Malaysia’s Budget 2025 brings exciting updates to tax reliefs, starting from January 2025 payroll. These changes impact the TP1 and TP3 forms, offering new opportunities for savings and support for taxpayers.
Here’s a summary of the key updates to help you navigate the changes:
1. Medical Treatment Expenses
What's New? Expanded to include self-test kits (COVID-19, influenza) and medical devices like glucometers and blood pressure monitors.
Important to Know: Expenses must be supported by official receipts, and the devices/tests must be verified.
Relief Cap: RM 1,000.
2. Lifestyle Relief for Sports and Physical Activities
What's New? Includes sports-related expenses for parents.
Relief Cap: RM 1,000.
3. Medical Treatment Expenses for Parents/Grandparents
What's New? Now includes expenses for grandparents, including vaccinations.
Relief Cap: RM 8,000.
4. Childcare Relief
Extension: This relief has been extended until 2027.
Relief Cap: RM 3,000 for registered childcare expenses.
5. SSPN Savings for Education
Extension: Extended to 2027, with specific conditions for net deposits.
Important to Know: Only one parent can claim this relief per family, and withdrawals are excluded.
6. Private Retirement Scheme (PRS)
Extension: Relief for PRS contributions has been extended until 2030.
7. Education and Medical Insurance
What's New? The relief limit has increased from RM 3,000 to RM 4,000.
8. EV and Food Waste Machine Relief
What's New? Includes purchases of food waste composting machines.
Claim Frequency: Once every three years.
Relief Cap: RM 2,500.
9. First Home Loan Interest Relief
Relief Limits: Based on property value:
RM 7,000 (for properties < RM 500,000).
RM 5,000 (for properties between RM 500,001 and RM 750,000).
Eligibility: Applicable for purchases made from 2025 to 2027, and only for first-time buyers.
10. Persons with Disabilities
What's New? Increased relief limits:
RM 7,000 for individuals.
RM 6,000 for spouses.
RM 8,000 for children.
Forms Update
To reflect these changes, please refer to the updated tax relief forms:
TP1: BORANG PCB/TP1 (1/2025)
TP3: BORANG PCB/TP3 (1/2025)
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