Benefit in kind is taxable under Malaysia Income Tax Acts? How to Reduced?-Part 2

Many people or taxpayer not aware of that requirement of discloses your benefit in kind in your EA form or tax return form. Sometimes many HR or Accountants in Malaysia also ignore the need of disclose such benefit in kind in their EA form. There is responsible employer to do so! Taxpayer bear in mind that if your company or employers forgot to put it into EA form, you will need to report it into your tax form and no excuses that you don’t know or employer not put into EA form.

As earlier article mention, today IRD is difference from old time, the skills and manpower of IRD improved from year to year. Please do so and remind your employers to report correctly.

How to minimized or reduced it? Here some tips which I apply through my employment time.

1. If phone provided by company, normally will register under company name and company paid the phone bill, in this case you may need to paid the RM 600 BIK. You can request your employer to use your own bills and claim the call. (now no more monthly subscription fess, all bills is calls) Both party are enjoy the benefit. Company will claim they tax deduction and you will no need borne the tax.
If hostel is provided by company, please require a empty house, because normally hostel facilities all is 2nd hand and use it for long time, no value for money to keep such facilities and paid higher tax. Better buy it yourself.


Not much idea I can think off to reduced your burden. But I am sure some body read this article must have better idea and comment what to do and need to do. You are welcome to share with us through comment section. I will also update this article from time to time if I source news tips.