What is the tax treatment for income tax borne by the employer?
01Perquisite
Perquisite, in relation to employment, means benefits in cash or in kind that are convertible into money received by an employee from the employer or third parties in respect of having or exercising the employment.
02What does tax borne by employer mean?
Do employers pay income tax for employees?
No, employers do not pay income taxes for their employees. Employees are solely responsible for income tax payments, which employers must withhold.
What if? There is good employer who pays employee tax?
The agreement by the employer to pay the income tax of the employee does not relieve the employee from tax liability on the amount of income tax borne by the employer.
'Income Tax is borne by employer' is a form of income and is chargeable based on Section 13(1)(a) of the ITA 1967.
In short, tax borne by the employer is a taxable perquisite to the employee.
03Source :
- IRB Public Ruling 11/2016 - Tax Borne by Employer
- http://phl.hasil.gov.my/pdf/pdfam/PR_11_2016.pdf
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
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