“Serious disease” include Acquired Immunity Deficiency Syndrome, Parkinson’s disease, cancer, renal failure, leukaemia and other similar diseases. “
Other similar diseases” in relation to serious diseases include heart attack, pulmonary hypertension, chronic liver disease, fulminant viral hepatitis, head trauma with neurological deficit, tumour in brain or vascular malformation, major burns, major organ transplant and major amputation of limbs.
Complete medical examination for the purposes of the deduction under this paragraph would mean full medical check up as defined by the Malaysian Medical Council (MMC).
Parents In a case where the receipt is issued in the name of the patient, the individual who is making the claim must obtain an endorsement on the receipt by the doctor to certify that the medical charges were paid by him.
Medical expenses which qualify for deductions would include:
Medical care and treatment provided by a nursing home; and
Dental treatment limited to tooth extraction, filling, scaling and cleaning but not including cosmetic dental treatment expenses such as teeth restoration and replacement involving crowning, root canal and dentures.
Further education fees
The course must be undertaken for the purpose of acquiring technical, vocational, industrial, scientific or technology skills or qualifications. Scientific skills mean the stuffy of the nature or behaviour of the material and physical universe such as studies in the field of biology, physics, chemistry mathematics, IT, engineering and medicine.
Reading material expenses
Expenses expended in the basis year for the purchase of books, journals, magazines and other similar publications (in form of hardcopy or electronic) for enhancing the knowledge.
Books would include school textbooks, periodicals, comics whether purchased locally or overseas but exclude newspapers or banned reading materials such as morally offensive magazines.
Personal computer
Personal computer includes laptop and desktop but does not include palmtop, Personal Digital Assistant (PDA) and its equivalent.
Skim Simpanan Pendidikan Nasional
This relief is given for amount deposited into Skim Simpanan Pendidikan Nasional established under the Perbadanan Tabung Pendidikan Tinggi Nasional Act 1997 for his or her child at maximum RM3,000.
However, this relief is restricted to the net amount deposited within a basis year.
Tax rebates
Tax rebates are deducted against the income tax charged.
Tax Residence Rules
Generally, an individual is treated as a resident if he satisfies one of the following conditions:-
He is present in Malaysia in that calendar year for a period or periods totalling 182 days or more;
He is in Malaysia in the calendar year for a period of less than 182 days but this period is linked by or to another 182 or more consecutive days (throughout which he is in Malaysia) as follows:-
i) in the calendar year immediately preceding that particular year; or
ii) in the calendar year immediately following that particular year.
Any temporary absence shall be taken to form part of the 182 days or that period, as the case may be, if he is in Malaysia immediately prior to or after that temporary absence and the temporary absence is for the following reasons:
connected with his service in Malaysia or attending conferences or seminars or study abroad;
owing to ill-health involving himself or a member of his immediate family; and
in respect of social visits not exceeding 14 days in the aggregate. INCOME TAX RATE
Non-resident individual
Flat rate of 28% on the gross income without any reliefs.
The next article will look at how to compute the tax liability of an individual taxpayer.
Lee Voon Siong is the Executive Director of RKT Tax Consultants Sdn Bhd which is an independent member firm of RSM International, an affiliation of independent consulting and accounting firms with the seventh largest worldwide network. He can be contacted at
leevs@rsmi.com.my.
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Taxable income for individuals, businesses
Preparing personal income tax returns
Serious diseases
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