KUALA LUMPUR – The Finance Bill 2020 that encompasses tax breaks to soften the Covid-19 impact under the 2021 Budget has been passed by the Dewan Rakyat, today.
The bill, which amends the Income Tax Act, allows for higher tax deductions for those undertaking reskilling courses, and for the purchase of smartphones and computers, as well as for Covid-19 vaccinations, was tabled by Deputy Finance Minister II Mohd Shahar Abdullah (BN-Paya Besar) and passed via a voice vote.
The amendments under Section 46(1)(f) of the Income Tax Act (ITA) include those undertaking any upskilling tertiary courses, including those related to Master’s or doctorate degrees, will be eligible for deductions of between RM1,000 and RM7,000 for the assessment periods 2021 and 2022.
Another amendment under Section 46(1)(g) of the ITA would see those obtaining vaccinations for themselves, or their spouses and children, entitled to a RM1,000 tax deduction for the assessment years of 2021 and 2022.
This covers vaccinations such as pneumococcal, human papillomavirus (HPV), influenza, rotavirus and Covid-19.
Deductions on medical expenses for serious diseases are also increased from RM6,000 to RM8,000.
Tax breaks of RM2,500 under Section 46(1)(p) of the ITA were also provided for the purchase of personal computers, smartphones or tablets for personal use made between June 1 and December 31 this year.
The purchase of sports equipment up to RM500 will also be provided a tax break between 2021 and 2022. – The Vibes, December 16, 2020
Tax breaks for Covid-19 under Budget 2021 passed
Amendments allow deductions for vaccinations, reskilling courses, as well as smartphones and computer purchases
Updated 5 years ago · Published on 16 Dec 2020 2:18PM
