MBB refers to non-cash benefits provided by employers to employees that are taxable. According to the Income Tax Act 1967, the value of MBB is included in the employee’s income and should be reasonable.
The value of MBB can be determined by a formula or a set value and may be reduced if:
- The benefit is provided for less than a year.
- It is shared with other employees.
- It is used for the employer’s business.
Some tax-exempt MBBs include dental benefits, childcare, and group insurance premiums.
Further information on MBB can be found in Public Ruling No. 11/2019 on the official HASiL portal at www.hasil.gov.my under the Legislation menu.
