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Things To Buy Before 2020 Ends For Your Income Tax Relief Next Year

Things To Buy Before 2020 Ends For Your Income Tax Relief Next Year

Every penny counts.

Hakim Hassan

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In Budget 2021, the government has announced measures to reduce the monetary burden faced of the rakyat with tax reliefs and reductions.

READ MORE: Budget 2021 Passed After Final Reading In Parliament

It was previously announced that those with a chargeable income of RM50,001 to RM70,000 will see a tax reduction from 14% to 13%, which is expected to benefit 1.4 million taxpayers in the country.

The Finance Ministry has also announced tax relief measures for the year of assessment 2021 and they are:

Upgrade your lifestyle

Faisal Tehrani files application to review ban on books | Malaysia | Malay  Mail
Credit: Malay Mail

If you’re thinking of subscribing to an electronic newspaper outlet, now is the best time as it’s now included as a lifestyle relief.

The amount has also been increased from RM2,500 to RM3,000 with the extra RM500 for costs of purchasing sports, equipment, entry or rental fees for sports facilities and participation fees in sports competitions.

The lifestyle relief can also be claimed to buy books, journals, magazines, devices such as personal computers, smartphones, or tablets, internet and gym membership fees.

Get a new phone, or laptop, or tablet…

Malaysian man teaches alleged scammer a lesson by holding on to phone  conversation for more than an hour | Life | Malay Mail
Credit: Malay Mail

It’s time to get a new device.

In addition to the existing lifestyle relief, there’s also the new “special tax relief” where you can buy a smartphone, computer, or tablet with a limit of up to RM2,500 between 1 June 2020 to 31 December 2020.

Take care of your parents

Daughter caring for the elderly asian woman ,do selfie, happy, smiles in backyard. Premium Photo
Credit: Freepik

Expenses on medical treatment, special needs, or a carer incurred for one’s own parents certified by medical practitioner is now increased from RM5,000 to RM8,000.

Take care of your and your family’s health

Health Ministry: Malaysia temporarily halts use of two flu vaccines after  South Korea deaths | Malaysia | Malay Mail
Credit: Malay Mail

The medical expenses expenses for you, your spouse and children has been increased to RM8,000 (which check-ups of up to RM1,000) from RM6,000 (with check-ups of up to RM500).

It can be for serious diseases or the cost of fertility treatment and the scope of medical treatment has also been expanded to include expenses such as vaccination of up to RM1,000 for these illneses:

  • Pneumococcal
  • Human Papillomavirus (HPV)
  • Influenza
  • Rotavirus
  • Varicella
  • Meningococcal
  • TDAP combination (tetanus, diphtheria, acellular pertussis)
  • Covid-19.

Help the differently-abled

Low section of a woman pushing the man sitting on wheelchair Free Photo
Credit: Freepik

If you’re taking care of a disable spouse, the yearly tax relief now has been increased from RM3,500 to RM5,000.

Time for daycare

Credit: Malay Mail

The fees paid for kindergarten of child-care centres has now been increased to RM3,000 from RM2,000 for the year of assessment 2020 and 2021.

Go on a holiday, you deserve it

Penang asks Putrajaya for measures to safeguard tourism industry | Malaysia  | Malay Mail
Credit: Malay Mail

With the government allowing interstate travel and also the new relief of up to RM1,000, so why not cuti-cuti Malaysia?

The relief given on the following expenses incurred on local travelling from 1 March 2020 to 31 December 2021:

  • payment for accommodation at premises registered under the Tourism Industry Act 1992.
  • entrance fees to tourist attractions.

Treat yourself to a new skill

Study shows Covid-19 could devastate private universities as students delay  studies to brace for looming recession | Malaysia | Malay Mail
Credit: Malay Mail

If you want to change a job and you need to learn the skills to be in a new industry, the government has allowed relief of up to RM1,000.

The catch is, you need to attend the upskilling course at an institution that’s recognised by the Department of Skills Development, Ministry of Human Resources.

Save for your own future (retirement)

Asian couple senior walking on the beach holding hands.honeymoon family together happiness lifestyle.life after retirement.plan life insurance Premium Photo
Credit: Freepik

The RM3,000 yearly tax relief for the Private Retirement Scheme (PRS), which was supposed to end in 2021 will be extended until the year 2025 assessment, based on reports from The Star.

Based on reports, its proven to be effective in encouraging Malaysians to save more for retirement.

Save for your kid’s future

Budget 2021 | PTPTN hails tax exemption for SSPN deposits - Ptptn
Credit: Malay Mail

The government has also decided to extend the SSPN period to 2022, so that means you can still save up for your child’s future, while also get some tax reliefs.


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