purchases made in certain categories in 2022 will be tax deductible in 2023.
2022’s first half is coming to a close. How are things going with your 2022 financial planning? Tax deductions have undergone nine modifications for the 2022 tax year, and you will be able to take advantage of them when you file your tax return the following year if you spend money in specified categories.
In 2022, the government will change nine individual income tax items. Some tax relief programmes are raised in relief amount while others are expanded in duration.
In 2022, you can claim an additional tax deduction of RM2,500 if you buy a PC, smartphone, or tablet; keep your receipts for these electronic purchases. Tax breaks of up to RM1,000 will also be available for local travel expenses.
Furthermore, in order to encourage people to receive booster vaccines, taxpayers who purchase booster vaccines themselves can benefit from tax relief. Mental health treatment, clinical psychologists, and counselling are now eligible for tax relief on medical bills. Personal education tax relief has also been increased from RM1,000 to RM2,000.
Furthermore, taxpayers who send their children to nurseries or kindergartens are eligible for an RM3,000 tax deduction. Individuals in the gig economy and self-employment can also benefit from tax breaks of up to RM4,000 per year after self-contribution to EPF. The social security tax relief for employees in the private sector has been increased from RM250 to RM350.
Modifications to the 2022 Income Tax Deduction Program
1. An additional RM2,500 (maximum) tax relief for the purchase of personal computers, smartphones, and tablets.
2. Tax relief are available for purchasing booster vaccines on your own.
3. Tax exemption of up to RM1,000 for domestic travel expenses.
4. A RM3,000 tax exemption for sending a child to a nursery or kindergarten will be extended until 2022 and 2023.
5. Those who participate in a Private Retirement Scheme (PRS) can benefit from tax relief of up to RM3,000, which has been extended until 2025.
6. Mental health care, clinical psychology, and counselling consultation would all be exempt from medical fees up to RM8,000.
7. The RM1,000 tax credit for personal self-improvement education costs has been enhanced to RM2,000.
8. Self-employed and gig economy workers are eligible for a tax credit of up to RM4,000 for self-contributions to the EPF.
9. The tax credit for private sector workers who enrol in social insurance has increased from RM250 to RM350.
