Finance Minister Tengku Zafrul presented the 2022 Budget in Parliament on October 29. In the 2022 Budget, the Finance Minister announced a number of tax-related items, here you can take a look.
Tax-related items in Budget 2022
1. Malaysian citizens or permanent residents will be exempted from paying the Real Property Profit Tax (RPGT) when they divest their properties held for more than 6 years.
2. The government increases the tax on sugary drinks from 40 sen per liter to 47 sen per liter and the scope of sugary drinks will be extended to include chocolate, cocoa malt, coffee and tea blended drinks.
3. The Government extends the Sales Tax Exemption (SST) on car purchases until June 30, 2022.
4. The purchase of a smartphone, personal computer or tablet will continue to be eligible for an additional RM2500 personal income tax credit until December 31, 2022.
5. Citizens can enjoy up to RM2500 personal income tax deduction for the purchase of electric vehicles, as well as exemption from import duty, excess tax and road tax.
6. Sales tax must be paid on low-cost goods purchased online from abroad or by air.
7. Mailing services provided by online platforms are subject to Service Tax.
8. The government introduced the Tax Identification Number (TIN) measure, which will require you to provide your TIN when opening a bank account or buying a car.
9. Theme parks and movie theaters are exempt from entertainment tax.
10. Organizers engaged in cultural arts and sports and leisure activities will be granted personal tax relief.
11. Tourism industry is exempted from tourism tax until 31 December 2022.
12. To encourage the development of e-sports and young talents in Malaysia, prize money won by Malaysian e-sports players will be exempted from taxation.
13. All e-commerce platforms will be subject to service tax, except for those providing takeaway and logistics services.
14. Businesses that collect more than RM100 million in revenue will be subjected to a prosperity tax (Cukai Makmur) of 24% on the first RM100 million and 33% on subsequent revenues.
15. Individuals or employers who purchase their own booster vaccines are entitled to tax relief.
16. Self-employed individuals who contribute to their own provident fund are entitled to RM4000 tax deduction.
17. RM3000 tax credit for sending children to child care centers, extended to 2023.
18. Tax on e-cigarette liquids containing nicotine.
