COVID-19 Special Tax Relief for Individuals

Due to the pandemic crisis, the government has announced several measures to lessen the burden of people and this include some new personal tax reliefs, as well as increases in some existing ones.

Work from home (WFH) folks you've been spot on, and you must know this new tax relief category. Keep reading!!!

1. Special Tax Relief (for YA2020 only)

   To support employees under work from home arrangements, a special tax relief of up to RM2,500 is available to resident individuals for the purchase of a smartphone, notebook, or tablet from 1 June 2020 to 31 December 2020

   
   

   [Remark] The above is on ADDITION to the existing “lifestyle relief” of RM2,500 whereby the cost of purchasing a handphone, notebook, or tablet is claimable by resident individuals as part of the “lifestyle relief.”

   
   

   
   
2. Tax Relief on Domestic Travel Expenses

   
   

   A personal tax relief of up to RM1,000 is given to resident individuals for the following domestic travel expenses incurred from 1 March 2020 to 31 August 2020 extended to 31 December 2021. Meaning, the tax relief is claimable by resident individuals for YA2020 and YA2021.

   
   

   (i) accommodation expenses at premises registered with the Ministry of Tourism, Arts and Culture Malaysia; and

   
   

   (ii) entrance fees to tourist attractions (these are yet to defined).
   
   
   
3. Real Property Gains Tax (RPGT) Exemption for Disposal of Residential Properties
   
   
   Exemption of real property gains tax for disposal of up to three (3) units of residential homes by an individual from 1 June 2020 to 31 December 2021.

   
   

   However, the residential properties should not have been acquired during the exemption period under a no gain, no loss transaction.
   
   

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