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Good news! Taking your employees on local tripsโfood, fun, and transport includedโcan be 100% tax deductible.
The government encourages employers to treat their staff well, and LHDN fully supports company travel benefits!
Here’s some tax deduction information for company trip expenses:
Just meet these 3 conditions to enjoy 100% tax deduction:
1๏ธโฃ Once a year only
2๏ธโฃ Destination must be within Malaysia
3๏ธโฃ Costs must be reasonable, not excessive
Second local trip: โ Transport not deductible, โ meals, accommodations & entertainments still count!
Overseas team building: โ Flights & transport not deductible, โ meals, accommodations & entertainments still count!
๐น Use training as a purpose: Link the itinerary to skill development and business goals
๐น Spend wisely: Avoid unnecessary expenses, keep all receipts
๐น Consult a pro: Let our tax consultants guide youโno worries about LHDN audits!
โ๏ธ Create a clear team-building plan with links to business objectives
โ๏ธ Keep all receipts & activity records for future reference
โ๏ธ Planning a large or complex trip? Consult firstโsave on tax and avoid hassle!
**Last Updated in May 2025**





