In our hashtag#ktp blog, our audit associates Kam Shi Zhen (Bryan) and Yong Chun Gan from hashtag#ktp have highlighted some common errors often made by taxpayers when dealing with Form E in the context of company trips.

One significant misconception is related to the taxation of airfare costs. Initially, employees enjoy an exemption from tax on airfare expenses for their first overseas trip within a calendar year, with a cap set at RM3,000.

However, these costs become hashtag#taxable hashtag#income (employees are to be taxed and employers are to deduct PCB) for subsequent trips in the same year.

Referencing IRBM Public Ruling 1/2003 Tax Treatment on Leave Passage, it’s crucial to understand that leave passage cost specifically pertains to fares, and leave passage refers to travel during periods of absence or vacation from duty or employment. Additionally, immediate family members encompass spouses and children.

To gain a comprehensive understanding of these tax treatment on company trip, I encourage you to read the full content provided by our KTP audit associates Kam Shi Zhen (Bryan) and Yong Chun Gan https://lnkd.in/gMbhvAgv