MTD Updates for 2025: Key Changes to Tax Reliefs
The Malaysian tax system continues to evolve to support taxpayers with enhanced benefits. As we approach 2025, several significant updates have been announced that will impact employees, families, and organizations. Below is a detailed breakdown of the changes in tax reliefs effective from the year of assessment 2025 and beyond.
1. Medical Treatment Tax Relief
The existing tax relief of RM10,000 for medical treatment expenses has been expanded with additional coverage:
- Inclusion of self-examination equipment, such as glucometers and blood pressure monitors.
- Fees for disease detection tests, including ultrasounds, pap smears, and more.
- Relief for learning disabilities such as ADHD, autism, and others increased from RM4,000 to RM6,000.
2. Lifestyle Tax Relief
The RM1,000 lifestyle tax relief has been expanded to include:
- Parents: This now covers expenses for sports equipment, gym memberships, and sports training fees.
3. Medical and Special Needs Expenses for Parents
The RM8,000 tax relief for parents’ medical and special needs expenses now includes:
- Coverage for grandparents.
- Vaccination expenses.
4. Childcare Fees Tax Relief
The RM3,000 tax relief for childcare fees for children aged 6 years and below has been extended until the year of assessment 2027.
5. SSPN Savings Relief
The RM8,000 relief for SSPN savings has been extended until 2027 with additional conditions:
- Disbursements from the SSPN fund for education purposes are excluded from the net savings calculation.
6. Private Retirement Scheme and Deferred Annuity Relief
Tax relief for contributions to private retirement schemes (PRS) and deferred annuities of up to RM3,000 has been extended until 2030.
7. Education and Medical Insurance Relief
The relief for education and medical insurance premium payments has been increased:
- From RM3,000 to RM4,000.
8. Electric Vehicle and Food Waste Machine Relief
The RM2,500 relief for electric vehicle (EV) charging facilities now includes:
- Purchase of food waste composting machines for household use.
- Claims for composting machines are allowed once every three years.
9. First-Time Home Buyer Loan Relief
Tax relief for housing loan interest payments has been reintroduced:
- Up to RM7,000 for homes valued up to RM500,000.
- Up to RM5,000 for homes valued between RM500,001 and RM750,000.
- Applicable for homes purchased between 2025 and 2027.
10. Persons with Disabilities (OKU) Relief
The relief amounts for individuals with disabilities (OKU) have been revised:
- Individual relief: From RM6,000 to RM7,000.
- Relief for disabled spouses: From RM5,000 to RM6,000.
- Relief for disabled unmarried children: From RM6,000 to RM8,000.
Download Tax Forms for 2025
To ensure proper documentation of claims, taxpayers can download the latest forms and explanatory notes below:
These updates aim to provide greater financial support and encourage responsible spending on healthcare, education, and housing. Stay informed and take full advantage of these enhanced benefits.
