Staying active just became slightly more tax-friendly. Budget 2027 widens the sports-related tax relief so that sports shoes can now be claimed, along with the sports equipment and activities already covered.
What changed
The existing sports-related lifestyle relief allows individuals to claim qualifying expenses, such as sports equipment, up to RM1,000 a year. Budget 2027 adds the purchase of sports shoes to this relief, with a sub-limit of RM300.
The change applies from the 2027 year of assessment, so it covers purchases made from 1 January 2027 and is claimed when you file in 2028.
Understanding the limits
There are two limits to keep in mind:
- RM1,000 is the overall cap for the sports-related relief.
- RM300 is the most you can claim for sports shoes, and it sits inside the RM1,000. It is not an extra allowance.
Say you buy a pair of running shoes for RM450 and also spend RM800 on other qualifying sports equipment. The shoes count for a maximum of RM300, and your total claim cannot go beyond RM1,000 across everything.
Who can claim?
The relief covers expenses for the taxpayer, spouse, child or parents, subject to prescribed conditions. That means a pair of shoes bought for a family member may also qualify, which is useful for households with active children or parents.
Do not confuse it with lifestyle relief
Malaysia’s tax system has separate reliefs that are easy to mix up:
- Sports-related relief has an overall limit of RM1,000, and now includes sports shoes up to RM300.
- Lifestyle relief has an overall limit of RM2,500. It covers items such as reading materials, computers, smartphones, tablets and internet subscriptions, and from YA 2027 also AI subscriptions and certain pet expenses.
An expense can only be claimed under one category, so check which one fits before you file.
How much could you save?
Relief reduces your chargeable income, not your tax directly. Here is an illustration, not an official figure. If you claim the full RM300 for sports shoes and your top tax bracket is 18%, the saving is about RM54 (RM300 × 18%). It is a modest amount, but it adds up when combined with your other reliefs.
Conditions still to come
The details are subject to terms and conditions to be specified by the government, so further guidance is expected. Questions such as what counts as “sports shoes” and what documents are required will be settled through LHDN guidelines.
What to do now
- Keep every receipt. Make sure it shows the date, the item and the amount. Receipts support your claim if LHDN asks.
- Track your RM1,000 usage. Note all your sports-related spending through the year.
- Buy with the right purpose. Choose shoes designed for sports. Everyday fashion footwear is unlikely to qualify.
- Wait for LHDN guidance before you finalise your claim for YA 2027.
Speak to AdrianYeo Tax
Small reliefs make a real difference when they are claimed correctly across the whole tax return. Our chartered accountants can help you capture every legitimate claim and keep your records in order.
This article is for general information only and does not constitute tax advice. Measures are based on Budget 2027 announcements and may change when the legislation is finalised. Please consult a tax professional about your specific circumstances.
