Medical Fee on Director -Tax exempted Benefit In Kind?

Medical Fee on Director -Tax exempted Benefit In Kind?
View Full Size

Medical Fee on Director -Tax exempted Benefit In Kind?

FAQ from our clients on this common mistake by taxpayers based on our past experience :

  1. Why are company’s directors not human meh?

  2. Why is my ex ''tax agent'' allow?

  3. Why is the Malaysian government like this?

Tax standing

Under section 13(1) b Income Tax 1967, medical and dental benefits are exempted from income tax for the employee.

Exception

Does the exemption extend to directors of a controlled company like for any other employees of the company?

Under paragraph 8.3.1 of IRB Public Ruling No. 11/2019- Benefits In Kinds., if the employee receiving BIK from the employer has control over his employer (company) is no exemption.

What is control?

For a company, the power of an employee to control is through :

1. The holding of shares or

2. The possession of voting power in or

3. By virtue of powers conferred by the articles of association or other document.

For a partnership, the employee is a partner of the employer.

For a sole proprietor, the employee and the employer is the same person

Visit Us

  • Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

  • Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Account, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting and payroll services to clients

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancy in Johor Bahru for interns, graduates & experienced candidates.

#Ktp #Thks

 

 


 

THK Management Advisory Sdn Bhd

Wisma THK, No. 41, 41-01, 41-02, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru, Johor, Malaysia.
+6012-771 7903
+607-361 3443
 
Switch to Mobile Version
Subscribe Newsletter