Paying for ChatGPT, Gemini or other AI subscriptions? Malaysia has announced that AI subscription fees will be included under individual income tax relief as part of Budget 2027.

The announcement was made by Prime Minister and Finance Minister Anwar Ibrahim during the tabling of Budget 2027 in Parliament this afternoon.

Besides AI subscriptions, the government has also announced an increase in individual income tax relief from RM9,000 to RM12,000, along with lower income tax rates for selected income brackets.

Under Budget 2027, the government is expanding the scope of lifestyle tax relief to include subscriptions for artificial intelligence (AI) services.