๐๐๐ง ๐๐๐ง ๐๐ก๐ ๐๐ฅ๐๐ข๐ฆ ๐ญ๐๐ฑ ๐๐๐๐ฎ๐๐ญ๐ข๐จ๐ง ๐จ๐ง ๐ฆ๐จ๐ญ๐จ๐ซ ๐ฏ๐๐ก๐ข๐๐ฅ๐ ๐๐จ๐ฎ๐ ๐ก๐ญ? ๐๐ก๐๐ญ ๐ง๐๐๐ ๐ญ๐จ ๐๐ ๐๐จ๐ง๐ ๐๐จ๐ซ ๐ญ๐๐ฑ ๐๐๐๐ฎ๐๐ญ๐ข๐จ๐ง?
๐๐จ๐ฎ ๐๐ฌ๐ค
๐๐๐ง ๐๐๐ง ๐๐ก๐ ๐๐ฅ๐๐ข๐ฆ ๐ญ๐๐ฑ ๐๐๐๐ฎ๐๐ญ๐ข๐จ๐ง ๐จ๐ง ๐ฆ๐จ๐ญ๐จ๐ซ ๐ฏ๐๐ก๐ข๐๐ฅ๐ ๐๐จ๐ฎ๐ ๐ก๐ญ? ๐๐ก๐๐ญ ๐ง๐๐๐ ๐ญ๐จ ๐๐ ๐๐จ๐ง๐ ๐๐จ๐ซ ๐ญ๐๐ฑ ๐๐๐๐ฎ๐๐ญ๐ข๐จ๐ง?
๐๐ฎ๐ซ ๐๐ง๐ฌ๐ฐ๐๐ซ
1. Yes, as long as the motor vehicle is used for business purpose and registered or documented as proof of ownership such as invoices, resolution and receipts by refer to PR5/2014 paragraph 6 and 13.
2. For expense incurred which is wholly and exclusively incurred in the production of income is allowed for tax deduction.
However, if the motor vehicle provided to employee contain the expenses on private usage and petrol claimed (eg. travel from home to office or office to home, keep at employee house and can be used by his family members), the benefit shall be declared as benefit-in-kind (BIK) under Form EA by referring to PR11/2019 paragraph 6.1.
3. However, according to PR 6/2015 para 5.2(b), there is restriction on capital allowance claimed for passenger car.
New passenger car + RM100,000 < Cost < RM150,000 โ restricted to RM100,000
New passenger car + Cost > RM150,000 โ restricted to RM50,000
Reconditioned (secondhand) passenger car โ restricted to RM50,000
4. To claim for the tax deduction, the employer shall keep sufficient records as evidence at least 7 years by refer to PR4/2000 para 3.3.5 and PR11/2019 para 9.2.
๐๐จ๐ฎ๐ซ๐๐
1. Paragraph 6 of Public ruling 5/2014 Ownership and use of asset for the purpose of claiming capital allowances
Legal owner: name is registered or documented as proof of ownership.
Beneficiary owner: incurred the expenditure and payment for the asset that can be proved in the books of accounts with supporting documents such as invoices, vouchers and receipts.
2. Paragraph 13 of Public ruling 5/2014 Ownership and use of asset for the purpose of claiming capital allowances
A beneficial owner or legal owner is entitled to claim the full portion of capital allowance if the asset is used wholly and exclusively for business purposes.
3. Paragraph 5.2 (b) of Public ruling 6/2015 Qualifying expenditure and computation of capital allowances
Restriction on capital allowance claimed for passenger car.
4. Paragraph 6.1 and 9.1 of Public ruling 11/2019 Benefit-in-kind
In accordance with subsection 83(1) of the ITA, the employer is required to report in Form EA and EC and Form E for the employer, all payments in respect of services provided by the employee including all types of BIKs.
This includes the benefits provided for the spouse, family, servants, dependent or guest of the employee.
5. Paragraph 9.2 of Public ruling 11/2019 Benefit-in-kind
Paragraph 3.3.5 of Public ruling 4/2000 Keeping sufficient records (Companies and co-operatives)
In accordance with section 82 of the Income Tax Act 1967, the employer is also required to keep records and receipts pertaining to all claims on expenses incurred on the employees.
These records and receipts must be kept for a period of seven (7) years from the end of the year to which any income from that business relates for the purposes of verification of claim during a tax audit. (PR11/2019 para 9.2).
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