Tax Relief 2020 Malaysia
The prime minister announced that personal income tax relief in the amount of myr 1 000 on travel expenses incurred from 1 march 2020 to 31 august 2020 is to be extended to 31 december 2021.
Tax relief 2020 malaysia. 2019 2020 malaysian tax booklet. This booklet also incorporates in coloured italics the 2020 malaysian budget proposals announced on 11 october 2019 and the finance bill 2019. Amount rm 1.
These proposals will not become law until their enactment and may be amended in the course of their passage through parliament. This publication is a quick reference guide outlining malaysian tax information which is based on taxation laws and current practices. Kuala lumpur feb 27 malaysians will get incentives if they travel locally in the form of tax relief and discount vouchers as part of the 2020 economic stimulus package announced today.
Malaysia income tax deduction ya 2019 explained a tax deduction reduces the amount of your aggregate income which the sum of your total income for the year put together. Tax relief for fees paid to child care centres or kindergartens. The tax relief for childcare and kindergarten expenses has been increased from rm1 000 to rm2 000 in 2020.
Hence the tax relief is claimable by resident individuals for ya2020 and ya2021. According to the full booklet this individual income tax exemption will take effect from 1st july 2020. This is certainly welcomed.
Self and dependent special relief of rm2 000 will be given to tax payers earning on income of up to rm8 000 per month aggregate income of up to rm96 000 annually. Meanwhile there is also a special individual income tax relief of up to rm2 500 on the purchase of handphone laptops tablet which takes effect from 1st june 2020. 5 000 limited 3.
For income tax filing in the year 2020 ya 2019 you can deduct the following contributions from your aggregate income. This is also in line with the current efforts to increase the population in view of the rapidly ageing one in malaysia. Tax relief postponed deadlines coronavirus the malaysian inland revenue board issued a series of releases 20 25 march 2020 as well as a set of frequently asked questions faqs in relation to taxation matters in response to the coronavirus covid 19 pandemic.
From year of assessment 2020 not applicable for 2019 2018 2017 couples seeking fertility treatment such as in vitro fertilisation ivf intrauterine insemination iui or any other fertility treatment approved by a medical practitioner registered under the malaysian medical council mmc can also claim under this income tax relief in malaysia. Medical expenses for parents. Under the penjana recovery plan there will also be an increase in income tax relief for parents on childcare services expenses from rm2 000 to rm3 000.
Interim prime minister tun dr mahathir mohamad announced this initiative as part of a strategy to mitigate the impact of the covid 19 virus outbreak on the local tourism industry.
