Leave Passage

Leave passage in 2007 extend to include fare, meal and accommodation.

It is tax exempted on the employee (limited to 3 times local and 1 time oversea (max RM3,000) per year ) otherwise will be part of remuneration that is taxable.

Does not apply to sole-proprietor and partner as no master and servant relationship exist.

From Employer perspective, the fare for a yearly events within Malaysia involving employer, employee and immediate family member of the employee allowed will be allowed a deduction in ascertaining adjusted income for a year of assessment.

Fare for employee leave passage other than above mentioned will not be deductible, but the meal and accommodation is allowed under 39(1)(i)