Covid detection tests among tax-exempted items for individuals this year

The IRB has provided tax relief for Covid-19 detection test and vaccination expenses for self, spouses and children in the 2021 tax relief assessment

by ANIS HAZIM / pic by BERNAMA

THE tax season is looming and the government has rolled out various initiatives and tax exemptions for individuals this year.

For Malaysians who are earning RM34,000 annually for the Year of Assessment 2021, there are several tax exempted items from education to medical that will lower your tax rate.

Notably, the Inland Revenue Board of Malaysia (IRB) has provided tax relief for Covid-19 detection test and vaccination expenses for self, spouses and children in the 2021 tax relief assessment.

IRB in its website said that an individual can be eligible for a tax exemption of up to RM1,000.

Similarly, you can claim up to RM1,000 for vaccination expenses for self, spouse and child.

Types of vaccine which qualify for deduction include Covid-19, pneumococcal, human papillomavirus (HPV), influenza, rotavirus, varicella, meningococcal and TDAP combination (tetanus-diphtheria-acellular-pertussis).

Another tax exemption up to RM1,000 is for payment for accommodation at premises registered with the Commissioner of Tourism and entrance fee to a tourist attraction.

This is for expenses incurred on or after March 1, 2020, until Dec 31, 2021.

Registered accommodation premises can be checked through http://www.motac.gov.my/en/check/registered-hotel.

The government is also providing RM2,500 tax-relief for purchases of lifestyle equipment for personal use by yourself, your spouse or children.

Items include reading materials, personal computer, smartphone or tablet, gym memberships or sports equipment and Internet bills under your own name.

You can also get up to RM3,000 tax relief for payment for childcare fees to a registered child care centre/kindergarten for a child aged six years and below.

However, this deduction can only be claimed by either the child’s mother or father, should the parents choose to file separately.

Fees incurred on courses undertaken for the purpose of upskilling or self-enhancement conducted by a recognised body, will also get RM1,000 tax relief.

Meanwhile, contributions made to the social security organisation under the Employees’ Social Security Act 1969 are deductible up to a maximum of RM350.

The relief has been extended to include contributions under the Employment Insurance System Act 2017.

For those who have not registered in the IRB e-filing form, you will get a tax deduction of RM9,000 simply by filling in the form.