Boss, your personal car “put under trust” in Sdn Bhd is NOT a magic tax hack. This is one of the most common tax traps we see.

Many directors think:
“Put company as trustee, company pay petrol, road tax, insurance, servicing… then can claim CA and deduction.”

Reality check : LHDN looks at substance, not paperwork. They ask 3 simple questions:

Who actually paid the car? (who incurred the cost)

Who enjoys the benefit? (personal use vs business use)

Can you prove business use? (logbook, policy, documents)

What can go wrong:
✅ Capital Allowance (CA) disputed if company didn’t truly pay the car cost.
✅ Expenses added back if the car is still used for home/family/weekend.
✅ Company paying personal car cost trigger Benefit-In-Kind (BIK) … director pays personal tax.
✅ Trust deed may create stamp duty exposure … not always RM10.

Safer options :
A) Company buys properly + declare BIK.
B) Keep personal + claim business mileage with logbook. 🤪
C) If company pays, document with board resolution and report BIK properly.

Read the full content in our blog
https://www.ktp.com.my/blog/trust-deed-for-motor-vehicle-malaysia/15jan2026