Budget 2027: Pet vaccination, sterilisation eligible for tax relief

The Malaysian government is considering expanding the range of expenses eligible for tax relief under the individual income tax system, with pet care expenses among the potential additions. This proposal was outlined in the Budget 2027 tax measures document released by the Ministry of Finance (MoF).

The proposed expansion would cover the costs associated with pet vaccinations and sterilisation treatments, provided they are carried out by registered veterinary services. Moreover, the costs of adopting a rescued pet from an authorized animal shelter would also be eligible for tax relief. The MoF aims to encourage kindness and empathy towards animals that require care.

Under the current tax relief system, the personal income tax relief cap for lifestyle is set at RM2,500. This cap includes the proposed expansion and applies to various expenses, such as purchasing reading materials (including e-books and daily newspapers), buying personal computers, smartphones, or tablets, and subscribing to internet services.

Additionally, the MoF is proposing to broaden the scope of personal income tax relief for lifestyle to incorporate subscription costs for AI software and applications used for personal purposes, by spouses, or by children. This move is intended to promote digital literacy and the use of AI technology, which can enhance productivity and foster innovation.

It is worth noting that these tax relief measures will commence from the 2024 assessment year. Currently, the personal income tax relief for lifestyle covers only the aforementioned expenditures, with the total cap remaining at RM2,500.