IRB: Tax relief for children among key tax savings measures

KUALA LUMPUR - Tax relief for children under a taxpayer’s care is one of the most commonly and easily claimed deductions that can have a big impact on tax-saving measures.

Selangor Inland Revenue Board (IRB) Public Relations officer Ili Diyana Abd Hadi said parents are eligible for this tax deduction if they have supporting documents, such as birth or adoption certificates.

She explained that there are four types of child-related relief available, namely a deduction of RM2,000 for each child aged 18 years and below and an exemption of RM8,000 for children aged 18 and above who are pursuing higher education, such as a diploma or higher in Malaysia, or a degree or its equivalent (including master’s or doctoral degrees) for those studying abroad.

Additionally, a relief of RM6,000 is available for children with disabilities, with an extra RM8,000 exemption for disabled children aged 18 and above who continue their studies at a higher level, she said when appearing as a guest on Bernama Radio today.

"The form includes columns for 100 per cent and 50 per cent claims. The 100 per cent column is for married couples, where either the husband or wife can claim it for one child but it cannot be claimed by both for the same child.

"...while the 50 per cent column is for couples who have divorced and can claim it for the same child,” said Ili Diyana.

She also said that working couples should opt for separate assessments to secure a self-exemption of RM9,000 for each person.

According to her, taxpayers who contribute to the National Education Savings Scheme (SSPN), including SSPN Prime and SSPN Plus products, can claim deductions based on their choice of assessment, whether separate or joint.

Ili Diyana said that another way to maximise income tax savings is through claims for medical treatment, special needs, and parental care, which are capped at RM8,000 depending on the type of expenditure.

"The treatment claim for parents is applicable only to those living in Malaysia and receiving treatment at clinics or hospitals within the country.

"All medicine claims must be supported by a prescription from a medical practitioner registered with the Malaysian Medical Council, except for dental claims, which are limited to fillings, extractions, and scaling, and do not include cosmetic procedures,” she said.

Ili Diyana also noted that tax savings can be achieved through the lifestyle segment, which covers the purchase of personal computers, smartphones, sports equipment, internet services, and books, up to a limit of RM2,500.

In addition, she said that an extra relief of up to RM500 is available for rent or entry fees to sports facilities and registration fees for competitions organised by entities approved and licensed by the Sports Commissioner under the Sports Development Act 1997.

Meanwhile, Selangor IRB Public Relations officer Ilyia Haidar Kharib urged taxpayers to make full use of all available tax reliefs and rebates to maximise savings and steer clear of any documentation fraud.

She advised taxpayers to pay their taxes on time and to keep their taxation documents for at least seven years from the end of the year of assessment. - BERNAMA