It’s personal income tax season again! If you earn more than RM34,000 per year () in Malaysia, then you have to file your income tax with LHDN.
Take note that you need to file your income tax form for the assessment year of 2022 by 30 April 2023 (for manual BE form) or by 15 May 2023 (for online e-BE form)
Domestic travel expenses: Up to RM1,000
The domestic travel income tax relief allows you to claim up to RM1,000 in personal tax relief for travel expenses. To the delight of many, this special tax benefit has been extended to December 2022. So, there’s plenty of time to plan for a quick getaway.
What’s claimable under this relief? Your domestic flight, accommodation, train tickets, and even entrance fees to tourist attractions!
A quick note: Accommodation only applies if you stay at one of the many hotels registered with the Ministry of Tourism, Arts, and Culture Malaysia*.
Self-Enhancement and Upskilling: Up to RM7,000
The tax relief for self-enhancement and upskilling courses was bumped up from RM1,000 to RM2,000 and will be extended until 2023.
There’s also good news for those in the accounting, finance, and Environmental Social and Governance (ESG) industries. You are entitled to claim a total of RM7,000 for professional courses in these areas. It’s best to take advantage of this tax relief soon as it is slated to end in 2022.
Full medical check-up expenses: Up to RM1,000
The existing tax relief for medical check-up expenses of RM1,000 now includes mental health examination costs or consultation services. It’s also worth noting that this tax benefit applies to you, your spouse, and your child.
Just be sure that your checkup or consultation is from a registered psychiatrist, clinical psychologist, or counsellor if you want to claim this specific tax relief.
Smartphone, computer and tablet purchases: Up to RM2,500
Malaysia is, once again, extending the ongoing special tax relief for the purchase of phones, computers, and tablets until December 2022. This tax relief is separate from the existing one for lifestyle purchases, and each is set at RM2,500.
SOCSO contributions: RM350
If you are a regular SOCSO contributor, you can now claim personal income tax relief of RM350. Previously, this personal tax relief limit was capped at RM250.
To provide relief for the private sector employees who contribute to the nation’s social security protection scheme, the government has effectively increased the SOCSO tax relief limit.
Additionally, the scope of this tax benefit now includes employees’ contributions through the Employment Insurance System in Malaysia.
Other personal tax reliefs
Besides all the personal income tax reliefs mentioned above, you are also entitled to several other tax benefits in Malaysia. Here are some of the other exciting financial perks you can enjoy in 2022:
Expansion of tax relief on EPF Contributions – up to RM4,000; to include voluntary contributors and pensionable government servants
Tax relief on PRS contribution – up to RM3,000 until the year of assessment 2025.
Extension of tax relief for childcare centres and kindergartens fees – up to RM3,000; extended to YAs 2022 and 2023.
Extension of tax relief for deferred annuity premium payments – up to RM3,000; extended until YA 2025.
Extension of a special income tax rate for non-residents (C-suite level) relocating to Malaysia – 15%; extended for applicants received by MIDA until 31 December 2022.
Tax exemption on recognised e-Sports tournament prize money.
Tax relief on expenses for EV Charging Facilities – up to RM2,500.
Review of Real Property Gains Tax (“RPGT”) rate for individuals, permanent residents and other than companies – reduced from 5% to 0%.
The Coverage Malaysia