There has been a lot of confusion on which item is classified as S13(1)a or S13(1)b, so I compiled this list after checking all the notes and tutorial answers. This list should be 100% accurate.
List of Perquisities
1. Travelling allowance / petrol allowance
2. Electricity bills / water bills paid by employer
3. Entertainment allowance – deductions available.
4. Income tax paid by employer
5. Children tuition / school fees paid by employer
6. Allowance or reimbursement for childcare – RM 2400 exemption per year.
8. Parking paid by employer – fully exempt w.e.f 2008.
9. Regular food allowance – fully exempt w.e.f 2008.
10. Insurance premium paid by employer which benefits the employee and his immediate family.
11. External Interest subsidy – exempt w.e.f 2008 for housing, car and education loans not more than RM 300,000.
12. Waiver of loan
13. Assets provided FOC by employer (real substantial assets).
14. Gift of personal computer – w.e.f 2008, tax exempt.
15. Handphone, PDA, broadband subscription – w.e.f 2008, tax exempt
16. Professional subscription paid by employer- exempt if relevant to profession, if not, fully taxable.
17. Individual club membership paid by employer (entrance fees, annual fees) – taxable
18. Tips received
19. Cash & watch award for securing contract
20. Award for past / excellent service / innovation – exemption of RM 2000 w.e.f 2008.
21. Employer reimburses employee for maid / gardener / driver’s salary. For example, Peter paid RM 10,000 salary for his maid.The company paid him back RM 10,000. The value charged is RM 10,000.
List of Benefits in Kind
1. Unlimited petrol / reimbursement of petrol claims by employer
2. Driver / servant / garderner provided by employer. For example, Peter’s company pays RM 10,000 to hire a maid for Peter. Peter will be
charged RM 4,800 under the PV method.
3. Motor vehicle provided by employer
4. Company club membership – entrance fees are not taxable, but annual fees are taxable.
5. Furnishings – Fullyfurnished –RM 3360, Semi-furnished – RM 1680
6. Local leave passage – travel costs & accomodation / food -3 trips are exempt.
7. Overseas leave passage – only travel costs – 1 trip – RM 3000 exemption per family.
8. Goods provided FOC by employer – RM 1000 exemption.
9. Services provided by employer – RM 1000 exemption.
10. Medical bills – fully exempt