1 week passed in 2022! Have you started financial planning for your 2022 yet? There are 9 changes to tax deductions for the 2022 tax year, and you will be able to get tax deductions when you file your tax return next year when you spend in certain areas.
The government will adjust nine policies of personal income tax in 2022. Some tax relief programs are extended, and some are increased in the amount of relief.
You can enjoy an additional tax deduction of RM2,500 on the purchase of a PC, smartphone, or tablet in 2022, remember to keep the receipts for these electronic purchases. Tax deductions of up to RM1,000 will also continue to be available for local travel expenses.
In addition, to encourage people to receive booster vaccines, taxpayers who purchase booster vaccines themselves can also enjoy tax relief. Tax relief on medical bills extends to mental health treatment, clinical psychologists, and counseling. Tax relief for personal education expenses has also been increased from RM1,000 to RM2,000.
In addition, taxpayers who send their children to nurseries or kindergartens are also entitled to a tax deduction of RM3,000. The gig economy and self-employed individuals can also enjoy tax relief of up to RM4,000 per annum after self-contribution to EPF. The social security tax relief for private-sector employees has been increased from RM250 to RM350.
9 Changes to the 2022 Income Tax Deduction Program
1. Additional tax relief of RM2,500 (maximum) for purchase of personal computers, smartphones, and tablets.
2. Tax deductions are available for self-purchasing booster vaccines.
3. Tax relief of up to RM1,000 for local travel expenses.
4. A tax relief of RM3,000 for sending a child to a nursery or kindergarten will be extended to 2022 and 2023.
5. Participating in a Private Retirement Scheme (PRS) can enjoy tax relief of up to RM3,000, which is extended until 2025.
6. Medical fee waiver of up to RM8,000 will be extended to mental health treatment, clinical psychologist, and counseling consultation.
7. Tax relief for personal self-improvement education fees increased from RM1,000 to RM2,000.
8. Gig economy and self-employed individuals can enjoy tax relief of up to RM4,000 for self-contribution to EPF.
9. Tax relief for employees in the private sector who take out social insurance has been increased from RM250 to RM350.
