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Malaysian Domestic Travel Tax Relief: How to Maximise Your 2022 Claims

Did you travel within Malaysia in 2022? As a way to stimulate tourism, the government has given Malaysians tax breaks worth up to RM1,000! Find out if your holiday qualifies for the tourism tax exemption. (Image by Chan Chai Kee .)

Now that the 2023 tax year has begun, it’s time to check over your individual deductions and reliefs from last year — 2022 — to see if there’s anything you can do to bring down your taxable income. Proper tax planning can save you a surprising lot.

One piece of good news is the domestic trip income tax relief, which entitles you to receive tax reductions for travel expenses of up to RM1,000. So, if you’d booked a hotel or visited a tourist attraction in Malaysia in 2022, you could be eligible for an income tax relief of up to RM1,000 on the expenses.

Introduced in YA 2020, this relief is intended to help the domestic tourism and travel industry in Malaysia recover from the losses incurred during the COVID-19 pandemic.

What can you claim under this relief?

• Hotel accommodation
• Entrance fees to tourist attractions
• Tour packages purchased through local travel agencies registered with the Ministry of Tourism, Arts, and Culture

The Ministry of Tourism, Arts, and Culture Malaysia website includes a searchable list of registered tourist accommodation premises.

Remember to save all proof of spending — such as statements, invoices, and receipts — before claiming the aforementioned tax breaks. This is done in anticipation of potential future tax authority audits. You must retain the documents evidencing to your tax returns for a minimum of seven years.

The full list of tax exemptions can be found on the Inland Revenue Board of Malaysia website here .

A journalist by profession, self-proclaimed horror movie expert by passion. Danisha needs to spend more time watching sunsets than Netflix. Ultimately, she's just another girl figuring out her place in the world in between the multitudinous demands of adult life.

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Malaysia Tourism Tax: What You Need to Know in 2024

Updated on : May 2nd, 2024

The Malaysian Tourism Tax Bill was passed in the Senate on 27 April 2017 and t he TTx has been in effect since 1 September 2017. All accommodation providers have to collect TTx from tourists staying at their premises. The tax at a rate of MYR10 per room, per night has been required to be collected by the accommodation operator and then paid to the Royal Malaysian Customs Department (RMCD).

The ambit of the law has been significantly widened under the new amendments which were effective from Jan 1, 2023 and now any digital platform whether located in Malaysia or outside Malaysia, on providing services relating to online booking of accommodation in Malaysia shall be liable to be registered for Tourism Tax in Malaysia.

What is the Tourism Tax in Malaysia?

The Tourism Tax in Malaysia, also known as TTx, is a tax charged for all foreign passport holders staying at accommodation premises in Malaysia.  It is collected by the operators of these premises and is charged at a fixed rate of RM10.00 per room per night.

Malaysian nationals and permanent residents are excluded from the tax

Who is responsible for collecting and remitting tourism tax in Malaysia?

As per the  policy update issued by the Malaysian government, the responsibility for charging, collecting, accounting, and remitting tourism lies on Digital Platform Service Providers (DPSPs) like Agoda and Booking.com for all online bookings, irrespective of whether the DPSP or the hotel operator receives the payment. 

The hotel operators are liable to collect and remit TTx only for offline bookings

However, the policy has granted a grace period from 1 April 2023 TO 31 December 2025. During the grace period, the policy eases the compliance burden on DPSPs based on the booking and payment nature. Here's how it works:

• If a booking is made online, but payment goes directly to the hotel operator: The responsibility for collecting and remitting TTx falls on the operator.
• If both booking and payment are done online through the DPSP: Only, then does the responsibility to collect and remit tourism tax lie with the DPSP.

Who has to pay Tourism Tax?

The tourism tax is a consumption-based tax.  Foreign tourists staying at accommodation premises in Malaysia are ultimately liable to bear the burden of Tourism tax in Malaysia. However, it is collected by the accommodation operation or digital platform service provider (DPSP) and remitted to the government on behalf of the tourist. 

How to Pay?

• Tourists, upon payment to DPSPs (Digital Platform Service Providers) submit proof of TTx payment. In cases where proof is provided, registered operators are relieved from collecting TTx directly from tourists. However, if tourists fail to provide proof, DPSPs must collect the TTx amount and account for it to the RMCD.
• From 2023, DPSPs that facilitate the online booking of accommodations in Malaysia (“online travel platform operators e.g. Airbnb, OYO, etc.”) to collect tourism tax (TTx) and remit the tax to the RMCD.
• The deposit of Tourism tax in Malaysia is completely digital using their customer website MyTTx.

Key Highlights:

• MyTTx is an online submission and payment system for tourism tax (TTx).
• It is available 24 hours daily and accessible anywhere.
• The system can be accessed through any latest browser and is best viewed at 1024 x 768 resolution or higher.

When to Pay?

• Operators have to file a return every three months to account for the tourism tax (“TTX”) received. Note: If the operator is GST registered, the operator must file a tourism tax return in the same taxable period in which the operator files his/her GST returns (i.e. monthly or quarterly).
• The deadline to make payments of tax is clarified by stating that payment is due “not later than” the last day of the month following the end of each taxable period.

Benefits of  Malaysian Tourism Tax

Tourism Tax comes with several advantages that contribute to the sustainable development of the tourism industry and the overall growth of local economy.

• Revenue Generation: The primary purpose of the Tourism Tax is to generate revenue for the Government to develop and enhance tourism-related infrastructure and services. This includes the development of tourist attractions, accommodation facilities, transportation networks, and other amenities that enhance the overall visitor experience.
• Promotion of Tourism: The funds from the Tourism Tax can be allocated to marketing and promotional activities aimed at attracting more tourists to Malaysia. This helps in boosting the country's image as a desirable tourist destination on a global scale.
• Cultural Preservation: Tourism Tax revenue can be invested in projects aimed at preserving and promoting Malaysia's rich cultural heritage. This may involve the restoration of historical sites, supporting traditional arts and crafts, and organizing cultural events that showcase the country's diverse cultural tapestry.
• Job Creation: A thriving tourism industry leads to increased demand for services, creating job opportunities across various sectors. The revenue generated from the Tourism Tax indirectly contributes to employment generation, benefiting local communities and individuals.
• Balance Over Tourism:   The tax is becoming popular as a tool to battle the pressing issue of over-tourism in countries where both, indigenous nature and culture is at risk.  It allows the government to monitor and manage the tourism sector effectively, ensuring compliance with standards and regulations set to maintain the industry's integrity.

TTx is here to stay

As Malaysia continues to position itself as a premier tourist destination, the Tourism Tax plays a pivotal role in sustaining its ecosystem. Navigating TTx is a necessity for a primarily tourist driver economy. It needs involvement of all stakeholders DPSPs, tourists, and the RMCD to make the system better and smoother every day.

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Malaysia Tourism Tax (TTX) 2023: What You Need to Know

In line with the announcement made by the Malaysian government regarding the Tourism Tax , I will talk about a series of questions that are commonly asked by hotel owners or operators, thus helping all of you to find the answers that are related to it. 

1. What is a Tourism Tax?

Tourism Tax (TTx) is referred to as a tax charged for all foreign passport holders at accommodations premises collected by the operators effective from 1st September 2017 in Malaysia. It is charged at a fixed rate of RM10.00 per room per night.  However, during the Covid-19 pandemic, The Malaysian Government has announced the exemption of the Tourism Tax for all foreign passport holders for hotel stays between 1st March 2020 and 31st December 2021 then further extends to 31st December 2022.  Now, the Malaysian government has announced that the Tourism Tax will resume back starting from 1st January 2023. 

2. How is the RM10 per room per night applied?

Assuming one room is booked for one night by John (who is a Filipino), the TTx charged to John will be RM10.00 x 1 room x 1 night = RM10.00  In the 2nd Scenario, assuming two rooms were booked by Dianne (who is an Indonesian) for three nights, so the TTx charged to Dianne will be RM10.00 x 2  rooms x 3 nights = RM60.00 

3. How is this new to the travel industry starting January 2023?

Since September 2017, a guest who is a foreigner is subject to paying Tourism Tax when staying at any “accommodation premises” in Malaysia; this tax is collected by the operator at the accommodation premises upon check-in, regardless if the booking was made online or walk-in. However, starting from 1st January 2023. For any bookings made through digital platforms that provide reservation services such as booking.com, Agoda, and Expedia, the platform is the one to collect the Tourism Tax directly from the foreign guests when the guest made the booking and payment online through the platform. The digital platform provider shall remit the tax collected to the RMCD. Whereas, for booking that was made online through the platform but payment only upon arrival at the accommodation premises, the TTx shall be collected by the accommodation operator upon guest arrival. The responsibility of remitting the tax collected for this booking shall be by the accommodation operator instead.

We have just received the update that currently, only AGODA will collect the TTx directly from the guest together with the room charges if they made the payment online. Whereas, for other OTAs like Expedia, Booking.com & Traveloka, the TTx will be collected upon check-in by the property operator, UNTIL FURTHER NOTICE. 

4. What if the booking has been made before 1st January 2023 for the check-in date after on or 1st January 2023? 

If a foreign traveller has made a booking on a digital platform before 1st  January 2023, for check-in on or after 1st of January 2023, the Tourism Tax must be collected by the accommodation operator upon guest arrival and the accommodation operator is required to remit the tax to the RMCD.

5. What if my property did not register for TTx? 

We advise you to further consult with your business advisor or check with RMCD if you have not registered as a Tourism Tax registrant. Generally, if you are operating accommodation premises of 5 rooms or more, you are liable to be registered.  You may also check this website https://www.myttx.customs.gov.my/ to further understand the registration. 

6. If a Malaysian with his foreign friend both check into the same room and the booking was made and paid by the Malaysian, is TTx chargeable? 

In this case, it is not subject to Tourism Tax because a local stayed and paid for the stay. However, the Tourism Tax is chargeable in the event that the foreigner stays and pays for the stay.

7. If the reservation has been made with full payment together with the TTx for the booking made via OTAs, then the guest request for the cancellation on a non-refundable policy, will the TTx will be refunded?

Unfortunately, we are unsure of this. Do let us know in the comment section if you have more information regarding this. What I can say is, you may refer to the T&C directly from the OTAs. 

8. Will TTx subject to SST too? 

No. The operator is not allowed to charge SST on the Tourism Tax. 

9.  Is day use chargeable to TTx?

No, if the day use charge is not equal to the room rate per night.

10. Is a Digital Platform provider compulsory to collect private data such as passport no. or ID no. to ensure nationality?

Yes. The Digital Platform provider should make an appropriate adjustment in its system to capture the information that is to identify the citizenship of the tourists.

11. John makes an accommodation booking online and provides inaccurate information which resulted in TTx not being collec ted. Who wi ll be responsible? 

If due diligence has been done to obtain the information required from the tourists, the Digital Platform provider will not be responsible for any inaccurate information provided by the tourist, which may result in the under-collection of TTx. 

Check out this video where we answer a frequently asked question regarding the Tourism Tax

That’s all 11 common questions that we heard so far regarding the Malaysia Tourism Tax. Please share this article if you find it useful and drop any questions in the comment sections if you think there are more questions that should be answered. 

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Don’t miss out on these YA 2022 individual tax relief claims in M’sia with this masterlist

In this article

Tax season will be coming up soon for Malaysians making an income of at least RM34,000 for the Year of Assessment (YA) 2022.

Those who have received their Income Tax Return (EA) Form can do this on the ezHASiL portal by logging in or registering for the first time.

Some amendments in tax reliefs have been made for YA 2022, and there are new additions introduced too. Claiming these incentives can help you lower your tax rate and pay less in overall taxes.

With that, here’s LHDN’s full list of tax reliefs for YA 2022. 

Self, parents, and spouse

1. automatic individual relief: rm9,000.

Just by filling in the LHDN e-Filing form, you will be eligible for an automatic tax deduction of RM9,000. You’ll notice that this will be instantly greyed out on your form without you needing to do anything.

2. Further education fees (self): ≤ RM7,000

A tax relief up to a maximum of RM7,000 is claimable if you’re paying for your own further education at a recognised higher learning institution in Malaysia.

Here are the criteria:

• Any course or study up to tertiary level other than a degree at Masters or Doctorate level, undertaken for the purpose of acquiring legal, accounting, Islamic financing, technical, vocational, industrial, scientific, or technological qualification or skill;
• Any course of study for a degree at Masters or Doctorate level undertaken for the purpose of acquiring any qualification or skill;
• Any course of study undertaken for the purposes of upskilling and self-enhancement, limited to RM2,000 (until YA 2023).

3. Spouses and alimonies: RM4,000

This relief is claimable only if your spouse has no source of income, or if they elect for a joint assessment in your name. If your spouse has a gross income exceeding RM4,000 derived from sources outside of Malaysia, you cannot claim this.

Husbands who are paying alimony to a former wife can claim this relief for the amount of alimony paid, or up to a limit of RM4,000.

4. Medical expenses for parents: ≤ RM8,000

A maximum of RM8,000 can be claimed if you paid for expenses on medical treatment, special needs, or carer expenses for parents. This will need to be evidenced by medical certifications.

5. Medical expenses for self, spouse, or child: ≤ RM8,000

You can claim up to RM8,000 for yourself, your spouse, or children undergoing medical treatments for serious or difficult-to-treat diseases. These illnesses include AIDS, Multiple Sclerosis, kidney failure, Alzheimer’s Disease, chronic liver disease, heart attack, or anything that requires a major organ transplant, etc. 

Fertility treatments like IVF or IUI undergone by married couples are also claimable under this category.

Furthermore, up to RM1,000 in relief is dedicated to a full medical examination for yourself, spouse, or child. Such checkups include COVID-19 screenings, vaccination expenses, and mental health examinations or consultations.

Disabled persons

6. equipment for disabled self, spouse, child, or parent: ≤ rm6,000.

If you purchased supporting equipment for yourself (as a disabled person) or for a disabled spouse, child, or parent, you can claim up to a maximum of RM6,000.

Disabled individuals would need to be registered with the Department of Social Welfare (JKM) and be certified as OKU.

7. Disabled individual (self): RM6,000

Disabled persons registered under JKM are eligible for a further deduction of RM6,000 under this relief.

8. Disabled spouse: RM5,000

Those with a disabled spouse are entitled to an RM5,000 deduction. This is an increase from YA 2020’s RM3,500 in this category, and remains the same as YA 2021’s amount.

9. Disabled children

Disabled child relief: rm6,000.

A tax relief of RM6,000 is eligible for parents with an unmarried child who’s physically or mentally disabled, regardless of their age. Children must be certified by JKM as a disabled person.

Disabled child aged 18 and above pursuing higher education: RM14,000

An additional exemption of RM14,000 is applicable for an unmarried physically/mentally disabled child (over 18 years of age) receiving a full-time education at a higher learning institution, under the conditions of:

• Pursuing a diploma and above in Malaysia; or
• Pursuing a degree level and above outside Malaysia; or
• Serving under articles or indentures in a trade or profession in Malaysia.

10. Lifestyle purchases for self, spouse, or child: ≤ RM2,500

A tax relief of up to RM2,500 is deductible for purchases of lifestyle equipment for personal use by yourself, your spouse, or children. Items include:

• Purchase or subscription of books, journals, magazines, newspapers, or other similar publications (in the form of hardcopy or electronic) for the purpose of enhancing knowledge;
• Purchase of personal computer, smartphone, or tablet;
• Purchase of sports equipment and gym memberships; and
• Internet subscription

11. Additional lifestyle purchases

Extra relief for tech: ≤ RM2,500

There is an additional relief (on top of the lifestyle purchases relief) for purchases of a personal computer, smartphone, or tablet, for up to RM2,500.

Extra relief for sports activities: ≤ RM500

An extra relief of up to RM500 is claimable for expenditures related to the cost of purchasing sports equipment, entry/rental fees for sports facilities, and registration fees for sports competitions.

12. Breastfeeding equipment: ≤ RM1,000

Mothers who are breastfeeding a child aged two years and below can deduct up to RM1,000 in relief if they’ve purchased personal breastfeeding equipment.

This deduction can only be made once every two years of assessment.

13. Childcare and kindergarten fees: ≤ RM3,000

Parents with children in daycare centres or kindergartens can claim a tax relief limited to RM3,000. 

If the couple chooses to file separately, this deduction can only be claimed by either the child’s mother or father. This relief is extended to YA 2024.

14. Skim Simpanan Pendidikan Nasional (SSPN) 1Malaysia: ≤ RM8,000

SSPN (Skim Simpanan Pendidikan Nasional) is a savings plan that encourages parents to invest in their children’s higher education.

Parents who make a deposit into the SSPN 1Malaysia account established under Perbadanan Tabung Pendidikan Tinggi Nasional Act 1997 are eligible for a relief of up to RM8,000 for their annual net savings (total deposit in 2022 minus total withdrawal in 2022). This relief is extended until YA 2024.

15. Unmarried child under 18: RM2,000

Parents can get a tax relief of RM2,000 for each unmarried child of theirs under 18 years old. For parents filing separately, this deduction can only be claimed by either the child’s mother or father.

16. Child aged 18 and above pursuing a full-time education

Child aged 18 and above in Pre-U courses: RM2,000

RM2,000 can be deducted for parents with children aged 18 years and above undergoing preparatory courses such as foundation, A-Levels, matriculation, etc.

Child aged 18 and above pursuing further studies: RM8,000

RM8,000 is claimable for parents with unmarried children aged 18 and above if they are a full-time student pursuing:

• A diploma or higher (excluding the above mentioned preparatory courses) in Malaysia;
• An undergraduate, Masters, or Doctoral degree (or its equivalent) outside Malaysia; or
• Any courses at institutions of higher learning recognised by the Ministry of Higher Education (MOHE).

Insurance and investments

17. life insurance, epf, or approved schemes, employee life insurance premiums: ≤ rm3,000.

Employees in private and public sectors with no pensions who have life insurance premiums can claim tax relief of up to RM3,000.

Pensioners with life insurance premiums: ≤ RM7,000

Retired public servants receiving a pension can claim tax relief of up to RM7,000 for their life insurance premiums or Takaful contributions. Up until YA 2023, the relief provided for life insurance premiums is expanded to also include voluntary EPF contributions up to RM3,000.

Employees’ EPF: ≤ RM4,000

Employees in private and public sectors can also claim up to RM4,000 for EPF contributions or other approved schemes. These investments include self-contributions to EPF without employer input. 

18. Deferred annuity & PRS: ≤ RM3,000

You are eligible for a tax relief limited to RM3,000 if you’ve made contributions in the deferred annuity scheme or the PRS (Private Retirement Scheme). This relief is in effect from YA 2012 to 2025.

19. Education and medical insurance: ≤ RM3,000

You’re eligible for a tax relief of up to RM3,000 if you pay insurance premiums related to education or medical benefits for yourself, spouse, or children. 

20. SOCSO & EIS: ≤ RM350

You can also claim a relief of up to RM350 for contributions made to SOCSO (Social Security Organisation) and EIS (Employment Insurance System) for YA 2022. This is an increase from last YA’s RM250.

Local tourism expenses

21. domestic travel expenses: ≤ rm1,000.

RM1,000 is claimable for domestic travel expenses if you stayed at a registered hotel, or purchased entrance fees to tourist attractions or tourism packages through local travel agencies registered through ​​the Ministry of Tourism, Arts, and Culture.

This relief includes domestic travel expenses incurred during the period between March 1, 2020, until December 31, 2022 (YA 2022).

22. Costs related to EV (electric vehicle): ≤ RM2,500

Those who own an EV can claim costs related to EV charging facilities, including installation, rental, hire-purchase of equipment, or subscription fees (for YAs 2022 and 2023).

Before claiming the tax reliefs above, remember to keep all proof of spending such as statements, invoices, and receipts. This is to prepare for a possible audit by tax authorities in the future. 

Under the tax laws, you are required to keep the records supporting your tax returns for up to a period of seven years.

• Read more about what we’ve written on taxes  here .

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Tax Exemption For Domestic Tourism Activities Gazetted

Contributor.

The  Income Tax (Exemption) (No. 9) Order 2021  [P.U.(A) 344/2021] (‘ E.O. No. 9 ') was gazetted on 23 August 2021. E.O. No. 9 has effect from the year of assessment 2021 until the year of assessment 2022.

E.O. No. 9 exempts a qualifying person from the payment of income tax in a basis period for a year of assessment in respect of the statutory income derived from a qualifying activity. The exemption under E.O. No. 9 only applies the total number of local tourists for a qualifying activity is not less than 200 persons in a basis period for a year of assessment.

For the purposes of E.O. No. 9: 

• a ‘ qualifying person ' is a company resident in Malaysia which is licensed under the Tourism Industry Act 1992 to carry out a tour operating business and which carries on a qualifying activity; 
• a ‘ qualifying activity ' is a tour operating business which provides a domestic tour package for travel within Malaysia utilised by local tourist and foreign tourist, including transportation by air, land or sea and accommodation; 
• arranging for sale or commission any transportation, accommodation, tour services or any other incidental services for tourists within or outside Malaysia;
• organising or conducting for sale or commission inbound or outbound tours;
• providing conveyances for hire to tourists; and
• any other services incidental to any of the services enumerated above; 

Notwithstanding the definition of ‘ tour operating business ', it must be noted that exemption under E.O. No. 9 only applies to statutory income of a tour operating business that is derived from the qualifying activity, that is domestic tour packages for travel within Malaysia which are utilised by local and foreign tourists. 

• the total number of local tourists and foreign tourists for a qualifying activity shall be verified in writing by an authorised officer of the Ministry of Tourism, Arts and Culture Malaysia. 

Where a qualifying person carries on a qualifying activity and an activity other than a qualifying activity, each activity shall be treated as a separate and distinct source of that qualifying person. A qualifying person who is granted an exemption from income tax under E.O. No. 9 shall maintain a separate account for the income derived from each of the aforesaid activities in the basis period for each year of assessment.

While it is doubtful that licensed domestic tour operators will derive much benefit from the tax exemption under E.O. No. 9 for the earlier part of this year due to the various movement control measures imposed over many parts of Malaysia, the gradual relaxation of these measure in the near future could result in a boom in the local tourism industry due to the release of pent-up demand for domestic travel.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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Mixed reactions to tourism initiatives unveiled in Malaysia’s Budget 2022

A number of initiatives announced during Malaysia’s Budget 2022 to rejuvenate the tourism sector has drawn mixed response among tourism and hospitality players.

When tabling Budget 2022 in Parliament on Friday (October 29), finance minister, Zafrul Abdul Aziz, announced seven key initiatives amounting to a total of RM1.6 billion (US$385.8 million) which will be rolled out next year to support the tourism sector in its recovery from the Covid-19 pandemic.

The initiatives, which are expected to benefit more than 26,000 employers and 330,000 employees, include an extension of the wage subsidy programme for tour operators whose revenue has declined by at least 30 per cent.

The government is also allocating RM600 million for specific financing for the tourism sector, available through the Penjana Tourism Financing and the Malaysia Development Bank’s Rehabilitation Scheme.

As well, RM85 million in special assistance will be given to more than 20,000 tourism operators registered under the Ministry of Tourism, Arts and Culture (MOTAC) for a period of three months, and another RM50 million for the maintenance of tourism infrastructure in the country.

A sum of RM30 million has also been earmarked for the provision of matching grants for the repair of 738 budget hotels registered under MOTAC, as well as for registered homestay owners.

Furthermore, RM50 million will be given in matching grants to companies that organise arts and culture related programmes, and RM60 million in incentive funds for promotional activities to spur domestic travel.

In addition to these initiatives, Zafrul also announced the extension of the individual income tax relief for domestic tourism expenditure of up to RM1,000 until end-2022, as well as an allocation of RM20 million to the Malaysia Healthcare Travel Council to strengthen the country’s position as a preferred health tourism destination.

Malaysian Association of Hotels president, N Subramaniam, described the Budget 2020 as “encouraging” for the tourism industry.

He said the government had acknowledged the needs of the industry to restart and rebuild with the extension of the targeted wage subsidy programme which is crucial for the industry to rehire manpower needed.

Subramaniam added: “Various funds announced for the upkeep and upgrade of tourism infrastructure as well as specifically for budget hotels are timely, and would contribute to the rebuilding of the tourism industry’s competitiveness.”

He further said that the industry is looking forward to more details on the Penjana Tourism Financing and the rehabilitation scheme funding that could be beneficial to stakeholders if made accessible at low or zero interest rates. “Industry stakeholders are hopeful for it to provide immediate funding and cash flow,” he added.

While general tourism marketing and operational budget was not mentioned in the announcement, Subramaniam expressed hope that the government has allocated sufficient budget to promote and market Malaysia post-Covid given that the competition for tourists will be fierce.

Others are less happy with the newly-announced measures. Both the Malaysia Budget & Business Hotel Association (MyBHA) and the Malaysian Association of Tour and Travel Agents (MATTA) said the initiatives fell short of expectations.

MyBHA deputy president, Sri Ganesh Michiel, opined that the Budget 2022 “does not have a positive long-term impact towards the recovery of the hotel industry” and urged the government to review and increase the financial allocation for the tourism industry.

“It is imperative for the hotel and tourism industry to recover quickly before international borders reopen throughout the country,” he said.

MATTA president, KL Tan, said that while he welcomed the extension of the wage subsidy programme to support tourism workers, “the rest of the budget initiatives fall short of expectations to rehabilitate and stimulate domestic travel”.

He pointed out, for example, that the extension of the personal tax relief of up to RM1,000 for domestic travel will not have a significant impact as the tax savings will only amount to RM210 if a taxpayer is under the 21 per cent tax bracket group. He said MATTA had earlier requested for individual tax relief of RM8,000.

Also missing from the budget was tax incentives for local companies carrying out incentive trips or holidays for their staff within the country to boost domestic travel, said Tan.

He called on the government to “always review and reassess the support to speed up the recovery of the tourism industry” as the country moves into the endemic phase so as to harness the full potential of tourism for economic recovery.

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• Mar 23, 2021

How To Check If Your Hotel Stay Is Eligible For The Tourism Tax Relief?

Updated: Mar 24, 2021

✈️ 🇲🇾 Did you take that golden opportunity to travel within Malaysia in 2020? Probably visited the East Coast and soaked up some Vitamin Sea? 🏝 Or went food hunting all around Penang? 🍜 Did you take the SkyWay up to Genting?🚡

Well, as a resort to boost the tourism industry, the government has taken measures to aid the sector by providing tax reliefs to us! 🙌🏻 Yes, you read that right, Malaysians are able to claim up to RM1,000 ! If you have stayed in one of the many beautiful accommodations Malaysia has to offer - it’s time to find out how to check if your hotel stay is eligible for the tourism tax relief 😉

Personal tax relief of up to MYR1,000 is given to resident individuals for the following domestic travel expenses incurred from 1 March 2020 to 31 August 2020 (has since been extended to 31 December 2021):

accommodation expenses at premises registered with the Ministry of Tourism, Arts and Culture Malaysia

entrance fees to tourist attractions

You can easily check on the Ministry of Tourism, Arts and Culture Malaysia website , which has a searchable list of registered tourist accommodation premises. There are 4,570 accommodation premises registered.

Once you are done checking, don’t forget to claim your reliefs before 30th April 2021 .

Having issues in filing your taxes? Get in touch with us via https://wa.me/60122192492 and we will be happy to help you 😊

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Personal Income Tax Relief Malaysia 2024 (YA 2023): The Updated list of what you should claim.

The tax season in Malaysia has begun. If you’re like most taxpayers, your top priority right now is to start learning about all the tax reliefs, deductions, and rebates that you’re qualified for in order to pay less tax. (Trust us; all Malaysian taxpayers are forced to perform this annual rite; indeed, everyone on the planet.)

Let’s get started! The goal of this post is to offer you a comprehensive review of everything you can claim to maximise your tax refund according to LHDN. But made simple for your consumption.

Table of Contents

YA 2023: Tax Reliefs, Deductions & Rebates In Detail

This section is for you if you’re seeking clarity on the details of each tax relief, deduction, or refund because, as is to be expected, many of them have requirements and conditions that must be met in order to be claimed.

Continue reading to verify your eligibility for the reliefs, deductions, and rebates you intend to claim. 

It’s important to note that tax reliefs, deductions, and rebates are three separate mechanisms designed to assist you in lowering your overall income, chargeable income, and amount of tax charged, respectively. This will allow you to benefit from a lower tax rate and pay less in taxes overall.

If you need a guide on  How to File your taxes with MyTax we have an article on that too!

Tax Reliefs 

Tax reliefs help reduce your chargeable income. This could affect the income bracket on which your taxes will be calculated based on. Let’s say you made RM60,000 in 2023. Applying the reliefs reduces that amount. Instead of paying tax based on the brackets and the rate of your gross income, you might find yourself having a lower “taxable income” and saving more on taxes.

Want to get even more savings? Use your credit card to pay taxes with CardUp . Earn air miles and save more on your next holiday!

1) Individual & dependent relatives

Claim: up to RM9,000

It is granted to an individual for themselves and their dependents.

2) Medical treatment, special needs, and carer expenses for parents

Claim: Up to RM8,000

Includes non-cosmetic dental care as well as nursing home care and therapy. A licensed medical professional or written certification from a certified caretaker (who should not be the taxpayer, his/her spouse, or child) must be provided as proof. Parents must live in Malaysia, where they must also receive treatment.

This tax break’s upper limit was initially set at RM5,000, however, in YA 2021 it was increased to RM8,000. The Inland Revenue Board (LHDN) also eliminated a sub-category of this tax relief in the same assessment year that permitted people to claim RM1,500 for each parent (RM3,000 for both parents) even if they did not submit a claim for medical care for their parents.

3) Husband/Wife/Alimony

Claim: Up to RM4,000

This tax relief is only applicable if your spouse has no source of income, or if he/she opts for a joint assessment in your name. You cannot claim this relief if your spouse has a gross income exceeding RM4,000 derived from sources outside of Malaysia.

If you’re a husband paying alimony to an ex-wife, the deduction is allowed for the amount of alimony paid or up to a limit of RM4,000. Note as well that the total deduction for a wife living together and alimony payments to a former wife is also capped at RM4,000. Only formal alimony agreements qualify for this tax relief (voluntary alimony payments under a mutual agreement do not qualify).

4) Education fees in Malaysia

Claim: Up to RM7,000

You can claim this tax relief for the amount spent on a course of study undertaken in a recognised institution or professional body within Malaysia and must be listed by the Ministry of Higher Education Malaysia. 

This sub-limit for upskilling was increased for YA 2022, and the deduction is currently allowed until YA 2023.

5) Medical expenses

Claim: Up to RM8,000 (in total)

You can claim tax relief for the following categories of medical expenses;

The tax break for mental health exams was announced as part of Budget 2022, at which point the government acknowledged that Covid-19 had a detrimental effect on people’s mental health as a whole, in addition to the economy. As a result, this tax break is meant to help people who require professional assistance.

Also, it’s crucial that you save the invoices for your medical care as well as the certified doctor’s certification for future use.

6) Lifestyle purchases for self, spouse, or child

Claim: Up to RM2,500

This tax relief applies to the following expenses:

• Books, journals, magazines, printed newspapers, and other similar publications in both hardcopy and electronic forms; banned and offensive materials excluded.
• Personal computers, smartphones or tablets; additional charges for warranty or devices used for your business are excluded.
• Sports equipment for sports activities defined under the Sports Development Act 1997, including golf balls and shuttlecocks, and payment for a gym membership. Motorised bicycles and club memberships which provide gym facilities are excluded.
• Internet subscription is paid through a monthly bill registered under your name.

7) Expenses related to sports activity for self

Claim: Up to RM500

This tax relief is allocated specifically for sports-related expenses to encourage a more active lifestyle among Malaysians, take note that it is separate from a gym membership, which is also healthy for the Malaysian lifestyle. This tax break covers the following;

• Purchase of sports equipment for any sports activity as defined under the Sports Development Act 1997 (excluding motorised two-wheel bicycles)
• Payment of rental or entrance fees to sports facilities
• Payment of registration fees for sports competitions where the organiser is approved and licensed by the Commissioner of Sports under the Sports Development Act 1997

This tax break is offered in addition to the previously indicated general lifestyle tax relief of RM2,500. According to the calculation, if you spent RM3,000 on sports equipment in 2023, you would first claim RM2,500 under the general lifestyle tax relief before claiming the final RM500 under this supplementary relief designed exclusively for athletes.

9) [Special] Purchase of personal computers, smartphones, or tablets for self, spouse, or child

This additional lifestyle respite was initially planned to complement work-from-home (WFH) arrangements and was first announced for YA 2020. It was first valid from 1 June to 31 December 2020, and then it was again extended to 31 December 2021 and 31 December 2022.

If you’re still unclear about how it works, here’s an example from LHDN to show how this tax relief can be added to the RM2,500 general lifestyle tax deduction: Let’s say you spend RM2,000 on a smartphone in March 2022 and RM4,000 on a laptop in July 2022. As a result, you are eligible to use this special tax relief to claim up to RM2,500 for the cost of the laptop. In the meantime, you can claim RM2,000 for the smartphone and an additional RM500 from the general lifestyle tax exemption.

10) [Special] Tourist accommodation, attractions, or tour package

Claim: Up to RM1,000

Another additional relief was introduced during YA 2020 to support Malaysia’s domestic tourism and travel industry during the pandemic. Like the special tax relief for the purchase of selected electronics to boost work-from-home arrangements, it was also extended twice: first to cover YA 2021, then YA 2022 as well (expenses made until 31 December 2022).

You could claim this tax relief for the following domestic tourism expenses:

• Accommodation at premises registered with the Commissioner of Tourism (hotels are good to go, but it may not apply to selected bed&breakfast(s))
• Entrance fees for tourist attractions (National Museum, KL Bird Park, etc.) 
• Purchase of domestic tour package through licensed travel agents, inclusive of fees for tour guide services, purchase of local handicraft products, F&B, and transportation (not the ride-sharing kinds, but definitely the Hop-on-Hop-off buses)

11) Breastfeeding equipment

Claim: Up to RM1,000 per mother

You can claim this relief if you are a breastfeeding mother and have purchased breastfeeding equipment for your personal use to breastfeed your child (aged 2 years and below). This claim is limited to once every 2 years only. 

Breastfeeding equipment that qualifies includes:

• Breast pump kit and ice pack
• Breast milk collection and storage equipment
• Cooler set or bag

12) Childcare fees

Claim: Up to RM3,000

You are eligible to get this reimbursement if you have paid kindergarten or childcare costs for a kid who is 6 years old or younger. Even if you have more than one child who qualifies for specialised care, the maximum amount is RM3,000.

If you’re a married couple and are assessed separately, this relief can only be claimed by either party who makes the expenditure. Divorced couples, meanwhile, can both claim the tax relief, provided they made payments for the childcare fees of different children. Claims made under this category must be evidenced by the child’s birth document and receipts from the childcare centre or kindergarten.

The maximum limit of this relief used to be set at RM1,000 but was increased to RM3,000 as part of the government’s Covid-19 economic recovery programme.

13) Nett deposit in SSPN

Claim: Up to RM8,000 per individual with children

This relief is available for the nett deposit made by parents into the National Education Savings System (SSPN) for their children’s higher education, up to the claim restriction.

In order to be clear, the net deposit is the amount of savings that is left over after subtracting any withdrawals you may have made over the year. You are only permitted to deduct RM500 tax relief, for instance, if your SSPN account had a balance of RM4,500 brought forward from 2021 to 2022, and you afterwards deposited RM2,000 and later withdrew RM1,500 throughout the year (RM2,000 – RM1,500). The brought-forward balance (RM4,500) won’t be considered.

If you are unsure where to find this information, SSPN will kindly generate a tax document that shows you the net deposit you can claim for tax relief. 

14) Ordinary child relief (under the age of 18)

Claim: RM2,000 per child

A deduction is allowed for every one of your unmarried children below the age of 18 years old, at any time during the year of assessment. 

15) Child (18+) in full-time education

Claim: RM2,000 or RM8,000 per child

Slightly different from the previous claim, there is an alternative deduction of RM8,000 is allowed if the child is unmarried, 18 years of age and above, and meets any of the following criteria:

• In full-time education (other than matriculation/pre-degree/A-levels) at an education establishment in Malaysia
• Serving under articles or indentures to qualify in a trade or profession in Malaysia (apprenticeship)
• Pursuing a full-time degree (or equivalent, including Master or Doctorate) outside of Malaysia

16) Life insurance and EPF

Claim: Up to RM7,000 (this allocation differs for public and non-public employees)

You may claim this relief for personal life insurance premiums and premiums paid for your spouse, but not your children. Contributions to approved schemes, such as the Employees Provident Fund (EPF), too, are allowed under this relief. Private retirement scheme (PRS) contributions, on the other hand, fall under a different category.

Depending on whether you are a pensionable state employee or a private sector employee, this relief is handled differently. Normally, pensionable public employees are not eligible for the EPF relief allocation but may claim up to the full RM7,000 relief under life insurance premium payments and takaful contributions. Private sector employees (who make EPF contributions) are limited to a maximum of RM4,000 for EPF or other approved schemes, and RM3,000 for life insurance premium payments and takaful contributions.

With effect from YA 2022, the government will permit public employees who also make self-contributions to the EPF or other approved schemes to take advantage of the relief allocations of RM3,000 (for a life insurance premium payments/takaful contributions) and RM4,000 (for the EPF or other approved schemes).

17) Private retirement scheme (PRS) and the deferred annuity

The maximum deduction allowed by this relief is RM3,000 for a person and RM3,000 for a spouse who is employed. Nevertheless, the deduction is only permitted if you choose joint assessment, and it is capped at RM3,000.

From YA 2012, this tax relief has been offered, and it has now been extended until YA 2025.

18) Education and medical insurance

This claim can be used to pay insurance premiums for education or medical benefits for yourself, your spouse, or your child. The total deduction under this relief is limited to RM3,000 for an individual and RM3,000 for a spouse with a source of income. Couples who choose joint assessment, on the other hand, will be limited to an RM3,000 deduction limit.

Claim: Up to RM350

Your contributions to the Social Security Organisation (SOCSO) are deductible during the assessment year. Previously, this relief was limited to RM250, but it was adjusted back to RM350 in Budget 2022. The scope of this tax relief was also expanded to include contributions made by employees through the Employment Insurance System (EIS).

20) Equipment for disabled self, spouse, child, and parent

Claim: Up to RM6,000

This relief can be claimed for the costs of purchasing any necessary basic supporting equipment for yourself, your spouse, your child, or your parents. The disabled person must be registered with the Department of Social Welfare.

Haemodialysis machines, wheelchairs, artificial legs, and hearing aids are examples of basic auxiliary equipment. Spectacles and optical lenses are not permitted.

21) Disabled individual

Claim: RM6,000

Disabled individuals can claim a further deduction under this tax relief if they have been certified in writing by the Department of Social Welfare.

22) Disabled husband/wife

Claim: RM5,000

Those who have a disabled spouse are entitled to a further deduction under this relief. This relief was previously set at RM3,500; it was then increased to RM5,000 under Budget 2021.

23) Disabled child

Individuals with a disabled child up to any age who is unmarried can claim this tax relief.

24) Additional relief for a disabled child (18+) in higher education

Claim: RM8,000

You are also entitled to this additional relief (in addition to the RM6,000 relief mentioned above) if your child is unmarried (18 years of age or older) and meets the following conditions:

• Pursuing a full-time degree (or equivalent, including Master’s or Doctorate) outside of Malaysia

In total, you can get a child relief of up to RM14,000.

25) Electric Vehicle (EV) Charging Facility Expenses

If you own an Electric Vehicle (EV), you are eligible for a deduction of RM2,500 for expenses incurred from the installation of an EV charger, the purchase or hire purchase of EV chargers, rental of EV chargers, or subscription fees for EV charging facilities

Tax Deductions

While tax reliefs reduce your chargeable income, tax deductions reduce the amount of your aggregate income (the sum of your total income for the entire year). These are the deductions allowed for YA 2022, on an individual claim:

1) Donations to charities, sports activities, and approved funds/institutions

Deduction: Up to 10% of aggregate income

Donations under the following categories are restricted to 10% of your aggregate income:

• Gift of money to approved institutions/organisations/funds
• Gift of money for any approved sports activity
• Gift of money or cost of contribution in kind for any approved project of national interest
• Gift of money in the form of wakaf to religious authorities or public universities or endowment to public universities

Individual taxpayer donations and contributions to help fight the Covid-19 pandemic (to approved institutions, organisations, or funds) are also included in this category. This includes the Covid-19 Fund, which the government established in 2020.

However, if you contribute to the National Disaster Management Agency (NADMA), your tax deduction is the amount of your contribution.

2) Other donations, gifts, and contributions

Deduction: Up to the value of the gift unless stated otherwise

Tax deductions (with varying limits) are available for the following situations:

• Gift of artefacts, manuscripts, or paintings to the government or state government
• Gift of money not exceeding RM20,000 for libraries
• Gift of money or contribution in kind for disability facilities in public places
• Gift of money or medical equipment not exceeding RM20,000 to approved healthcare facilities
• Gift of paintings to the National Art Gallery or state art galleries

3) Membership subscription for professional bodies

Deduction: Membership subscription paid

Membership subscription fees paid to professional bodies for one’s profession – such as medical or legal professional fees – can be claimed as tax deductions.

Tax Rebates

Finally, after you’ve determined the amount of tax charged on your chargeable income, tax rebates are calculated at the end of your BE form. It has a direct impact on the amount of tax you pay.

1) Tax rebate for self

Rebate: RM400

You will be entitled to this rebate of RM400 on the tax charged if your chargeable income (after tax relief and deductions) does not exceed RM35,000.

2) Tax rebate for spouse

You can claim this rebate if your chargeable income (after tax relief and deductions) does not exceed RM35,000 and you have been granted tax relief of RM4,000 for your spouse. As a reminder, the RM4,000 tax relief for your spouse is available if your spouse has no source of income or elects to file jointly in your name.

3) Departure levy rebate for umrah or religious travel

Rebate: Amount of departure levy paid

This rebate is granted to any Muslim person who leaves Malaysia by air to perform umrah or other kinds of religious pilgrimage, but not for the purpose of performing hajj. The following supporting documents are needed to claim this rebate:

• For umrah : A copy of the visa issued by the embassy of Saudi Arabia
• For other religious pilgrimages: Written verification by a recognised religious body

You can only claim this tax rebate twice per lifetime.

4) Zakat/fitrah

Rebate: Zakat/fitrah paid

This rebate is applied to the payment of obligatory zakat and fitrah during the basis of the assessment year.

We hope that now that you’re aware of the full list of tax reliefs, deductions, and rebates available for YA 2023, the tax filing process will be easier for you. It will undoubtedly take some time for you to go through your spending in the previous year and match it to all of the reliefs that you are eligible for, but the tax refunds will be well worth it!

Personal Tax Relief 2022

Tax Relief for Individual & Spouse

(i) Education Fees RM 7,000

• Education fee for tertiary level or postgraduate level
• Course of study undertaken for the purpose of up-skiling or self-enhancement (Limit to RM 2,000)

(ii) Spouse / Alimony RM 4,000

• For spouse without income
• Alimony to former wife (Agreement needed)

Medical or insurance expenses

(i) Life insurance RM 3,000

• Life insurance premium (Self & spouse)

(ii) Education or medical insurance RM 3,000

• Insurance premium for education or medical benefit (Self, spouse & children)

(iii) Medical expenses on serious diseases RM 8,000

• Medical expenses for serious illnesses (Self, spouse & children)
• Cost of fertility treatment for married couples
• Complete medical examination and COVID-19 detection test  (Limit to RM 1,000)
• Vaccination expenses (Limit to RM 1,000)

Tax Relief for Parents

(i) Medical expenses for parents RM 8,000

• Including medical treatment expenses, special needs or carer expenses

* Tax relief for parental care has been canceled in Y.A. 2021.

Tax Relief for Whole Family (Individual, spouse, and child)

(i) Lifestyle RM 2,500

• Books & Magazines
• Sport equipment
• Computer, smartphone and tablet
• Gymnasium membership fee

(ii) Lifestyle RM 2,500 ( End on 31.12.2022)

• Purchase of PC, smartphone / tablet 

(iii) Sport Equipment RM 500

• Purchase of sports equipment, rental/entry fees for sports facilities & registration fees in sports competition

(iv) Qualifying domestic travel expenses RM 1,000 ( End on 31.12.2022)

• Accommodation fees on tourist accommodation premises registered with the MOTAC
• Entrance fees to tourist attractions

(v)  Expenses related to Electric Vehicle (EV) charging facilities RM 2,500

• Including installation, rental, hire-purchase of equipment or subscription fees (Tax relief for Y.A. 2022 & 2023)

Tax Relief for Child

(i) Fees paid to childcare centres and kindergartens RM 3,000

• Only for child aged up to 6 years of age
• Childcare centres or kindergartens registered with the Department of Social Welfare (SWD) or Ministry of Education (MOE).

(ii) Ordinary Child Relief

• Child aged below 18 who are still in education: RM 2,000
• Study at a university or college Malaysia (except for certificate, matriculation or preparatory courses).
• Pursuing degree or higher education program abroad (including a master’s or doctorate).
• The instruction and educational establishment shall be approved by the relevant government authority

(iii) Breastfeeding Equipment RM 1,000

• Only applicable to working women with child aged under 2 years
• Claim once every 2 years

Tax relief related to Government-Related Departments

(i) PRS RM 3,000 (Extended to Y.A. 2025)

• Private Retirement Scheme (PRS) contributions and deferred annuity scheme premium

(ii) EPF RM 4,000

• EPF contribution

(iii)SOSCO & EIS RM 350 

• SOCSO & EIS contributions

(vi) SSPN Scheme RM 8,000 ( Extended to Y.A. 2024)

• Net saving in National Education Saving Scheme (SSPN) for child

Tax Relief for Disabled Person

(i) Disabled Individual RM 6,000

(ii) Disabled Spouse RM 5,000

(iii) Disabled Child RM 6,000

• For Child aged under 18 who are still in education
• Pursuing diplomas or above qualification in Malaysia
• Pursuing Bachelor Degree or above qualification abroad

(iv) Basic supporting equipment (For disabled individual, spouse, child or parent) RM 6,000

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