1. Child Tax Deductions:
- Employees can claim tax deductions for children under their care.
- These deductions reduce the employee’s chargeable income and their Monthly Tax Deduction (PCB).
- A “child” is defined as an “unmarried dependent legitimate child, stepchild, or adopted child.”
- No deduction is allowed if the child has their own income exceeding the specified limit (excluding scholarships/grants).
2. Age-Based Deductions:
- Children below 18 years old: An annual deduction of RM2,000 per child.
- Children aged 18 and above (not in higher education): An annual deduction of RM2,000 for full-time education (e.g., A-levels, foundation).
- Children aged 18 and above (in higher education):
- Studying within Malaysia (diploma or higher): Claim RM8,000 annually.
- Studying outside Malaysia (degree or higher): Also claim RM8,000 annually.
3. Disabled Children:
- For each disabled child, claim RM6,000 annually (regardless of age).
- If the disabled child is in higher education, claim RM14,000 annually.
4. Spousal Considerations:
- If spouses are not separated, one spouse claims 100% of the tax deduction, while the other spouse cannot claim.
- It’s advisable for the higher-income parent to claim child relief.
- Spouses living together cannot claim 50% each.
- Separated spouses contributing to the child’s maintenance can each claim 50%.
To gain additional information or seek any help, contact us at Zentrusted.
This
content is for informational purposes only and does not constitute professional
advice. Always refer to the official websites/guidelines/regulations of the
relevant authorities for detailed information and consult with a professional
for personalized guidance.