Youth Minister: RM1,000 Sports Tax Relief Expanded To Cover Training Fees For Spouse, Children

Alex Cheong Pui Yin

19th April 2024 - 3 min read

Youth and Sports Minister Hannah Yeoh has announced that the RM1,000 tax relief provided for sports equipment and activities for year of assessment (YA) 2024 will now be expanded to also cover the fees of eligible training or classes for oneself, spouse, or child.

For context, the RM1,000 tax relief for sports equipment and activities is a separate incentive that was newly introduced under Budget 2024, which consequently saw sports equipment being removed as one of the claimable items under the general RM2,500 lifestyle tax relief. The new relief originally covered the following expenditures that are incurred for the taxpayers themselves:

Purchase of sports equipment (excluding two-wheeled motorbikes)
Rental or entry fees to sports facilities
Registration fees for participating in sports competitions
Gym membership fees
Sports training fees imposed by associations and clubs registered with the Sports Commissioner or Companies Commission of Malaysia, carrying out sports activities as listed under the Sports Development Act 1997

sports equipment-badminton — (Image: AsiaOne)

With this latest update, the sports training fees of your spouse and children, too, can now be claimed as part of the RM1,000 tax relief. It will encompass 103 types of sports that have been gazetted under the Sports Development Act 1997, including aquatics, badminton, equestrian, motorsports, taekwondo, and even e-sports.

“This is a step to promote a healthy lifestyle and a reward for good parenting. Before this, the feedback we received from parents was that they spend money to buy sporting equipment, but they don’t use it much. Now, parents can get tax relief for sports training for their children, and this can also spur the sports industry where former athletes can turn to coaching as a career,” said Yeoh when announcing this update.

Aside from that, Yeoh also offered additional clarifications with regard to the tax relief. Among other things, she said that one-off sessions or a series of training sessions held in a structured manner such as classes, clinics, courses or workshops will be eligible for the relief. Additionally, official payment receipts must be provided as proof for your tax claims, including receipts that are generated online. Meanwhile, bank-in slips and bank account statements are not accepted.

Furthermore, Yeoh reminded Malaysians to always check the background and compliance of their sports training providers before signing up for any classes. This is because they can only claim the tax relief for sports if the training providers are associations, sports clubs, or companies that are registered with the Sports Commissioner or are incorporated under the Companies Act 2016.

“The public need to check whether the coaches or the training they undertake are registered properly. They cannot claim tax relief if they train or are coached by unregistered coaches or entities,” Yeoh stressed.

For more information, the Ministry of Youth and Sports has released an FAQ that highlights the details that were announced today. You can refer to it here.

(Source: New Straits Times)

0 0 votes

Article Rating

Alex Cheong Pui Yin

Previously covered recruitment-related stories and had a short stint as a copywriter for the property industry. She subsequently developed an interest in investment and robo-advisors.

See all articles

Comments (10)

10 Comments

Inline Feedbacks

View all comments

yy cheah

6 months ago

Would chess classes organised by a Chess Academy be eligible for tax exemption ?

ssenik

6 months ago

Reply to yy cheah

Usually, it depends on the local tax rules and if the Chess Academy is registered as an approved education or non-profit group. You might want to check with the tax office or a tax expert to be sure.

Tang YQ

11 months ago

Hi, is bouldering entrance fee and shoes claimable in the tax relief? Thank you.

ssenik

11 months ago

Reply to Tang YQ

Bouldering entrance fees and shoes are generally not claimable under tax relief in Malaysia. Tax relief typically applies to items such as education fees, medical expenses, and certain lifestyle-related purchases like books or sports equipment for children. However, bouldering expenses don’t usually fall under these categories unless they’re directly related to work or a specific tax-exempt purpose.

For accurate advice, it’s always best to check with the tax authorities or a tax consultant.

Hope this helps!

chl

7 months ago

Reply to ssenik

“Rental or entry fees to sports facilities”
Wouldn’t bouldering entrance fees be covered under ‘entry fees’ or is it because bouldering is not in the list? Can it be covered under climbing which is in the list?

ssenik

7 months ago

Reply to chl

Great question! While “entry fees to sports facilities” generally covers activities like climbing, if bouldering isn’t specifically mentioned in the list, it may not automatically be included. However, since bouldering and climbing share similarities, it might be worth checking with the relevant authorities to confirm if it can be considered under “climbing.”

Anonymous

1 year ago

is sport shoe consider sport equipment?

ssenik

1 year ago

Reply to Anonymous

Yes, sport shoes can be considered as sports equipment for tax relief purposes. Contact the tax pro for more information.

-5

Anonymous

1 year ago

Is the PS5 console considered an Esport?

ssenik

1 year ago

Reply to Anonymous

No, the PS5 console itself is not considered an esport. Esports typically refer to competitive video gaming played on platforms such as consoles, computers, or mobile devices, often in organized tournaments or competitions. However, the PS5 console can certainly be used to play games that are part of the esports scene.