Malaysia’s 2025 lifestyle tax relief allows taxpayers to save on their personal income tax by claiming deductions for specific personal and family expenses. These reliefs cover areas like education, health, and sports. Here’s a detailed guide to help Malaysians maximise their tax reliefs, featuring details on the sports equipment, breastfeeding equipment, and more.
1. 2025 Lifestyle Tax Relief in Malaysia: RM2,500 General Tax Deduction
This is the primary lifestyle tax relief available in Malaysia, offering coverage for everyday personal and family expenses that promote digital access, literacy, and personal development.
Eligible Expenses:
- Purchase of Reading Materials:
- Includes books, journals, magazines, and newspapers (physical and digital formats).
- Excludes morally offensive or banned materials.
- Purchases can be made locally or from overseas.
- Purchase of Gadgets:
- Covers desktop computers, laptops, tablets, and smartphones.
- Excludes warranty charges and gadgets must not be used for business.
- Internet Subscription:
- Payment for monthly internet bills registered under the taxpayer’s name.
- Skill Enhancement Courses:
- Include courses such as language courses, photography, and sewing courses.
- Aimed to encourage continuous personal growth.
Conditions:
- Expenses must be incurred for the taxpayer’s own use or their immediate family (spouse or children).
- The maximum tax deduction Malaysia for all combined eligible expenses under this category is RM2,500.
2. 2025 Additional Lifestyle Tax Relief Malaysia: Sports Equipment and Fitness
Maximum Claim: RM1,000
The additional lifestyle tax relief focuses on expenses related to health and fitness, particularly sports equipment and activities.
Eligible Expenses:
- Sports Equipment:
- Includes non-motorised equipment like balls, shuttlecocks, and other short-lifespan items.
- Excludes motorised bicycles, sports shoes, and swimsuits.
- Gym Memberships:
- Membership payments for gyms or fitness clubs for self, spouse, or children.
- Sports Training Fees:
- Includes coaching fees for sports activities listed under the Sports Development Act 1997 imposed by the sports club registered with the Commissioner of Sports or Companies incorporated under Companies Act 2016.
- Registration Fees for Sports Competitions:
- Eligible only if the competition organiser is approved and licensed by the Commissioner of Sports.
- Rental/Entrance Fees for Sports Facilities:
- For venues like swimming pools, badminton courts, and bowling centre.
Conditions:
- All expenses must be for personal use or for immediate family members (expanded to include parents with effect from YA 2025).
- The total claimable amount is RM1,000, in addition to the general lifestyle tax relief.
3. Tax Relief for Breastfeeding Equipment (Women Only)
Maximum Claim: RM1,000
This tax relief supports breastfeeding mothers by allowing a deduction for the cost incurred in purchasing breastfeeding equipment.
Eligible Equipment:
- Breast Pump Kits and ice packs.
- Milk Collection and Storage Equipment.
- Cooler Bags or Cooler Sets for storing breast milk.
Conditions:
- The child must be 2 years old or younger.
- The claim is allowed once every two (2) years.
- The maximum tax deduction in Malaysia for this relief is RM1,000, regardless of the number of children.
- If a combined assessment is filed, this deduction is available only if the assessment is made under the wife’s name.
4. Tax Relief for Electric Car Charging Facility (EVSE Charger / EV Battery)
To encourage the adoption of green energy, Malaysia offers tax relief for expenses related to electric car charging facilities and purchase of food waste composting machines for household use from YA 2025 to YA 2027.
Maximum Claim: RM2,500
Eligible Expenses:
- Installation of EV Charging Facilities:
- Covers the cost of installation for home EVSE chargers (Electric Vehicle Supply Equipment).
- Purchase including Hire-Purchase of Electric Vehicle Charging Facility (EVSE Charger).
- Rental of Electric Vehicle Charging Facility (EVSE Charger):
- If the equipment is rented instead of purchased.
- Subscription for EV Battery Charging Services
- Expanded to include purchase of food waste composting machines (can only be claimed once within 3 years of assessment from 2025 to 2027)
- Installation of EV Charging Facilities:
Conditions:
- Applicable only for personal use (not for business purposes).
- The receipt must be in the taxpayer’s name.
Example of Maximising Lifestyle Tax Relief for 2025 in Malaysia
Let’s consider a scenario where Mr. Kevin incurs the following expenses in YA 2025:
- Purchases sports equipment worth RM3,000 for himself and his family.
- Pays RM1,200 annually for an internet subscription.
- Buys a new tablet for RM1,800.
- Installs an EVSE charger at home for RM2,000.
Tax Relief Claim Breakdown:
- Sports Equipment:
- Claim RM2,500 under General Lifestyle Relief.
- The remaining RM500 is claimed under Additional Lifestyle Relief.
- Internet Subscription:
- Not available (lifestyle relief of RM2,500 is fully utilised)
- Tablet Purchase:
- Not available (lifestyle relief of RM2,500 is fully utilised)
- EVSE Charger:
- Claim RM2,000 under Electric Car Charging Relief.
Total Tax Deduction Malaysia:
- Lifestyle Tax Relief: RM2,500
- Additional Lifestyle Tax Relief: RM500
- EV Charging Facility Relief: RM2,000
Total: RM5,000
Important Notes for Taxpayers on Tax Deduction in Malaysia
Documentation:
- Keep all receipts for at least 7 years for audit purposes.
- Receipts must clearly show the taxpayer’s name.
Eligibility:
- Ensure claims are for personal or family use (not business-related).
- Claims for breastfeeding equipment must be made by the wife.
Combine Smartly:
- Use the general lifestyle tax relief alongside additional lifestyle tax relief and other categories for maximum savings.
Check for Updates:
- Always verify with the LHDN Malaysia for any changes to tax relief guidelines.
Learn How to Maximise Your Personal Tax Savings Today
The lifestyle tax relief for 2025 in Malaysia allows taxpayers to claim deductions and reduce taxable income while encouraging expenditures on health, education, sustainability, and personal development. Whether claiming relief for sports equipment, breastfeeding equipment, or electric car charging (EVSE chargers), Malaysian taxpayers should plan and document their claims carefully to maximise savings. For further advice, consult a tax professional or refer to the LHDN Malaysia website.
By utilising these reliefs effectively, taxpayers can not only save money on personal tax but also contribute to their personal growth, family well-being, and a greener future.
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Empowering Your Tax Planning with YYC taxPOD: Your Guide to National Budget 2025 Malaysia
The Budget 2025 introduces significant changes to the country’s economic and tax policies, focusing on growth, sustainability, and the well-being of its citizens. A standout measure is the implementation of a dividend tax Malaysia, which imposes a 2% tax on dividend income exceeding RM100,000 annually. This marks a major shift from the previous full exemption on dividend income and is a key area of focus for taxpayers.
To help individuals and businesses adapt to these changes, YYC taxPOD, Malaysia’s premier tax e-learning platform, has created a comprehensive guide – Budget 2025 Malaysia. This guide breaks down the new tax policies and grants, equipping you with the knowledge needed to navigate the evolving tax landscape effectively.
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