Budget 2021

Tax Relief

SSPN savings

RM 8,000 tax relief on net annual savings in National Education Saving Scheme (Skim Simpanan Pendidikan Nasional “SSPN”) extended until 2022 to help parents save for their children’s higher education.

PRS contribution

RM 3,000 tax relief for contribution to Private Retirement Schemes (PRS) extended to YA 2025.

Tax Relief for disabled spouse

Tax relief for disabled spouse raised from RM 3,500 to RM 5,000.

Tax Relief for vaccination expenses

Up to RM 1,000 tax relief for vaccination expenses for diseases such as pneumococcal, influenza, Human Papillomavirus (HPV), Rotavirus, Varicella, Meningococcal, Combination of tetanus-diphtherua-acellular pertussis (Tdap) and Covid-19 for individuals, spouse and children.

Tax Relief for medical treatment for serious diseases

Tax Relief limit on medical treatment for serious diseases raised from RM6,000 to RM 8,000.

Tax relief on medical treatment, special needs and parental care

Tax relief limit on medical treatment, special needs and parental care raised from RM 5,000 to RM 8,000.

Tax Relief for medical check up

Tax relief limit on expenses for full medical check up raised from RM 500 to RM 1,000.

Lifestyle Relief

Lifestyle tax relief raised from RM 2,500 to RM 3,000. Expenditure allowed under Lifestyle relief include gymnasium memberhsip fee, purchase of reading materials, computer, smart phone or tablet, sports equipment and broadband internet subscriptions for self, spouse or child. The additional tax relief of RM 500 is for sport related expenses including cost of purchasing sports equipment, entry and rental fees for sports facilities and participation fees in sports competition. Sports attires including swim wear and sport shoes are excluded.

Subscription for e-paper is now entitled to claim for lifestyle tax relief.

Tax exemption for compensation for loss of employment

Tax exemption for compensation for loss of employment with the same employer or companies within the same group to raise from RM 10,000 to RM 20,000 for each completed year of service (effective YA 2020 and YA 2021).

Tax relief for technical education fees

Tax relief for technical education fees of RM 7,000 per year to include RM1,000 for up-skilling and self-enhancement courses in fields of study recognised by the Department of skills Development, Ministry of Human Resources for YA 2021 and YA 2022.

Tax Rate for Resident Individual

Tax rate for resident individuals with chargeable income between RM50,001 to RM 70,000 reduce 1% from 14% to 13% effective YA2021.

Stamp Duty Exemption

Stamp duty exemption on the first RM 500,000 of dutiable value in respect of the first residential property purchased by a Malaysian citizens – exemption is on instrument of transfer and loan agreement. Applicable for Sale and Purchase Agreement (SPA) executed from 1 January 2021 to 31 December 2025.

Corporate Tax

Further tax deduction on the remuneration of senior citizens, ex-convicts, parolees, supervised persons and ex-drug dependents employed in a full time capacity being extended to YA 2025. Monthly remuneration of these employees cannot exceed RM 4,000.