BUDGET 2021 | The government has announced a slew of tax relief incentives under Budget 2021 including reducing the personal income tax rate by one percentage point, to 13 percent, for those earning RM50,001-RM70,000 annually.
Lifestyle relief tax has been increased from RM2,500 to RM3,000 - with the extra RM500 relief specifically for sports-related expenses including registering in competitions.
Digital news subscriptions are also covered by the lifestyle relief tax now.
The relief currently covers gym memberships, computer purchases, and internet subscriptions among others.
Meanwhile, the amount of tax relief for critical medical treatment will be increased to RM8,000.
This is applicable to two relief categories. The first being for self, spouse, and children, capped at RM6,000 previously.
The second category is for the medical treatment of parents which was capped at RM5,000 previously.
Tax relief of up to RM3,000 for private retirement schemes has also been extended to 2025.
Meanwhile, the government has also allocated RM1 billion for the fight against Covid-19.
In terms of health, to encourage people to obtain pneumococcal, influenza and Covid-19 vaccines, taxpayers will be given a RM1,000 tax relief.
The minister also said the government would increase the tax relief for disabled couples to RM5,000, up from RM3,500 presently.
On the same note, tax relief for employers who hire senior citizens has been extended until 2025.
This scheme was only supposed to cover the assessment year of 2019 and 2020. - Mkini
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