New Additions: Income Tax Relief for The Year of Assessment 2020
It’s tax season again! With the year 2020 being a challenging one, we’re sure tax reliefs would be much welcomed. To assist taxpayers and help boost the economy during these unprecedented times, the government has extended or introduced new tax reliefs for the year of assessment 2020.
Here’s a list of the changes in tax reliefs to take note of:
Education fees: The amount remains the same at RM7,000. However, the scope of relief has expanded to include any courses undertaken for upskilling or self-enhancement, up to RM1,000. Do note that the course must be recognised by the Director-General of Skills Development under the National Skills Development Act 2006. Hence, be sure to check with the respective course providers.
Private Retirement Scheme: Time to increase your savings for more tax relief as the contribution to the Private Retirement Scheme of up to RM3,000 has been extended for another four years of assessments until 2025.
Spouse & Children
The tax relief for a disabled spouse has been increased from RM3,500 to RM5,000.
Good news for parents of little ones! Child care fees for children ages six and below have now been increased to RM3,000.
Tax relief for deposits made in the Skim Simpanan Pendidikan Nasional (SSPN) up to RM8,000 will be extended until 2022.
Under the medical expenses for serious diseases, tax relief has now been increased to RM8,000. The scope of this relief has also been expanded to include:
Medical examination for self, spouse of children up to RM1,000.
Expenses for vaccination for self, spouse of children up to RM1,000.
Medical treatment, special needs and carer expenses for parents have been increased from RM5,000 to RM8,000.
Fans of e-newspapers will be glad to know that it is now included in the RM2,500 tax relief for reading materials, personal devices and monthly internet subscription.
It's a good time to work on that new year's resolution to get fit! There is RM500 tax relief for the purchase of sports equipment, entry fees for sports facilities and even registration fees for sports competition.
Travellers are entitled to an RM1,000 tax relief on all domestic travel payment made from March 1st to December 31st,2020, provided the premise is registered Commissioner of Tourism Malaysia. Take this opportunity to visit different parts of our beautiful country and help boost the local economy.
A little planning will help you save hundreds or thousands in the coming year of assessments as quite a few reliefs have been extended. Take advantage of these, and that luxury domestic holiday or a big-ticket item you've been saving for might just be closer than you think.