Hanoi:The government has announced plans to expand the scope of individual income tax relief for lifestyle expenses. This expansion will include expenses related to pet care, such as vaccinations and sterilisation treatments provided by registered veterinary services. Additionally, the costs associated with adopting rescued pets from registered animal shelters will also be covered.

According to BERNAMA News Agency, The Ministry of Finance has stated that these changes are part of the Budget 2027 tax measures, aiming to promote kindness and empathy towards animals in need of care. The personal income tax relief cap for lifestyle will remain at RM2,500, despite the proposed expansion.

Furthermore, to encourage digital literacy and the adoption of artificial intelligence (AI) technology, the government plans to expand the tax relief to cover subscription costs for AI software and applications. This will apply to personal use, as well as for spouses and children.

Currently, the personal income tax relief for lifestyle, which began with the 2024 assessment year, is capped at RM2,500. It covers purchases of reading materials, including e-books and daily newspapers in print or electronic form, as well as personal computers, smartphones, tablets, and internet subscriptions.