Tax Rebates: RM400, Zakat and the Umrah Levy — How They Work

Reliefs vs rebates: what is the difference?

Before going further, it is important to distinguish two concepts:

• Relief — deducted from income, before tax is calculated;
• Rebate — deducted from the tax payable, after tax is calculated.

Zakat qualifies as a rebate, not a relief.

Source: HASiL — Rebate; Income Tax Act 1967, s.6A (see Official sources section).

Individual RM400 rebate

You are eligible for the RM400 rebate if:

• You are a resident individual for the year of assessment concerned; and
• Your chargeable income does not exceed RM35,000; and
• The deduction under paragraph 46(1)(a) (personal relief) is allowed.

This rebate is calculated before any set-off under s.110 and any foreign tax credit under s.132/133.

Source: Income Tax Act 1967, s.6A(1) and s.6A(2)(a); Form BE Explanatory Notes (box B21) (see Official sources section).

Spouse RM400 rebate

For individuals allowed a deduction under s.47(1)/(2) or s.45A (wife), with chargeable income not exceeding RM35,000:

• A RM400 rebate is given;
• In joint assessment, the combined maximum is RM800.

Source: Income Tax Act 1967, s.6A(2)(b)/(c); HASiL — Rebate (table) (see Official sources section).

Zakat and fitrah rebate

Payments of zakat, fitrah or other obligatory Islamic zakat qualify as a rebate if:

• Paid within the basis year; and
• Paid to an appropriate religious authority established under any written law; and
• A receipt is held as proof.

The maximum zakat rebate amount is subject to the amount of tax imposed. The excess is not refunded and is not carried forward.

Source: Income Tax Act 1967, s.6A(3) and s.6A(4); HASiL — Rebate (see Official sources section).

Umrah/ziarah departure levy rebate

This rebate is given on the departure levy imposed under the Departure Levy Act 2019 (Act 813) on those leaving Malaysia by air for umrah or ziarah to holy places for other religious purposes — not hajj. Levy rates (Departure Levy (Rate of Departure Levy) Order 2019 [P.U.(A) 213/2019]):

• ASEAN economic: RM8; other than ASEAN economic: RM50;
• ASEAN non-economic: RM20; other than ASEAN non-economic: RM150.

Conditions: evidenced by a boarding pass and visa/verification; limited to two (2) times in a lifetime; does not apply to hajj.

Source: Income Tax Act 1967, s.6A(2A)/(2B); Form BE Explanatory Notes (see Official sources section).

Foreign worker levy rebate

The foreign worker levy rebate is not applicable from YA 2011.

Source: HASiL — Rebate (see Official sources section).

How to claim in Form BE

Rebates are claimed in Form BE (box B21). Keep supporting documents:

• Zakat/fitrah receipts;
• Boarding pass and umrah/ziarah visa/verification.

Source: Form BE Explanatory Notes — YA 2025 (box B21; Worksheet HK-14) (see Official sources section).

Simple example

Siti (resident) has chargeable income of RM30,000. Her gross tax after the rate bands is RM900. She is eligible for the individual RM400 rebate (chargeable income ≤ RM35,000). She also pays zakat of RM300 in the basis year to the state zakat collection centre with a receipt — that amount qualifies as a rebate, up to the tax remaining after the individual rebate (RM500). Hence her tax payable is RM900 − RM400 − RM300 = RM200.

(Illustrative example to show concepts — not specific tax advice. The calculation figures are subject to fact-check.)