KUALA LUMPUR – With just over a month left for individuals to file their income tax, it is worth taking note of several new reliefs offered by the Inland Revenue Board (IRB) for 2021 assessments.
Among these new exemptions are reliefs of up to RM1,000 for money spent on Covid-19 tests; both self-tests and those conducted at a health facility, and an additional RM1,000 in relief on vaccinations including Covid-19 vaccines.
These were among several other new initiatives as contained within the Income Tax Act 1967 amendments, which were introduced by Deputy Finance Minister I Datuk Mohd Shahar Abdullah when tabling them in Parliament last December.
It is understood that those seeking to claim tax refunds for Covid-19 tests, whether for RTK-Antigen or PCR, must include receipts from the clinic or pharmacies as evidence of payment.
In total, exemptions for medical expenditures amount to RM8,000, with the remaining RM6,000 covering costs of general individual medical expenses, those for their spouse and children, including costs for fertility treatment.
Other exemptions to look forward to is the RM2,500 in tax relief for lifestyle expenses, which applies to purchases of smart gadgets or personal computers, internet subscription bills, sports equipment and gym subscriptions, and subscriptions of physical and electronic reading materials.
There is also an additional RM2,500 in tax relief for tech gadgets, as many shift to working from home, which is applicable in addition to the lifestyle exemptions.
An additional RM500 in exemptions will also be offered as extra lifestyle relief, which covers purchases of sports equipment, payment of rental or entrance fees into sports facilities, or for registration fees for sporting competitions held by organisers licensed by the Commissioner of Sports under the Sport Development Act 1997.
The IRB will also allow up to RM7,000 in individual tax relief for educational expenditures, which applies to fees for undergraduate to doctorate level courses.
These include a RM1,000 tax relief for anyone taking up courses for the purpose of up-skilling or self-enhancement, for skills recognised by the director-general of skills development under the National Skills Development Act 2006.
Another RM1,000 in relief will be given for domestic travel expenditures for stays at hotels registered under the Ministry of Tourism, Culture, and Arts, with the exemption offered until the end of this year pending an extension.
For those with children studying, they can apply for up to RM8,000 in exemptions for each child pursuing tertiary education at local or overseas institutions approved by the government.
Automatically, every individual is given a RM9,000 tax relief listed as individual relief as part of the government’s attempt to ease the burden of the people.
A full list of IRB’s individual tax exemptions for the 2021 year of assessment is available here. – The Vibes, February 16, 2022
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