Finance Minister announced adjustments to nine items of personal income tax during the announcement of the 2022 Budget. Some tax deductions were extended, some were expanded in coverage, and some were increased in amount.
In 2022, you can enjoy an additional RM2,500 tax deduction on the purchase of a personal computer, smartphone or tablet, so remember to keep your receipts when you buy these electronics. You can also continue to enjoy tax deductions of up to RM1,000 for local travel expenses.
In addition, taxpayers who purchase booster vaccines on their own will also receive a tax deduction to encourage people to receive them. Tax deductions for medical expenses are extended to mental health treatment, clinical psychologists and counselling. The tax deduction for personal education expenses has also been increased from RM1,000 to RM2,000.
In addition, taxpayers who send their children to a nursery or kindergarten are also entitled to a tax deduction of RM3,000. Part-time workers and self-employed individuals who contribute to their own EPF are also eligible for tax relief of up to RM4,000 per year. The social security tax credit for private sector employees has been increased from RM250 to RM350.
As a summary，
Income tax adjustment for year 2022
1. Additional RM2,500 (maximum) tax credit for the purchase of personal computers, smartphones and tablets
2. Tax credit for self-purchase of booster vaccines.
3. Tax deduction of up to RM1,000 for local travel expenses.
4. RM3,000 tax deduction for sending your child to a nursery or kindergarten, extended to 2022 and 2023.
5. Up to RM3,000 tax deduction for participation in a Private Retirement Scheme (PRS), extended to 2025
6. Up to RM8,000 medical fee deduction to be extended to mental health treatment, clinical psychologist and counselling.
7. Tax deduction for personal self-improvement education will be increased from RM1,000 to RM2,000.
8. Tax deduction of up to RM4,000 will be granted to part-time workers and self-employed persons for their EPF.
9. The social security tax deduction for private sector employees will be increased from RM250 to RM350.
