What is the difference between perquisites and benefits-in-kind?


Benefits-in-kind are benefits provided by or on behalf of your employer that cannot be converted into money. This means that when the benefit is provided to the employee, that benefit cannot be sold, assigned or exchanged for cash either because of the employment contract or due to the nature of the benefit itself.  For example, if a driver employed by an employer is provided for the private use of an employee, this will be a benefit-in-kind to the employee. A company car is also a common type of benefit-in-kind.

For more information on how to calculate the value of benefits-in-kind, read here.

For more information on which benefits-in-kind are tax exempt, read here.

Living accommodation is also a type of benefit-in-kind where the employer provides accommodation to the employee. It is subject to a separate Public Ruling published by LHDN.

For more information on how to calculate the value of living accommodation, read here.


Perquisites are benefits in cash or in kind which can be converted into money, received by an employee from his employer or from third parties in respect of having or exercising an employment. In the example above, if the driver is hired directly by the employee and the employer reimburses the employee for the cost of employing the driver, then that will be a perquisite to the employee. A travelling allowance is also a common type of perquisite.

For more information on which perquisites are tax exempt see here.

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