Malaysia IRB’s Notice on Taxation of Benefits-In-Kind
A Notice has been issued as a result of the dialogue between professional bodies and the IRB on 8 May 2009.
The IRB has informed of the following:
a) Benefits of free petrol
Employees can elect the tax treatment of the benefit of free petrol to be as follows:
(i) Be taxed at prescribed values under Appendix 2 of the Public Ruling No. 2/2004,
OR
(ii) Claim an exemption of RM2,400 on petrol used from/to home to/from working place and RM6,000 for official travels.
Where the employer is unable to segregate between petrol used from/to home to/from working place and for official travels, then only an exemption of RM6,000 will be given.
b) Benefits of telephone and payment of telephone bills
A concession is given to employers who had reported in the Form EA for the year of assessment 2008 the value of benefit enjoyed by employees on telephone (hardware) at RM300 and telephone bills paid by employer at RM300 (based on Appendix 2 of the Public Ruling No.2/2004), i.e., they do not have to revise the Form EA.
The notification which can also be downloaded from the IRB’s website http://www.hasil.gov.my/cP/upload/News/PENGUMUMAN%201.pdf
