Salary & Benefits

Is a RM500 transport allowance taxable in Malaysia?

by Hamizah Mamat·February 8, 2026

Only the portion exceeding RM6,000/year is subject to income tax. RM500/month equals RM6,000 so it is fully exempt.

#allowance#tax#transport#Malaysia#benefits

Comments (2)

Nurul Izzah46

Meal allowance has a different threshold — RM2,400/year. Worth knowing if your employer structures it separately.

Shazrul Aziz38

Get your full breakdown from HR in writing. Many employees do not know what parts of their allowance are taxable.