Save more, stress less on e-Filing by unlocking your potentia savings from tax reliefs
Tax season is here, and if you’re looking for ways to reduce your tax bill, you’re in the right place. The Inland Revenue Board of Malaysia (LHDN) offers a variety of tax reliefs and exemptions for the 2024 Year of Assessment, and one of the most underrated ways to save is through things such as takaful contributions.
Let’s break down the key tax reliefs you should know about and how you can make the most of them.
What Are Tax Reliefs?
Tax reliefs are deductions that reduce your taxable income, which in turn lowers the amount of tax you need to pay. For 2024, there are several reliefs available, ranging from medical expenses to education fees, as well as the ones that can help you save while fulfilling your financial and religious responsibilities.
Islamic-Related Tax-Reliefs You Should Know
- Takaful Contributions for Yourself
You can claim up to RM 3,000 in tax relief for contributions made to your own takaful plan. This includes plans like life and medical takaful, which not only provide financial protection but also help you reduce your taxable income.
- Zakat Contributions
Zakat, one of the pillars of Islam, is also recognised by LHDN as a tax-deductible expense. Any zakat payments you have made during the tax year can be fully deducted from your taxable income.
As the Quran says: “Take alms from their wealth to purify and sanctify them…” (At-Tawbah 9:103)
These tax reliefs are not just about saving money – they are also about integrating your financial decisions with your faith. By contributing to takaful and paying zakat, you are fulfilling religious and financial responsibilities while also benefiting from tax savings.
Other Key Tax Reliefs for 2024
- Lifestyle Relief (Up to RM 2,500 and an additional RM1,000): This includes expenses like books, sports equipment, and even internet subscriptions.
- Medical Expenses for Parents (Up to RM 8,000): If you have paid for medical treatment for your parents, you can claim this relief.
- Education Fees (Up to RM 7,000): This covers fees for your own education or up to RM8,000 for your unmarried children’s education.
- EPF Contributions (Up to RM 4,000): Contributions to your Employees Provident Fund (EPF).
- PRS Contributions (Up to RM3,000): Private Retirement Scheme (PRS) contributions are also eligible for tax relief.
LHDN’s full list of exemptions can be found here.
Tips for Maximising Your Tax Reliefs
- Keep your receipts: Whether it is for takaful contributions, medical expenses, or education fees, make sure you have all your receipts and documents ready.
- Plan ahead: Don’t wait until the last minute to make contributions. Spread them out throughout the year to make it more manageable for your cash flow.
- Explore takaful plans: Products like Pusara Pro offer unique benefits, so consider what aligns best with your needs and goals.
- Consult a tax expert: If you’re unsure about how to claim your reliefs, it’s always a good idea to consult a tax professional.
Filing your taxes doesn’t have to be a stressful experience. With the right knowledge and planning, you can take full advantage of tax reliefs to save money while fulfilling your financial and religious responsibilities.
Find out more about Pusara Pro by clicking here or download the Ouch! Takaful mobile app from the Google Play Store or Apple App Store today.
Disclaimer: The information in our blog articles and provided by our brand ambassadors/KOLs is for general insights only and not legally binding. We strive for accuracy but cannot guarantee the information’s completeness or reliability. For legal matters, consult official documents or contact an authorised Ouch! representative.