Claim your expenses to reduce employment income and personal tax

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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:

  1. Travelling expenses which are incurred by the individual in the course of exercising his/her duties as an employee/staff against the travelling expenses.
  2. Entertainment expenses which are incurred by the individual in entertaining existing client on behalf of the employer.
  3. 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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11 COMMENTS

  1. can a individual claim tax relief for the travelling expenses from home to office, if he is provided with transport allowance every month?

  2. Own, there is no tax relief for travelling expenses from home to office.

    If you are referring to the transport allowance, if for business purposes, then you can set off against the relevant expenses incurred.

  3. Hi Tony,

    My company provide me a fix monthly transport allowance (i.e 100 per month).
    Is this transport allowance is subject to tax exemption? Thanks.

    Regards,
    Wang

  4. Tony i got a question.

    for personal income tax by foreigner, if he has a period of stay of more than 182 days, he can file the BE form an is open to releif’s. We noticed, that there is not much specified on the kind of Life insurance cover he can offset for releif’s] traditionally, we only allow premiums paid to malaysian insurers to be deductible, but what if the tax payer is maintaining/servicing his foreign life policy, is that deductible, if so, are there any public rulings or budget commentaries that confirm this case.

  5. Hi,

    Anyone knows of a 2012 income tax calculator as well as what are the full tax reliefs available for 2012 tax period.

  6. My company is a sdn bhd controlled by myself and my wife. I have made calims from my company on PCB payment on my bonus payment. This payment has been taken up in the P & L as directors other remuneration. Is this legally right to do so? Since we have recd the benefits should we treat this as part of bonus payment and declared it in the EA Form? Thank You.

  7. Hi, I’ve just been transferred and entitled for a month salary of transfer allowance automatically paid on the following month of my transfer. To my surprise, there’s significant deduction as PCB! Confused. In the first place why it appears on my payslip. And it supposed to cover for “expenses” as a result of my transfer, just wondering why this is made taxable. I notice in the government service, many allowances not taxable, including maid’s, car, public service, housing allowances. Transfer allowance is treated as expenses claim.

    Seek your kind advice. tq.Adam

    • Hi Adam, it was treated as transfer claim with supporting bills and not treated as allowance to you, then this will not be your pay and you will not be deducted with PCB.

      All allowances except for outstation travelling allowance are subject to PCB deduction.

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