Income Tax Exemptions and Relief

Found out about the exemptions and relief available in Malaysia, plus information on Wealth, Inheritance, Gift and Capital Gains Tax...

Malaysian income tax law includes the following exemptions and relief:

  • Medical, childcare and dental benefits offered to an individual by their employer. This applies to an employee's immediate family, which is defined as their spouse and children
  • Fees received for providing tutoring or lecturing services in a higher education institution
  • Dividends received from an employer
  • Relief for adults or children with disabilities
  • Education fees
  • Book, journal and magazine purchases
  • Purchase of a personal computer
  • Broadband subscription
  • Maintenance payments for children
  • Gifts to: libraries, the government or local authorities, a sports body, organisations benefiting people with disabilities, the National Gallery, and healthcare facilities
  • Gifts of manuscripts, paintings or artefacts

Capital Gains Tax

The only capital gains tax in Malaysia is payable on the gains made from selling property or shares in a property company; it is called Real Property Gains Tax. The amount of tax that must be paid depends on the length of time for which the property was owned.

  • To download a Real Property Gains Tax form: Click here (and scroll down the menu on the left under 'Download form' to select Real Property Gains Tax)

Wealth Tax, Inheritance Tax and Gift Tax

There is no wealth tax, inheritance tax or gift tax in Malaysia, and there are no estate duties.

 

Disclaimer

Any statements concerning taxation are based upon our understanding of current taxation laws and practices in Malaysia which are subject to change. While every effort has been made to offer information that is current, correct and clearly expressed the publisher is not responsible for the results of actions taken on the basis of information contained in this summary, nor for any errors or omissions. Readers are encouraged to seek professional advice concerning specific matters before making any decision.