Please be aware that this site is informational only, and many external factors, unique to your company might apply.
Each company must make their own decisions about how they meet their tax obligations.
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).
Last changed 2026-01-26