TAX QUESTIONS? YOU ASK LAH!

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Q: I am a sales manager. My company provides a petrol allowance of RM12,000 annually. Should I declare this amount in my Form EA? In addition, I also incur expenses for car maintenance and servicing. Can I claim a tax deduction for these expenses?

A: The petrol allowance needs to be declared in your Form EA as perquisites. However, you are entitled to a RM6,000 exemption a year, hence this amount will be declared as a tax-exempt allowance in your Form EA. The remaining RM6,000 is taxable as a perquisite. The expenses incurred for car maintenance and servicing of your private vehicle are not deductible as they are considered private expenses. 

Wishing you plentiful tax savings!

Zen Chow

YYC Tax Guru

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