Taxpayers' Intentions to Claim Tax Relief for Medical and Health Insurance in Malaysia

Abstract

Tax relief on medical and health insurance serves as a fiscal incentive to encourage taxpayers to secure financial protection against rising healthcare costs. However, the extent to which taxpayers in Malaysia utilize this relief remains uncertain. This study aims to examine the factors influencing taxpayers' intentions to claim tax relief for medical and health insurance, guided by the Theory of Planned Behavior (TPB). A quantitative research design was employed, collecting data through an online survey of Malaysian taxpayers from Politeknik Port Dickson, Politeknik Hulu Terengganu, Politeknik Kota Bharu, Politeknik Sultan Salahudin Abdul Aziz Shah and Politeknik Sultan Azlan Shah. The Statistical Package for Social Science (SPSS) was utilized to examine how attitude, subjective norms, perceived behavioural control, and tax knowledge affect taxpayers’ intentions. Results show that positive attitudes and awareness significantly affect intentions, whereas the perceived complexity of tax rules presents an obstacle. The research offers guidance for policymakers and tax agencies to improve tax regulations and improve public knowledge. Ultimately, this could lead to an increase in tax relief claim submissions. Future studies might investigate behavioural approaches to enhance taxpayer adherence and involvement with tax incentives.