The first half of 2022 is coming to an end! How are you doing with your financial planning for 2022, when nine tax deductions have been changed for the 2022 tax year and you will receive a tax deduction on your tax return next year for spending in certain areas?
The government is making changes to nine personal income tax items in 2022. Some tax deductions will be extended, some will be expanded, and some will increase the amount of the deduction.
You can enjoy an additional RM2,500 tax deduction for the purchase of a personal computer, smartphone or tablet in 2022, so remember to keep your receipts when purchasing these electronics. You can also continue to enjoy a tax deduction of up to RM1,000 for local travel expenses.
In addition, taxpayers who purchase their own booster vaccines are also entitled to a tax deduction in order to encourage people to receive booster vaccinations. The tax deduction for medical expenses is extended to mental health treatment, clinical psychologists and counselling. The tax deduction for personal education expenses was also increased from RM1,000 to RM2,000.
In addition, taxpayers who send their children to a nursery or kindergarten are also entitled to a RM3,000 tax credit. Tax relief of up to RM4,000 per annum is also available for part-time workers and self-employed persons who have contributed to their own provident fund. The social insurance tax credit for private sector employees has been increased from RM250 to RM350.
Changes to the income tax deductions for the tax year 2022
1. An additional RM2,500 (maximum) tax credit for the purchase of personal computers, smartphones and tablets.
2. Tax deduction for self-purchase of booster vaccines. 3.
3. Up to RM1,000 tax deduction 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. Medical fee waiver of up to RM8,000 will 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 relief of up to RM4,000 for self-paid provident fund for part-time workers and self-employed persons.
9. Tax relief for private sector employees on social insurance from RM250 to RM350.
