Maximise Your Income Tax Relief in 2017 By Spending On These

Have you ever wondered about the 2017 income tax relief ? Find out about the newly added items on the 2017 tax relief, and start spending on these things to more money on your next income tax filing!

Why are we talking about income tax relief for 2017 when many are still struggling to complete their 2016 income tax filing you ask? That’s because it’s better to take advantage of the tax relief as early as possible so you can save more money on your next income tax filing!

Besides, what with the newly introduced tax reliefs (which include lifestyle, breastfeeding equipment, and child care centre or kindergarten fees), it’s now more important to keep all your receipts than ever. Here are all the things that you can claim for your income tax relief in 2017, so start spending on these and don’t forget to keep the receipts and proof of purchases!

1. Premiums Paid For Education Or Medical Insurance

Deductible Amount: RM3,000

Many overlook the importance of having a medical insurance and instead prefer to depend on their company’s group insurance instead.The problem with employee benefits group insurance is that the coverage is often low and subject to annual limits. Besides, you’ll be completely vulnerable if you or your company decide to end your employment, so isn’t it safer for you to have your own medical insurance policy?

If you are a parent with young children, consider taking out an education insurance policy for each of them for their future education. It’s specifically tailored to be your savings tool to help fund your child’s higher education expenses once they enter a college or university.

After all, you get an income tax relief of RM3,000 for medical insurance as well as education insurance premiums, so make full use of it and get yourself and your children insured! If you’re not sure where to start, head to our medical insurance comparison page for a comprehensive list of the available medical insurance in the market.

Deductible Amount: RM2,500

Sure, it doesn’t look like much, but the new lifestyle tax relief allows you to claim on items that were not covered previously, which include broadband, gym membership, as well as smartphones and tablets! What’s more, you get to claim for these on a yearly basis. Now is the best time for you to get that smartphone or tablet that you’ve always wanted! Here’s a list of the things that can be claimed under the lifestyle tax relief:

  • Computer
  • Reading materials
  • Newspaper
  • Sports equipment
  • Broadband
  • Gym membership
  • Smartphones and tablets

3. Life Insurance And Employee Provident Fund (EPF)

Deductible Amount: RM6,000

Malaysians are woefully underinsured, that’s a sad fact that many are unaware of. With the income tax relief of RM6,000 (which is combined with your EPF income tax relief), you no longer have to hesitate about purchasing a life insurance policy. It’s an important financial tool that will prove valuable at times of need; such as providing some financial relief to your family members after your death or in the event of a disability.

There are plenty of affordable life or term life insurance policies to suit any budget. Don’t believe us? Take a look at our comprehensive list of the available term life insurance policies in the market and get your quote now!

4. Basic Supporting Equipment

Deductible Amount: RM6,000

Supporting equipment for the disabled are often expensive, not to mention few and far between. One way to make it more affordable is by buying secondhand supporting equipment on websites like Mudah.my or Lazada.

Fortunately, to ease your financial burden, the government offers an income tax relief of RM6,000, which is also extended to a disabled spouse, child, or parent.

5. Medical Examination

Deductible Amount: RM500

Not everyone is willing to fork out their precious money for a medical examination, but one way or the other we all need to get medical checks in our life. It could be for your work purpose (some companies require their employees to go for annual medical check-ups or before starting a particular position) or to qualify for an insurance policy.

Whatever the reason, it’s always good to be on top of your health via medical check-ups. As the saying goes, ‘prevention is better than cure’, so make use of the RM500 medical examination tax relief and get yourself checked a soon as you can!

6. Breastfeeding Equipment

Deductible Amount: RM1,000

New moms rejoice! Starting from 2017 onward, new mothers (who are taxpayers) with children of up to 2 years old can get a tax relief of up to RM1,000 for breastfeeding equipment every 2 years. Breastfeeding equipment can be on the pricey side, and mothers should only use the good ones to maintain the quality of their milk for longer storage and convenience.

With the new tax relief, you no longer have to worry about buying the better (and more expensive) breastfeeding equipment for your bundle of joy.

Read also: A Step By Step Guide To Filing Your Income Tax Online

7. Child Care Centre and Kindergarten Fees

Deductible Amount: RM1,000

If you’re struggling with your young children’s child care and kindergarten fees, your finances can now have more breathing room with the new income tax relief of up to RM1,000 especially for that purpose. The tax relief is aimed to ease the burden of parents with children of up to 6 years old, and can be claimed by either parent of the children starting from.

We’ve listed seven of the things you can spend more to save on your 2017 income tax, but of course, there are plenty more things listed on the 2017 income tax relief, which you can view here.

What are the income tax reliefs that you can make the most of in 2017? Do you have any plans on how you can save on tax? Share your thoughts and ideas with us in the comment section below!

0 comments

Agree or disagree with this post? Questions? You also have your word!

  • andy

    lifestyle related has computer, books and sports included. Does this means the existing computer of 3000, books of 1000 and sports of 500 is terminated?

    Reply
  • Mala

    Does WiFi count under broadband?

    Reply
    • RinggitPlus

      This depends on what you mean. If you mean your monthly internet subscription for your home WiFi network, then yes.
      Hope this helps

      Reply
    • Trystan

      Hi, may i know the definition for Broadband/internet subscriptions? Because it is unclear as they didn't clarify and when i searched across the Google i can't find any info about this. Other than streamyx, UniFI and other broadband, does the telco's mobile data/internet subscription included in this category?

      Reply
      • RinggitPlus

        Hi Trystan,

        You're right, "internet subscription" is not fully described and there's no distinction between mobile internet or internet meant for home use.
        But since smartphone purchases are counted as a separate item in this category of relief, our guess is that the broadband subscription only applies for home usage. It's still only a guess though.
        We recommend contacting LHDN for further clarification on this matter.
        Hope this helps!

        Reply
      • Lea

        Do you mean that the above relief is only applicable for 2017 tax year onwards ( not 2016 tax year)? For 2016, the separate relief for computer, books and sports still applies?

        Reply
        • RinggitPlus

          Hi Lea,

          Yes. This is for Year Assessment 2017. For 2016 (which you should be filing for this year) the separate relief for books, computers, and sports equipment still applies.

          Reply
        • Carole Chung

          Hi, does membership in a family sports club (with pool, gym, tennis courts, etc) count under 'gym membership'? Thanks!

          Reply
          • RinggitPlus

            Hi Carole Chung,

            It's a membership that has a gym in it, so it should count just fine.
            If you're still unsure though, we recommend contacting your nearest LHDN branch.
            Hope this helps!

            Reply
          • Katherine

            If i claim computer relief in year 2016, does it means that 3 years i couldnt claim for books and magazine under lifestyle categories anymore?

            Reply
            • RinggitPlus

              Hi Katherine,

              You can, because the Lifestyle Relief is completely different from the old one.
              For further clarification on this matter, we recommend contacting your nearest LHDN branch.
              Hope this helps!

              Reply
            • Vicky

              I cant find any definition of sports equipment, do they means all misc like racquet, shuttlecock, etc? Thks

              Reply
              • RinggitPlus

                Hi Vicky,

                Yes, it includes all equipment for any sports activity under the Sports Development Act, 1997.
                However this DOES NOT INCLUDE sports shoes or clothing.
                For further clarification on these matters, we recommend contacting your nearest LHDN branch

                Reply
              • CK

                So actually from Andy's queries, it was RM4,500 relief and now it is only RM2,500 relief? Sad.

                Reply
                • Zanes

                  Does this mean that only by subscribing to membership only entitled for the relief of lifestyle? membership referring to the first time payment enrollment? how about monthly fee? per entry visit to swimming pool? thanks in advance

                  Reply
                  • RinggitPlus

                    Hi Zanes,

                    The relief includes gym memberships, but you can also apply it to the other expenses in the "Lifestyle" category.
                    If you want further information and clarification, we recommend visiting your nearest LHDN branch.
                    Hope this helps!

                    Reply
                  • CC Su

                    Is rebate of RM400 for taxable income below RM35,000 still valid for 2017 (filed in 2018)?

                    Reply
                    • RinggitPlus

                      Hi CC Su,

                      Yup, that rebate is still valid. If you're unsure about this or need to ask other questions for further clarification, we recommend contacting your nearest LHDN branch.
                      Hope this helps!

                      Reply
                    • Aaron

                      Are gym equipments like weights, stationary bike, dumbbells, barbells etc. etc. consider "sports equipments"? are they claimable?

                      Reply
                    • Bishiko

                      Child Care Centre and Kindergarten Fees - applicable to any or there are shortlisted centre or kindergarten? Thank you.

                      Reply
                      • RinggitPlus

                        Hi Bishiko,

                        As long as you have receipts that prove you've spent the money on those services, it should be good to go.
                        If you're unclear about this or other tax-related issues, we recommend contacting your nearest LHDN branch for further information.
                        Thanks for your question and we hope this helps!

                        Reply
                      • vasanth

                        I'm a foreigner but having Malaysia's Employment visa. I'm paying medical insurance in India. Is that tax deductible under Medical Insurance?

                        Reply
                        • RinggitPlus

                          From our understanding, since the money you're paying does not go to any Malaysian entity, it's possible that you're not liable for tax relief.
                          However, if you have further questions or need more clarification, we recommend you contact your nearest LHDN to find out more from a better source.
                          Thanks for your question and we hope this helps!

                          Reply
                        • Victor

                          Should also maximize on opening and topping up of SSPN accounts for those with children. Opening and maintaining a PRS account is also another way to maximize relief while saving up money.

                          Reply