How to Save More Money on Your Taxes in 2025

Getting your tax reliefs right can save you money. Here’s what you need to know for YA 2025.

Personal and Family Reliefs

Your basic relief
– RM9,000 for you and your dependent relatives

For your parents and grandparents
– Up to RM8,000 for medical treatment, special needs, and carer expenses
– Medical conditions need certification from a practitioner
– Complete medical examinations capped at RM1,000

If you’re disabled
– Additional RM7,000 relief
– Increased from RM6,000 in YA 2024

Supporting equipment
– RM6,000 for disabled individuals (yourself, spouse, child, or parent)

Your Own Health and Development

Medical expenses (up to RM10,000)
– Serious diseases for self, spouse, or child
– Fertility treatment for self or spouse
– Vaccinations (capped at RM1,000)
– Dental care (capped at RM1,000)

Your education (up to RM7,000)
– Courses in law, accounting, Islamic financing, technical, vocational, industrial, scientific or technology fields
– Masters or doctorate degrees (any course)
– Upskilling courses (capped at RM2,000)

Health monitoring (up to RM1,000)
– Complete medical examinations
– COVID-19 tests
– Mental health consultations
– Self-health monitoring equipment
– Disease detection tests

Children and Childcare

Child relief
– RM2,000 for each child under 18
– RM2,000 for children 18 and above in A-Level, certificate, or matriculation
– RM8,000 for diploma or higher education in Malaysia, or degree-level studies abroad

Disabled children
– RM8,000 relief
– Additional RM8,000 if they’re 18 or above pursuing diploma or higher education

Intellectual disability support (up to RM6,000)
– Assessment and diagnosis
– Early intervention programmes
– Rehabilitation treatment
– For children aged 18 and below
– Increased from RM4,000

Childcare fees
– RM3,000 for registered centres or kindergartens
– For children aged 6 and below

Breastfeeding equipment
– RM1,000 relief
– For children aged 2 and below
– Can claim once every two years

Lifestyle and Daily Living

Lifestyle spending (RM2,500)
– Books, journals, newspapers
– Personal computers, smartphones, tablets
– Internet subscriptions (under your name)
– Skill development courses

Sports activities (RM1,000)
– Sports equipment
– Facility rentals
– Competition fees
– Gym memberships and training
– Applies to yourself, spouse, children, and parents

Financial Planning

Life insurance and EPF (up to RM7,000)
– Mandatory contributions to approved schemes or voluntary EPF contributions (capped at RM4,000)
– Life insurance premiums or takaful contributions (capped at RM3,000)

Private retirement schemes
– RM3,000 for deferred annuities and PRS

Education and medical insurance
– RM4,000 relief
– Increased from RM3,000

SOCSO contributions
– RM350 relief

SSPN deposits
– Up to RM8,000
– Net deposit (total deposits minus total withdrawals)

Spouse Relief

Your spouse
– RM4,000 relief
– Includes alimony payments to former wife

Disabled spouse
– RM6,000 relief
– Increased from RM5,000 in YA 2024

New Reliefs for 2025

Home ownership relief
– For sale and purchase agreements between 1 January 2025 and 31 December 2027
– Properties up to RM500,000: RM7,000 relief
– Properties exceeding RM500,000 up to RM750,000: RM2,500 relief

Electric vehicle charging facilities and composting machines
– RM2,500 relief
– Must not be for business use

What Changed from YA 2024?

Increases
– Disabled individual: RM6,000 to RM7,000
– Disabled spouse: RM5,000 to RM6,000
– Education and medical insurance: RM3,000 to RM4,000
– Intellectual disability assessment: RM4,000 to RM6,000

Expanded coverage
– Parents’ medical relief now includes grandparents
– Parents’ relief now includes dental treatment
– Complete medical examination limit increased to RM1,000
– Dental treatment added with RM1,000 cap
– New health monitoring equipment category
– Sports relief now includes parents
– Home loan interest relief introduced

What You Need to Remember

Documentation
– Keep all receipts
– LHDN can request proof of claims

Conditions apply
– Medical conditions need certification
– Educational institutions must have government approval
– Sports equipment must align with Sports Development Act 1997
– All “Restricted” reliefs have specific limits

How it works
– Reliefs reduce your chargeable income, not your tax bill directly
– Your actual savings depend on your tax bracket
– Review your expenses to claim everything you’re entitled to
– The reliefs add up