Is director's medical expense tax deductible in Malaysia?
In general, medical fee for the employee is tax-deductible under S 33 of the Income Tax Act 1967.
However …
01Public Ruling No. 11/2019 - Benefits In Kinds.
Under section 13(1) b Income Tax 1967, medical and dental benefits are exempted from income tax for employees
Under paragraph 8.3.1 , if the employee receiving BIK from the employer has control over his employer (company) there is no exemption on the medical fee on the director in control company.
02What 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 another document.
03Question on tax deductibility
So what is your tax position ondirector’s medical fee (allowable vs not-allowable expenditure) in Sdn Bhd (controlled company)?
- If the medical fee on the director is BIK and PCB is deducted accordingly on the director’s remuneration. Or
- If medical fee is DEEMED as tax exempted BIK !
What is your tax position on this taxing issue?
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
- Website www.ktp.com.my
- Instagram https://bit.ly/3jZuZuI
- Linkedin https://bit.ly/3sapf4l
- Telegram http://bit.ly/3ptmlpn
THK (Secretarial, Bookkeeping, Payroll, Advisory)
A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsourcing bookkeeping, and payroll services to clients
- Website www.thks.com.my
- Facebook https://bit.ly/3nQ98rs
KTP Lifestyle
An internal community for our colleagues on work and leisure.
- Tiktok http://bit.ly/3u9LR6Q
- Youtube http://bit.ly/3ppmjyE
- Facebook http://bit.ly/3ateoMz
- Instagram https://bit.ly/3jZpKLo
KTP Career
An external job community on vacancies in Johor Bahru for interns, graduates & experienced candidates.
- Instagram https://bit.ly/3u2PxHg
- Facebook http://bit.ly/3rPxz9o
#Ktp #Thks
Come say hello.
Two firms in the heart of Taman Molek, Johor Bahru.
KTP & Company PLT
Wisma KTP, 53, 53-01 & 53-02, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru, Johor, Malaysia