Employers can reimburse employees for using personal vehicles for business travel, commuting, or company-owned cars.
Malaysia does not enforce a statutory mileage rate, so the reimbursement rate depends on the company’s policy. However, organisations should ensure that reimbursement policies are reasonable and well-documented.
Reimbursement methods include:
- A fixed rate per kilometre;
- Actual fuel and maintenance cost reimbursements.
For tax-related considerations, visit the Inland Revenue Board of Malaysia (LHDN).