Benefits-in-kind or perquisites received by an employee under his employment is chargeable to tax as part of gross income from employment under paragraph 13(1)(b) of the Income Tax Act 1967 (ITA).
However, certain benefits-in-kind or perquisites are exempted from tax under the Income Tax (Exemption) Order 2009 [P.U. (A) 152/2009], including the child care allowance, limited to RM2,400.00 per year. The government gazette [Income Tax (Exemption) 2009(Amendment) Order 2023 [P.U. (A) 1399/2023]] announces an amendment to the Income Tax (Exemption) Order 2009, increasing the exemption amount from RM2,400.00 to RM3,000.00 per year.
The amendment is effective from the year of assessment 2024.
Reference:
293.1 [P.U A 399_2023] Income Tax (Exemption) 2009(Amendment) Order 2023
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