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Malaysia - Updates Public Ruling on Perquisites from Employment

The Malaysian Inland Revenue Board (MIRB) has issued Public Ruling 5/2019 on Perquisites from Employment on 19 November 2019. The ruling addresses taxation of payments made by employers with respect to new employees, and clarifies taxation of employer-provided mobile devices and related equipment.


Before this latest public ruling, employees and their employers were not certain whether a payment “in lieu of notice” or buy-out payment would be taxable to employees. Further, it was unclear if tablets were exempt as provided under Income Tax (Exemption) Order 2009.

This public ruling has provided greater clarity on the tax treatment of payments in lieu of notice or buy-out payments as well as gifts and monthly bills for fixed-line telephones, mobile phones, tablets, pagers, personal digital assistants (PDAs), and broadband subscriptions.



Wee Chong Eng
Tel. + 60 (3) 77217262
Y P Long
Tel. + 60 (3) 77217018
Fong Chooi Lian
Tel. + 60 (3) 77217263