Written by Samantha Guang and Ng Shi Chen
In 2024, the Ministry of Youth and Sports, along with the Inland Revenue Board, announced a new tax relief for Malaysian taxpayers for the assessment year 2024. The tax relief covers 103 types of sports listed in the First Schedule of the Sports Development Act 1997 (‘the SDA’). The newly introduced tax relief for sports equipment and sports activities for oneself, parents, spouse, and/or child is up to RM1,000.[1]
The tax relief encompasses the following:
- purchase of sports equipment for sports activities according to the types of sports listed in the SDA (excluding motorised two-wheeled bicycles);
- rental or entrance fees to any sports facilities;
- registration fee for participating in any sports competition; and
- gym membership fees or sports training.
It is important to note that sports clothing and footwear are not eligible for tax relief, as they are classified as personal attire.
The conditions and criteria for participation in eligible sports competitions are as follows:
- the sport must be listed in the First Schedule of the SDA; and
- for sports competitions organised by companies, the event must be approved and licensed by the Sports Commissioner.
The conditions and criteria for eligible sports training are as follows:
- The training must be conducted in a structured format, whether as a one-off session or a series, such as classes, clinics, courses, workshops, and similar programs;
- The sport must be listed in the First Schedule of the SDA;
- The training provider must be an association or sports club registered with the Sports Commissioner or company incorporated under the Companies Act 2016; and
- Payment for the training must be supported by official receipts, including those issued online. Bank-in slips or bank account statements are not accepted as valid proof of payment.
In furtherance of the above, sports training conducted by freelance trainers is not eligible for tax relief.
In conclusion, the sports tax relief effective from the assessment year 2024 provides Malaysians an excellent opportunity to claim up to RM1,000 for various athletic pursuits, encouraging Malaysians to live a healthier life.
[1]https://berita.rtm.gov.my/highlights/senarai-berita-highlights/senarai-artikel/tax-relief-of-up-to-rm1-000-for-the-purchase-of-equipment-sports-activities