Income Tax Details - Dependents

Tax Deductions for Spouse and Children (Dependents)

1. The Marital Status of employees can be updated in the Employee Detail.

   

2. To configure the spouse and children tax deduction, you can set up in the Employee Contract -> Income Tax Details -> Dependents.
3. Spouse:

   1. File Tax Separately

      When the Marital Status is Married, and Spouse is working, you may select File Tax Separately.

   2. Without Income

      When the Marital Status is Married and Spouse is not working, you may select Without Income.

      

4. Children:

   You may enter the number of children to claim for tax purposes in this field.

   1. For example: Married and spouse is working, total number of children are 5.

      File tax separately, For tax purpose: Spouse claims for 3 children, and you claim for 2 children. Hence in this field enter '2".

      

5. Age of the Children
   1. Below 18 years
      • A deduction of RM 2,000 per child.
      • If your child is below 18 years, you don't need to enter a number in any of the below category.
   2. Above 18 (Full-time Education)
      • A deduction of RM 2,000 per child if the child is unmarried.
      • If your child is receiving full-time education including Matriculation, Pre-Degree, or A-level courses at a University, College, or Other Educational Institutes similar to it in  Malaysia, they fall in this category.
   3. Above 18 (Higher Education)
      1. A deduction of RM 8,000 if the child at any time in the basis year is unmarried
      2. If your child is receiving full-time instruction (excluding Matriculation courses /Pre-Degree /A-Level) at a university, college or other similar educational establishment in Malaysia; or
      3. Receiving full time instruction outside Malaysia in respect of a Degree (including a Degree at Master or Doctorate level) or the equivalent of a Degree.
   4. Disabled (not in Higher Education)
      • A deduction of RM 8,000.
      • Disabled child who is unmarried falls in this category.
   5. Disabled (Higher Education)
      1. An additional deduction of RM 8,000 is allowed. An individual is entitled to a child relief of RM 16,000 if the below conditions are complied with.
      2. Child receiving full-time instruction (excluding Matriculation course/ Pre-Degree /A-Level) at a university, college or other similar educational establishment in Malaysia; or
      3. Child receiving full-time instruction outside Malaysia in respect of a Degree (including a Degree at Master or Doctorate level) or the equivalent of a Degree.
   6. Example:

      1. Scenario 1:

         Married, Spouse working, For tax purpose claiming for 3 children

         1 child below 18 years old

         1 child above 18 years pursuing Degree outside Malaysia

         1 child disabled pursuing Matriculation

         

      2. Scenario 2:

         Married, Spouse Not Working, For Tax purpose claiming for 5 children.

         2 children below 18 years old

         1 children above 18 years pursuing Diploma in Malaysia

         1 child above 18 years pursuing Masters in Malaysia

         1 disabled child pursuing Degree outside Malaysia