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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.
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
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…
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
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
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:
- Human Papillomavirus (HPV)
- TDAP combination (tetanus, diphtheria, acellular pertussis)
Help the differently-abled
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
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
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
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)
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
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.
Unkempt in both stories and appearance, Hakim loves tech but tech left him on read, previously he used to write about tall buildings and unoccupied spaces that he can't afford, and legend has it that he still can't afford it to this day