As usual,before we do our personal income tax planning,we need at least to understand the latest tax law legislations on employees tax exempt benefit-in-kind and perquisites.
Append below in this article are the latest/up to-date benefits-in-kinds and perquisites (cash related) which are exempted from personal tax which the employee can plan to mitigate his/her personal income tax liability:
| Benefit-in-kind,tax exempt (YA 2008 onwards):
| Ringgit per Annum |
1 | Petrol/traveling allowance between house and work place (wef YA 2008 to 2010) | 2,400 |
2 | Petrol/traveling allowance and toll card for official duties | 6,000 |
3 | Child care allowances | 2,400 |
4 | Company free products/discount | <1,000 |
5 | Interest subsidy for existing/new house,passenger motor vehicles/education loans up to Rm300k |
|
5 | Parking allowances/fees |
|
6 | Meal allowances |
|
7 | Phone,mobile phone,phone bill,PDA,internet charges,broadband subscription ( even in employee’s name) |
|
8 | Gift of computer |
|
8 | Non transferable company free/discounted services |
|
9 | Medical,dental treatment and child care facility |
|
10 | Medical benefits extended to maternity/traditional treatments |
|
Note that the above tax exempt benefit-in-kind and perquisites are not extended to director of a controlled company,sole proprietor and partnership.
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FCCA,CA(MIA)with more than 26 years of post-qualifying working experiences. Previous working stints with one of the big accounting four,Regional GFC & Group Treasurer in a group of Malaysian and Group CFO in Singapore public listed concern.Also author to another very popular free educational accounting cum finance blog:http://basiccollegeaccounting.com under the branding of College Accounting Coach.
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