RM7,000 tax relief on first homes costing up to RM500,000

 

The federal budget includes a proposal for tax relief on interest payments for first homes costing up to RM750,000. (Bernama pic)

KUALA LUMPUR: 

The government proposed to provide income tax relief of RM7,000 on loan interest payments for first homes costing up to RM500,000 has been proposed for homes bought between Jan 1 this year and Dec 31, 2027.

First homes costing between RM500,000 and RM750,000 stand to gain tax relief of RM5,000, the finance ministry said in an appendix to the federal budget.

The tax relief is subject to the condition that the residential house is not used to generate any income, and is allowed for three consecutive assessment years, starting from the first year housing loan interest is paid, the finance ministry said.

Two or more persons are eligible to claim the tax relief for the same house, based on sharing of interest payments. - FMT