# Education Subsidy for Expats in Malaysia



## RS21 (Aug 10, 2011)

Dear All,

I am currently reviewing an offer from a company in KL. We are still in the midst of negotiations. They offered 100% subsidy for education but said I will be shouldering the tax as it is part of my compensation. 

I initially pushed back and reasoned the subsidy can be paid by the company directly to the school and treated in their books as an expense. 

Not sure if this currently the practice/ruling in Malaysia?

Would appreciate hearing from anyone on how is it with you/your company.

Thanks,
RS21


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## thewitt (Jun 15, 2011)

It's taxable under both the Malaysia tax code and the USA tax code. Its up to you to negotiate a tax neutral contract...

-t


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## RS21 (Aug 10, 2011)

thanks thewitt for the advise! will see how it goes in the next few days.
Brgds,
RS21


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