Tax Exempt Items and Limit for EA Form Section F

Modified on Thu, 8 Jan at 3:06 PM

List of Tax‑Exempt Allowances / Perquisites / Benefits That Must Be Reported

This guide explains the tax‑exempt items that are required to be reported under Section F of the EA Form, as issued by the Inland Revenue Board of Malaysia (LHDN).

The below summary is adopted from LHDN Public Ruling for Perquisites: http://lampiran1.hasil.gov.my/pdf/pdfam/PR_05_2019.pdf

Tax Exemption	Details
Excellent service, long service, past achievement innovation or productivity awards	Tax exemption is given on the perquisite received by the employee limited to RM2,000 per year in connection with his employment.
Traveling allowance, petrol allowance, or toll rate	Traveling allowance, petrol allowance, or toll rate received by an employee for traveling in exercising employment is exempted up to an amount of RM6,000 per year.
Parking rate or parking allowance	Parking rate or parking allowance received by an employee is exempted from tax. This exemption includes the parking rate paid by the employer directly to the parking operator. The amount of parking rate or parking allowance provided by the employer to his employee has to be reasonable and not excessive
Meal allowance	Meal allowance received by an employee on a regular basis, for example on a daily or monthly basis, given at the same rate to all employees is exempted from tax. The amount of meal allowance provided by the employer to his employee has to be reasonable and not excessive.
Child care allowance	Child care allowance received by an employee or paid directly by the employer to the child care center is exempted from tax up to an amount of RM2,400 a year. For the purposes of this exemption, a child means a child of the age of 12 years and below and who is a legitimate child or step-child of an individual or his wife/husband or a child proved to the satisfaction of the Director General to have been adopted by the individual or his wife/husband in accordance with any law.
Subsidies on interest	Subsidised interest for housing, education, or car loan received by an employee is fully exempted from tax if the total amount of loan taken does not exceed RM300,000. The exemption of subsidized interest on housing loans is applicable to any type of residential property regardless of whether the employee already owns another residential property. The exemption of subsidized interest on education loan is only in relation to education loan which is utilized for the employee’s own education. For the purposes of exemption on subsidized interest for a car loan, a car means a motor vehicle other than a motor vehicle licensed by the appropriate authority for commercial transportation of goods or passengers.
Gifts	A gift of a fixed line telephone, mobile phone, tablet, pager, or PDA which is registered under the name of the employee is fully exempted from tax. The cost of registration and installation are included in the amount to be exempted. The exemption given is limited to one unit for each asset category.
Monthly bills for fixed-line telephone, mobile phone, tablet, pager, or PDA, subscription to broadband	Monthly bills paid by the employer for the fixed line telephone, mobile phone, tablet, pager or PDA registered under the name of the employee is fully exempted from tax. The cost of registration and installation are included in the amount to be exempted. The exemption given to the monthly bill is limited to one unit for each asset category.

We hope this explanation clarifies the matter. If you require further assistance, please don't hesitate to contact our support team.