Clarification of Income Tax on Uber and Grabcar Drivers
Inland Revenue Board of Malaysia (IRBM) has, on 31 March 2017, released a press statement to clarify that the individual income tax imposed on Uber and GrabCar drivers is similar to the tax imposed on an individual who is carrying on a business. Income tax is imposed on the net income arising from Uber or GrabCar activities and other income such as monthly remuneration received from the employment, if any.
Uber or GrabCar drivers may claim any expenditure incurred such as fuel, toll, promotion costs, vehicle repair and maintenance and fees paid to the operator against the gross payments received.
The IRBM also advised that all part-time individuals who are carrying on business activities as Uber and GrabCar drivers, tutors, Al-Quran tutors, makeup artistes, online merchants and others to register their income tax file to the IRBM and declare all annual income received in Form B by 30 June of each year.