TAX QUESTIONS? YOU ASK LAH!

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Q: I am a sales manager, and my job requires me to entertain clients. My employer provides an entertainment allowance of RM5,000 a year, but my actual entertainment expenses exceed this amount. The excess is not reimbursed by my employer. Can I claim a deduction for these expenses?

A: The entertainment allowance received is a taxable income. However, if your job involves entertaining clients, you may claim a deduction for the actual expenses incurred for the entertainment against your employment income, but only up to the amount of the allowance provided, which is RM5,000. The expenses incurred in excess of the allowance provided is not eligible for tax deduction.    

Wishing you plentiful tax savings!

Zen Chow

YYC Tax Guru

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