Q:
Do I need to pay withholding tax for digital advertising fee?
If I did not make payment for withholding tax, is the advertising fee tax deductible?
A:
If the company is giving travelling allowance to staff and can prove that the staff is receiving it for official duty purpose (such as travelling outstation or meeting client), then the staff is eligible for the tax exemption of up to RM 6,000 for such allowance.
When the company is filling up the EA form, this amount can be put under the “tax exempt allowance” section, so that the staff need not to declare it as taxable income, as it is exempted.
Q:
If I use digital advertisement to promote my business and I outsource it to an advertising agency to help my company to manage the advertisement, they have charged my company a retainer fee, is the fee tax deductible?
A:
If they are managing your advertisement and this advertisement is helping to promote your business which is in the production of gross income, then the fee is tax deductible.
Wishing you plentiful tax savings!
Zen Chow
YYC Tax Guru
P.S. I've received a lot of tax questions, so now I am answering the frequently asked questions and sharing them with you weekly!
P.P.S. One more thing. I have a FREE Tax Livestream that you won't want to miss out. Because you can learn how to SAVE TAX for business! Reserve your FREE seat here: bit.ly/zen-taxlive