What Are Perkuisit? Examples, Tax Rules, and HR Tips for Malaysian Companies

In today’s job market, salary alone doesn’t always attract the best people. Many companies in Malaysia are using perkuisit such as extra perks like gym memberships, housing, or travel support to make job offers more attractive.

These extras help build loyalty and satisfaction. But employers also need to be aware of how these perquisites are treated in tax reporting, especially when filling in EA Forms and calculating PCB.

In this article, we will share about more details on perkuisit, types of common perkuisit, its relation to tax, and tips for you to manage perkuisit

What Are Perquisites (Perkuisit)?

Perkuisit (or perquisites) are extra benefits given to employees besides their basic salary. These can be in the form of money, items that have money value, or services. Usually, they are given by the company or a third party as part of the employee’s job or position.

Perquisites are not the same as benefits-in-kind (BIK). BIK includes things that cannot be turned into cash easily, like a company car that can only be used for work. Perquisites, on the other hand, are more flexible and have clear value, like gift vouchers, meal allowances, toll payments, or gym memberships.

Some companies also give other types of perquisites, such as free housing, help with education fees, or monthly internet support. These perks can make the employee’s pay package more attractive and show that the company values its staff.

According to Malaysian tax rules, most perquisites are counted as part of the employee’s income and are taxable, unless clearly stated otherwise. That’s why companies need to track these properly and report them when doing tax submissions.

Types of Common Perquisites in Malaysia

As mentioned above, perquisites come in many forms. Some are in cash, others are non-cash benefits. The key is understanding which are taxable and which are not, so HR teams can report them correctly.

Type	Examples	Tax Status
Monetary Perquisites	Cash allowances, gift vouchers, bonuses, meal allowances, toll subsidies	Taxable
Non-Monetary Perquisites	Gym memberships, company-sponsored training, free parking, sponsored travel	Usually taxable (some exceptions apply)
Company Property Use	Use of company mobile phone, laptops, or internet for personal use	May be taxable, depends on usage
Interest-Free Loans	Loans from employer without interest or at low rates	Taxable (value of interest benefit)
Accommodation	Free or subsidised housing	Taxable based on value set by LHDN
Staff Discounts	Special discounts for company products	Taxable if discount exceeds market rate
Scholarships/Study Support	Study assistance for employees or their children	Taxable, unless exempted under certain conditions
Medical Support	Medical reimbursements not under panel clinics	Taxable, except for defined exemptions
Transport Support	Petrol card, car park fees, or toll reimbursement	Taxable

While this list gives a general idea, the tax status of each perquisite depends on how it is given and whether it meets exemption conditions set by LHDN. That’s why it’s important for employers to keep records and confirm their reporting with up-to-date tax guidelines.

Tax Treatment of Perquisites in Malaysia

Many perquisites are subject to tax under the rules set by Lembaga Hasil Dalam Negeri (LHDN). Employers need to understand which benefits fall under taxable income and how to calculate the right amount when preparing employee tax documents.

What Perquisites Are Taxable?

Most monetary perquisites like gift vouchers, allowances, bonuses, and reimbursements are considered part of the employee’s income. Non-monetary perquisites such as free housing, interest-free loans, or company-sponsored personal use items may also be taxed, depending on how they are provided.

For example:

If a company gives an employee a petrol card or toll subsidy, the value is taxable.
Free accommodation or low-rent housing provided by the company is also taxable and must be valued according to LHDN’s set formula.

How Are Perquisites Valued?

Perquisites are assigned a value based on LHDN’s guidelines. These values are then included in the employee’s Potongan Cukai Bulanan (PCB) or monthly tax deduction. This is important to prevent underpayment of taxes during the year.

If an employee receives an interest-free loan from the company, the “benefit” is the value of the interest that the employee would have paid under normal rates. That benefit is then added to the employee’s total taxable income.

Reporting in Form EA and Form E

By the end of every tax year, employers must report all taxable perquisites in:

Form EA (for employees): This shows total income, including salary, bonuses, and benefits.
Form E (for employers): This is a summary of all employees’ income and tax deductions.

Failing to report perquisites correctly can lead to tax penalties or audits.

What to Do as Employer

Below are some few key responsibilities you should take seriously:

Declare Perquisites Accurately in the EA Form

Each year, employers must prepare the EA Form for every employee, including all income earned, including perquisites. When preparing this form, you need to include the correct value of any taxable perquisites the employee received during the year.

If an employee gets a company car for personal use or a monthly petrol card, its value must be clearly stated. Incorrect or missing entries may cause tax issues for the employee and for your company.

Withhold PCB Based on Full Income

The PCB (Potongan Cukai Bulanan) is the monthly tax deduction employers make from an employee’s salary. If the employee receives taxable perquisites, the value of these must be added to their income to calculate the correct PCB amount to avoid underpayment and ensure smooth tax filing for employees.

Let’s say an employee earns RM4,000 monthly and also receives a taxable gift voucher worth RM200 each month. Their PCB must be calculated based on RM4,200.

Help Employees Understand Their Perquisites

Sometimes, employees don’t realise that certain benefits count as taxable income. They might get confused when their tax bill seems higher than expected. That’s why it’s important for HR or payroll staff to explain what each perquisite means, how it affects their salary, and what shows up in their EA Form.

This kind of transparency builds trust and helps employees prepare for tax season without surprises.

Benefits of Offering Perquisites

Offering perquisites can be a smart strategy to attract and keep the right talent. In today’s competitive job market, salary alone is often not enough to keep employees engaged and motivated. Perquisites can make a big difference in how your workforce feels about working with you.

Helps attract the right talent

In a competitive job market, offering extra benefits gives your company an advantage. When job seekers compare offers, perks like a company car, mobile phone, or housing support can make your offer stand out. These benefits show that your company values more than just the basic salary.

Improves employee retention

When employees receive practical and helpful perks like staff discounts, childcare support, or learning support, they feel more supported. This builds loyalty and makes them less likely to leave for another company.

Boosts staff morale and motivation

Perks such as wellness support, gym memberships, or festive gift vouchers can make employees feel appreciated. A happy and motivated team tends to perform better and stay productive at work.

Creates a more attractive work environment

Simple perks like offering flexible working hours, parking benefits, or occasional treats like birthday leave can be a good move to build a better work culture, make the workplace feel more caring and comfortable for everyone.

Strengthens your employer brand

When your current employees speak positively about the perks they enjoy, it improves how your company is seen by others. Imagine how many employees that will share about the positive experience. This can help attract even more good candidates in the future.

How to Manage Perquisites

Giving perquisites is a good step, but managing them properly is what keeps everything on track. Without a clear system, even small perks can cause confusion, unfair treatment, or tax issues. That’s why HR teams need to set clear rules, keep proper records, and make sure all perquisites are handled in the right way.

So, how to manage perquisites and ensure things are fair and proper?

Set clear policies and who is eligible

Every perquisite should have written rules that mention who can receive it, when, and how to avoid confusion and keep things fair.

For example, only employees above a certain grade may get a company car, or only full-time staff may receive annual wellness vouchers.

Keep proper records and documentation

Keep full records of all perquisites given to each employee, including approval letters, usage logs, or receipts if needed. By having proper records and documentation, these documents can help you to do audits, tax reporting, and making sure everything is managed correctly.

Review and update perks regularly

As your business changes, so do employee needs. HR should check every few months whether the perks still match the company's goals and staff expectations.

Some perks may no longer be relevant, while others like remote work support or mental health benefits might become more important.

Report perquisites properly in tax forms

Some perks are taxable. HR needs to know which ones must be declared in the employee’s EA Form and calculate PCB (monthly tax deduction) correctly. Mistakes in reporting can lead to tax issues for both company and staff.

Explain the perks to your team

Make sure employees understand how to access and use them. You can do this during onboarding, in staff handbooks, or through short Q&A sessions. When people know what benefits they have, they’ll make better use of them.

FAQs

1. What is the difference between perquisite and benefit-in-kind (BIK)?

Perquisites and BIK are both forms of employee benefits, but they are treated differently for tax purposes.

A perquisite is usually a cash benefit or something with a clear money value like bonuses, gift vouchers, or free accommodation. BIK, on the other hand, refers to non-cash benefits that are harder to value, such as a company car or free phone usage.

Both may be taxable, but the way they are calculated and declared is not the same.

2. Are perquisites mandatory under Malaysian labour law?

No, perquisites are not mandatory. They are optional benefits that employers may give to employees based on company policy or as part of a reward strategy. However, once given, they need to be declared correctly, especially if they are taxable under LHDN rules.

3. How to calculate PCB for employees with multiple perquisites?

PCB (Potongan Cukai Bulanan) must be adjusted based on the total value of taxable perquisites an employee receives. Employers need to add the value of these perquisites to the employee’s regular salary when calculating monthly tax deductions. The value must be accurate and based on the LHDN’s valuation guide.

4. Do directors also receive perquisites?

Yes, directors can receive perquisites just like other employees. However, since directors often have different compensation structures, HR needs to review their packages carefully and report all taxable benefits in the EA form as required.

5. Can perquisites be removed or changed after being offered?

Yes, but employers should be careful. Any change in perquisite offerings should be clearly communicated to employees and backed with proper documentation.

If the perquisite was part of the original employment offer or agreement, HR may need to handle the change with formal consent or policy updates to avoid disputes

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