Wednesday, December 2, 2009

Taxable amount from company car, petrol card, driver, etc.

If your employer provides you a company car, petrol card and/or car driver, you will notice that an amount will be treated as Benefit-In-Kind (BIK) in your EA Form, which is taxable.

The following table shows how the value of such taxable BIK value is calculated.

The annual BIK value of driver provided is RM7,200.

For example, if you are provided with a Honda Accord 2.4 which its cost is fall under the range of RM150,001-RM200,000, and you are also provided with a petrol card but no driver, your taxable BIK income will be RM7,000 + RM1,800 = RM8,800.

If your tax rate is 27%, then you will need to pay RM8,800 x 27% = RM2,376 for this BIK in your income tax. (Note: the maximum personal income tax rate will be reduced to 26% from assessment year 2010 onwards.)

This amount is normally already divided and deducted in your monthly PCB deduction.


Anonymous said... Reply To This Comment

Good info. Thanks

STW said... Reply To This Comment

I heard that BIK effective on 1/1/2012 is it true ?

Recently when I receive my payslip I see that the BIK deduction is RM 3600 is it correct ? I think its too much..

I thought i should be RM 3600 X 27 % ( for example ) = RM 927 ?

Pls advice & help .

Voyager8 said... Reply To This Comment


I think you need to check it out with your HR.

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