5th June 2020 - 2 min read
In line with the government’s recommendation for employers to practise a work-from-home policy, Prime Minister Tan Sri Muhyiddin Yassin has announced that the government will offer tax reliefs and insurance coverage benefits to companies that are doing so as a form of support. The incentives are provided as part of the PENJANA Economic Recovery Plan.
According to Tan Sri Muhyiddin, employers that implement a flexible working arrangement (FWA) or enhance their existing FWAs starting from 1 July 2020 will be entitled to further tax deductions. However, the type, limit, and other details of these tax deductions are yet to be announced.
Employees, on the other hand, will enjoy income tax exemptions of up to RM5,000 if they receive electronic devices from their employers to help them with their work. These include mobile phones, notebooks, and tablets, and is effective starting from 1 July 2020. Additionally, employees can claim a special individual income tax relief of up to RM2,500 if they purchase electronic devices as well, effective 1 June 2020.
Aside from allowing income tax exemptions and reliefs, SOCSO will also expand its Employment Injury Scheme (EIS) to include coverage for workers who are involved in accidents while working at home.
The government has allocated a total of RM800 million for this FWA initiative.
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What if we have already submitted income tax? Does this mean we clim it in 2021?
Looking for clarifications / enlightenment:
(1). below = huh? Employers pay & provide to Employee – Employee gets income tax exemptions?
1. Employees, on the other hand, will enjoy income tax exemptions of up to RM5,000 if they receive electronic devices from their employers to help them with their work. These include mobile phones, notebooks, and tablets, and is effective starting from 1 July 2020.
How does the rm5000 tax relief work? If i have received laptop from my company, can i claim tis for tax Relief for 2020? What proof is needed?
Dont quite understand, additional RM5000 rebate if employees are provided with PC/HP from employers to work from home? Thought employee need to buy and get relieved of rm5000