MALAYSIA TAX BUDGET 2010: PERSONAL TAX INCENTIVE FOR BROADBAND EXPENSES

An individual can claim a maximum of RM500 of the monthly Internet broadband bills issued under his name in his tax return.

In the current self-assessment taxation system, he will be required to maintain receipts for such expenses paid for up to seven years in the event of an audit by the Inland Revenue Board.

In the event that the broadband expense was reimbursed by the employer, this is an exempt employment income hence not taxable on the employee income. Therefore he is not eligible to claim the tax relief in his annual personal tax return.