Maximizing the RM2,500 Lifestyle Relief

Though this relief covers a broad range of things and is claimable for yourself, spouse, and children, there are a few misconceptions that you should be aware of.

Not everything can be included.

Here’s what you can claim:

• ✅ Any type of books (journals, magazines, newspapers or other similar publications), whether physical or electronic, as long as it’s not banned.

• ✅ Smartphones, Tablets, and Personal Computers. If you purchased a computer (full set with monitor, keyboard, and mouse) in a single receipt, you can also claim them under this relief.

• ✅ Monthly bill payments for internet subscriptions (Maxis, Unifi, Time, etc.) under your own name. Telco plans with mobile internet can also be claimed, provided that the plan has no talk time.

• ✅ Purchase of sports equipment (such as rackets, shuttlecocks, basketballs, dumbbells, etc.). The sport has to defined under the Sports Development Act 1997.

• ✅ Gym memberships (excluding club memberships that provide gym facilities). ie. You’re paying for a golf club and it offers gym facilities, then you cannot claim it under this relief.

• ✅ Entry or rental fee for any sports facility (restricted to RM500). Such as badminton court fees, basketball entry fees, etc.

• ✅ Registration fees for any sports competition (restricted to RM500). Marathons are considered as sports competition and can also be claimed.

Here’s what you CANNOT claim

• ❌ Pilates, Yoga, and class passes. Unfortunately, these activities are not considered as sports in the Sports Development Act, so they cannot be claimed.

• ❌ Tech gadgets (mouse, keyboards, earphones, microphones, etc.). However, if you purchased a personal computer, you can claim reliefs for your keyboard, mouse, and monitor if it is in a single receipt.

• ❌ Sports Attire (Nike shoes, Adidas shirts, swimsuits, etc.).

• ❌ Club memberships.

• ❌ Simcards and telco plans with talk time.

• ❌ Motorized bicycles or e-bikes.

For more info, visit the YYC Tax Advisory QnA Page.

Q: Are Capital Gains for shares in Malaysia subjected to tax?

A: No. As of now, there are no capital gains tax in Malaysia for shares. This includes shares purchased overseas (ie. US, UK, Europe, etc.).

However, if you frequently buy or sell shares within a short time span (minutes, hours, or days), then it can be considered as income and will be subjected to tax.

The regulation on this matter is still a bit blurry. In some conditions, LHDN may subject them to tax, but in some not.

Q: If I forgot to declare income for 2022, what is the right procedure?

A: Until 31 May, you can still voluntarily submit your taxes for YA2022 and the preceding years with no penalty.

This is under the Special Voluntary Disclosure Program conducted by LHDN.

If you underdeclared your income previously, you can also declare them before 31 May and LHDN will accept them without prejudice. No audit or investigations will be conducted.

Q: Are dividends for shares subjected to tax in Malaysia?

A: Local dividends, ie. Maybank dividends, ASB & ASM dividends, interest earned from FDs and cash apps like Versa, are exempted from tax.

This means that you do not need to declare them when you file for tax.

However, dividends from US shares will be subjected to a 30% withholding tax.

Read more about it here.

Thanks for reading till the end. I hope you learned something!

DISCLAIMER: The information contained in this newsletter is for informational and educational purposes only. Nothing herein shall be construed to be financial, legal, or tax advice. The opinions of this newsletter are solely that of the publisher.

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