Malaysia Tax Agency Issues Public Ruling Clarifying Tax Treatment of Employee Fringe Benefits

The Malaysian Inland Revenue Board Nov. 19 issued a public ruling to clarify the tax treatment of employee fringe benefits. The ruling explains that: 1) gross income includes perquisites and other fringe benefits, regardless of whether employees can exchange the benefits for cash; 2) employers must withhold for taxes related to employee fringe benefits; 3) employers may claim deductions for expenses related to employee fringe benefits; and 4) employee performance bonuses are exempt from taxation up to 2,000 Malaysian ringgit (US$480). [Malaysia, Inland Revenue Board, 11/19/19]

Reference:
View Public Ruling No. 5/2019. View Index.