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Company car vs car allowance โ€” which is better?

by Luqman YusoffยทSeptember 4, 2025

Company car: maintenance covered, but it's taxable benefit-in-kind. Car allowance: is mileage reimbursement, typically non-taxable up to RM6,000/year. Do the math based on your actual mileage.

#car-allowance#benefit-in-kind#tax#Malaysia#benefit
167 upvotes2 comments

Comments (2)

Irene Toh61

The benefit-in-kind calculation for company cars catches many people off guard. Run the numbers before accepting.

Fariz D48

Car allowance up to RM6,000 is literally tax-free. Many people request this structure instead of a company car now.