Starting to plan for YA2023 reliefs. Anyone know the details behind these two tax reliefs for YA2022?

1. Lifestyle - Purchase of personal computer, smartphone or tablet (Not for business use) - RM2,500
2. Education fees (Self) - Course of study undertaken for the purpose of upskilling or self-enhancement - RM3,000

3. Medical expenses - Complete medical examination for self, spouse or child - RM1,000

Source: https://www.hasil.gov.my/en/individual/indi...me/tax-reliefs/

Questions:

1. Lifestyle relief - Is this applicable to purchase of PC monitor only? how about individual PC components (RAM, Hard Drive, etc) and other peripherals?

Previous posts from 2021 suggest that it is only applicable for full set PCs, but it doesn't make sense to be purchasing a new laptop/phone every year just to claim this.

2. Education Fees - Does this include language courses from ICLS? and also online courses from udemy/coursera?

3. Medical expenses - Does this include blood tests at places like BP Healthcare clinics?

Thank for the detailed reply. Looks like there is just no way around it. I don't plan on getting a new PC/Laptop/Phone this year and I can't find ICLS in the list of recognised courses.

For medical checkup, anyone have firsthand knowledge on whether the two packages below qualify? IMO, the first one seems like it ticks all the boxes, but the second one probably doesn't.

- https://www.sunwaymedical.com/en/wellness-screening
- https://shop.doctor2u.my/product-details?id=29984878


Another question for those who knowingly or unknowingly claim non eligible expenses and have kena LHDN audit before, what happens when the officer calls you out on said ineligible claims? what amount would considered immaterial?

E.g. Say you claim ~RM1k for PC monitor/peripherals/parts/, RM500 for non recognised courses, and maybe another RM500 for non-qualifying health checkup.

Total tax payable after recalculation is around ~RM500 at most. Do they issue a fine? or just recalculate tax payable?

Anyone know the specifics of the following reliefs and have success claiming them:

1. RM2,000 - Education - Course of study undertaken for the purpose of upskilling or self-enhancement (Restricted to RM2,000)

Q1 - Does taking IT certs like Comptia, CCNA, AWS Count?

Q2 - Is there a specific list on what is eligible as it is not linked in the LHDN site https://www.hasil.gov.my/individu/kitaran-c...elepasan-cukai/

2. RM500 - Lifestyle – Additional relief for the use / benefit of self, spouse or child in respect of:
- Purchase of sports equipment for any sports activity as defined under the Sports Development Act 1997

Q1- Anyone consistently claim the RM500 every year?

Q2 - What kind of Sporting Equipment do people buy every year? Would Hiking Shoes/Sports Shoes/Sports Clothing count?

3. RM3,000 - Education and medical insurance

Q1 - Does Medical Card Premium count?

Q2 - What kind of Insurance do people usually have to claim the Max RM3k every year?

4. Capital Allowance on Equipment per https://www.hasil.gov.my/en/company/digital-business/



Q1- Where in Form B do I fill in the Capital Allowance? Per https://www.hasil.gov.my/media/tevb234i/form_b2022_2.pdf I only see a small section for Business capital allowances carried forward in Part M. No where else to put in the Capital Allowance?

Thanks, this is helpful. A few more concerns.

1. Education - I spent some time going through the list filtered to WPKL and visiting the provider Websites. Seems like all are related to Vocational Skills Programs. Some offering diplomas in IT, etc. Closest one to IT Cert I found is a school specializing in Geospatial Tech (Certs and Program), but otherwise I don't see anything related to IT Comptia/AWS/Microsoft/Google Certs in Networking/Security/Cloud.

Seems like it will be quite difficult to qualify for the Education relief. Anyone have any ideas or can share how they managed to claim this?

2. Sports Equipment - What do people usually purchase on a yearly basis to fully claim this? RM500 Yonex Racket?

3. Education and medical insurance - Does a standard Medical Card premium count? If so, I may look into getting a better Medical Card.

- How about Life Insurance?
- The common consensus from older threads suggest that investment-linked medical insuranc is scammy.

4. Capital Allowance - If can, please share the form that you screenshotted. I don't this section in my Form B sample here: https://www.hasil.gov.my/media/tevb234i/form_b2022_2.pdf.

- Also, to confirm the computation. Say I purchase RM1k Computer Equipment (IA 20 / AA 40), then my eligible Capital Allowance would be:

FY 2024 - RM200 (RM1,000 * 20%)
FY 2025 - RM400 (RM1,000 * 40%)
FY 2026 - RM400 (RM1,000 * 40%)

Is this about correct? will I need to maintain a separate spreadsheet of this calculation for audit purposes? Or can input the computation directly into Form B?

1. Question on Office Equipment purchased for business and personal use like Computer, Phone, etc.

For Capital Allowance claims, how much can I safely apportion for each? Or do most people just claim 100% even though it's mixed use?

Seems like many business owners buy IPhones, claim 100% CA even though they also use for personal?

2. Similarly, for internet subscription, phone plan, electricity, etc. How much can I safely apportion as business expense?

1/3? or Half? and If kena audit, how does one justify this?

Anyone know if the Mandatory contribution to EPF includes both Employer and Employee portion?

Thank you for confirming

A few questions on Form B for first first time Sole Prop online business:

1. Do we need to create a P&L and BS? As sole prop, I don't have share capital and bank account is my personal account. Since I take all revenue as my income, my Balance Sheet would be 0 (other than work equipment). Only my P&L would have amounts.

2. If all income goes directly to me. Then, there is no Salary & Wage expense?

3. If I am using my personal bank account, how would the Cash & Bank tally to the statement? since the sole prop is name and I am the business, then there is no need to have a separate bank account.

4. What is the general rule of thumb on declaring percentage of business expense? Eg. Rent, utilities, petrol, etc. Do I just decide I want to claim 30%? 50%? Seems very subjective. How does LHDN evaluate this?

5. Section F Domestic and personal expenditure in the working sheet below - Does this mean that I need to record down every single thing I spend on? seems a bit excessive.

Thanks for the details. Need some guidance on:

1. I don't have a business bank account for FY 2024. Meaning that my bank balance in balance sheet wont tally. What can I do? Can I just leave as 0 and only fill in the P&L portion? I'm guessing that this is the easier option as it is too difficult to justify which withdrawal is business and which is personal.

2. Say I open business bank account next year and all income from sales revenue is deposit there. After deduct all business expense from that bank account, the remainder is considered my personal taxable income?
Since I don't employ anyone so there is no salary and wage business expense.
- So every month my business bank account should be 0 since I withdraw all excess to personal account.

3. Any guidance on how to apportion business and personal portion of an expense. Say I rent living space that is also my office, can I just say 30% is used for office so I claim 30% of rent/utilities as business expense? seeing how ppl get away with claiming 100% for motor vehicle, 50% entertainment, 100% for smartphone as business expense even though they clearly use for personal, I think 30% should be safe?

This post has been edited by poooky: Dec 9 2024, 07:26 PM

Just tagging on to this thread with similar arrangement with the earlier poster.

When I'm preparing my Balance Sheet, as I'm using personal bank account, what would my double entry be?

1. I was thinking when receive payment

Dr Cash,
Cr Receivables

2. When deducting expenses

Dr Expense,
Cr Cash

3. After deduct all expenses, the rest is considered my salary/wages for that month. This amount would be added back as a Non-allowable expenditure under F ADJUSTMENT OF BUSINESS EXPENDITURE in the worksheet. So:

Dr Partners’ salary, allowances, bonus, EPF
Cr Cash

4. This way, at the end of the month my cash is always 0

5. Also another question on Share Capital. Technically, I don't have any capital in the sole prop business. Would it be ok to just leave it as 0?

I've looked into that, but that drawings doesn't zerorize the account and seems like there is obligation to repay it. Then one day it accumulates a big amount and when I decide to close the sole prop, lhdn may ask to repay money that no longer exists.

Just noticed that Lifestyle deduction for 2024 includes:

- Skill improvement / personal development course fee

Does this include both online courses from udemy, coursera, etc and in person courses from non gov approved providers?

Thanks this is good news. I suppose not relating to job can be open to interpretation and depend on we can spin it.

Only thing is that they come out with the relief way too late in the year making it difficult to plan ahead.

Questions on filling in Form B

1. For Statutory Income, is this amount the Net Profit Less Allowable expenses per the two screenshots below?


This screenshot is from section 3: Income




This one is from section 2: PARTICULARS OF BUSINESS INCOME / FINANCIAL PARTICULARS OF INDIVIDUAL (MAIN BUSINESS ONLY)



2. Where do I input capital allowance? the only box I see is the Business capital allowances carried forward? Or am I supposed to calculate somewhere else and add the ca amount as an Other Expense?

3. For capital allowance, is there an threshold amount to claim 100% in single year? e.g. if under RM3k, can we claim it all? and just expense it?



This post has been edited by poooky: Jun 18 2025, 08:22 PM

I'm looking at the work sheet https://www.hasil.gov.my/media/3r5nc3p2/working-sheet_2.pdf

My understanding is

Statutory Income is Net Profit less allowable expenses and capital allowance per Sections F and J below

1. Basically, in Section F, I add back my all capital expenditure purchases (e.g. ICT equipment)

2. Then in section J, less capital allowance

3. Meaning that Statutory Income amount in Form B is Net Profit less allowable expenses and capital allowance

4. The threshold for Small Value Asset is RM2k per https://www.pwc.com/my/en/publications/mtb/...allowances.html. Can't find the official LHDN source on this one

Is this correct?








This post has been edited by poooky: Jun 18 2025, 08:49 PM

Sorry. I got it mixed it up. Thank you for correcting this.

Also, thanks for the CA. Is my understanding of the special allowance correct?

1. Sole prop is non-SMC?

2. If I purchase 11 ICT equipment small value assets of RM2k each totaling RM22k, the special allowance capped at RM20k means that I can only claim 100% capital allowance for the initial 10 assets (RM2k * 10) in the current year?
and the remaining 2k asset, I can only claim the IA and AA (20% + 40%) in the current year?

Also, a question on claiming business expenses:

1. Is SSM registration and renewal an allowable expense?

2. I current use my own personal mobile line and data for business purposes, and want to claim this portion. I did a rough calculation and I would say 30% is used for business purposes. Can I claim this 30% as allowable expense? (e.g. phone bill for month is RM50, 30% means I claim RM15 each month) Would LHDN accept this?

3. Same like above, if I am renting, but utility bill is not under my name, can I also do rough calculation and claim 30% as allowable expense?

4. Similar to earlier question, if I take MRT for business purpose, can I do the same? How strict would the LHDN audit be in this regard?

I didn't receive this email. Maybe only for those with high tax payable.

Also for Form B saw that payment due date is 15/7 instead of 30/06. Can delay another two weeks.

Thanks for you help. I have submitted e-filing. Only regret is not enough business expense to deduct. Now I know why taukeys change car yearly, change latest iphone pro max, etc like changing underwear. All purposely done to reduce tax payable.

Question:

1. For sole prop, if I take online courses and certifications (e.g. udemy, coursera, it certifications, etc), can these be considered as business expense (if not 100%, maybe 50% ?) . It is reasonable that I am taking these to be able to improve skill needed for the business, but LHDN officer can also argue that it is personal expense.

I guess this depends on luck and how it is justified. Seeing how taukeys claim their eating out, leisure as entertainment expenses. I think that my reason should be reasonable.

Is Medical Card paid through i-Lindung eligible for relief?

Yes, Etiqa site for plans support it