eKTP 29

Budget 2017 Highlight
Part 1 of 4


Budget 2017 Highlight – New proposal and changes affecting Income Tax Act (ITA), 1967 for Individuals.

According to the recent announcement of Malaysia Budget 2017 on 21 October 2016, there are new proposal of legislation as below:

1. Additional: Section 13 (1A) of ITA – Gross income from employment to include any GST output tax borne by employer

2. New: Section 45A(2) and additional: Section 47(6) of ITA – Relief for husband and wife of RM4,000.00 is not entitle for spouse who has any income derived from sources outside Malaysia

3. New: Section 46(1)(p) of ITA – Relief for lifestyle with a limit up to RM2,500.00 and scope expanded to the following:

  • Purchase of printed daily newspaper

  • Purchase of personal computer, smartphone or tablet

  • Bills for internet subscription

  • Sport equipment and gymnasium membership fee

4. New: Section 46(1) (q) of ITA – Relief for purchase of breastfeeding equipment with a limit up to RM1,000.00. Applicable if meets all the following criteria:

  • Working women

  • Child aged up to 2 years old

  • Claim once(1) in every two(2) years

5. New Section 46(1)(r) of ITA – Relief for fees paid to child care centre and kindergardens with a limit up to RM1,000.00. Conditions:

  • Children below six(6) years old

  • Approved centres

    • Child care registered with Director General of Social Welfare under Child Care Centre Act 1984

    • Kindergardens registered under Education Act 1996

  • Claimed by either one parent only


Please refer to the below link for further details: 

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