{"id":8174,"date":"2026-08-25T21:40:50","date_gmt":"2026-08-25T13:40:50","guid":{"rendered":"https:\/\/ancgroup.biz\/?p=8174"},"modified":"2026-08-25T21:43:53","modified_gmt":"2026-08-25T13:43:53","slug":"individual-tax-year-of-assessment-2025","status":"publish","type":"post","link":"https:\/\/ancgroup.biz\/cn\/individual-tax-year-of-assessment-2025\/","title":{"rendered":""},"content":{"rendered":"<h2>Submission of Individual Annual Tax Return (\u201cForm BE and Form M\u201d) Year of Assessment 2025<\/h2>\n<p>The annual income tax return for individuals, i.e. the Form BE and Form M, for the Year of Assessment (\u201cYA\u201d) 2025 must be completed and submitted to the Inland Revenue Board (\u201cIRB\u201d) by 30 April 2026. Failure to submit the Form BE or the Form M within the statutory due date will constitute an offence under the Income Tax Act 1967 (\u201cITA\u201d), which upon conviction, will be liable to a fine ranging from RM200 to RM20,000 or imprisonment for a term not exceeding 6 months or both. In addition, the IRB may impose a penalty up to 3 times the amount of tax payable.<\/p>\n<p>Nevertheless, submission of the tax return may not be required, if the Monthly Tax Deduction (\u201cMTD\u201d) is elected as Final Tax by the taxpayer. The election is applicable only for Malaysian citizens.<\/p>\n<p>Expatriates are still required to file their income tax return and apply for his or her tax clearance upon leaving the country. If the expatriate\u2019s taxes are not cleared with the IRB, the IRB has the right to claim the outstanding tax payable from the employer. As such, employers need to ensure that expatriate employees have obtained their tax clearance before departing from Malaysia.<\/p>\n<hr \/>\n<h2>Monthly Tax Deduction (\u201cMTD\u201d) (Potongan Cukai Pendapatan (\u201cPCB\u201d)) as Final Tax<\/h2>\n<p>Although the Form BE or the Form M (for taxpayers earning employment income) must be submitted on or before 30 April each year, taxpayers have the option of not submitting the Form BE or the Form M. This is by deeming the MTD as the final tax. However, taxpayers must fulfil the following conditions:-<\/p>\n<ul>\n<li>Having only a single source of employment income;<\/li>\n<li>Benefits-In-Kind (\u201cBIK\u201d) and Value of Living Accommodation (\u201cVOLA\u201d) have been included in the MTD calculation;<\/li>\n<li>Employed by the same employer for 12 months in that YA;<\/li>\n<li>MTD is deducted according to Income Tax Rules;<\/li>\n<li>Taxes are not borne by the employer (unless MTD has been accurately accounted for); and<\/li>\n<li>Husband and wife elect for separate assessment.<\/li>\n<\/ul>\n<p>The benefit of deeming the MTD as the final tax is for taxpayers to eliminate the daunting task of remembering the due date and collating the relevant documents for completing the Form BE or the Form M. Conversely, the disadvantage of deeming MTD as final tax is that taxpayers would have to forego the tax deduction claims (relief), which may result in a tax refund unless the Form TP1 (form for claiming deductions and rebates for MTD purpose) has been submitted therefrom.<\/p>\n<hr \/>\n<h2>Residence Status<\/h2>\n<p>The determination of a taxpayer\u2019s tax resident status in Malaysia is important as it determines the rate of tax (refer to Chapter D) and the entitlement to enjoy tax reliefs and rebates (refer to Chapter F). A taxpayer who is a non-tax resident will be taxed at a flat rate of 30% (refer to Chapter E) and will not qualify for any reliefs and rebates.<\/p>\n<p>Regardless of nationality, the tax residency status of a taxpayer in Malaysia is determined based on rules as set in the ITA. A taxpayer is a tax resident in Malaysia for a particular YA if:-<\/p>\n<ol>\n<li>the taxpayer is in Malaysia on that basis year for a period or periods amounting in all to one hundred and eighty-two (182) days or more;<\/li>\n<li>the taxpayer is in Malaysia on that basis year for a period of less than one hundred and eighty-two (182) days and that period is linked by or to another period of one hundred and eighty-two (182) or more consecutive days throughout which he is in Malaysia in that basis year for the YA immediately preceding that particular YA or in that basis year for the YA immediately following that particular YA:-\n<ul>\n<li>Relaxation for temporary absence from Malaysia is provided to a taxpayer if the taxpayer was absent due to the following reasons:-\n<ul>\n<li>connected with his service in Malaysia and owing to service matters, attending conferences, seminars or study abroad;<\/li>\n<li>owing to ill-health involving the taxpayer or a member of his immediate family. Immediate family refers to parents, spouse and children; and<\/li>\n<li>in respect of social visits not exceeding fourteen days (14) days in the aggregate.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li>the taxpayer is in Malaysia on that basis year for a period or periods amounting in all to ninety (90) days or more, having been with respect to each of any three (3) of the basis years for the four (4) YAs immediately preceding that particular YA either:-\n<ul>\n<li>resident in Malaysia in accordance with the ITA;<\/li>\n<li>in Malaysia for a period or periods amounting in all to ninety (90) days or more in the basis year in question; or<\/li>\n<\/ul>\n<\/li>\n<li>the taxpayer is resident in Malaysia in accordance with the ITA for the basis year for the YA following the particular YA, having been so, resident for each of the basis years for the 3 YAs immediately preceding that particular YA.<\/li>\n<\/ol>\n<hr \/>\n<h2>Individual Tax Rate for Tax Resident for the YA 2025 and YA 2026<\/h2>\n<table>\n<thead>\n<tr>\n<th>Chargeable Income (RM)<\/th>\n<th>Calculations (RM)<\/th>\n<th>Rate %<\/th>\n<th>YA 2025 and YA 2026 Tax Payable (RM)<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>0 &#8211; 5,000<\/td>\n<td>On the First 2,500<\/td>\n<td>0<\/td>\n<td>0<\/td>\n<\/tr>\n<tr>\n<td rowspan=\"2\">5,001 &#8211; 20,000<\/td>\n<td>On the First 5,000<\/td>\n<td>1<\/td>\n<td>0<\/td>\n<\/tr>\n<tr>\n<td>Next 15,000<\/td>\n<td><\/td>\n<td>150<\/td>\n<\/tr>\n<tr>\n<td rowspan=\"2\">20,001 &#8211; 35,000<\/td>\n<td>On the First 20,000<\/td>\n<td>3<\/td>\n<td>150<\/td>\n<\/tr>\n<tr>\n<td>Next 15,000<\/td>\n<td><\/td>\n<td>450<\/td>\n<\/tr>\n<tr>\n<td rowspan=\"2\">35,001 &#8211; 50,000<\/td>\n<td>On the First 35,000<\/td>\n<td>6<\/td>\n<td>600<\/td>\n<\/tr>\n<tr>\n<td>Next 15,000<\/td>\n<td><\/td>\n<td>900<\/td>\n<\/tr>\n<tr>\n<td rowspan=\"2\">50,001 &#8211; 70,000<\/td>\n<td>On the First 50,000<\/td>\n<td>11<\/td>\n<td>1,500<\/td>\n<\/tr>\n<tr>\n<td>Next 20,000<\/td>\n<td><\/td>\n<td>2,200<\/td>\n<\/tr>\n<tr>\n<td rowspan=\"2\">70,001 &#8211; 100,000<\/td>\n<td>On the First 70,000<\/td>\n<td>19<\/td>\n<td>3,700<\/td>\n<\/tr>\n<tr>\n<td>Next 30,000<\/td>\n<td><\/td>\n<td>5,700<\/td>\n<\/tr>\n<tr>\n<td rowspan=\"2\">100,001 &#8211; 250,000<\/td>\n<td>On the First 100,000<\/td>\n<td>25<\/td>\n<td>9,400<\/td>\n<\/tr>\n<tr>\n<td>Next 150,000<\/td>\n<td><\/td>\n<td>37,500<\/td>\n<\/tr>\n<tr>\n<td rowspan=\"2\">250,001 &#8211; 400,000<\/td>\n<td>On the First 250,000<\/td>\n<td>25<\/td>\n<td>46,900<\/td>\n<\/tr>\n<tr>\n<td>Next 150,000<\/td>\n<td><\/td>\n<td>37,500<\/td>\n<\/tr>\n<tr>\n<td rowspan=\"2\">400,001 &#8211; 600,000<\/td>\n<td>On the First 400,000<\/td>\n<td>26<\/td>\n<td>84,400<\/td>\n<\/tr>\n<tr>\n<td>Next 200,000<\/td>\n<td><\/td>\n<td>52,000<\/td>\n<\/tr>\n<tr>\n<td rowspan=\"2\">600,001 &#8211; 1,000,000<\/td>\n<td>On the First 600,000<\/td>\n<td>28<\/td>\n<td>136,400<\/td>\n<\/tr>\n<tr>\n<td>Next 400,000<\/td>\n<td><\/td>\n<td>112,000<\/td>\n<\/tr>\n<tr>\n<td rowspan=\"2\">1,000,001 \u2013 2,000,000<\/td>\n<td>On the First 1,000,000<\/td>\n<td>28<\/td>\n<td>248,400<\/td>\n<\/tr>\n<tr>\n<td>Next 1,000,000<\/td>\n<td><\/td>\n<td>280,000<\/td>\n<\/tr>\n<tr>\n<td>2,000,001 and above<\/td>\n<td>&#8211;<\/td>\n<td>30<\/td>\n<td>&#8211;<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3>Individual Tax Rate for Non-Tax Resident for the YA 2025 and YA 2026<\/h3>\n<table>\n<thead>\n<tr>\n<th>YA 2025 and YA 2026<\/th>\n<th>\u7a0e\u7387<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><\/td>\n<td>30%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<hr \/>\n<h2>Relief and Rebate<\/h2>\n<h3>Compulsory Deduction under MTD<\/h3>\n<table>\n<thead>\n<tr>\n<th>Tax Deduction<\/th>\n<th>\u63cf\u8ff0<\/th>\n<th>YA 2025 (RM)<\/th>\n<th>YA 2026 (RM)<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>\u4e2a\u4eba<\/td>\n<td>Personal relief<\/td>\n<td>9,000<\/td>\n<td>9,000<\/td>\n<\/tr>\n<tr>\n<td>Spouse<\/td>\n<td>Non-working spouse<\/td>\n<td>4,000<\/td>\n<td>4,000<\/td>\n<\/tr>\n<tr>\n<td rowspan=\"3\">\u5b50\u5973<\/td>\n<td>Child below the age of 18 #<\/td>\n<td>2,000<\/td>\n<td>2,000<\/td>\n<\/tr>\n<tr>\n<td>Disabled child (unmarried) #<\/td>\n<td>8,000<\/td>\n<td>8,000<\/td>\n<\/tr>\n<tr>\n<td>Child above the age of 18 receiving full-time education, diploma and degree onwards (including a disabled child) #<br \/>\n<strong>Courses and universities recognised by the Government, refer: http:\/\/www.jpa.gov.my\/<\/strong><br \/>\n<em># An individual will not be eligible to claim child relief if the child&#8217;s total income, wherever derived or accruing, for that year exceeds the amount of the relief that would otherwise be allowed. Deduction is applicable for an unmarried child who is over the age of 18 years and who is \u2013<br \/>\n(i) receiving full-time instruction (not including matriculation course or pre-degree or A-Level) at a university, college, or other similar educational establishment in Malaysia; or<br \/>\n(ii) serving under articles or indentures with a view to qualify in a trade or profession in Malaysia; or<br \/>\n(iii) receiving full-time instruction outside Malaysia in respect of a degree (including a degree at Master\u2019s or Doctorate level) or the equivalent of a degree.<\/em><\/td>\n<td>8,000<\/td>\n<td>8,000<\/td>\n<\/tr>\n<tr>\n<td>Disabled Person<\/td>\n<td>Additional personal deduction<\/td>\n<td>7,000<\/td>\n<td>7,000<\/td>\n<\/tr>\n<tr>\n<td>Disabled Spouse<\/td>\n<td>Additional spouse deduction<\/td>\n<td>6,000<\/td>\n<td>6,000<\/td>\n<\/tr>\n<tr>\n<td>Alimony<\/td>\n<td>Alimony to former wife (mutually exclusive with spouse relief).<\/td>\n<td>4,000<\/td>\n<td>4,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3>Optional Deduction under MTD<\/h3>\n<table>\n<thead>\n<tr>\n<th>Tax Deduction<\/th>\n<th>\u63cf\u8ff0<\/th>\n<th>YA 2025 (RM)<\/th>\n<th>YA 2026 (RM)<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Annuity<\/td>\n<td>Annuity Scheme Premium \/ Private Retirement Scheme (\u201cPRS\u201d) (effective until YA 2030).<\/td>\n<td>3,000<\/td>\n<td>3,000<\/td>\n<\/tr>\n<tr>\n<td>Medical Examination<\/td>\n<td>The scope of relief for medical examination for taxpayer, spouse or child include:<\/p>\n<ul>\n<li>Complete medical examination for self \/ spouse \/ child;<\/li>\n<li>COVID-19 detection tests and self-detection test kit; and<\/li>\n<li>Mental health examination or consultation by a registered psychiatrist, clinical psychologist or counsellor.<\/li>\n<\/ul>\n<p>Relief for full medical check-up, mental health check-up or consultation and COVID-19 detection test be expanded as follows:<\/p>\n<ul>\n<li>Full medical check-up, mental health check-up \/ screening or consultation;<\/li>\n<li>Purchase of self-test kit, such as COVID-19 and influenza test kit;<\/li>\n<li>Purchase of self-testing medical devices such as glucometer, pulse oximeter, blood pressure monitor and thermometer; and<\/li>\n<li>Fees for disease detection examination conducted at clinic or hospital, such as blood test, ultrasound, mammogram and pap smear.<\/li>\n<\/ul>\n<\/td>\n<td>1,000<\/td>\n<td>1,000<\/td>\n<\/tr>\n<tr>\n<td>Education<\/td>\n<td>Education fee for technical skills\/qualifications at tertiary level or postgraduate.<\/p>\n<p>The relief includes up-skilling or self-enhancement courses recognized by the Department of Skills Development, Ministry of Human Resources, which is limited to RM2,000.<\/td>\n<td>7,000<\/td>\n<td>7,000<\/td>\n<\/tr>\n<tr>\n<td>Medical Insurance<\/td>\n<td>Insurance premium for education or medical benefits for self\/spouse\/child.<\/td>\n<td>4,000<\/td>\n<td>4,000<\/td>\n<\/tr>\n<tr>\n<td>Employee Provident Fund<\/td>\n<td>Employee Provident Fund (\u201cEPF\u201d) contribution<\/td>\n<td>4,000<\/td>\n<td>4,000<\/td>\n<\/tr>\n<tr>\n<td rowspan=\"2\">Parent Medical<\/td>\n<td>Medical expenses for parents and grandparents. The scope of relief includes:-<\/p>\n<p>expenses to care, i.e. through carer, for parents or grandparents who suffer from diseases, physical or mental disabilities and need regular treatment certified by a qualified medical practitioner, treatment and care at home, daycare centres or home care centres.<\/td>\n<td>8,000<\/td>\n<td>8,000<\/td>\n<\/tr>\n<tr>\n<td>Complete medical examination and vaccination for parents and grandparents of up to RM1,000.<\/td>\n<td>1,000<\/td>\n<td>1,000<\/td>\n<\/tr>\n<tr>\n<td>Child Education Saving<\/td>\n<td>Net Deposit in National Education Savings Scheme (\u201cSSPN\u201d) for a child. Conditions for deduction:<\/p>\n<ul>\n<li>Relief can only be claimed by either parent regardless of the number of children;<\/li>\n<li>Net deposited amount is deductible up to a maximum of RM8,000; and<\/li>\n<li>Withdrawals exclude withdrawals to finance tertiary education.<\/li>\n<\/ul>\n<p>Relief effective until YA 2027.<\/td>\n<td>8,000<\/td>\n<td>8,000<\/td>\n<\/tr>\n<tr>\n<td>Social Security Organisation<\/td>\n<td>Social Security Organisation (\u201cSOCSO\u201d) Contribution Scheme including Employment Insurance System (\u201cEIS\u201d) contributed.<\/td>\n<td>350<\/td>\n<td>350<\/td>\n<\/tr>\n<tr>\n<td>Life Insurance<\/td>\n<td>Life insurance and takaful contributions for self or spouse. The tax relief for life insurance premium or takaful contribution is expanded to cover additional voluntary contribution to EPF.<\/p>\n<p>Effective YA 2026, it is proposed that the relief be expanded to include children. The eligibility criteria are as follow:-<\/p>\n<ul>\n<li>Aged below 18 and unmarried;<\/li>\n<li>Aged 18 and above, unmarried and pursuing tertiary education; and<\/li>\n<li>No age limit for unmarried disabled children.<\/li>\n<\/ul>\n<\/td>\n<td>3,000<\/td>\n<td>3,000<\/td>\n<\/tr>\n<tr>\n<td>First Residential Home<\/td>\n<td>To encourage the purchase of a first residential home among rakyat and to increase disposable income, it is proposed that individual income tax relief be given on the interest payments for the first residential home loan (individually or jointly owned).<\/p>\n<p>Individual income tax relief on the interest payment is subject to the following conditions:<\/p>\n<ul>\n<li>the residential home must not be used to generate any income;<\/li>\n<li>the sales and purchase agreement must be executed from 1 January 2025 until 31 December 2027;<\/li>\n<li>the amount of individual income tax relief on allowable interest payments is applicable for 3 consecutive years of assessment, commencing from the first year the housing loan interest is paid; and<\/li>\n<li>two or more individuals are eligible to claim tax relief on housing loan interest for the same residential home based on apportionment of the interest payment.<\/li>\n<\/ul>\n<p>For the sales and purchase agreement of the first residential home executed from 1 January 2025 until 31 December 2027.<\/td>\n<td>House Price up to RM500,000 : 7,000<\/p>\n<p>House Price above RM500,000 to RM750,000 : 5,000<\/td>\n<td>House Price up to RM500,000 : 7,000<\/p>\n<p>House Price above RM500,000 to RM750,000 : 5,000<\/td>\n<\/tr>\n<tr>\n<td rowspan=\"4\">Self Medical<\/td>\n<td>Medical expenses for self\/spouse\/children on serious diseases (include the following).<\/p>\n<p>Medical expenses on serious diseases include the treatment of acquired immune deficiency syndrome (\u201cAIDS\u201d), Parkinson\u2019s disease, cancer, renal failure, leukaemia and other similar diseases such as heart attack, pulmonary hypertension, chronic liver disease, fulminant viral hepatitis, head trauma with neurological deficit, brain tumour or vascular malformation, major burns, major organ transplant and major amputation of limbs.<\/td>\n<td>10,000<\/td>\n<td>10,000<\/td>\n<\/tr>\n<tr>\n<td>Vaccination expenses up to RM1,000 for taxpayer, spouse and child. Vaccines eligible include Pneumococcal, Human Papillomavirus, Influenza, Rotavirus, Varicella, Meningococcal, combination of tetanus-diphtheria-acellular pertussis, Covid-19 vaccine and Covid-19 screenings.<\/p>\n<p>Effective YA 2026, it is proposed types of vaccines eligible for individual income tax relief be expanded to cover all vaccines registered and approved for use by the National Pharmaceutical Regulatory Agency, Ministry of Health.<\/td>\n<td>1,000<\/td>\n<td>1,000<\/td>\n<\/tr>\n<tr>\n<td>Dental examination and treatment expenses up to RM1,000 from dental practitioners registered with the Malaysian Dental Council.<\/td>\n<td>1,000<\/td>\n<td>1,000<\/td>\n<\/tr>\n<tr>\n<td>scope of relief is expanded to include the following expenses in respect of the taxpayer\u2019s child who is age 18 and below:<\/p>\n<ul>\n<li>Assessment for the purpose of diagnosis of learning disability<\/li>\n<li>Early intervention programme or rehabilitation treatment for learning disability<\/li>\n<\/ul>\n<p>Learning Disabilities herein refer to Autism Spectrum Disorder, Attention Deficit Hyperactivity Disorder, Global Development Delay, Intellectual Disability, Down Syndrome and Specific Learning Disability.<\/td>\n<td>6,000<\/td>\n<td>10,000<\/td>\n<\/tr>\n<tr>\n<td>Breastfeeding Equipment<\/td>\n<td>Purchase of breastfeeding equipment. Applicable to working women with a child aged up to 2 years (every 2 years).<\/td>\n<td>1,000<\/td>\n<td>1,000<\/td>\n<\/tr>\n<tr>\n<td>Lifestyle<\/td>\n<td>Purchase of:-<\/p>\n<ul>\n<li>Books, journals, magazines and printed daily newspapers.<\/li>\n<li>Computer, smartphone and tablet<\/li>\n<li>Subscription of broadband internet<\/li>\n<li>Subscription for electronic newspapers<\/li>\n<li>Participation in self skills enhancement courses such as language, photography and sewing courses.<\/li>\n<\/ul>\n<\/td>\n<td>2,500<\/td>\n<td>2,500<\/td>\n<\/tr>\n<tr>\n<td>Fees Paid to Childcare Centres and Kindergartens<\/td>\n<td>Individuals who enrol children up to 6 years of age, in childcare centres or kindergartens registered with the Department of Social Welfare or Ministry of Education. With effect from YA 2026, it is proposed that the childcare fee be reviewed to include daily care centres or after-school transit centres registered with Department of Social Welfare for children aged up to 12 years old.<\/td>\n<td>3,000<\/td>\n<td>3,000<\/td>\n<\/tr>\n<tr>\n<td>Environmental Sustainability and Home Safety<\/td>\n<td>Tax relief up to RM2,500 is claimable on:-<\/p>\n<ul>\n<li>expenses related to cost of installation, rental, purchasing including hire-purchase equipment or subscription fees for electric vehicle charging facilities; and<\/li>\n<li>purchase of food waste composting machines for household use. The relief for the purchase of food waste composting machines be allowed to be claimed once within 3 years of assessment.<\/li>\n<\/ul>\n<p>For YA 2026 and YA 2027, it is proposed that the scope be expanded to include:-<\/p>\n<ul>\n<li>household food waste grinders; and<\/li>\n<li>Closed-Circuit Television (CCTV) for home use.<\/li>\n<\/ul>\n<p>The new scope is allowed to be claimed once within 2 years of assessment.<\/td>\n<td>2,500<\/td>\n<td>2,500<\/td>\n<\/tr>\n<tr>\n<td>Sports Activities and Equipment<\/td>\n<td>Individual income tax relief on expenses for sports equipment and activities for self, spouse, child or parents. The scope for tax relief includes:-<\/p>\n<ul>\n<li>Sports equipment (refer to Sports Development Act 1997);<\/li>\n<li>Entry\/rental fees for sports facilities and participation fees in sports competitions; and<\/li>\n<li>Training fees imposed by associations \/ sports clubs \/ companies registered with Commissioner of Sports or Companies Commission of Malaysia and sports activities listed under the Sports Development Act 1997.<\/li>\n<\/ul>\n<\/td>\n<td>1,000<\/td>\n<td>1,000<\/td>\n<\/tr>\n<tr>\n<td>Supporting<\/td>\n<td>Necessary basic supporting equipment for disabled self \/ spouse \/ child \/ parent<\/td>\n<td>6,000<\/td>\n<td>6,000<\/td>\n<\/tr>\n<tr>\n<td>Tourism<\/td>\n<td>For the YA 2026, it is proposed that a tax relief be given up to RM1,000 for expenses on entrance fee as follows:-<\/p>\n<ul>\n<li>Tourist attractions such as museums, theme parks, national parks, marine parks, zoos and geoparks; and<\/li>\n<li>Cultural and art programmes.<\/li>\n<\/ul>\n<\/td>\n<td>&#8211;<\/td>\n<td>1,000<\/td>\n<\/tr>\n<tr>\n<td>Zakat<\/td>\n<td>Obligatory payment under Islamic law<\/td>\n<td>No limit<\/td>\n<td>No limit<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<hr \/>\n<h2>Tax Exempt Allowance (Part F of Form EA)<\/h2>\n<table>\n<thead>\n<tr>\n<th>Tax Exempt Allowance<\/th>\n<th>\u63cf\u8ff0<\/th>\n<th>Max Amount YA 2025 (RM)<\/th>\n<th>Max Amount YA 2026 (RM)<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>\u71c3\u6cb9\u53ca\u4ea4\u901a<\/td>\n<td>Petrol card \/ allowance \/ travel allowance \/ toll payment (for official duties)<\/td>\n<td>6,000<\/td>\n<td>6,000<\/td>\n<\/tr>\n<tr>\n<td>\u6cca\u8f66<\/td>\n<td>Parking rate and allowance (limited to the actual amount expended)<\/td>\n<td>&#8211;<\/td>\n<td>&#8211;<\/td>\n<\/tr>\n<tr>\n<td>\u81b3\u98df<\/td>\n<td>Meal allowance on regular basis and given at the same rate to all employees (limited to the actual amount expended)<\/td>\n<td>&#8211;<\/td>\n<td>&#8211;<\/td>\n<\/tr>\n<tr>\n<td>\u6258\u513f<\/td>\n<td>Childcare allowance (up to 12 years of age)<br \/>\nIt is proposed that effective YA 2025, the exemption be expended to include allowance \/ expenses paid for elderly care (parents \/ grandparents)<\/td>\n<td>3,000<\/td>\n<td>3,000<\/td>\n<\/tr>\n<tr>\n<td>Phone<\/td>\n<td>Mobile phone<\/td>\n<td>1 unit<\/td>\n<td>1 unit<\/td>\n<\/tr>\n<tr>\n<td>\u7535\u8bdd\u8d26\u5355<\/td>\n<td>Monthly phone bills<\/td>\n<td>1 line<\/td>\n<td>1 line<\/td>\n<\/tr>\n<tr>\n<td>\u73b0\u91d1\u6027\u798f\u5229\uff08Perquisite\uff09<\/td>\n<td>Awards (including cash and kind)<\/td>\n<td>2,000<\/td>\n<td>2,000<\/td>\n<\/tr>\n<tr>\n<td>Loan Interest<\/td>\n<td>Subsidized interest for housing, education or car loan<\/td>\n<td>&#8211;<\/td>\n<td>&#8211;<\/td>\n<\/tr>\n<tr>\n<td>Devices<\/td>\n<td>Amount received for the purpose of obtaining a smartphone, tablet or a personal computer<\/td>\n<td>5,000<\/td>\n<td>5,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<hr \/>\n<h2>Donation to Approved Institution or Organization<\/h2>\n<p>A person is allowed for a deduction against its aggregate income (up to 10%) for gifts of money made to any approved institution or organization [Section 44(6) of the ITA]. For a comprehensive search of approved institutions or organizations, refer Hasil website HERE.<\/p>\n<h2>Additional Expenses Claimable under Employment Income<\/h2>\n<table>\n<thead>\n<tr>\n<th>\u7f16\u53f7<\/th>\n<th>\u63cf\u8ff0<\/th>\n<th>\u91d1\u989d (RM)<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>1<\/td>\n<td>Annual subscription to professional bodies which is relevant to the performance of duties<\/td>\n<td>Based on the amount expended<\/td>\n<\/tr>\n<tr>\n<td>2<\/td>\n<td>Entertainment expenditure incurred by the employee in entertaining existing clients on behalf of the employer<\/td>\n<td>Based on the amount expended<\/td>\n<\/tr>\n<tr>\n<td>3<\/td>\n<td>Travelling expenditure incurred by an employee in the course of exercising of his \/ her duties as an employee<\/td>\n<td>Based on the amount expended<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2>Income Tax Rebate and Special Relief<\/h2>\n<table>\n<thead>\n<tr>\n<th>\u7f16\u53f7<\/th>\n<th>\u63cf\u8ff0<\/th>\n<th>\u91d1\u989d (RM)<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>1<\/td>\n<td>Rebate given if:<br \/>\nChargeable income not exceed RM35,000<br \/>\nAdditional rebate for a non-working spouse or combined assessment<\/td>\n<td>400<br \/>\n400<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<hr \/>\n<div><\/div>\n<div class=\"author-info\">\n<img decoding=\"async\" class=\"alignnone size-full wp-image-8176\" src=\"https:\/\/ancgroup.biz\/wp-content\/uploads\/2026\/08\/song-round.jpg\" alt=\"\" width=\"213\" height=\"200.5\" srcset=\"https:\/\/ancgroup.biz\/wp-content\/uploads\/2026\/08\/song-round.jpg 852w, https:\/\/ancgroup.biz\/wp-content\/uploads\/2026\/08\/song-round-768x723.jpg 768w, https:\/\/ancgroup.biz\/wp-content\/uploads\/2026\/08\/song-round-13x12.jpg 13w\" sizes=\"(max-width: 852px) 100vw, 852px\" \/><strong>Song Liew<\/strong><br \/>\nLicensed Tax Agent, CA(M), FCTIM(M), FCCA(UK), CPA(AUS), CA(S), CFMP, ASEAN CPA, CFP<br \/>\nFounder of ANC Group<\/p>\n<\/div>\n<p><em>This taxletter is provided gratuitously and without liability. It is intended as a general guide only. Readers should seek appropriate professional advice regarding any particular problems they encounter. Accordingly, ANC Group assumes no responsibility for any errors or omissions it may contain, whether caused by negligence or otherwise, or any losses, however caused, sustained by any person that relies on it. For further information, clarification or advice on any of the contents stated herein, please feel free to contact our team.<\/em><\/p>","protected":false},"excerpt":{"rendered":"<p>Submission of Individual Annual Tax Return (\u201cForm BE and Form M\u201d) Year of Assessment 2025 The annual income tax return for individuals, i.e. the Form BE and Form M, for the Year of Assessment (\u201cYA\u201d) 2025 must be completed and submitted to the Inland Revenue Board (\u201cIRB\u201d) by 30 April 2026. Failure to submit the [&hellip;]<\/p>","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[16,42],"tags":[],"class_list":["post-8174","post","type-post","status-publish","format-standard","hentry","category-income-tax","category-taxation"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>- ANC Group<\/title>\n<meta name=\"description\" content=\"A comprehensive guide to Malaysia Individual Income Tax for YA 2025 and 2026. 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