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Q: I am a sole proprietor. I organised a company trip to Pulau Langkawi for my employees and their immediate family members. The total cost incurred was RM10,000, comprising travel fares amounting to RM5,000 and meals and accommodation amounting to RM5,000. Can I claim a tax deduction on these expenses?
A: Yes. Leave passage expenditure incurred by an employer to facilitate a yearly event within Malaysia that involves the employer, employees, and their immediate family members is categorised as entertainment expense specifically allowed for tax deduction, hence is 100% allowable.
Wishing you plentiful tax savings!
Zen Chow
YYC Tax Guru