In this article, we will explore the key elements of the 2024 budget and their implications for individual taxpayers. As an individual taxpayer, staying up to date on new tax laws and changes is essential to maximize your tax savings. The following are the key tax proposals that will come into effect from the
year of assessment (YA) 2024:
(1) Medical expenses on serious diseases – RM10,000
The scope of the tax
relief for medical treatment for taxpayers, spouses and children will be expanded to include up to RM1,000 of expenses for dental examination and treatment by dental practitioners registered with the Malaysian Dental Council.
(2) Expenses on medical treatment, special needs or carer expenses for parents – RM8,000
The scope of the tax relief for medical expenses for taxpayer’s parents will be expanded to include up to RM1,000 of expenses for parents' full medical
examination.
(3) Lifestyle relief –
RM2,500
The scope of the tax relief for lifestyle will be expanded to include fees for self-skills enhancement courses such as language courses, photography and sewing. Meanwhile, the purchase of sports equipment and gymnasium membership fees are removed from the scope of
lifestyle relief.
(4) Additional
lifestyle relief (Sports Equipment and Activities) – RM1,000
The tax relief for sports equipment and activities will be increased from RM500 to RM1,000. The scope of the tax relief will be expanded to include gym memberships and sports training fees imposed by registered sports associations/clubs/companies.
(5) Education fees (self) – RM7,000
Tax relief up to
RM2,000 for up-skilling and self-enhancement course fees will be extended until YA 2026.
(6) Expenses on charging facilities for Electric Vehicle (Not for business use) – RM2,500
Tax relief up to RM2,500 expended for electric vehicle (EV) charging facility will be extended until YA 2027.
(7)
Income tax exemption for childcare allowance
Income tax exemption for childcare allowance received by employees or paid directly by the employer will be increased from RM2,400 to RM3,000.
(8)
Income tax exemption on employment income for women returning to work
Women returning to work after a 2 years career break are eligible for tax exemption of employment income from YA 2025 to YA 2028, provided applications are received by Talent Corp between 1 January 2024 to 31 December 2027.
