Medical Fee on director is a tax exempted BIK?
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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 :
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 :
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
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Under section 13(1) b Income Tax 1967, medical and dental benefits are exempted from income tax for employee?
But
Questions :
- Director of the control company = an employee of company for tax purpose?
- Does the exemption extend to directors of a controlled company like for any other employees of the company?
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 :
- The holding of shares or
- The possession of voting power in or
- 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
We are one-stop (20 years+ history) audit, tax, secretarial, accounting and payroll firms which commit to help and grow our clients business.