How Is Income Tax Charged for Husband and Wife in Malaysia?

In Malaysia, married couples have the flexibility to file taxes either jointly or separately — depending on what gives them the best tax advantage. Understanding the differences can help you make smarter decisions when filing your yearly tax return and potentially reduce your overall tax bill.

Option 1: Separate Assessment

This is the default option for most married couples.

✅ How it works:

• Husband and wife file their taxes individually (using Form BE or Form B)
• Each declares their own income, expenses, and tax reliefs
• Each is taxed based on their own chargeable income

📌 When this is better:

• Both spouses have income
• Each spouse qualifies for their own personal reliefs
• One spouse is in a lower tax bracket

 Option 2: Joint Assessment

With joint assessment, one spouse is considered the “assessor” (usually the husband, by default) and files a single tax return that includes both incomes.

✅ How it works:

• The couple combines their income in one tax return
• Only one personal tax relief (RM9,000) is claimable.
• The other spouse is considered a “wife not working / elects joint assessment” and does not file separately

📌 When this is better:

• One spouse has little or no income
• Combining incomes places the couple in a lower tax bracket
• The working spouse has more tax reliefs to claim

What If Only One Spouse Works?

If only the husband or wife earns income, joint assessment is usually more beneficial. In this case:

1. The working spouse can claim RM4,000 for “spouse relief” (if the other does not earn more than RM4,000 per year)
2. Additional child reliefs can also be claimed by the working spouse

Child Relief (Applies to Both)

Regardless of separate or joint filing, child relief is claimable:

• RM2,000 per child under 18
• Higher amounts for children in university or with special needs

(Only one spouse can claim for each child per year)

Summary Comparison

LHDN allows you to choose separate or joint assessment every year, based on what benefits you most. There’s no penalty for switching your assessment type annually