(TAX UPDATE) Can I Claim Dog Food as a Tax Deduction??

Introduction: The Tax Question That Made Me Pause

A factory owner looked at me last week with a serious face and asked,
“Bro, can I claim dog food for tax deduction? My guard dog working full-time in the factory.”

I didn’t laugh.
Because after 35 years in this field, I’ve learnt something important:
When SME bosses ask “Can I claim this?”, it’s never about the item.
It’s about the fear of doing things wrongly, the stress of dealing with LHDN, and the pressure of keeping a business alive.

And sometimes, the best way to understand tax law is not through legal textbooks but through everyday Malaysian stories.

So today, let’s use one of the most relatable ones …
The dog food on factory dog.

The One Tax Rule Every Boss Must Know : Section 33(1) of the Income Tax Act 1967

The Income Tax Act is thick, technical, and full of legal language.
But if you run a business, only one rule decides 70% of your tax deductions:

Section 33(1) of the ITA 1967

Only expenses “wholly and exclusively incurred in the production of gross income” are deductible.

In simple Malaysian English:

If the expense is 100% for your business, you can claim.
If it is mixed with personal benefit, you cannot.

This is the heart of the law.
Everything else is just detail.

Let’s see how this plays out in real life.

The Dog Food on Guard Dog

1. When Dog Food CAN Be Deducted

If your dog is genuinely a guard dog for your factory, the expense passes the Section 33(1) test.

The dog:

sleeps at the factory
guards the gate
protects inventory
reduces theft
supports security operations
performs a function a human guard or CCTV would otherwise perform

In this situation, dog food becomes a business cost.

It is no different from:

fencing repair
CCTV service
security guard salary
alarm system subscription

The expense is wholly and exclusively for the business.

Section 33(1) says “yes”.

This is why, in practice, even LHDN officers understand:

If the dog protects your business, the tax deduction protects you.

2. When Dog Food CANNOT Be Deducted

Now imagine another scenario.

Your dog:

stays at your home
follows you for evening walks
enjoys life as a family pet
only visits the factory occasionally

Here, the purpose is mixed:

partly business, partly (or majority) personal.

Once personal benefit enters the equation, Section 33(1) fails. Section 39 of the ICA 1967 is basically LHDN’s official “blocked list”.

The law becomes very clear:

Domestic or private expenses are not deductible.

Section 33(1) says “no”.

And if you try to push the claim, it will not survive an audit.

The Evidence Test

Even if your guard dog is legitimate, Section 33(1) demands proof.

You must be able to show:

the dog stays at the factory
the dog performs guard duties
the food cost is reasonable
the expense is paid by the business
your staff can confirm the dog’s role
Dog in company social media

Why?

Because Section 33(1) is not just about truth.
It is also about evidence.

“Wholly and exclusively” is not a feeling.
It must be demonstrated with facts.

So… Can I Claim Dog Food as Tax Deduction?

Here is the final street rule once and for all:

If the dog works for your factory, the dog food qualifies.

If the dog works for your heart, it doesn’t.

100% business = deductible.
Mixed purpose = cannot.
Personal = definitely cannot.

This is Section 33(1) in its purest, simplest form.

Final Takeaway

Whenever you’re unsure whether an expense is deductible, don’t overthink.

Just ask:

Is this expense 100% for the business?

Or did I enjoy a bit of it too?

If there is even a small personal element, the deduction is gone.

If it supports your business fully, Section 33(1) is your best friend.

And if you ever forget the rule…
Just remember the factory dog.

If it guards your business … claim.
If it only guards your heart … jangan lah.

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