【HR NEWSLETTER – January 2020】
Malaysian Income Tax Relief 2019 (For 2020 Tax Filing)
| NO | Individuals Relief Types | Amount (RM) |
| 1 | Individual and dependant relatives | 9.000 |
| 2 | Medical treatment, special needs, and career expenses for parents (Medical condition certified by a medical practitioner) OR Parent Restricted to 1,500 for only one mother Restricted to 1,500 for only one father |
5.000 (Restricted)
OR 3.000 (Restricted) |
| 3 | Basic supporting equipment for disabled self, spouse, child or parent | 6.000 (Restricted) |
| 4 | Disabled individual | 6.000 |
| 5 | Education fees (self) Other than a degree at masters or doctorate level – Course of study in law, accounting, Islamic financing, technical, vocational, industrial, scientific or technology Degree at masters or Doctorate level – Any course of study |
7.000 (Restricted) |
| 6 | Medical expenses for serious diseases for self, spouse or child | 6.000 (Restricted) |
| 7 | Complete medical examination for self, spouse, child (Restricted to 500) | 6.000 (Restricted) |
| 8 | Lifestyle -Lifestyle – Expenses for the use/benefit of self, spouse or child in respect of: -Purchase of books/journals/magazines / printed newspapers / other similar publications (Not banned reading materials) -Purchase of personal computer, smartphone or tablet (Not for business use) -Purchase of sports equipment for sports activity defined under the Sports Development Act 1997 and payment of gym membership payment of monthly bill for internet subscription (Under own name) -Purchase of breastfeeding equipment for own use for a child aged 2 years and below (Deduction allowed once in every 2 years of assessment) |
2.500 (Restricted) |
| 9 | Purchase of breastfeeding equipment for own use for a child aged 2 years and below (Deduction allowed once in every 2 years of assessment | 1.000 (Restricted) |
| 10 | Child care fees to a registered child care center/kindergarten for a child aged 6 years and below | 1.000 (Restricted) |
| 11 | Net deposit in SKIM Simpanan Pendidikan Nasional (Total deposit in 2019 MINUS total withdrawal in 2019) | 8,000 (Restricted) |
| 12 | Husband/wife/payment of alimony to former wife | 4,000 (Restricted) |
| 13 | Disabled husband/wife | 3,500 |
| 14 | Each unmarried child and under the age of 18 years old | 2,000 |
| 15 | Each unmarried child of 18 years and above who is receiving full-time education (“A-Level”, certificate, matriculation or preparatory courses) | 2,000 |
| 16 | Each unmarried child of 18 years and above that: receiving further education in Malaysia in respect of an award of a diploma or higher (excluding matriculation/ preparatory courses). receiving further education outside Malaysia in respect of an award of a degree or its equivalent (including Master or Doctorate). the instruction and educational establishment shall be approved by the relevant government authority |
8,000 |
| 17 | Disabled child
Additional exemption of RM8,000 disable child age 18 years old and above, not married and pursuing diplomas or above qualification in Malaysia @ bachelor degree or above outside Malaysia in the program and in Higher Education Institute that is accredited by related Government authorities |
6,000
8,000
|
| 18 | Life insurance and EPF INCLUDING not through salary deduction Pensionable public servant category Life insurance premium OTHER than pensionable public servant category Life insurance premium (Restricted to RM3,000) Contribution to EPF / approved scheme (Restricted to RM4,000) |
7,000 (Restricted) |
| 19 | Deferred Annuity and Private Retirement Scheme (PRS) – with effect from year assessment 2012 until year assessment 2021 | 3,000 (Restricted) |
| 20 | Education and medical insurance (INCLUDING not through salary deduction) | 3,000 (Restricted) |
| 21 | Contribution to the Social Security Organization (SOCSO) | 250 (Restriction) |
New RM1,200 minimum wage to take effect on Jan 1 in 57 towns, cities
It has been reported in the media that the Government proposed to implement the new minimum wages of RM1,200 per month in 57 cities and towns in Malaysia as listed in Table A attached herewith with effect from Jan 1, 2020. The minimum wages would remain at RM1,100 a month in areas that are not covered under these 57 cities and towns.
Its implementation will be based on employees’ workplace, which, as defined under Section 2(1)of the Employment Act 1955 (Act 265), the Sabah Labour Ordinance (Chapter 67) and the Sarawak Labour Ordinance (Chapter 76), is wherever work is carried out by an employee for his or her employer.
“any place where work is carried on for an employer by an employee”.
The minimum wage remains applicable for all employees in the private sector, the ministry said, except for domestic servants as defined under section 2(1) of the Employment Act 1955, the Sabah Labour Ordinance and the Sarawak Labour Ordinance, as stipulated in the Minimum Wages Order 2018.
| Table A: The towns and cities that will be affected by the new minimum wage | |
| 1. Bandaraya Johor Bahru | 31. Bandar Nilai |
| 2. Bandaraya Iskandar Puteri | 32. Bandar Port Dickson |
| 3. Bandaraya Alor Setar | 33. Bandar Jempol |
| 4. Bandaraya Melaka Bersejarah | 34. Bandar Kuantan |
| 5. Bandaraya Pulau Pinang | 35. Bandar Temerloh |
| 6. Bandaraya Sebrang Perai | 36. Bandar Bentong |
| 7. Bandaraya Ipoh | 37. Bandar Manjung |
| 8. Bandaraya Shah Alam | 38. Bandar Kuala Kangsar |
| 9. Bandaraya Petaling Jaya | 39. Bandar Taiping |
| 10. Bandaraya Kuala Terengganu | 40. Bandar Teluk Intan |
| 11. Bandaraya Kuching Utara | 41. Bandar Kangar |
| 12. Bandaraya Kuching Selatan | 42. Bandar Ampang Jaya |
| 13. Bandaraya Miri | 43. Bandar Kajang |
| 14. Bandaraya Kota Kinabalu | 44. Bandar Klang |
| 15. Bandaraya Kuala Lumpur | 45. Bandar Selayang |
| 16. Bandar Batu Pahat | 46. Bandar Subang Jaya |
| 17. Bandar Kluang | 47. Bandar Sepang |
| 18. Bandar Kulai | 48. Bandar Kemaman |
| 19. Bandar Muar | 49. Bandar Dungun |
| 20. Bandar Segamat | 50. Bandar Padawan |
| 21. Bandar Pasir Gudang | 51. Bandar Sibu |
| 22. Bandar Kulim | 52. Bandar Kota Samarahan |
| 23. Bandar Sungai Petani | 53. Bandar Bintulu |
| 24. Bandar Langkawi | 54. Bandar Sandakan |
| 25. Bandar Kubang Pasu | 55. Bandar Tawau |
| 26. Bandar Kota Bharu | 56. Bandar labuan |
| 27. Bandar Alor Gajah | 57. Bandar Putrajaya |
| 28. Bandar Jasin | |
| 29. Bandar Hang Tuah Jaya | |
| 30. Bandar Seremban |
For further inquiries kindly visit LHDN website www.hasil.gov.my or contact Hasil Care Line LHDNM at 1-800-88-5436 or 603-77136666 (Overseas).
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