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Personal Income Tax 2019 : What Is A Tax Deduction?

In addition to deducting tax relief from your annual income, you can still reduce your chargeable income with tax deductions.

A tax deduction is similar to a tax relief, where it reduces your chargeable income. Tax deductions are a result of Gifts and Donations.

Donations are only tax deductible if they are made to a Government approved charitable organisation or directly to the Government; and you must keep the receipt of the donation.

For income tax 2019, if your chargeable income is RM55,000, and you’ve donated RM2,500 to an approved charitable organisation, you are allowed to deduct 7% of your aggregate income to reduce your chargeable income.

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Here is the list of contributions under Donations & Gifts:

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credit to The Definitive Guide To Personal Income Tax In Malaysia For 2019, Learning Centre

Of course, you’re not limited to just one deduction. If you’ve made several donations listed above you can deduct for them all accordingly.

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