With tax season approaching, a Malaysian man took to social media to ask a question many might be wondering about.
He wanted to know how to declare a phone purchased under a telco contract when filing for tax relief.
Specifically, he asked whether he should declare the total contract value (phone price × monthly plan × number of months) or just a lump sum.
His question quickly gained traction, with netizens offering clarification.
Claim the phone’s retail price only
If you purchased your phone through a telco contract:
- You should claim the retail price (RRP) of the phone as stated in the agreement
- This falls under the Lifestyle Tax Relief (RM2,500 limit)
- The claim must be made in the year you signed the contract, not spread across instalment months
However, even if the total cost exceeds RM2,500, the maximum claimable amount remains RM2,500.
For example, if your instalment is RM200 per month and your plan is RM100 monthly, that totals RM300 per month. Over 12 months, that is RM3,600 but you can still only claim up to RM2,500 under Lifestyle Relief.
What about the monthly plan?
Netizens clarified that:
- Only the internet/data portion of your monthly plan is claimable
- If the plan includes voice calls and data, the voice portion may not qualify
- This can be considered a grey area, so proper documentation is important
So no, you cannot claim the entire monthly bill unless it is strictly for internet/data.
Keep your receipts & agreements
Make sure to retain:
- The agreement showing the phone’s original retail price
- Official receipts
- Monthly bills if claiming the data portion
If your agreement states the phone price as RM0, then there is no phone value to claim. However, the internet/data portion of the monthly bill can still be claimed under the RM2,500 Lifestyle Relief.
Interestingly, even secondhand phones may qualify as long as you have proof of payment and documentation.
If you are uncertain about your eligibility, you can contact the Hasil Care Line at 03-8911 1000 for official clarification.
When it comes to taxes, it is always better to double check than to risk filing incorrectly.
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