According to the income tax regulations, tax exemptions are available for the purchase of insurance and statutory payments, including:
- EPF
- SOCSO
- Medical Insurance
- Life Insurance
- Education Insurance
Life Insurance & EPF exmptions can be deducted up to RM7,000.00
Life Insurance
- Taxpayers for their own insurance
- Spouse's insurance
- Joint insurance for taxpayer and spouse
Life insurance premium payments or family Takaful contributions to the EPF (up to RM3,000) contributions or additional voluntary
EPF
- Mandatory contributions deducted from salary as per employment contract
- Voluntary contributions to the EPF
Mandatory/voluntary contributions (up to RM4,000)
Education and medical insurance exemptions can be deducted up to RM3,000
Education insurance
The policy must be taken out by the taxpayer for：
Benefit:
The lives of the premium payers (parents) must be included (premium payer benefit rider).
*If the rider is bundled with the basic policy and paid with a single premium, the entire premium payment will qualify for deduction.
*If the parents do not meet the criteria for premium payer benefit rider, the premium paid for the basic policy will not qualify for deduction.
Medical insurance
The expenses must be related to ：
- Medical treatment resulting from illness
- Accident
- Disability
*The coverage period of the policy should be 12 months or longer.
*The policy can be a standalone policy or as a rider to a life insurance policy. If it is a rider, only the premium for the rider is eligible for deduction.
*If critical illness insurance is attached to the base policy, the entire premium paid for the rider is allowed to be deducted.
*If critical illness insurance is bundled with term life/accident insurance, 60% of the bundled premium is allowed to be deducted.
*Group medical insurance premiums paid by employees are also eligible for deduction.
*Premiums waived for insurance benefit riders and travel and medical expenses insurance are not allowed to be deducted.
Singapore
