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Q: A company has incurred RM20,000 for overseas annual company trip expenses on meals, accommodation and recreation. However, staff need to buy the air tickets on their own. Is the RM20,000 tax deductible for the company?
A: Expenses incurred on meals, accommodation and recreation for staff during an annual company trip is considered as staff entertainment, hence is 100% tax deductible for the company.
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YYC Tax Guru