Medical Fee on director is a tax exempted BIK?
Medical Fee on director is a tax exempted BIK?

General ruling on BIK
Under section 13(1) b Income Tax 1967, medical and dental benefits are exempted from income tax for employee?
 
But
 
Questions :

  1. Director of the control company = an employee of company for tax purpose?
  2. Does the exemption extend to directors of a controlled company like for any other employees of the company?
In Public Ruling No. 11/2019 - Benefits In Kinds.
Under paragraph 8.3.1 , if the employee receiving BIK from the employer has control over his employer (company) is no exemption.

What is control?

For a company, the power of an employee to control is through :
  1. The holding of shares or
  2. The possession of voting power in or
  3. By  virtue  of  powers conferred  by  the  articles  of  association  or  other  document.

What is control?

For a partnership, the employee is a partner of the employer.

For a sole proprietor, the employee and the employer is the same person


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Published : 19-Feb-2021

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