If you are receiving travelling or entertainment allowances from your company, you don’t need to report it to income tax department (LHDN)!
You can claim your expenses to set-off against the employment income received from your employer and thus reduce the personal tax payable to LHDN.
A person who are getting paid for the following allowances can claim the expenses that incurred in the performance of his/her works:
- Travelling expenses which are incurred by the individual in the course of exercising his/her duties as an employee/staff against the travelling expenses.
- Entertainment expenses which are incurred by the individual in entertaining existing client on behalf of the employer.
- Annual subscription paid to professional bodies when membership to such bodies is relevant to the performance of duties.
Please take note that all expenses claimed are subject to the maximum amount of allowances paid by the employer and a proof of those expenses need to substantiate such claims.
Even though the relevant bills/receipts are not required to be submitted together with the income tax return (Form B/BE) to LHDN , please keep those bills/receipts in a safe place for any future inspection by the LHDN officer.
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