Consumer Mathematics: Taxation
Tax relief
An amount subtracted from income before tax is calculated, reducing the tax payable.
| English | Tax relief |
|---|---|
| Bahasa Melayu | Pelepasan cukai |
| 中文 | 税务减免 |
How it is used
Puan Aishah earns RM45,000 a year. She claims relief of RM9,000 (individual RM9,000).
Her taxable income becomes RM45,000 − RM9,000 = RM36,000, so the reliefs lower the amount that is taxed by RM9,000.
Where it shows up in SPM
In Consumer Mathematics (Taxation), Form 5. Reliefs are listed in a Paper 2 question, items such as individual relief, EPF, life insurance, lifestyle or education, and you total them and subtract from income before touching the rate table.
Don't confuse it with
Open the chapter: Consumer Mathematics: Taxation →
Frequently asked questions
Do reliefs reduce the tax directly or the income?
They reduce the income. You add up all the reliefs, subtract the total from gross income to get taxable income, and only then apply the rate table.
Because tax is a percentage of a smaller figure, the tax also falls, but indirectly.
How do I handle several reliefs in one question?
Add them into a single total first. If individual relief is RM9,000, EPF RM4,000 and lifestyle RM2,000, the total is RM15,000.
Subtract that once from income; do not subtract each one separately from the tax.