Can you claim ChatGPT or Claude on your personal tax? (Budget 2027)
Yes, if the Budget 2027 proposal is passed. From year of assessment 2027, individual lifestyle tax relief is proposed to cover subscriptions to AI software and applications for personal use, a spouse or a child. The limit stays at RM2,500, shared with books, devices and internet subscriptions. It is a relief for individuals, not a company deduction.
Last verified 30 October 2026 against MOF: Budget 2027 tax measures (PDF) and MOF: Budget 2027 speech (PDF).
General information, not tax or legal advice. Budget measures are proposals until the Finance Bill is passed and gazetted. Confirm with your tax adviser and the agency before you rely on them.
- First published from Appendix 6 of the Budget 2027 tax measures document.
Macoin TechnologiesSoftware development teamWhat exactly did Budget 2027 propose?
Appendix 6 of the tax measures document proposes expanding the individual income tax relief for lifestyle to cover "subscription expenditures for AI software and applications for personal use, spouse or child". It also adds some pet care costs. The overall limit remains RM2,500, effective from year of assessment 2027.
Lifestyle relief already covers reading materials, personal computers, smartphones or tablets, and internet subscriptions, up to RM2,500 a year. The proposal adds AI subscriptions to that list rather than creating a separate allowance. If you already claim the full RM2,500 on a laptop and internet, an AI subscription adds nothing more.
The stated purpose is to encourage digital literacy and AI adoption. The document does not name products, so it does not say whether a particular chatbot, image tool or coding assistant qualifies. LHDN guidance after the Finance Bill is where that detail will appear.
Who can claim it, and who cannot?
Resident individuals claiming personal reliefs can claim it for their own subscriptions and those for a spouse or child. A company cannot use this relief. A business paying for AI tools treats them as a business expense under the normal rules, which is a separate question for its tax adviser.
If your employer pays for your subscription, you have not incurred the expense, so there is nothing for you to claim. If you pay personally for a tool you use only for your own business as a sole proprietor, ask your adviser whether to treat it as a business expense or a personal relief; the same cost should not be claimed twice.
Year of assessment 2027 for an individual covers income earned in calendar year 2027, which is filed in 2028. Subscriptions paid in 2026 are not covered by this proposal.
What records should you keep?
Keep the invoice or receipt for each subscription payment, in your own name, showing the provider, the amount in ringgit or its foreign currency equivalent, and the date. Monthly subscriptions produce twelve receipts a year, so set up a folder or email filter now rather than collecting them at filing time.
Many AI services bill in US dollars through a card. Your bank or card statement shows the ringgit amount actually charged; keep it with the provider's receipt so the two can be matched.
For a spouse or child, keep the receipts in the same place and note who uses the account. The relief is for personal use, so a shared team account paid for by a business does not belong here.
Should a business buy AI tools for its staff instead?
Often, yes. A business that standardises on one AI tool can control access, keep company data out of personal accounts and treat the cost as a business expense. Personal relief helps individuals; it does not replace a company policy on which tools staff use with customer data.
Under Malaysia's Personal Data Protection Act, a business remains responsible for customer data that staff paste into tools. A personal subscription is outside the company's control, which is a reason to provide an approved tool rather than rely on staff paying for their own.
Macoin builds AI chatbots and automation that run on a business's own documents, with access controls set by the business. If you are weighing a company-wide AI setup, our AI chatbot cost guide explains what drives the price.
Sources and further reading
Written by
Macoin Technologies
Software development team
Planning guides from Macoin Technologies Holdings Sdn Bhd in Puchong, Selangor. Our public portfolio includes membership apps, a merchant and customer platform, and an EV information website. Project scope and pricing are confirmed through a quotation.
FAQ
Related questions
No. The tax measures document says the lifestyle relief limit remains RM2,500 including the expanded scope, so AI subscriptions share it with books, devices and internet.