(Tax Update) Malaysia Budget 2025: Key Tax Updates & Reliefs for Individuals | KTP Tax Advisory

(Tax Update) Malaysia Budget 2025: Key Tax Updates & Reliefs for Individuals | KTP Tax Advisory

In this video, KTP (www.ktp.com.my) dives into the major highlights of Malaysia's Budget 2025, especially focusing on updates that will impact individual taxpayers.

From new dividend tax regulations and foreign income exemptions to expanded reliefs for child and elderly care, we break down everything you need to know in simple terms.

Key Highlights Covered :

1. Dividend Tax on Individual Shareholders

A 2% tax rate on annual dividend income above RM100,000, with exemptions for certain funds like KWSP and LTAT.

2. Foreign Source Income (FSI)

Extended tax exemption on FSI received in Malaysia, as long as it’s taxed at the source country, valid until December 2036.

3. Expanded Child and Elderly Care Allowances

Up to RM3,000 exemption for child and elderly care, providing additional support for taxpayers.

4. Medical Expenses Reliefs

Expanded coverage for mental health consultations, self-test kits, diagnostic tests, and rehabilitation treatments for children with learning disabilities, with increased limits.

5. Disability Benefits

Higher relief amounts for disabled individuals and their families.

6. Reliefs on Elderly Care and Sports Activities

Expanded to include elderly care expenses and sports activities for parents and grandparents.

7. Deferred Annuity and PRS

Extended relief for deferred annuities and Private Retirement Schemes until YA 2030.

8. Education and Medical Insurance

Increased limit from RM3,000 to RM4,000 for education and medical insurance.

9. Housing Loan Interest Relief

Tiered relief for first-time home buyers, with specific conditions based on home value.

10. Electric Vehicle and Eco-Friendly Expenses

Relief for EV charging facilities and food waste composting machines to promote sustainable living.

These updates are effective from YA 2025, helping individuals and families optimize tax reliefs in areas like healthcare, elderly care, education, and environmental sustainability. Watch to stay informed and understand how Budget 2025 can impact you.

YouTube Video
Watch our Budget 2025 Webinar for Individuals on YouTube : https://youtu.be/MY9NtYHgOMU

Past Update on Budget 2025

  • Dividend Income : https://www.ktp.com.my/blog/2percent-tax-dividend-income-above-rm100k/17oct2024

  • HR : https://www.ktp.com.my/blog/malaysia-budget-2025-hr/23oct2024

  • Companies : https://www.ktp.com.my/blog/malaysia-budget-2025-companies/24oct2024

  • Individual : https://www.ktp.com.my/blog/malaysia-budget-2025-individual/25oct2024

  • Tax Incentives : https://www.ktp.com.my/blog/malaysia-budget-2025-new-tax-incentives/30oct2024

  • Indirect Tax : https://www.ktp.com.my/blog/malaysia-budget-2025-indirect-tax/1nov2024

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