Exempted Allowances, BIK and Perquisites

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In the recent Budget 2009 announcement, it was proposed that the following income and benefits received from employment will be exempted from tax:< xml="true" ns="urn:schemas-microsoft-com:office:office" prefix="o" namespace="">


i.                     petrol card or petrol allowance or travel allowance between the home and work place up to RM2,400 a year;

ii.                   petrol card or petrol allowance or travel allowance and toll card for official duties up to RM6,000 a year;

iii.                  allowance or fees for parking;

iv.                 meal allowance;

v.                   allowance or subsidies for childcare of up to RM2,400 a year;

vi.                 telephone and mobile phone, telephone bills, pager, personal data assistant (PDA) and internet subscription;

vii.                employers’ own goods provided free of charge or at discounted value where the value of the discount does not exceed RM1,000 a year;

viii.              employers’ own services provided free or at a discount provided  such benefits are not transferable;

ix.                 subsidies on interest on loans totaling up to RM300,000 for housing, passenger motor vehicles and education. The exemption be given to existing and new loans;

x.                   medical benefits exempted from tax be extended to include expenses on maternity and traditional medicines such as ayurvedic and acupuncture; and

xi.                 existing perquisites be extended to awards related to innovation, productivity and efficiency such as the Six Sigma Award and the exemption be increased from RM1,000 to RM2,000 a year.


However, the above exemptions are not extended to directors of controlled companies.


The exemptions will be gazetted by way of a statutory order and the proposals are effective from year of assessment 2008 except for proposal (i) which is effective from year of assessment 2008 to year of assessment 2010.


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