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:
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Benefit-in-kind, tax exempt (YA 2008 onwards):
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Ringgit per Annum |
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1 |
Petrol/traveling allowance between house and work place (wef YA 2008 to 2010) |
2,400 |
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2 |
Petrol/traveling allowance and toll card for official duties |
6,000 |
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3 |
Child care allowances |
2,400 |
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4 |
Company free products/discount |
<1,000 |
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5 |
Interest subsidy for existing/new house, passenger motor vehicles/education loans up to Rm300k |
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5 |
Parking allowances/fees |
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6 |
Meal allowances |
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7 |
Phone, mobile phone, phone bill, PDA, internet charges, broadband subscription ( even in employee’s name) |
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8 |
Gift of computer |
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8 |
Non transferable company free/discounted services |
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9 |
Medical, dental treatment and child care facility |
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10 |
Medical benefits extended to maternity/traditional treatments |
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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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