliant payroll, here's a direct and simple breakdown of what's officially considered taxable and non-taxable income for your employees,

Income Type Examples Taxable Exempt
Employment Payroll Salary, bonuses, commissions, fixed allowances ✅
Business Profits Income from self-employment, freelancing ✅
Rental Income Earnings from property rental ✅
Investment Gains Dividends, shares ✅
Capital Gains (Public Equities) Profits from the sale of shares on Bursa Malaysia ✅
Interest (Local Banks) Interest earned from Malaysian banks ✅
Interest (Foreign Banks) Interest from overseas accounts brought into Malaysia ✅
Hibah & Inheritance Money received as inheritance ✅
Gifts Cash or items received as gifts ✅
Certain Government Allowances Special allowances for civil servants ✅

Keep up-to-date and detailed records of all employee income and expenses throughout the year for accurate annual tax filings and submissions.

Tax Relief Through EPF Contributions and Life Insurance

This is a key area for HR to communicate, as it directly impacts employee financial planning. Employees can optimise their personal income tax relief by strategically managing their EPF contributions and life insurance/deferred annuity premiums.

This allows members to leverage these statutory payments for maximum allowable tax deductions.

Tax Relief Limits

Employee Category EPF Contributions (Mandatory/Voluntary) / Approved Schemes Life Insurance / Voluntary EPF / Both Total Tax Relief
Private Sector & Non-Pensionable Public Servants Up to RM4,000 Up to RM3,000 Up to RM7,000

For Pensionable Public Servants

Retired civil servants in Malaysia can now benefit from an expanded tax relief that includes their EPF retirement savings, in addition to the existing life insurance premium relief (capped at RM7,000).

This update encourages them to make voluntary contributions to their EPF accounts to maximize this tax benefit. HR should communicate this opportunity clearly, emphasizing that the RM7,000 relief limit now covers both life insurance premiums and voluntary EPF contributions.

Understanding Tax Relief for EPF Members

Tax Relief via i-Lindung: Insurance/takaful plans purchased through EPF’s i-Lindung platform using Akaun Sejahtera qualify for tax relief under the Life Insurance/Family Takaful category (up to RM3,000 per year).

Even if an employee uses their EPF savings to purchase an insurance/takaful plan, it still qualifies for personal tax relief (subject to LHDNM approval).

EPF Dividends: Dividends earned on EPF savings are not subject to tax, allowing retirement savings to grow tax-free.

How to Claim Tax Relief (Step-by-Step)

Guide your employees to successfully claim their income tax relief the correct filing procedures. Here's a quick overview of the claim process:

How to Claim Tax Relief via MyTax (e-Filing)

  1. Gather Supporting Documents: Collect and keep all original receipts and proof of eligible expenses (e.g., medical bills, insurance payment statements).
  2. Submit the Tax Return: File income tax via e-Filing on the LHDN MyTax Malaysia portal or manually submit Form BE.
  3. Declare Tax Reliefs Accurately: Input the correct and verified figures in the relevant tax relief categories under "Tax Reliefs" in the e-Filing system.
  4. Retain Documents for Audit: All receipts and supporting documents must be kept for at least 7 years in case of an audit by LHDN.
  5. Claim Refunds (If Applicable): If the total tax paid exceeds the final tax due after deductions and reliefs, there will be a refund from LHDN.

Common Mistakes to Avoid When Claiming Tax Relief

To ensure LHDN compliance and avoid hefty fines or penalties (and potential HR queries), you should be aware of these common mistakes when claiming personal income tax relief.

  1. Documentation Failure: Not keeping receipts for the full 7-year period, overstating claims, or using receipts or invoices that do not contain the claimant's name.
  2. Double-Claiming: Spouses claiming the same expense category (e.g., child's education), especially if filing separately.
  3. Outdated Information: Using old relief limits or claiming ineligible expenses.
  4. Income Omission: Understating or omitting any source of taxable income.

Streamline LHDN Tax Compliance in Malaysia

Ensuring accurate payroll and LHDN compliance for a growing team is a tough challenge. QuickHR, an LHDN-approved HRMS software, automates and streamlines your entire tax calculation, PCB filing, and submission process for all payroll needs.

  • Regularly updated with the latest LHDN/PCB rates and regulations for full compliance.
  • Seamlessly integrates all statutory deductions like EPF, SOCSO, and EIS, ensuring complete payroll compliance in one unified system.
  • Instantly generate all necessary reports and documentation for compliance and auditing.

Need seamless 2024 tax calculations? Try QuickHR Payroll Malaysia today and simplify it all.

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