Recap of the changes affecting individual tax for the Year of Assessment 2018
1. Reduction of income tax rates for middle income group
Individual income tax rates for resident individuals are reduced by 2% for the following 3 chargeable income bands:
2. Extension of tax relief on net savings into the Skim Simpanan Pendidikan Nasional (SSPN)
The tax relief of RM6,000 is given to a taxpayer on net savings made by the taxpayer for his / her child in the SSPN account established under the Perbadanan Tabung Pendidikan Tinggi National Act 1997 is extended for another 3 years until year of assessment 2020.
3. Tax exemption on rental income from residential homes received by Malaysian Resident individuals
50% income tax exemption is given on statutory income derived from the rental of the residential property by a landlord for the year of assessment 2018 if the following conditions are met:
“residential property” means a house, condominium unit, flat or an apartment which is built as a dwelling house.
Should you have questions about this Tax Alert, please do not hesitate to contact our Tax Team in our respective offices.