The document discusses entertainment expense deductions under Malaysian tax law. It outlines that entertainment expenses can be deducted at 50% or 100% depending on the type of expense. Expenses are fully deductible if they fall under certain provisos, including expenses for employees, expenses incurred in the ordinary course of business, or expenses related to sales. The objective is to explain the tax treatment of entertainment expenses and how to determine the deductible amount.

1. Contents of this presentation are adapted from the current of legislation at the time of presentation. No person should rely
on the content of this publication without first obtaining professional advice. We, KTP or THK, shall expressly disclaim all and
any liability and responsibility to any person in reliance in whole or any part of this contents.
@ copyright of KTP &THK
Objective
a) the tax treatment of entertainment expense as a deduction against
gross income of a business; and
b) steps to determine the amount of entertainment expense allowable
as a deduction.
ENTERTAINMENT EXPENSE
PUBLIC RULING NO. 4/2015

2. Contents of this presentation are adapted from the current of legislation at the time of presentation. No person should rely
on the content of this publication without first obtaining professional advice. We, KTP or THK, shall expressly disclaim all and
any liability and responsibility to any person in reliance in whole or any part of this contents.
@ copyright of KTP &THK
Expenses in connection with a
business or promotion
Entertainment
section 18
Expenses
NOT allowed
for deduction
Expenses
allowed 50%
deduction
Expenses
allowed 100%
for deduction
subsection
33(1)
subsection
33(1)
Provisos
(i) to (viii)
to paragraph
39(1)(l)
Yes
Yes
Yes Yes
No
No
No
No
(a)the provision of food, drink,
recreation or hospitality of
any kind; or
(b)the provision of
accommodation or travel in
connection with or for the
purpose of facilitating
entertainment of the kind
mentioned in paragraph (a),
by a person or an employee of
his, with or without any
consideration paid whether in
cash or in kind, in promoting or
in connection with a trade or
business carried on by that
person;

3. Contents of this presentation are adapted from the current of legislation at the time of presentation. No person should rely
on the content of this publication without first obtaining professional advice. We, KTP or THK, shall expressly disclaim all and
any liability and responsibility to any person in reliance in whole or any part of this contents.
@ copyright of KTP &THK
Entertainment – 100% Deduction
Provisos (i) to (viii) to paragraph 39(1)(l)
The provision of :-
(i) entertainment to employees
(ii) entertainment for payment in the ordinary course of business
(iii) promotional gifts at trade fairs or trade exhibitions or industrial exhibitions outside M’sia
(iv) promotional samples of products of the business
(v) entertainment for cultural or sporting events open to members of the public wholly to
promote the business
(vi) promotional gifts within M’sia of articles incorporating the logo of the business
(vii) entertainment related wholly to sales arising from the business
(viii) leave passage benefit provided by an employer to its employees
Yes

4. Contents of this presentation are adapted from the current of legislation at the time of presentation. No person should rely
on the content of this publication without first obtaining professional advice. We, KTP or THK, shall expressly disclaim all and
any liability and responsibility to any person in reliance in whole or any part of this contents.
@ copyright of KTP &THK
Expenses in connection with a
business or promotion
Entertainment
section 18
Expenses
NOT allowed
for deduction
Expenses
allowed 50%
deduction
Expenses
allowed 100%
for deduction
subsection
33(1)
subsection
33(1)
Provisos
(i) to (viii)
to paragraph
39(1)(l)
Yes
Yes
Yes Yes
No
No
No
No
▪ wholly and exclusively
▪ Incurred
▪ in the production of
gross income from that
business source
an activity
• to inform / offer
• to advertise the sale
of the product or
service
* exclude supplier

5. Contents of this presentation are adapted from the current of legislation at the time of presentation. No person should rely
on the content of this publication without first obtaining professional advice. We, KTP or THK, shall expressly disclaim all and
any liability and responsibility to any person in reliance in whole or any part of this contents.
@ copyright of KTP &THK

6. Contents of this presentation are adapted from the current of legislation at the time of presentation. No person should rely
on the content of this publication without first obtaining professional advice. We, KTP or THK, shall expressly disclaim all and
any liability and responsibility to any person in reliance in whole or any part of this contents.
@ copyright of KTP &THK

7. Contents of this presentation are adapted from the current of legislation at the time of presentation. No person should rely
on the content of this publication without first obtaining professional advice. We, KTP or THK, shall expressly disclaim all and
any liability and responsibility to any person in reliance in whole or any part of this contents.
@ copyright of KTP &THK

8. Contents of this presentation are adapted from the current of legislation at the time of presentation. No person should rely
on the content of this publication without first obtaining professional advice. We, KTP or THK, shall expressly disclaim all and
any liability and responsibility to any person in reliance in whole or any part of this contents.
@ copyright of KTP &THK
Thank you