Leave passage within Malaysia not exceeding three times in a year and
one leave passage outside Malaysia not exceeding RM3,000.
Please note that the leave passage referred to means the cost of transportation only. Other expenses are not considered transportation costs. (Refer to Public Ruling 1/2003
With effect from the year of assessment 2008, medical benefits exempted from tax is expanded to include maternity expenses and traditional medicine like ayurvedic and acupuncture without limit.
This is payment made by an employer to his employee as compensation for loss of employment either before or after the date of termination.
This compensation is exempted from tax
Compensation received by a director (not service director) of a Control Company is fully taxable.
Pensions received by an individual are exempt under the following conditions:
Monies received as death gratuity is fully exempted from income tax.
Any monies paid by way of scholarship to an individual whether or not in connection with an employment of that individual is exempted from income tax.
Income of an individual resident in Malaysia in respect of his appearances in cultural performances approved by the Minister
Money received under this category is exempted from tax on condition it is approved by the Minister.
Income in respect of interest received by individuals resident in Malaysia from money deposited with the following institutions is tax exempt with effect from 30 August 2008:
The following dividends are exempt from tax:
Royalties received in respect of the use of copyrights/patents are taxable if they exceed the following exemption limits:
| No. | Type of services/work output paid annually | Exemption (RM) |
|---|---|---|
| 1 | Publication of artistic works/recording discs/tapes | 10,000 |
| 2 | Translation of books/literary works | 12,000 |
| 3 | Publication of literary works/original paintings/musical compositions | 20,000 |
However, the exemption stated above does not apply if the payment received forms part of his emoluments in the exercise of the individual's official duties.
With effect from the year of assessment 2004, income derived from outside Malaysia and received in Malaysia by a resident individual is exempted from tax.
With effect from the year of assessment 2004, fees or honorarium received by an individual in respect of services provided for purposes of validation, moderation or accreditation of franchised education programmes in higher educational institutions is exempted.
The services provided by an individual concerned have to be verified and acknowledged by the Malaysian Qualifications Agency (MQA). However, the exemption does not apply if the payment received forms part of his emoluments in the exercise of his official duties.
With effect from the year of assessment 2004, income received by an individual from the commercialization of a scientific research finding is given tax exemption of 50% on the statutory income in the basis year for a year of assessment for 5 years from the date the payment is made.
The individual scientist who received the said payment must be a citizen and a resident in Malaysia. The commercialized research finding must be verified by the Ministry of Science, Technology and Environment.
