Pre-Announcement - FlexHRMS Statutory Upgrade 2024

Greetings from Visual Solutions (M) Sdn Bhd. We would like to inform you that as per the proposed budget 2024, LHDN has pre-announced the latest changes for MTD Tax calculation for the year 2024.  

There will be changes in the flexHRMS system for the following statutory items for the year 2024 as below:

1. Expansion of Tax Relief on Medical Treatment, Special Needs And Carer Expenses For Parents
-   Scope of dental treatment is expanded to include all types of examination and treatment expenses for dentistry including false teeth, root canals and treatment for replacement and repair teeth.
-   Dental treatment performed in Malaysia must be certified by a dental practitioner registered with the Dental Council Malaysia and supported by an official receipt.
-   In addition, the scope of this tax relief is expanded to include full medical examination for parents limited to up to RM1,000. The total amount of the deduction under paragraph 46(1)(c) shall not exceed RM8,000.
-   From year of assessment 2024.

2. Extension of Education Fees (Self) for Up-Skilling And Self-Enhancement Course Fee
-   The period for a deduction on the expenses of fees attending up-skilling courses or self-enhancement to advance oneself in any field skills recognized by the Director General of Skills Development under the National Skills Development Act 2006 [Act 652] be extended for three (3) years from the assessment year 2024 to the assessment year 2026.

3. Expansion of Tax Relief on Medical Expenses for Inspection And Dental Treatment
-   The scope of the relief for medical expenses be expanded to include inspection and dental treatment expenses that are limited to an amount of RM1,000. The claim must be proved by a receipt issued by a dental practitioner registered with the Malaysian Dental Council.
-   From year of assessment 2024.

4. Expansion of Tax Relief on Lifestyle for Self-Enrichment Course Fee
-   Income tax relief for restructured lifestyles amended as follows:
(a) Claims for the purchase of sports equipment and membership fees for gyms are excluded from this provision. However, these expenses can be claimed under paragraph 46(1)(u).
(b) The exemption for lifestyle is also expanded in scope to cover self-enrichment course fees.
-   The amount of deduction allowed is limited to RM2,500.
(a) Expenses for self-enrichment course fees under lifestyle do not need to be registered or recognized by any Government body. Adequate expenses are proven by a receipt issued by the course provider. An intended course is a course in which taxpayers are encouraged to study skills that are not related to the job such as the course related to hobbies, religion or language.
-   From year of assessment 2024.

5. Increase Tax Relief Lifestyle for The Purchase of Sports Equipment, Rental/Entry Fees for Sports Facilities And Registration Fess in Sports Competitions.
-   Income tax relief for structured sports equipment and activities revised and amended as follows:
(a) allowed claim limit increased from RM500 to RM1,000.
(b) the amount of expenditure allowed is:
(i) purchase of sports equipment for any sports activity under the Sports Development Act 1997 [Act 576] (not including motorized two-wheeled bicycles);
(ii) rental fees or entry fees to sports facilities;
(iii) payment of the registration fee to participate in the competition; and
(iv) gym membership fees or sports training
-   From year of assessment 2024.

6. Extension of Tax Relief for Electric Vehicle (EV) Charging Facility Payment Expenses
-   Paragraph 46(1)(v) is amended to extend the grant period tax relief for EV charging facility fees for another four (4) year period starting from the assessment year 2024 to the year assessment 2027.


We will release the standard version updates after the proposed budget 2024 is approved and gazetted.

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