As a taxpayer in Malaysia, it’s essential to grasp the nuances of tax exemptions. Here are key insights to help you navigate the complexities:
1. Control over employer: If you wield influence over your employer—whether through shares, voting power, or other means—all perquisites, allowances, and benefits-in-kind become part of your taxable income. Consequently, no tax exemptions apply. For instance, the RM6,000 annual tax exemption for travel or petrol allowance related to official duties is off-limits if you hold sway over your employer.
2. Concrete example: Imagine you’re an employee with significant control over your company. In such cases, claiming certain tax breaks isn’t feasible. The phrase “control over their employer” extends beyond typical employment relationships.
3. Compliance matters: Staying informed about these restrictions ensures compliance with Malaysian income tax regulations. Whether you’re an employee, employer, or tax professional, understanding these intricacies is vital during tax filing season.
To gain additional information or seek any help, contact us at Zentrusted.
This
content is for informational purposes only and does not constitute professional
advice. Always refer to the official websites/guidelines/regulations of the
relevant authorities for detailed information and consult with a professional
for personalized guidance.