Budget 2022

Tax-Related Concession

  • Special voluntary Disclosure Programme by the Royal malaysian Customs Department (RMCD) to be introduced. Remission of penalty – 100% for Phase 1 and 50% for Phase 2.
  • No real property gains tax on disposal of chargeable assets by individuals, permanent residents and non-corporates from the sixth year of holding the property.

Tax Relief

  • Tax Relief for expenses to upskill increased from RM 1,000 to RM 2,000 until 2023. Those attend courses related to professional qualification programmes from Diploma to Degree level will be entitled tax relief of up to RM 7,000.
  • Personal relief for employees and tax deduction for employers on the cost of COVID-19 booster shots.
  • Personal relief for contributions to the Social Security Organisation (SOCSO) to be increased to RM 350.
  • Tax relief of RM 2,500 for the purchase of smartphones, computers and tablets to be extended to 31 DECEMBER 2022.
  • Tax relief on EPF contributions will be expanded to include voluntary contributors (self-employed) including pensionable government servants.
  • Tax relief of up to Rm 1,000 on medical check up expenses for self, spouse and child will be expanded to include examination costs and consultation services related to mental heath.
  • Special tax relief of up to Rm 1,000 on domestic tourism expenses will be extended for expenses incurred until 31 Dicember 2022.
  • Tax relief of up to RM 3,000 on child care centres and kindergardents fees will be extended for YA 2022 and 2023.
  • Tax relief of up to RM 3,000 on deferred annuity premium payments will be extended for another four (4) years untul YA 2025.
  • Tax relief of up to RM 2,500 will be given on expenses related to cost of installation, rental, purchasing including hire purchase of equipment or subscription fees for EV charging facilities.

Incentives and Reliefs Benefiting SMEs and SMPs

SMEs allowed to postpone income tax instalments for six months until 30 June 2022.

Companies will be given an option to submit a revision of income tax estimates in the eleventh (11th) month of the basis period before 31 October 2022.

Extension of Special Tax Deduction on Rental Reduction for Business premises will be extended for another six (6) months for rental reduction from January 2022 to June 2022.

The special tax deduction of up to RM 300,000 for renovation and refurbishment of business premises will be extended to 31 December 2022.

Extension of the carry-forward period for unabsorbed business losses, from seven years to 10 years.

Extension of the reinvestment allowance tax incentive for a further two years to 2024 for companies that have exhausted their existing reinvestment allowance period. 

The income tax rebate of up to RM 20,000 per Year of Assessment for the first three (3) years will be extended for new MSMEs established and commenced operations by 31 Dicember 2022.

Prosperity Tax “Cukai Makmur” on Non SMEs

A special one off tax of 33% on chargeable income exceeding RM 100 million will be levied on non SMEs in YA 2022.