(b) If a loan is provided to the employee at the same rate as the cost paid by the employer, there is no BIK involved. The value of the BIK will be assessed on the employee if the rate paid by the employee is less than that borne by the employer.

However, following a submission to the Ministry of Finance by the Malaysian International Chamber of Commerce and Industry to give a concession on the taxability of interest-free/subsidised loans, the Inland Revenue Board has subsequently agreed to defer treating interest-free/subsidised loans provided by employers to its employees as BIK pending a decision on the issue.

   
 

d. Insurance Premium

  1. The insurance premium for insurance schemes whose beneficiaries are the employee, the employee's family members or appointed nominees, will be assessed as a taxable BIK. BIK will not be assessed on the employee if the beneficiary of the insurance policy is the employer.

  2. The insurance premium paid by the employer on Aviation Travel Accident Insurance for the employee is not assessed as a BIK to the employee.

  3. Contributions made by the employer towards the Healthcare Management Organisation is not subject to tax as a BIK to the employee.
   
 

e. School / Tuition Fees

  1. School/tuition fees that qualify as a taxable BIK are fees paid by the employer for children of the employee.

  2. The amount reimbursed under the Education Refund Plan is not considered as a BIK enjoyed by the employee.
   
 

f. Membership in Recreation Clubs

  1. Individual membership

Company staff/director will be subject to tax on the entrance fee and monthly fee paid by the employer. Both these fees will be subject to tax regardless whether it is paid by the employer or paid by the staff/director and then reimbursed by the employer.




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