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  • Writer's pictureCCS
    • Oct 9, 2022
    • 2 min read

Expansion of Scope on Covid-19 Detection Test Method

Updated: Jul 17, 2023

Update: The Ismail Sabri Government Budget is no longer applicable.


Malaysia's national budget for 2023 was re-tabled again in February 2023; for more info, please visit - https://www.ccs-co.com/post/budget-2023-malaysia-madani.


This tax incentive included in Budget 2023, tabled in Parliament on 7 October 2022, was not included in Budget 2023 (Re-tabled) on 24 February 2023.

Response from the MOF: The proposal will not be tabled again. It is no longer relevant as the country is moving towards an endemic phase, and self-assessment is encouraged for those experiencing symptoms.

Current Position

Income Tax Relief of up to RM1,000 for COVID-19 detection test expenses, including the purchase of COVID-19 self-detection test kit, is given to the taxpayer, spouse or child.


These expenses comprise:

  • COVID-19 detection test expenses conducted in a hospital or a clinic as supported with receipt issued by the hospitals/clinics/medical practitioners registered with the Malaysian Medical Council; or

  • the purchase of a self-detection test kit supported with a receipt.

Proposal

It is proposed that the scope of tax relief be expanded to include tests carried out in a laboratory recognised by the Ministry of Health Malaysia so that existing COVID-19 detection test expenses can be treated equitably.


Effective Date [This tax incentive included in Budget 2023, tabled in Parliament on 7 October 2022, was not included in Budget 2023 (Re-tabled) on 24 February 2023]

From the year of assessment 2023.


Footnotes

In the exercise of the powers conferred by paragraph 154(1)(b), read together with paragraph 33(1)(d) of the Income Tax Act 1967 [Act 53], the Minister, on September 9, 2022, gazetted the Income Tax (Deduction for Expenses about the Cost of Detection Test of Coronavirus Disease 2019 (COVID-19) for Employees) (Amendment) Rules 2022 (P.U. (A) 291/2022) ("Amendment Rules") to amend the Income Tax (Deduction for Expenses about the Cost of Detection Test of Coronavirus Disease 2019 (COVID-19) for Employees) Rules 2021 [P.U. (A) 404/2021] (“Principal Rules”).


The Amendment Rules amend the Principal Rules to state that, as an alternative, an employer wishing to claim such a deduction may present a receipt and the results of the Covid-19 Detection Test performed on its employees and issued by a health facility listed in the List of Laboratories Conducting RT-PCR Test for Covid-19 to the COVID-19 Management Guidelines in Malaysia No. 5/20201 issued by the Ministry of Health Malaysia.


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