by Katrina » Thu Jul 18, 2024 6:31 am
I totally get the frustration!
But essentially if an employee has control over their employer, all the perks, allowances, and benefits they receive are included in their taxable income, with no tax exemptions. For instance, normally an employee could claim a RM6,000 annual tax exemption for a travel allowance used for official duties. However, if the employee has control over their employer, they lose this exemption, meaning that the entire travel allowance would be subject to tax.
I totally get the frustration! :D But essentially if an employee has control over their employer, all the perks, allowances, and benefits they receive are included in their taxable income, with no tax exemptions. For instance, normally an employee could claim a RM6,000 annual tax exemption for a travel allowance used for official duties. However, if the employee has control over their employer, they lose this exemption, meaning that the entire travel allowance would be subject to tax.