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KUALA LUMPUR, Oct 23 — For the first time, a national budget has made provision for tax relief for children who provide for their parents.
Budget 2016 provides tax relief of RM1,500 for the mother and RM1,500 for the father.
“The relief is subject to the condition that each parent does not have income exceeding RM2,000 a month and must be 60 years and above,” said Prime Minister Datuk Seri Najib Tun Razak when tabling Budget 2016 in the Dewan Rakyat today.
Najib, who is also the finance minister, also announced an increase in tax relief from RM1,000 to RM2,000 for each child below 18 years of age from year of assessment 2016.
He also announced an increase in the tax relief:
from RM3,000 to RM4,000 for individual taxpayer whose spouse has no income.
from RM6,000 to RM8,000 for each child above the age of 18 years who is studying at local or foreign institutions of higher learning from year of assessment 2016.
from RM6,000 to RM8,000 for disabled child above the age of 18 years who is studying at local or foreign institutions of higher learning, from year of assessment 2016.
“The existing tax relief for parents with a disabled child is RM6,000. This means that if the disabled ch8ld continues his or her education in local or foreign institutions, the total relief allowable is RM14,000,” he said.
Najib also said that to enable more employees to benefit from the Social Security Organisation (Socso), the eligibility for mandatory contribution would be increased from a monthly salary of RM3,000 to RM4,000.
“This adjustment will benefit 500,000 employees. Upon the death of the contributor, during the term of employment, the next-of-kin will receive a monthly payment of up to 90 per cent of his last-drawn monthly salary,” he added. — Bernama