“Boss, why your company got RM12,800 Praying Expenses?”

Boss very confident.
“Seventh month hungry ghost sembahyang lah.

Food.
Tent.
Joss paper.
Ang pow.
Temple donation.

All company pay.”
I looked at him.
“So…you put everything into one account?”

“Yes lah.
All sembahyang mah.”

😂😂😂

This is how one innocent account becomes a tax adjustment.

Many SME bosses believe:
“Religious praying expenses sure cannot claim.”

Others believe:
“Company paid, sure can claim.”

Actually, both can be wrong.
The real question is not:
“Can sembahyang expenses deduct?”

The real question is:
“What exactly did you spend on?”

For example.

✅ Staff makan

If it is genuinely for employees, it may qualify for 100% tax deduction, subject to the normal tax rules.

So don’t see sembahyang dinner and automatically add back.

✅ Tent, tables, chairs, cleaning

These may simply be normal business or event expenses.

Again, don’t mix everything into one “Praying Expenses” account.

✅ Joss paper, incense, candles, offerings

This one is harder.

You still need to show the expense was incurred for business purposes.

For purely ceremonial items, the business connection can be difficult to support.

Our conservative approach?

Usually add back unless the facts genuinely support the claim.

✅ Temple donation

“Donation can claim tax mah.”
Not automatically.

You still need to check whether the organisation is approved under Section 44(6) and whether the conditions are met.

A red receipt is not a tax exemption certificate.

😂😂😂

✅ Ang pow to employees

You call it:
“Sembahyang ang pow.”

Tax law may call it:
Employee remuneration.

Different treatment.

So Boss,
RM10,000 Prayer Expenses does not mean RM10,000 deductible.

But it also does not mean RM10,000 must be added back.

The problem is usually not the sembahyang.
The problem is your accounting.

😂😂😂

Instead of one account called:
Praying expenses

split it into:

✅ Staff meals.
✅ Event costs.
✅ Ceremonial items.
✅ Donations.
✅ Employee allowances.

Then let your tax agent decide item by item.

Boss,
LHDN does not care whether you pray.
They care what you claim.

😂😂😂

So this seventh month,

Sembahyang properly.
Code your expenses properly also.
Don’t burn the joss paper tonight…
and accidentally burn your tax deduction together.