#Budget2025: Income Tax Relief For Yearly Medical Expenses Raised To RM10,000
It will cover payments made under medical and health insurance or takaful products.
By Tamara Jayne — 18 Oct 2024, 06:03 PM
In the latest #Budget2025 announcement, the government has introduced several updates aimed at easing the financial burden on individuals.
Here's a breakdown of the key changes related to income tax:
1. Increased Tax Relief on Insurance Premiums
The individual income tax relief on education insurance premium payments and medical insurance has been increased to RM4,000, offering more savings for taxpayers investing in health and education security.
2. Expanded Medical Expense Exemption
The individual income tax exemption for medical expenses, now capped at RM10,000, will also cover payments made under medical and health insurance or takaful products with a co-payment feature.
This update is expected to offer more flexibility in managing healthcare costs.
3. Extended Foreign Income Tax Exemption
The exemption from income tax on income earned from foreign sources, which has already been taxed in the country of origin, was originally set to expire on December 31, 2026, but has been extended until December 31, 2036.
This move provides greater certainty for individuals receiving income from abroad.
