LHDN Just Released the 2025 Tax Relief List

Here’s What You Can Claim Before the Year Ends

LHDN has officially released the 2025 Income Tax Relief List, and this is one update every Malaysian taxpayer should pay attention to — especially employees, business owners, and property investors.

Why?
Because tax reliefs are legal ways to reduce your tax payable, yet many Malaysians either under-claim or miss them entirely due to poor planning or last-minute filing.

Let’s break down what this means and how you can optimise your tax position before the year ends.

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What Is the LHDN Tax Relief List?

The LHDN Tax Relief List outlines approved expenses that taxpayers can deduct from their chargeable income when filing their annual income tax return.

Simply put:
👉 The more legitimate reliefs you claim, the less tax you pay — legally.

This list is updated periodically to reflect:

• Rising cost of living
• Education and healthcare needs
• Retirement and family responsibilities
• Digital and lifestyle expenses

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Key Tax Reliefs Malaysians Can Claim in 2025

Below are some of the most commonly used — yet often under-claimed — tax reliefs for YA 2025.

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1. Individual & Dependent Relief

• Individual relief: RM9,000
• Spouse (no income): RM4,000
• Child relief: up to RM8,000 per child (higher for education level)

👉 Ensure your spouse and children details are properly declared.

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2. Lifestyle Expenses (Up to RM2,500)

This remains one of the most popular reliefs, covering:

• Books, journals, magazines
• Sports equipment
• Computer, smartphone, tablet
• Internet subscription

⚠ Keep receipts — LHDN may request proof.

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3. Medical Expenses (Self, Spouse & Parents)

You can claim medical expenses for:

• Serious diseases
• Medical check-ups
• Dental treatment
• Special needs and disabilities

Claims can go up to RM8,000, depending on category.

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4. EPF, Insurance & Retirement Planning

One of the most powerful tax-saving tools:

• EPF contributions: up to RM4,000
• Life insurance: up to RM3,000
• PRS contributions: additional relief available

👉 Smart retirement planning = lower tax + future security.

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5. Education & Skill Development

You may claim:

• Self-education fees (recognised courses)
• Professional certifications
• Postgraduate studies

This is especially relevant for professionals and business owners upgrading their skills.

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6. Housing-Related Reliefs (If Applicable)

Depending on eligibility:

• Housing loan interest relief (subject to conditions)
• First-time homebuyer incentives (if applicable)

⚠ These are often misunderstood — get proper advice before claiming.

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Common Mistakes Taxpayers Make

From my experience, many taxpayers:

• Rush to file without reviewing reliefs
• Lose receipts and documentation
• Assume certain expenses are “not claimable”
• Follow advice from unverified online sources
• Claim incorrectly and risk penalties later

Remember:
❌ Under-claiming = paying more tax than necessary
❌ Wrong claiming = penalties and audit risk

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What You Should Do Before Year End

Here’s a simple checklist:

✔ Review the 2025 relief list early
✔ Plan major expenses before 31 December
✔ Organise receipts digitally
✔ Review EPF, insurance, and PRS contributions
✔ Seek advice if you have rental or business income

Tax planning is not done in April — it’s done before December ends.

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Final Thoughts from Miichael

Tax reliefs are not loopholes — they are government-approved incentives meant to ease financial burden.

Those who benefit most are not the highest earners —
but those who plan early and claim correctly.

If you’re unsure what you can claim, especially as a property investor, freelancer, or business owner, get clarity before filing.

From the desk of

Miichael Yeoh