Question

Explain “child” in tax law and the conditions to apply for a tax relief that comes with a “child” in malaysia. [8 marks]

Answer 1

Child refers to the son/daughter, for tax benefits child term has been divided in two parts-

i. Child below 18 years

ii. Child above 18 years

Tax reliefs related to child and conditions attached with them are as follows-

1. Per child (below 18 years) = 2000 RM

2. Per child (over 18 years) = 8000 RM

-receiving full time instruction of higher education in respect of:

- diploma level and above in malaysia; or

- degree level and above outside malaysia

OR serving under articles or indentures in a trade or profession in malaysia

3. Per physically/mentally disabled child = 6000 RM

4. physically/mentally disabled child (over 18 years) = 14000 RM

-receiving full time instruction at institution of of higher education in respect of:

- diploma level and above in malaysia; or

- degree level and above outside malaysia

OR serving under articles or indentures in a trade or profession in malaysia

5. Medical expenses child suffering from a serious disease = 6000 RM (Maximum) (including fees for complete medical examination upto RM500)

6. Purchase of supporting equipment for disables child = 6000 (Maximum) RM

7. Fees paid to child care centre and kindergarten = 1000 (Maximum) RM

8. Deposit for child into the skim simpanan pendidikan nasional account = 6000 (Maximum) RM