Budget 2027: Don’t miss these tax reliefs when you file your taxes next year
KUALA LUMPUR, Oct 19 — Before you file your next income tax return, remember to lookout for existing and new tax r...
Budget 2027 introduces several new tax reliefs for taxpayers in Malaysia. One significant addition is the inclusion of AI subscriptions as a new relief, marking the first time this type of expense can be claimed for personal use. This is part of an expanded list of existing reliefs, which now also covers education and skills training, lifestyle expenses, medical and health expenses, parents' and grandparents' care, sports-related expenses, and domestic tourism.
For education and skills training, taxpayers can now claim up to RM7,000 for qualifying formal education, including certificate, diploma, bachelor's, master's, and PhD studies. This relief has been expanded to cover all fields, not just specified ones. In addition, qualifying up-skilling and self-enhancement courses are now included under this broader relief.
Lifestyle expenses include reading materials, personal computers, smartphones, tablets, and internet subscriptions, with an overall limit of RM2,500. New additions include AI subscriptions, pet adoption costs, and veterinary services, all falling within this limit.
Medical and health expenses are now reclassified under health and well-being relief, with an overall limit of RM10,000. This includes treatment for serious illnesses, fertility treatment, vaccinations, dental care, medical examinations, diagnostic tests, and assessment, early intervention, and rehabilitation for children with learning disabilities. The relief also covers postnatal care and breastfeeding equipment.
Parents' and grandparents' care relief has been expanded to include all types of care, such as at home, day-care centres, and residential care facilities, rather than just medical-related expenses. The limit for this relief remains at RM8,000.
Sports-related expenses now include sports shoes, capped at RM300, within the overall RM1,000 limit. Domestic tourism relief, with an overall limit of RM1,000, has been extended to YA2027, covering entrance fees to attractions, cultural and arts programmes.
Taxpayers can continue to claim other qualifying expenses, such as spouse relief, disabled individual relief, and disabled spouse relief, subject to the applicable limits and conditions.
Written by urgent.news from Malay Mail's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
