Million Payroll RELEASE NOTE (JAN2021)
- REVIEW OF INCOME TAX RATES
Tax rates be reduced by 1% for chargeable income band from RM RM50,001 to RM 70,000. The comparison of the tax rates is as follows:
| P (RM) | M (RM) | R(%) | B | B |
| Category 1 & 3 (RM) | Category 2 (RM) | |||
| 5,001 . 20,000 | 5,000 | 1 | -400 | -800 |
| 20,001 - 35,000 | 20,000 | 3 | -250 | -650 |
| 35,001 ・ 50,000 | 35,000 | 8 | 600 | 600 |
| 50,001 - 70,000 | 50,000 | 13 | 1,800 | 1,800 |
| 70,001 -100,000 | 70,000 | 21 | 4,400 | 4,400 |
| 100,001 -250,000 | 100,000 | 24 | 10,700 | 10,700 |
| 250,001 -400,000 | 250,000 | 24.5 | 46,700 | 46,700 |
| 400,001 - 600,000 | 400,000 | 25 | 83,450 | 83,450 |
| 600,001 -1,000,000 | 600,000 | 26 | 133,450 | 133,450 |
| 1,000,001 -2,000,000 | 1,000,000 | 28 | 237,450 | 237,450 |
| Exceeding 2,000,000 | 2,000,000 | 30 | 517,450 | 517,450 |
2. INCREASE IN DISABLED SPOUSE RELIEF
Additional tax relief limit for disabled spouse be increased from RM3,500 to RM5,000.
3. INCREASE OF TAX RELIEF ON MEDICAL TREATMENT, SPECIAL NEEDS AND CARER EXPENSES FOR PARENTS
Income tax relief for medical treatment, special needs and carer expenses for parents of up to RM5,000 be increased to up to RM8,000.
4. REVIEW OF TAX RELIEF ON MEDICAL EXPENSES FOR SERIOUS DISEASES
It is proposed that the income tax relief on medical expenses for serious diseases and fertility treatment for taxpayer and spouse be increased to RM8,000 and complete medical examination expenses for self, spouse or child be increased from up to RM500 to up to RM1,000.
It is further proposed that the scope of income tax relief on medical treatment expenses be expanded to include vaccination expenses up to RM1,000 for taxpayer, spouse and child.
5. ADDITIONAL TAX RELIEF FOR PURCHASE OF SPORTS EQUIPMENT, RENTAL/ENTRY FEES FOR SPORTS FACILITIES AND REGISTRATION FEES IN SPORTS COMPETITION.
An additional relief limited to RM500 be given to a resident individual taxpayer for taxpayer's own use or for the use of the spouse or child .
6. INCREASE OF TAX RELIEF FOR CHILD CARE FEES PAID TO A REGISTERED CHILD CARE CENTRES / KINDERGARTENS FOR A CHILD AGED 6 YEARS AND BELOW
Income tax relief for fees paid to child care centres and kindergartens be increased from RM2.000 to RM3,000.
7. TAX RELIEF FOR DOMESTIC TOURISM EXPENDITURE
Tax relief of up to RM1,000 be given to a resident taxpayer for payment of the following expenditure made on or after 1 March 2020 but no later than 31 December 2021:
(a) Premises must be registered with Commissioner of Tourism Malaysia
(b) Entrance fees to tourist attraction centre