TAX QUESTIONS? YOU ASK LAH!

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Q: I am a partner in a partnership. I went on an overseas holiday trip and three local holiday trips with my husband. Thereafter, I have claimed an overseas leave passage benefit of RM3,000 and a local leave passage benefit of RM2,000 from the partnership. Are these benefits subject to income tax?

A: Yes, these benefits are subject to income tax because leave passage benefits provided to partners do not qualify for tax exemption. The condition whereby the leave passage benefit is confined to the employee is not fulfilled since the relationship between a partner and the partnership is unlike the employer and employee relationship. 

Wishing you plentiful tax savings!

Zen Chow

YYC Tax Guru

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