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Q: Is fixed monthly travelling allowance entitled for the tax exemption of up to RM 6,000?
A: If the company is giving travelling allowance to staff and can prove that the staff is receiving it for official duty purpose (such as travelling outstation or meeting client), then the staff is eligible for the tax exemption of up to RM 6,000 for such allowance.
When the company is filling up the EA form, this amount can be put under the “tax exempt allowance” section, so that the staff need not to declare it as taxable income, as it is exempted.
Wishing you plentiful tax savings!
Zen Chow
YYC Tax Guru