As the new year begins, beyond setting fitness goals and planning trips, have you considered how tax relief can help you save money? Here are some simple and practical tips: 

Increased Tax Relief for Education and Medical Insurance 

In response to the rising medical and education costs, the government has increased the tax relief for education and medical insurance. Starting in 2025, the tax relief limit for education and medical insurance expenses will increase from RM3,000 to RM4,000. This aims to ease the burden of medical expenses while providing greater support for your children’s education.  

Tax Relief for First-Time Homebuyers: Helping You Achieve Your Dream Home 
First-time homebuyers who sign a Sale and Purchase Agreement (SPA) between 1 January 2025 and 31 December 2027 are eligible to claim tax relief of up to RM7,000 on housing loan interest for three years. This significantly reduces the financial pressure of purchasing a home.  

Tax Relief for PRS and SSPN Has Been Extended  
To encourage long-term savings, the government has extended tax relief for Private Retirement Schemes (PRS) until 2030 and the National Education Savings Scheme (SSPN) until 2027. Early deposits not only earn higher interest but also offer tax benefits. 
 
Note: Starting from 2025, the RM8,000 tax relief for SSPN can only be claimed by either parent only.   

Tax Relief for Sports Equipment and Activities Has Been Expanded 
Starting from 2025, the tax relief for sports equipment and activities has been expanded to include expenses incurred for your parents, limited to RM1,000. This initiative not only encourages your parents to stay active but also promotes healthy lifestyle habits within the family.  

 
Tax Relief for Vaccinations and Medical Expenses for Elderly 
The scope of parent’s medical expense tax relief has been further expanded: 

• Elderly Support: Medical expenses for grandparents are also eligible for tax relief, providing more support and care for the elderly. 
• Vaccination Expenses: Vaccination expenses such as influenza vaccines can now be included in the RM1,000 complete medical examination tax relief.   

Conclusion:  
Tax reliefs in 2025 offer a wide range of opportunities to enjoy tax savings. As the new year unfolds, take the time to plan your taxes wisely!