|
|
|
 |
|
|
|
|
The income of an employee
from an employment includes wages, salary, remuneration, leave pay, fee,
commission, bonus, gratuity, perquisite, or allowance (whether such items are
paid in money or otherwise) in respect of having or exercising the
employment. |
|
|
The scope is very wide and
includes virtually all forms of remuneration. All types of allowances, for
example housing allowances, traveling allowances, entertainment allowances, are
to be included as gross income provided it can be shown that such allowances etc., arise out of having
or exercising the employment. |
|
|
|
VALUATION OF BENEFITS - IN - KIND (BIK)
The gains or
profits from an employment chargeable under Section 13 of the Income Tax Act,
1967 have been defined to include the value of any Benefits - In - Kind (BIK)
provided for the use or enjoyment by the employee. As such, employers are
required to declare the value of BIK that the employers have borne in respect of
services of an employee in the Form CP8A annually.
In 1997, the Inland Revenue Board reviewed the
1987 Guidelines for Valuation of
BIK Provided to Employees
taking into consideration the increased costs of providing the benefits and the
new BIK applicable.
Beginning from the Year
of Assessment 1998 the
following valuation of BIK are to be
applied.
(a)Motorcars and Related Benefits
(b)Household Furnishings, Apparatus & Appliances
(c)Other Benefits
(d)Tax Exempt Benefits
(e)Other Benefits Not Listed
(f)The Prescribed Life Span
(a) Motorcars and Related Benefits
(i) Motorcars and Fuel Provided
|
Cost Of Car When New
(RM) |
Annual Value Of BIK
(RM) |
Fuel Per Annum
(RM) |
|
Up to
50,000 |
1,200 |
600 |
|
50,001 -
75,000 |
2,400 |
900 |
|
75,001 -
100,000 |
3,600 |
1,200 |
|
100,001 -
150,000 |
5,000 |
1,500 |
|
150,001 -
200,000 |
7,000 |
1,800 |
|
200,001 -
250,000 |
9,000 |
2,100 |
|
250,001 -
350,000 |
15,000 |
2,400 |
|
350,001 -
500,000 |
21,250 |
2,700 |
|
500,001 and
above |
25,000 |
3,000
|
(ii) Fuel Provided Without
Motorcar
The actual value of fuel provided is
treated as benefit received.
(iii) Driver
Provided
The value of the benefit is fixed at RM
300 per month.
(b) Household Furnishings, Apparatus &
Appliances
|
|
Types Of
BIK |
Annual Value Of
BIK |
|
(a) |
Semi-furnished with furniture in the lounge, dining room or
bedrooms. |
RM 840
(RM 70 per month) |
|
(b) |
Semi-furnished with furniture as and one or more of the
following:-
air-conditioners,
curtains and carpets |
RM 1,680
(RM 140 per
month) |
|
(c) |
Fully-furnished with benefits as in plus one or more of the following
kitchen equipment, crockery, utensils and appliances. |
RM 3,360
(RM 280 per
month) |
|
(d) |
Service
charges and other bills such as for water, electricity and telephone.
|
Service
charges and bills paid by the employer. |
(c) Other Benefits
|
|
Types Of
BIK |
Annual Value Of
BIK |
|
(a) |
Mobile
telephone (rental & charges) |
RM
600 |
|
(b) |
Gardeners |
RM
3,600 |
|
(c) |
Domestic
servants |
RM
4,800 |
|
(d) |
(i) Interest
free loan
(ii) Subsidised
loan/interest below the market value rate |
(i) Value of
interest paid by employer.
(ii)
Subsidised loan interest paid by employer. |
|
(e) |
Insurance
premium |
Annual
insurance premium paid by employer excluding:
(i) Premiums which are obligatory for foreign workers in
lieu of contributions to SOCSO.
(ii) Group Policy Insurance premiums for workers in case of accident/
injury. |
|
(f) |
School /
Tuition fees |
Actual
school / tuition fees paid by employer. |
|
(g) |
Membership
in recreation clubs |
Membership
fees paid by employer. |
(d) Tax Exempt Benefits
(a) Goods and services offered
at a lower price or at a discount.
(b) Food and drinks provided / subsidised.
(c) Free transport.
(d) Child care facilities.
(e) Medical / Dental benefits.
(f) Leave passages:
- (i) Within Malaysia not
exceeding three times in any calendar year.
- (ii) Outside Malaysia not
exceeding one passage in any calendar year (subject to the maximum of
RM3,000).
(e) Other Benefits Not Listed
Value of benefits may be made by reference
to the formula :
cost of the
asset providing benefits / amenities
__________________________________ = annual value of
benefits
Prescribed average life span of asset
Cost means
the actual cost incurred by the employer or market value of the asset. Thus, in
the case of an asset costing RM 10,000 and having a life span of 10 years the
annual value would be RM 1,000.
(f) The Prescribed Life Span
The prescribed life span of the various assets is as
follows:
|
|
Asset |
Prescribed Average
Life Span (Year) |
|
(a) |
Motorcar |
8 |
|
(b) |
Furniture
and Fittings:
Curtains,
carpets
Furniture, sewing
machine
Air-conditioner
Refrigerator |
-
5
15
8
10 |
|
(c) |
Kitchen
Equipment (i.e. crockery, rice cooker, electric kettle, toaster, coffee-maker,
gas cooker, cooker hood, oven, dish-washer, washing machine, dryer, food
processor etc.) |
6 |
|
(d) |
Entertainment and Recreation:
Piano
Organ
Colour television, video
player, stereo set
Swimming
pool (detachable), sauna |
20
10
7
15 |
|
(e) |
Miscellaneous:
Mobile
telephone |
5 |
|
|
|
|
The value of any living
accommodation including accommodation in premises occupied by the employee
provided in Malaysia by the employer is to be included in the employee's gross
income.
Value to taken into
account:
|
Categories of
Employees. |
% of Employment Gross
Income |
| Employees
and directors of controlled companies (Not Service Directors) |
30
% |
| Government
Officers in occupation of assisted accommodation e.g. mess, chalet or hotel and
officers in occupation of rented premises. |
3
% |
| Officers in
occupation of rented premises from the private sector (statutory
body). |
3
% |
|
|
|
