This guide explains the Benefit-In-Kind for Motorcar. Where a motorcar is provided, the benefit to be assessed is the private usage of that motorcar and the petrol provided. A motorcar which is provided to the employee is regarded to be used privately if:   - It is used for travelling between the office and the employee’s home, and    - It is kept at the employee’s home where the motorcar can be used by the employee or his family at any time. If consider as private use, that will be a taxable benefit to the employee and the value of the BIK should be calculated and included in the payroll for PCB calculation purposes. Scenario Provided as Below: Employee A is provided with a new Toyota Hilux. The benefit is provided to him throughout the year 2019. The cost of the motorcar is RM95,000. The annual value of BIK (motorcar) which is taxable as part of Employee A’s gross income for the year of assessment 2019 is as follows: a) If Using Formula Method Under this method an abatement of 20% is given to calculate the motorcar, which is deemed to be the value of the motorcar at the time when it is returned to the employer by the employee.  Hence, the formula to be applied in respect of BIK on a motorcar is as follows: Annual value of BIK ⇒ Cost of the motorcar / 8 years (prescribed average life span) x 80% ⇒ RM95,000 / 8 x 80% ⇒ RM9,500   b) The Prescribed Value Method The prescribed value for a motorcar is given as in Appendix 2 – (a) The Prescribed Value of Motorcar and Its Related Benefits.  The valuation of the benefit will be based on the cost of the motorcar at the time when it was new  This treatment is also applicable to a second-hand motorcar and a leased or rented motorcar.  As motorcar cost is RM95,000, thus the annual value of BIK is RM3,600 END OF GUIDE

This guide explains the Benefit-In-Kind (BIK) for Additional Info for prescribed value method. For household furnishings, apparatus, and appliances, the prescribed value in respect of these benefits is given in Appendix 2 - (b) Prescribed Value of Household Furnishing, Apparatus and Appliances  For other benefits, the prescribed value is listed in Appendix 2 - (c) Prescribed Value of Other Benefits For those other benefits not listed, it should be valued based on the below formula: Annual Value of the Benefit = Cost of Asset Provided as Benefit / Prescribed Average Life Span of The Asset  END OF GUIDE

This guide will explain what is the tax exemption on the BIK received by an employee. END OF GUIDE

This guide explains the prescribed average life span of various assets provided by employers to employees for Benefit-In-Kind (BIK). END OF GUIDE

This guide explains the prescribed value of motorcar and it's related benefits in Benefit-In-Kind (BIK). END OF GUIDE

This guide will explain the Prescribed Value of Household Furnishing, Apparatus and Appliances in Benefits-In-Kind (BIK). END OF GUIDE

This guide will explain the Prescribed Value of Other Benefits in Benefit-In-Kind (BIK). END OF GUIDE

This guide will assisting you in further understanding what is BIK BIK – Commonly known as Benefit in Kind, is basically a kind of benefit that is provided by the employer to the employee. The benefits received by the employee from the employer is not convertible to cash meaning it cannot be sold, assigned and / or exchange for cash. Benefits in Kind (BIK) are taxable incomes but there are certain Benefit in Kind (BIK) are tax exempted or are regarded as not taxable.  END OF GUIDE

This guide will assist you in determining the value of BIK (Benefit in Kind). There are two methods when it comes to determining the value of the BIK:  First Method: Formula Method  - Each benefit provided to the employee is ascertained by using the     following formula: - Cost of asset provided divided by prescribed average life span of the asset equals      to the annual value of the benefit. - The benefit can be abated if the benefit is: i. Shared with another employee, and/or ii. Provided for less than a year, and / or  iii. Used for the purpose of the business of the employer. Second Method: The Prescribed Value Method - Whichever method is used in determining the value of the benefit provided, the basis of computing the benefit (whether the formula method or the prescribed value method) must be consistently applied throughout the period of the provision of the benefit. - The benefit can be abated if the benefit is:  i. Shared with another employee, and/or ii. Provided for less than a year END OF GUIDE  

This guide will assist you in setting up the BIK (Benefit-In-Kind) an individual / any employee. To setup the BIK (Benefit-In-Kind) for an employee, click on Payroll > Employee Maintenance under Employee. Identify the staff that you would like to set the BIK (Benefit in Kind) and click on the pencil to edit icon. Go to Addition & Deduction and select Add Payroll Item to add the new BIK (Benefit-In-Kind). A Payroll Item table will popup for you to select the type of allowances, deductions, optional deductions, and BIK for user to select. Click on BIK and click on any of the checkboxes on the left side to select the type of BIK you would like to assign and click on Apply to assign. Once you have assigned the BIK, you may click on the pencil icon to edit and key in the amount. Once you have clicked the pencil icon to edit, fill in the figure in the Amount column and next to it, you will see Other Information.  Other Information – To maintain the tax exemption rules and statutory requirements of the allowance / deduction / BIK / optional deduction. Click on the save icon at the end of the same row of the BIK then click on Save at the top right corner to save the changes you have made. END OF GUIDE