Medical Expenses for Parents [Section 46(1)(c) of Income Tax Act, 1967]
Malaysian taxpayers must aware that medical fee paid for parents' medical treatment is tax deductible. With this tax deduction, the taxpayers will enjoy lower taxable income and consequently lower income tax payments.
However, the medical fee paid must be incurred for the parents and in the official receipts it is advisable stating the patient's name and also payee's name. In this case, the patient will be the parents and payee must be the taxpayers.
The maximum tax relief for parent's medical fee is RM5,000 per annum and the official receipts must be issued by a medical practitioner or doctor registered with the Malaysia Medical Council. Besides that, the official receipts must be retained for proofing if requested by the Inland Revenue Board (IRB).
Taxpayers may refer to the Public Ruling 2/2005 Computation of Income Tax Payable By A Resident Individual under Paragraph 6.1.2 for further information.
With this clarification, it is clear that the costs of health products/health supplements incurred on parents does not fall within the ambit of medical expenses within the meaning of Section 46(1)(c) of the Income Tax Act 1967 and therefore are not eligible for personal relief to the individual.
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