Govt extends individual income tax exemption for foreign-sourced income for another 10 years, plus other tax reliefs

KUALA LUMPUR (Oct 18): The government has extended the exemption from individual income tax for foreign-sourced income for 10 years until Dec 31, 2036, as part of a slew of income tax exemptions and reliefs for individuals, Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim announced in his Budget 2025 speech on Friday.

The tax exemption, which was previously effective on income earned from Jan 1, 2022 to Dec 31, 2026, applies to foreign-sourced income that has been subjected to tax in the country of origin.

Entitled recipients of the tax exemption are resident individuals in respect of all classes of income, except for income which is received through a partnership business in Malaysia.

Other individual tax reliefs announced

• Relief on premiums paid for education and medical insurance raised from RM3,000 to RM4,000, effective from the year of assessment 2025
• Scope of tax relief for the purchase of electric vehicle chargers extended to include the purchase of food waste composting machines for household use until the year of assessment 2027, to support the circular economy
• Relief for contributions to private retirement schemes and deferred annuity premium payments extended until the year of assessment 2030, under the social protection agenda
• Relief of up to RM8,000 on net annual savings in the National Education Savings Scheme (SSPN) extended for another three years until the year of assessment 2027
• Relief for fees paid to childcare centres and kindergartens raised from RM2,000 to RM3,000 and extended for three years until the year of assessment 2027
• Relief limit for treatment and rehabilitation expenses for autistic children increased to RM6,000, from RM4,000 previously

Source: https://theedgemalaysia.com/node/730798