As a Malaysian employee, understanding tax exemptions for certain perquisites (benefits-in-kind) is crucial. Below, we delve into the tax-exempt benefits you can claim, provided you don’t have control over your employer:
1. Childcare allowance: If you have children aged up to 12, you’re eligible for a tax exemption of up to RM2,400 annually for childcare expenses. This includes direct payments made by your employer to the childcare provider.
2. Parking rate or parking allowance: Reasonable parking expenses are fully tax exempt. If your employer directly pays the parking operator, it qualifies for this exemption.
3. Petrol allowance and travel expenses: Petrol allowances, petrol cards, travel allowances, and toll payments are tax exempt (up to RM6,000 per year) when used for official duties. Maintain proper records if the total exceeds RM6,000.
4. Meal allowance: Tax-exempt meal allowances must meet specific criteria. They should be uniform for all employees or cover meals during overtime, overseas travel, etc. The amount must be reasonable.
5. Utility bills: Monthly bills for broadband, fixed-line telephone, mobile phone, pager, and PDA (registered in your or your employer’s name) are tax exempt. However, this exemption is limited to one line per asset category. Phone allowances remain fully taxable.
6. Subsidized loans (Internal funds): Loans from internal company funds are entirely tax exempt.
7. Subsidized Loans (External funds): Subsidized interest on housing, education, or car loans is fully exempt if the total loan amount doesn’t exceed RM300,000. For higher amounts, use a specific formula for exemption calculation.
8. Insurance premiums: Certain insurance premiums are tax exempt, including those mandatory for foreign workers, group insurance, and aviation travel insurance for official duty travel.
Remember that if you exert control over your employer, all perquisites, allowances, and benefits-in-kind become part of your taxable income, and no exemptions apply.
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.