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Budget 2022 highlights

budget 2022 highlights

EPF

  • Increase tax relief up to RM4,000 for EPF contributors to cover voluntary contributions
  • Minimum employee EPF contribution rate reduction from 11% to 9% to be extended up to June 2022

SOCSO

  • Increase the salary ceiling of the insured from RM4,000 to RM5,000 to improve social security coverage for 9 million workers covered by SOCSO
  • Increase the tax relief limit from RM250 to RM350 and the scope of relief for SOCSO contributions to be expanded to cover employee contributions through the Employment Insurance System

Personal Income Tax

  • Increase tax relief for expenses in attending reskilling and upskilling courses from RM1,000 to RM2,000 until 2023
  • Increase tax relief up to RM7,000 for course fees with any approved professional body
  • Expand the scope of individual income tax relief for mental health related expenses effective from 2022
  • Extend the special individual income tax relief of up to RM2,500 on the purchase of mobile phones, computers and tablets until 31 December 2022
  • Extension of individual income tax relief up to RM3,000 for payment of nursery and kindergarten fees until the year of assessment 2023
  • Special individual income tax relief for domestic tourism expenses up to RM1,000 be extended until year of assessment 2022.

Business Income Tax

  • Tax identification numbers (TIN) will be implemented from 2022 to broaden the income tax base
  • New tax named “Cukai Makmur” – for companies with chargeable income up to the first RM100 million will be subjected to income tax at a rate of 24% while the remaining chargeable income will be subject to income tax at the rate of 33% for the year of assessment 2022

RPGT

Real Properties Gains Tax will no longer be imposed on sale of properties from the sixth year of ownership onwards.
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