2019 Malaysia Tax Relief

With the recent budget announcement, one of the key changes to the regime of tax relief was the splitting of EPF / KWSP and Life Insurance into 2 different line items.

Previously the limitation was that if you earn up to a certain amount, the RM6,000 relief is already fully used up for EPF. This is a downside and discourages people to pursue life insurance (and critical illness to a certain extent).

So for 2019 onwards, the Government will put in place a separation into RM4,000 for EPF and RM3,000 for Life Insurance / Takaful. Remember, as far as we are aware, the RM3,000 relief for medical and / or education insurance / takaful still stands at RM3,000. So in a summary, for year 2019 onwards, even though you have maxed out on your EPF, you can still on average save RM1,440 on your taxes by maximing your insurance / takaful protection. Don't believe ah?

Well below are the numbers, thanks to a Man Takaful

So yes, it goes back to which bracket of income you are in. So you can use the same approach but change the percentage value to see in essence how much do you save. In reality your total coverage / protection shouldn't solely be dictated by maximizing your income tax relief, but more so understand you and your family's current needs, medical, life, what ifs; e.g. can't work for 1 year, and also future anticipated needs, e.g. coverage at older age.

If you need further advice or a quotation, you can try to contact Man Takaful at 011-1895 3997 or what's app him.