RM1,000 tax relief for 103 types of sports

PUTRAJAYA: A total of 103 types of sports will enjoy tax relief of up to RM1,000 for training and purchase of equipment from next year, says the Youth and Sports Ministry.

Minister Hannah Yeoh said these sports – such as swimming, motorsports, equestrian, taekwondo and esports – are gazetted under the First Schedule of the Sports Development Act 1997 (Act 576).

The tax relief for these sports training sessions, up to RM1,000 from next year, can be claimed by an individual, husband, wife or children, she said.

“A one-off session or a series of training sessions held in a structured manner such as classes, clinics, courses or workshops are eligible for the relief.

“The list of the sports will be on our website soon,” she told a press conference at her ministry here yesterday to announce conditions for the tax relief.

Yeoh also said that in order to be eligible for the tax break for sports, the training providers must be from associations, sports clubs or companies that are registered with the Sports Commissioner or incorporated under the Companies Act 2016.

The expenses for training fees also need to be supported by payment receipts including receipts generated online, she said.

“Bank-in slips and bank account statements cannot be used as proof of payment.”

Yeoh advised people to verify whether the training providers comply with the conditions and criteria set for them to be eligible for this tax relief.

As for the purchase of equipment for sporting activities, it must also fall under the 103 sports listed under the Act, excluding motorised bicycles, she said.

In addition, said Yeoh, expenses such as rental or entry fees to any sports facility, registration fees for sports competitions and gym membership, and sports training can all be claimed.

Last year, in tabling Budget 2024, Prime Minister Datuk Seri Anwar Ibrahim had proposed tax relief for the personal purchase of sports equipment, sporting activities as well as fees for sports training up to RM1,000.

Yeoh said it is hoped that the incentive will motivate people’s interest in sports as well as promote a healthy lifestyle and strengthen Malaysia as a sporting nation.

“These forms of relief came as a result of requests from parents for their children. Before this, it was limited to equipment purchase only. So they asked to include the fees paid for their children’s classes.”

Asked if there is any intention to increase the tax relief from the proposed RM1,000, Yeoh said the ministry is working closely with the Inland Revenue Board to outline the terms and monitor the data on those utilising this incentive over the next year.

At the press conference, Sports Commissioner Suhardi Alias said 9,955 sports entities are registered under the Sports Commissioner, and the number is expected to reach 10,000.