April 2022 is fast approaching. It is known as the busiest month for the Inland Revenue Board, Malaysia, as most individual taxpayers are trying to fulfil their obligation to pay their income tax for the year of assessment 2021, before the 30th April 2022 deadline. Despite of the challenging situation that Malaysia has been through in 2021 and 2022 due to Covid19, the government has put some initiatives in place, to lessen the burden of taxpayers by increasing the limits of healthcare-related income tax reliefs.
Effective for the year of assessment
2021, if you have incurred expenses for medical treatment, special needs and
career expenses for parents, you can claim tax relief of up to RM8,000 (previously
was RM5,000). Same goes for vaccination expenses - pneumococcal, HPV,
influenza, rotavirus, varicella, meningococcal, TDAP and Coronavirus
Disease2019, tax relief to be claim is RM8,000 (restricted). Medical treatment
expenses for serious diseases for taxpayer, the spouse and child has been
increased from RM6,000 to RM8,000, and the tax reliefs for medical check-up increased
from RM500 to RM1,000.
The Movement Control Order (MCO), announced
by the government forced most of the sectors to operate on the work from home
basis. While many businesses are facing difficulties, the computers and gadget
shops are seeing brisk sales with higher demand by employees and students. According
to Shopee Malaysia’s Senior Manager, Zed Li, the demand for consumer
electronics has increased threefold during the MCO. Thus, the government has
proposed that any expenses incurred to purchase a personal computer, smartphone
or tablet for one’s self, spouse or child for personal use, is entitled to claim
another RM2,500 under the lifestyle tax relief.
If you have incurred any of the above
expenses in 2021, do not forget to keep the receipts and claim for tax reliefs!!
Words by: Diyana Nazaruddin