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Don’t Miss Out On These Important Year-End Tax Tips Before 31 December 2022
2022 year end tax tips

16 December 2022

1. MAXIMISE DONATION TO APPROVED ORGANISATION

Consider donating to a Government approved organisation to maximise the 10% tax deductibility of aggregate income.

 

2. DOMESTIC TOURISM EXPENSES

Individual taxpayers are eligible for tax relief of up to RM1,000 made from 1 January 2022 to 31 December 2022 if you stayed at hotel accommodation registered with the Ministry of Tourism, Arts, and Culture Malaysia and purchased entrance fees to tourist attractions. Plan your year-end holidays to enjoy the tax relief!

 

3. MAXIMISE OTHER PERSONAL TAX RELIEFS

Lifestyle relief of RM2,500: Purchase of books, journal, newspaper (including e-newspaper), personal computer, smartphone or tablet, sport equipment, internet subscription, gymnasium membership Additional RM2,500 tax relief for purchase of personal computers, smartphone or tablet Contribution to Private Retirement Scheme (up to RM3,000 tax relief) Contribution to Skim Simpanan Pendidikan Nasional (up to RM8,000 tax relief) Purchase medical or education insurance (up to RM3,000 tax relief).

 

4. TAX DEDUCTION FOR RENOVATION AND REFURBISHMENT COST

Tax deduction of up to RM300,000 on the costs for renovating and refurbishing business premises for the purpose of its business, where such costs are incurred between 1 March 2020 and 31 December 2022. This tax deduction comes to end on 31 December 2022.

 

5. PRINCIPAL HUB INCENTIVE SCHEME

If the companies establish a center in Malaysia to conduct their regional or global businesses and operations, the qualifying companies can apply for the incentive scheme by submitting in writing to the Minister of Finance through MIDA before 31 December 2022.

 

6. TAX INCENTIVES IN RESPECT OF CERTAIN ACTIVITIES CARRIED OUT IN THE EAST COAST ECONOMIC REGION (‘ECER’) AND SABAH DEVELOPMENT CORRIDOR (SDC)

Application must be received by 31 December 2022 to enjoy the tax exemption.

 

7. TAX REBATE FOR ESTABLISHMENT OF NEW MSMES ENTITIES UP TO RM60,000

Newly incorporated micro, small and medium enterprises (MSME) are given tax rebate up to RM20,000 for each YA for the first 3 years of assessment. This rebate is only for newly set-up MSME and commences operations between 1 July 2020 to 31 December 2022.

 

8. FLEXIBLE WORK ARRANGEMENT (“FWA”) INCENTIVE

FWA are flexible arrangements for the place of work, scheduling of working hours or the number of hours worked. Application has to be made to Talent Corporation Malaysia Berhad (“TalentCorp”) before 31 December 2022 to enjoy the double tax deduction on certain qualifying expenditure incurred (limited to RM500,000 in each YA for 3 consecutive YAs starting from the YA in which approval obtained from TalentCorp).

 

9. TAX DEDUCTIBILITY FOR BAD AND DOUBTFUL DEBTS

To ensure Companies take reasonable steps to recover long outstanding bad and doubtful debts (i.e. issuing letter of demands, sending statement of accounts) to be able to claim tax deduction.

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