Finance Minister Tengku Zafrul announced nine changes to personal income tax items during the announcement of the 2022 Budget. Some tax relief programs are extended, some are expanded in coverage, and some are increased in amount.
You can enjoy an additional RM2,500 tax deduction for the purchase of a PC, smartphone or tablet in 2022, so remember to keep your receipts when purchasing these electronic products. 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 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 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 who take out social insurance is increased from RM250 to RM350.
