Tax updates: Tax Exemptions

Overview on few tax exemptions granted to an individual is as follows:
 
Leave passage is exempted from income tax provided that:

• Leave passage within Malaysia is limited to three (3) times;
• Leave passage outside of Malaysia is limited to one (1) time and not exceeding RM3,000.

 

​Scholarship paid to an individual is exempted from income tax.
 
Income remitted from outside Malaysia and received in Malaysia by resident individual is exempted from tax (starting from year 2004).

​Royalties are taxable if it exceeds the following exemption limits:

No	Types of Royalty	Exemptions
1	​Publication of artistic works/recording discs/tapes	​RM 10,000
2	​Translation of books/literary works of Education or Attorney or General Chambers	RM 12,000
3	​Publication of literary works/original paintings/musical compositions	RM 20,000

​​However, the exemption above does not apply if the payment received is part of his salary in the exercise of the individual's official duties.

​If you need further clarification, please do not hesitate to contact our tax team.

Source:www.hasil.gov.my/bt_goindex.php?bt_kump=5&bt_skum=1&bt_posi=2&bt_unit=5000&bt_sequ=3
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