Cost of Detection Test of COVID-19 for Employees: Double Deduction

Income Tax (Deduction for Expenses about the Cost of Detection Test of Coronavirus Disease 2019 (COVID-19) for Employees) Rules 2021 - PDF

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P.U. (A) 404 - Income Tax (Deduction for Expenses in relation to the Cost of Detection Test of Coronavirus Disease 2019 (COVID-19) for Employees) Rules 2021 - 20 Oct 2021

100.1 P.U. (A) 404 (2021)

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1. Under these Rules:

👉 Employer costs incurred between January 1, 2021, and December 31, 2021, will now be eligible for a further deduction.

👉 This means that a double deduction will be allowed for expenses incurred by an employer in a Covid-19 Detection Test carried out on its employee.

The IRBM's Response

The Inland Revenue Board of Malaysia (IRBM) has given their comments dated 18 May 2022 to CTIM members' issues dated 31 January 2022 that arose due to these gazetted Rules.

Referring to subrule 2(3) in P.U.(A) 404/2021, it states that:

Q: If the above COVID-19 test results do not have the name of a registered medical practitioner, will it still satisfy rule 2(3) of the P.U. (A) 404/2021?

This certification, which is referred to in subrule 2(3) of P.U(A) 404/2021, typically refers to the signature of a registered medical practitioner of The Malaysian Medical Council who confirmed that the report of the Covid-19 test results had been done to the employees of the employer. A receipt typically accompanies this report.

Therefore, a medical report that does not include a certification is not qualified to claim this deduction, and receipts that do not have certification are likewise not eligible to make a claim.

Consequently, subrule 2(3) of P.U(A) 404/2021 has to be followed precisely as it is written.

Q: Can the cost of providing COVID-19 self-testing kits to employees be included in the expenses eligible for further deduction under P.U. (A) 404/2021?

The cost of self-testing kits that employers provide to employees is not included in the scope of expenses permissible under P.U.(A) 404/2021. 

Consequently, you won't be able to claim this deduction regarding any costs that aren't covered by subrule 2 of P.U.(A) 404/2021.

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1. 在这项细则下：

👉 在2021年1月1日至2021年12月31日期间，雇主所支付的COVID-19 检测费，现在将享有额外扣除的资格。

👉 这意味着，雇主对其雇员进行的 Covid-19检测所产生的费用，将被允许进行双重扣税。