Q: 

I am a sole proprietor. My receptionist will turn 60 years old in November 2026. How many months would I be eligible to claim the further tax deduction for my receptionist’s salary in year 2026?

A: 

You are eligible to claim a further tax deduction on the salary paid to the senior citizen from January 2026 onwards as long as he or she turns 60 years old in the year 2026, provided the individual is a Malaysian resident and citizen, is employed on a full-time basis, earns a monthly salary of not exceeding RM4,000, and is not your relative. Relative means a spouse, a parent, a child, a brother or sister, a grandparent, or a grandchild.

I am a sole proprietor. I hire my uncle as a driver to transport our employee back and forth between the office and the MRT station. He will turn 60 years old in June 2026. Can I claim further tax deduction on his salary as a senior citizen?

A: 

You are eligible to claim further tax deduction for hiring your uncle from January 2026 onwards, provided he is a Malaysian resident and citizen, is employed on a full-time basis, and earns a monthly salary not exceeding RM4,000. You are eligible to claim the deduction on your uncle’s salary because an uncle is not included in the list of “relatives”. A relative for this purpose refers to a spouse, parent, child, brother, sister, grandparent, or grandchild.