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Tax Relief on voluntary contribution to Employees Provident Fund

Updated: Feb 27

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Current Position

Subsection 49(1) of the ITA provides that a deduction up to RM 7,000 can be claimed by an individual on –

  1. payment of premium on life insurance policy;

  2. contribution to an approved scheme (other than a private retirement scheme) made by the employee or by a self-employed person within the meaning of the Employees Provident Fund Act 1991 [Act 452]; or

  3. contribution made under any written law relating to widow, widower and orphan’s pension or under any approved scheme within the meaning of any such law.

From the year of assessment 2022, the scope of individual income tax relief for EPF contributors is expanded to include self-employed voluntary contributors including civil servants under the pension scheme