Tax relief update for year of assessment 2024

Tax relief changes for the year assessment of 2024 have been implemented in the payroll platform. These statutory changes include:

1. The scope of medical treatment, special needs and carer expenses for parents is expanded to include:

• All types of dental examination and treatment by dental practitioners registered with the Malaysian Dental Council.
• Full medical examination up to RM1,000.

2. Fee for skill improvement/personal development course in any field recognized by the Director General under the National Skills Development Act 2006 (limited to RM2,000) is extended to 2026.

3. The scope of medical expenses for self, spouse, and children is expanded to include dental examination and treatment by dental practitioners registered with the Malaysian Dental Council up to RM1,000.

4. Revision to the scope of lifestyle expenses for self / spouse / children:

• Claims for the purchase of sports equipment and membership fees for gyms are excluded.
• The scope is expanded to include self-enrichment course fees. These courses do not need to be registered or recognized by any Government body and taxpayers are encouraged to study skills that are not related to the job, such as courses related to hobbies, religion, or language.

5. Expense for sports equipment and activities limit is increased from RM500 to RM1,000, and the scope is revised to include:

• Purchase of sports equipment for any sports activity under the Sports Development Act 1997 [Act 576] (not including motorized two-wheeled bicycles);
• Rental fees or entry fees to sports facilities;
• Payment of the registration fee to participate in the competition; and
• Gym membership fees or sports training.

6. Expense for purchase, installation, rental, and subscription for EV charging facilities (up to RM2,500) is extended to 2027.
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As per currently, once the employee's tax reliefs are specified, they are then automatically deducted in the PCB/MTD calculation.

For more information on how admins can set up an employee’s tax relief to be included in a pay run, please refer to: Tax Relief