TAX QUESTIONS? YOU ASK LAH!

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Q: I am a director of a company. I only received director’s fee for the year 2025 in year 2026. When should I declare this income, Year of Assessment (YA) 2025 or YA 2026?

A: Based on the Income Tax Act 1967, director’s fee is taxable on a receipt basis. Therefore, the director’s fee is only taxable in the year it is being received, which is the Year of Assessment 2026.