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Q: I am a sole proprietor. I hire my uncle as a driver to transport our employee back and forth between the office and the MRT station. He will turn 60 years old in June 2026. Can I claim further tax deduction on his salary as a senior citizen?
A: You are eligible to claim further tax deduction for hiring your uncle from January 2026 onwards, provided he is a Malaysian resident and citizen, is employed on a full-time basis, and earns a monthly salary not exceeding RM4,000. You are eligible to claim the deduction on your uncle’s salary because an uncle is not included in the list of “relatives”. A relative for this purpose refers to a spouse, parent, child, brother, sister, grandparent, or grandchild.
Wishing you plentiful tax savings!
Zen Chow
YYC Tax Guru