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Q: Is the petrol allowance given to employees by a company eligible for claiming tax deduction? Should this be declared in the employee's EA form as perquisites or benefit-in-kind (BIK)?
A: The petrol allowance is tax deductible for the company and needs to be declared in the employee's EA form as perquisites. However, the employee is entitled to a RM 6,000 exemption a year if the petrol allowance given is for official duty purposes.
Wishing you plentiful tax savings!
YYC Tax Guru