TAX QUESTIONS? YOU ASK LAH!

Your weekly dose of tax knowledge - become tax savvy in just 2 minutes!

---

Q: I receive a care allowance of RM5,000 from my employer each year to take care of my children and parents. Is this allowance subject to income tax?

A: With effect from the year of assessment 2025, the income tax exemption of up to RM3,000 per year for a care allowance received from an employer has been expanded to include care for parents, adoptive parents, or grandparents. As such, RM3,000 of the care allowance will be exempted and only the remaining RM2,000 is subject to income tax.

Subscribe To Our Newsletter To Get Weekly Dose of Tax Knowledge!

Email:

We respect your email privacy