[Malaysia] Which benefits-in-kind are tax exempt?

Created by Audrey Robert, Modified on Wed, 18 Jun at 3:59 PM by Audrey Robert

Benefits-in-kind are non-cash advantages given to you by your employer or on their behalf. These are usually included in your taxable income, unless they are specifically exempt from tax, in which case they are not taxed.

Benefit	Details
Dental benefit	Tax exempt
Childcare benefit	Childcare provided by employers, e.g. a childcare center, is tax exempt
Food and drink provided free of charge	Tax exempt
Free transportation between pickup points or home and the place of work (to and from)	Tax exempt
Obligatory insurance premiums for foreign workers	Tax exempt
Group insurance premium to cover workers in the event of an accident	Tax exempt
Leave passage	Tax exempt for travel: in Malaysia (not more than three times a year); or overseas (not more than once a year) with tax exemption limit of RM3,000 provided to employee and immediate family only.
Benefits used by employer to perform his employment duties	Tax exempt
Discounts on goods and services provided by the employer	Tax exempt provided that they are: not convertible into money by the employee even though they have money’s worth; for the benefit of the employee and are used by the employee personally; and provided to employees as a whole and not provided specifically to a certain group of employees only. Note: discounts on goods are only tax exempt up to a value of RM1,000.
Benefits and monthly bills for fixed line telephones, mobile phones, pagers, PDAs and broadband	The amount to be exempted includes registration cost and installation cost. The exemption given is limited to one unit for each class of assets.
Benefits for medical treatment	Tax exempt for modern medicine, traditional medicine and maternity. Treatment must be by certified medical doctors or medical practitioners registered with government-approved bodies.
Petrol benefits	Exemption up to RM6,000 for petrol used for official duty (this limit also applies to any petrol allowance/travel allowance/toll payment). Amounts above RM6,000 may be claimed if records are kept for 7 years.