REACH proposes tax relief for children paying parents' housing costs

The Centre for Community and Housing Development (REACH) has proposed that the Malaysian government introduce a specific income tax relief for individuals who cover their parents’ housing expenses. This includes paying for rental costs or housing loan installments, particularly for retired parents without a steady income.

REACH coordinator Iskandar Abdul Samad stated that the proposal aligns with government efforts to strengthen senior citizen welfare, as outlined in the 2027 budget. He noted that rising living costs place significant financial pressure on children who must balance these housing commitments with their own family responsibilities.

The advocacy group suggests that this relief should be a distinct category, separate from existing medical and care-related tax deductions. To prevent abuse, the relief should be based on actual payments and supported by documentation such as rental agreements or housing loan statements, subject to reasonable annual limits set by the Inland Revenue Board (LHDN).