【LHDN Regulations】
Personal Purchase (Personal Use)
-Lifestyle Relief (up to RM2,500)
-Applicable for: computer, mobile phone, and tablet.
-Invoice must be issued under the taxpayer’s own name.
-Limited to use by the individual, spouse, and children.
-Cannot be claimed as a company expense.
–Extended warranty is not claimable.
Company Purchase (Business Use)
-If the company purchases a phone for employees’ work purposes, the expense may be treated as a company asset and claimed under capital allowance, thereby reducing corporate income tax.
-Each employee is entitled to one tax-exempt benefit-in-kind (Exempt BIK): one mobile phone or one communication device (including monthly phone charges).
-Invoice must be issued under the company’s name and TIN.
-Starting from 2026, purchases exceeding RM10,000 must be accompanied by an e-Invoice.
Additional Notes:
Many assume that a company’s purchase of mobile phones is automatically deductible. In fact, LHDN has clear rules, and only qualifying expenses are deductible.
-If the phone is genuinely required for business purposes → deductible as a company expense.
-If the phone is used solely for personal purposes → it may be treated as personal consumption.
Recommendation:
Before making any purchase, companies should consult their accountant or tax advisor to ensure compliance with tax regulations and to achieve effective tax savings.
**Data last updated on 19.09.2025
(201706002678 & AF 002133)