7 Ways of Tax Deduction (Legally)

Deduction 1: INDIVIDUAL
Relief of RM8,000 for an individual in respect is granted automatically.

Deduction 2: EDUCATION FEES (SELF)
An amount limited to a maximum of RM5,000 is deductible in respect of fees expended on any course of study up to tertiary level in any institution in Malaysia recognised by the Malaysian Government, for the purpose of acquiring law, accounting, Islamic financing, technical, vocational, industrial, scientific or technological skills or qualifications.

Deduction 3: COMPLETE MEDICAL EXAMINATION
Complete medical examination refers to thorough examination expended is deductible up to a maximum of RM500.

Deduction 4: PURCHASE OF BOOKS/MAGAZINES
An amount limited to a maximum of RM1,000 is deductible in respect of the purchase of books, magazines, journals or other similar publications (in form of hardcopy or electronic but exclude newspapers or banned reading materials) for enhancing the knowledge.

Deduction 5: PURCHASE OF PERSONAL COMPUTER FOR INDIVIDUAL
An amount limited to a maximum of RM3,000 is deductible in respect of the purchase of personal computer. No deduction will be granted if the computer is used for business purpose. This deduction is allowed once in 3 years.

Deduction 6: LIFE INSURANCE AND PROVIDENT FUND
i) Insurance premiums paid for policies taken on the life
ii) Contributions to the Employees Provident Fund (EPF)
Total relief for the payment of life insurance premiums and contributions to the EPF or other approved schemes is limited to RM6,000.

Deduction 7: EDUCATION AND MEDICAL INSURANCE
A relief not exceeding RM3,000 is available on insurance premiums in respect of education or
medical benefits.