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PCB Calculation for Year 2021 (Budget 2021 Summary)

a. Income Tax rates for resident individual taxpayer be reduced by 1% for chargeable income band from RM50,001 to RM70,000. The comparison of the tax rates is as follows:

b. However, the income tax rates for non-resident individual taxpayer is remain the same.

c. Income tax relief limit for disabled spouse to be increased from RM3500 to RM5000.

d. Income tax relief limit for medical treatment, special needs and carer expenses for parents of up to RM5000 to be increased to up to RM8000.

e. Income tax relief limit for Upskill Course Fees (Self) is newly announced and limited to RM1000. This amount constitutes part of the existing tax relief limit for Higher Education Fees (Self) of RM7000.

f. Income tax relief limit for medical expenses on serious diseases and fertility treatment to be increased from RM6000 to RM8000 and complete medical examination expenses for self, spouse or child to be increased from up to RM500 to RM1000. It is further be expanded to include vaccination expenses up to RM1000 for taxpayer, spouse and child.

g. Income tax relief limit for sports expenditure is newly announced and limited to RM500 for taxpayer’s own use or for the use of the spouse or child. This is allowed to claim in additional to the existing lifestyle relief provided that the total amount claimed under this relief has not been claimed under the existing lifestyle tax relief.

h. Income tax relief limit for fees paid to child care centres and kindergartens to be increased form RM2000 to RM3000.

i. Income tax relief limit for domestic tourism expenditure is newly announced and limited to RM1000.