Income Tax Rules for Deduction of Rental Payments for Electric Motor Vehicles Gazetted
The Income Tax (Deduction for Rental Payments) (Electric Motor Vehicles) Rules 2026¹ (“Rules”) were gazetted on 26 June 2026. The Rules have effect from the year of assessment 2023 to the year of assessment 2027.
The Rules prescribe for a deduction of the expenditure incurred by a company on the rental of electric motor vehicles, including rental payments, insurance payments and processing fees, subject to a maximum aggregate sum of RM300,000 in a year of assessment and subsequent years of assessment. The Director General of Inland Revenue may disallow a deduction of an amount which in his opinion would exceed the amount that would be reasonably expected to be incurred in the ordinary course of the company’s business.
