Deduction for Expenditure on Provision of Employees’ Accommodation

Overview:

Are you planning to let your employees back to the workplace but are too afraid of the number of COVID cases reported every day? You may consider Safe@Work introduced by the Ministry of International Trade and Industry (MITI). This allows business continuity even when there are positive cases in the work place.

On 24 December 2021, the Government announce a further tax deduction on rental expenses provided for employees to promote Safe@Work program.

Key takeaways:

1) Who can apply?

2) How to apply?

Summary of learnings:

The company is allowed to deduct an amount equivalent to the expenses incurred on rental of a premise for the purpose of employees’ accommodation within the period from 1 January 2021 until 31 December 2022, subject to a maximum amount of RM50,000 for each company. The company must obtain Certificate from Ministry of International Trade and Industry to enjoy this deduction.

1. Who can apply

A company which: -

- Incorporated under Company Act 2016;

- carrying on the business of manufacturing or manufacturing related services; and

- Incurred rental for the purpose of employees’ accommodation.

2. How to apply?

Step 1 : To comply with Safe@Work SOPs

Step 2 : To comply with the Minimum standards of accommodation set by MoHR

Step 3 : Obtain the certificate in CIMS system

Sources & Relevant Links:

• P.U. (A) 470 – Deduction for expenditure on provision of employees’ accommodation

https://lom.agc.gov.my/ilims/upload/portal/akta/outputp/1718705/PUA%20470.pdf

• Information Related to Safe@Work:

https://www.miti.gov.my/redir/safeatwork/safeatwork.html

• Minimum standards of accommodation

https://jtksm.mohr.gov.my/images/akta446/1_panduan_pemohon_v2.pdf

• Registration or login to CIMS

https://notification.miti.gov.my/login

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