Make sure your tax exempted allowances are filed correctly in EA Form

In the latest revised EA Form for tax assessment year 2008 (Borang C.P.8A-Pin.2008), there are 2 columns for filing your allowances / perquisites / gifts / benefits provided to you by your employer.

Column to file taxable allowances / perquisites / gifts / benefits:
Item B.1 - Tip kasar, perkuisit, penerimaan sagu hati atau elaun-elaun lain.

Column to file tax exempted allowances / perquisites / gifts / benefits:
Item G - Jumlah elaun / perkuisit / pemberian / manfaat yang dikecualikan cukai.

Among the tax exempt items (not applicable to owner or executive director of the company) are:

• Perquisite (whether in money or otherwise) provided to the employee pursuant to his employment in respect of: past achievement award; service excellence award, innovation award or productivity award; or long service award provided that the employee has exercised an employment for more than 10 years with the same employer (up to RM2000 per annum).
  
• Gift of new personal computer and monthly broadband subscription fee (registered in the name of the employer) (in year 2008-2010)
• Petrol card, petrol allowance or travel allowance between the home and work place (in year 2008-2010, up to RM2400 per annum).
• Petrol card, petrol allowance or travel allowance and toll card for official duties (up to RM6000 per annum).
• Allowance or fees for parking
• Meal allowance
• Allowance or subsidies for childcare in respect of children (up to RM2400 per annum).
• Telephone, mobile phone, pager and Personal Data Assistant (PDA).
• Bills for telephone, mobile phone, pager and PDA registered in the name of the employee or employer.
• Employers’ own goods provided free of charge or at discounted value (up to RM1000 per annum).
• Employers’ own services provided free or at a discount provided such benefits are not transferable.
• Medical benefits exempted from tax are extended to include maternity expenses and traditional medicines such as ayurvedic and acupuncture.
• Interest subsidies for loans up to RM300,000 in respect of housing, motor vehicle and education loans.

Make sure your HR filed your tax exempted items in the correct place (item G) in your EA Form 2008. If they are filed under item B.1, you might end up paying extra tax which suppose can be exempted.

For more detail, please refer to the Explanatory notes to Borang BE [Malay version] [English version].

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