Medical Fee on director is a tax exempted BIK?

Medical Fee on director is a tax exempted BIK?
View Full Size
General ruling on BIK
Under section 13(1) b Income Tax 1967, medical and dental benefits are exempted from income tax for employee?
 
But
 
Questions :
  1. Director of the control company = an employee of company for tax purpose?
  2. Does the exemption extend to directors of a controlled company like for any other employees of the company?
In Public Ruling No. 11/2019 - Benefits In Kinds.
Under paragraph 8.3.1 , 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.

What is control?

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

𝐊𝐓𝐏 𝐋𝐢𝐟𝐞𝐬𝐭𝐲𝐥𝐞 (Our internal community for our colleagues)

𝐊𝐓𝐏 𝐂𝐚𝐫𝐞𝐞𝐫 (Our job platform for interns, graduates & experienced candidates )

𝐓𝐇𝐊 (Our associate in secretarial & accounting services)


We are one-stop (20 years+ history) audit, tax, secretarial, accounting and payroll firms which commit to help and grow our clients business.


 

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