New Public Ruling No. 3/2019
Business Expenses In Respect of Disabled Person
The Inland Revenue Board published a Public Ruling No. 3/2019 (PR 3/2019) on 8th August 2019 explaining the tax treatment of business expenses incurred by taxpayers for:
- Employing disabled persons as employees; and
- Providing training to disabled non-employees to enable them to seek employment.
Disabled persons means any individual who has:
1.Certified in writing by the Department of Social Welfare to be a disabled person; or
2.Certified by the Social Security Organization (SOCSO) as a disable person that is capable to work within his/her capabilities. (New, w.e.f. YA2019)
From YA2019, the deduction is extended to an employee who is physically and mentally disabled due to an accident or critical illness.
Tax Treatment for Business Expenses In Respect of Disabled Person
|Business Expenses||Example||Normal Tax Treatment||Special Deduction under Section 34(6)(e)|
|Remuneration paid to disabled employees||Salary, wages, bonus, overtime payment, perquisite, employee’s share option scheme (ESOS)
Exclude benefit in kind and value of accommodation (VOLA)
|Single deduction under Section 33 of the Act||Additional deduction|
|Purchase of any equipment necessary to assist disabled employees||Wheelchairs, walking aids, hearing and vision aids||Not eligible for deduction under Section 33(1) of the Act||Single deduction|
|Capital expenditures incurred for alteration and renovation of business premises to enhance the convenience and comfort of disable person||Equipment for disabled employees such as platform for wheelchairs||Not eligible for claiming capital allowance under Schedule 3 of the Act||Single deduction, claim as revenue expenditures.|
|Provide training for non-employees who are disabled in training programs approved by the Minister of Finance and conducted in Malaysia **||Provide handicraft training programs to disabled person to enable them to make a living||Not eligible for deduction under Section 33(1) of the Act||Double deduction|
** Human Resource Development Fund (HRDF) contribution made by the Company does not qualify for deduction.
ANC Group Recent Events
Collaboration with United Overseas Bank (Malaysia) Bhd
On 8th August 2019, the Tax Team from ANC Hub Tax Advisory Sdn Bhd in collaboration with United Overseas Bank organised a tax and business strategy seminar for the Bentong business communities. Co-hosted by the Bentong Chinese Chamber of Commerce, the seminar covered different perspective of the advantages and disadvantages of having a running a business as a Sole Proprietor as opposed to setting up a Private Limited Company. The seminar also covered tax topics such as the Special Voluntary Disclosure Program, presented by Mr. Song Liew
Bentong for the past few years have been developing into a satellite town of Greater Kuala Lumpur and it is poised to be a well-know eco-tourism destination. With business booming, the ANC Group’s seminar was timely to provide insights into ways business owners and entrepreneurs can propagate further growth in their businesses as well as ways they can plan and save on taxes.
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