Hello Directors and Company Owners,

Referring to EA Form Part F, "exemptions are not applicable to employees having control over the company, sole proprietors or partners of partnership businesses"

This means that travel allowance given to director such as petrol, toll and traveling allowances are not tax exempted even though it is used for the said purposes with complete receipts and need to be filled in EA 1 ©.

- Full-time employee / Salary man will be entitled up to RM6k exemption per year for travel allowance.

- Service directors with zero shares which were appointed by the owner of the company also entitled for this benefits.

- Company owners or shareholders can deduct the traveling expenses from the company if it is related to the business or submit claim to the company.

In other words, traveling allowance are not recommended for company owners because even though you really use it to pay for the traveling expenses, you need to add up the allowance + salary in Borang BE B1.

Correct me if I'm wrong and any comments are welcome. Thanks.