2007 Malaysia Personal income tax relief
Below are the highlight for 2007 Malaysia budget on personal income. Note that the major changes is personal computer relief.
- In recognition of the importance of the use of technology, individuals will be given tax relief of RM3,000 once every 3 years for the purchase of a personal computer. (Prior to this, a rebate of RM500 was given once in 5 years instead).
- The annual tax relief on the purchase of books, journals, magazines, etc, has been increased from RM700 to RM1,000.
- The tax exemption on the provision of 3 leave passages within Malaysia has been extended to cover the provision of food and accommodation. Previously, an individual was only exempt from being taxed on the benefit of the air-fare or travel cost.
- An income tax exemption of upto RM1,000 will be given in relation to long service awards for employees who have worked with the same employer for more than 10 years.
- Employees will be exempted from tax (i.e. to the extent of RM 6,000 for a completed year of service) in respect of payments received pursuant to a voluntary separation scheme (i.e. a scheme whereby the employee is given an option toterminate the employment contract), subject to certain conditions.
- The scope of tax relief of RM5,000 for further education has been extended to include Islamic financing courses in line with the Government’s focus in this area.
- The tax exemption for seafarers has been extended to include the income of an individual working on a foreign ship operated by a resident shipping company.
