In Malaysia, employers provide various benefits-in-kind to employees. While most of these are part of an employee’s taxable income, there are specific exemptions. Here’s what you need to know:
- Dental benefit: Dental benefits provided by employers are tax exempt. Employees can receive dental treatments without affecting their tax liability.
- Childcare benefit: Employers offering childcare services (such as childcare centers) can do so without tax implications. This benefit supports working parents.
- Free food and drink: If your employer provides meals or beverages free of charge, these fall under the tax-exempt category. Employees can enjoy these perks without affecting their taxable income.
- Transportation benefits: Transportation between pickup points, home, and the workplace (to and from) is tax exempt. This includes company-provided transport services.
- Insurance premiums for foreign workers: Obligatory insurance premiums for foreign workers are exempt from tax. Employers can cover insurance costs without impacting employees’ tax liability.
- Group insurance for accidents: Premiums covering workers in case of accidents are tax exempt. Employers can provide accident coverage without affecting employees’ tax obligations.
- Leave passage: Employees can enjoy tax-exempt travel within Malaysia (up to three times a year) or overseas (once a year). The limit for this benefit is RM3,000 for the employee and immediate family.
- Employment duties benefits: Benefits used by employers to perform their employment duties are tax exempt. This ensures that work-related expenses don’t impact employees’ tax liability.
- Discounts on goods and services: Discounts provided by employers on goods and services are tax exempt if they meet specific criteria. Employees can enjoy these discounts without tax implications.
- Medical treatment benefits: Medical treatments (including modern and traditional medicine, as well as maternity care) by certified practitioners are tax exempt. Employees can receive necessary medical care without affecting their taxable income.
- Petrol benefits: Petrol used for official duty is exempt up to RM6,000. Employers can provide fuel benefits for work-related travel without impacting employees’ tax liability.
To gain additional information or seek any help, contact us at Zentrusted.
This content is for informational purposes only and does not constitute professional advice. Always refer to the official websites/guidelines/regulations of the relevant authorities for detailed information and consult with a professional for personalized guidance.