Income tax relief are set by the Inland Revenue Board of Malaysia to allow taxpayer to deduct a certain amount of money expended in an assessment year from the total annual income such as self & dependent tax relief, life insurance & EPF relief, lifestyle tax relief, etc. These are usually for certain activities/ behaviours encouraged by the government as well as necessities or burdens to lighten the taxpayers’ financial load.

Additionally, chargeable income can also be reduced through tax deductions. Tax deductions are a result of gifts and donations. Donations are only tax deductible if made to a government approved charity organisations or directly to the government

Tax relief and deductions reduce chargeable income amount and thus, the final payable taxes