{"id":24588,"date":"2026-06-10T14:48:22","date_gmt":"2026-06-10T09:18:22","guid":{"rendered":"https:\/\/arnifi.com\/blog\/?p=24588"},"modified":"2026-06-10T14:48:23","modified_gmt":"2026-06-10T09:18:23","slug":"directors-drawings-tax-malaysia-lhdn-guide","status":"publish","type":"post","link":"https:\/\/arnifi.com\/blog\/directors-drawings-tax-malaysia-lhdn-guide\/","title":{"rendered":"Director\u2019s Drawings and Loan Account Pitfalls | ..."},"content":{"rendered":"<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"684\" height=\"452\" src=\"https:\/\/arnifi.com\/blog\/wp-content\/uploads\/2026\/06\/Thumbnail-15-1.jpg\" alt=\"Blog banner image of Director\u2019s drawings tax Malaysia LHDN.\" class=\"wp-image-24590\" srcset=\"https:\/\/arnifi.com\/blog\/wp-content\/uploads\/2026\/06\/Thumbnail-15-1.jpg 684w, https:\/\/arnifi.com\/blog\/wp-content\/uploads\/2026\/06\/Thumbnail-15-1-300x198.jpg 300w\" sizes=\"(max-width: 684px) 100vw, 684px\" \/><\/figure><\/div>\n\n\n<p>Director\u2019s drawings tax Malaysia LHDN issues often start with a simple habit. A director pays personal expenses through the company or takes regular money out and records it as \u201cadvance,\u201d \u201cloan,\u201d or \u201cdirector account.\u201d This may look harmless inside the bookkeeping file, but it can become a tax issue when the payment has no board approval, repayment plan, commercial reason, or proper salary treatment.<\/p>\n\n\n\n<p>For Sdn Bhd, the label used in the accounts is not enough. LHDN may look at the real nature of the payment. If the amount looks like a reward for work, personal benefit, or disguised remuneration, it may be treated closer to salary, director&#8217;s fee, perquisite, or taxable benefit.<\/p>\n\n\n\n<div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><h2>Table of contents<\/h2><ul><li><a href=\"#h-why-director-drawings-need-careful-tax-treatment\" data-level=\"2\">Why Director Drawings Need Careful Tax Treatment?<\/a><\/li><li><a href=\"#h-a-quick-overview-of-the-common-director-drawing-pitfalls\" data-level=\"2\">A Quick Overview of The Common Director Drawing Pitfalls<\/a><\/li><li><a href=\"#h-1-treating-every-withdrawal-as-a-loan\" data-level=\"2\">1. Treating Every Withdrawal As A Loan<\/a><\/li><li><a href=\"#h-2-ignoring-section-140b-on-loans-or-advances-to-directors\" data-level=\"2\">2. Ignoring Section 140B On Loans Or Advances To Directors<\/a><\/li><li><a href=\"#h-3-using-external-funds-without-reviewing-perquisite-treatment\" data-level=\"2\">3. Using External Funds Without Reviewing Perquisite Treatment<\/a><\/li><li><a href=\"#h-4-paying-personal-expenses-through-the-company\" data-level=\"2\">4. Paying Personal Expenses Through The Company<\/a><\/li><li><a href=\"#h-5-letting-the-director-loan-account-grow-for-years\" data-level=\"2\">5. Letting The Director Loan Account Grow For Years<\/a><\/li><li><a href=\"#h-6-mixing-shareholder-loan-to-company-malaysia-tax-records-with-drawings\" data-level=\"2\">6. Mixing Shareholder Loan To Company Malaysia Tax Records With Drawings<\/a><\/li><li><a href=\"#h-7-using-drawings-to-avoid-payroll-treatment\" data-level=\"2\">7. Using Drawings To Avoid Payroll Treatment<\/a><\/li><li><a href=\"#h-8-missing-monthly-tax-deduction-responsibilities\" data-level=\"2\">8. Missing Monthly Tax Deduction Responsibilities<\/a><\/li><li><a href=\"#h-conclusion\" data-level=\"2\">Conclusion<\/a><\/li><li><a href=\"#h-faqs\" data-level=\"2\">FAQs<\/a><\/li><\/ul><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-why-director-drawings-need-careful-tax-treatment\"><strong>Why Director Drawings Need Careful Tax Treatment?<\/strong><\/h2>\n\n\n\n<p>A company and its director are separate for tax and accounting purposes. The company\u2019s money is not the director\u2019s personal wallet, even when the director is also the main shareholder.<\/p>\n\n\n\n<p>This matters because director withdrawals can sit in different tax categories depending on the facts. A real loan needs approval, terms, tracking and repayment. <a href=\"https:\/\/phl.hasil.gov.my\/pdf\/pdfam\/Act_53.pdf\">Salary or director fee<\/a> needs payroll and reporting treatment. Personal expenses paid by the company may create <a href=\"https:\/\/lampiran1.hasil.gov.my\/pdf\/pdfam\/PR_05_2019.pdf\">benefit or perquisite issues<\/a>.<\/p>\n\n\n\n<p>A weak director loan account Malaysia tax file can also affect the company\u2019s accounts. Large unpaid balances can raise questions about recoverability, interest treatment and the real purpose of the payment.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-a-quick-overview-of-the-common-director-drawing-pitfalls\"><strong>A Quick Overview of The Common Director Drawing Pitfalls<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Pitfall<\/strong><\/td><td><strong>What Usually Goes Wrong<\/strong><\/td><td><strong>Better Treatment<\/strong><\/td><\/tr><tr><td>Regular cash withdrawals<\/td><td>Looks like monthly pay<\/td><td>Put it through payroll if it is remuneration<\/td><\/tr><tr><td>No loan agreement<\/td><td>The loan label has no support<\/td><td>Prepare board approval and repayment terms<\/td><\/tr><tr><td>No interest charged<\/td><td>The company may face deemed interest rules<\/td><td>Review<a href=\"https:\/\/phl.hasil.gov.my\/pdf\/pdfam\/LOAN_OR_ADVANCES_TO_DIRECTOR.pdf\"> Section 140B<\/a> exposure<\/td><\/tr><tr><td>Personal bills paid by the company<\/td><td>The benefit is not reported properly<\/td><td>Classify as salary, perquisite, or reimbursement<\/td><\/tr><tr><td>Old directors loan balance<\/td><td>No repayment happens for years<\/td><td>Set repayment plan and document action<\/td><\/tr><tr><td>Mixed shareholder loan records<\/td><td>Money in and money out are unclear<\/td><td>Separate director lending and director drawings<\/td><\/tr><tr><td>No board minutes<\/td><td>Approval cannot be proved<\/td><td>Keep formal resolutions<\/td><\/tr><tr><td>No MTD review<\/td><td>Payroll tax may be missed<\/td><td>Recheck the monthly tax deduction duties<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-1-treating-every-withdrawal-as-a-loan\"><strong>1. Treating Every Withdrawal As A Loan<\/strong><\/h2>\n\n\n\n<p>The first mistake is calling every director&#8217;s withdrawal a loan. A loan should have clear terms. It should state the amount, purpose, repayment period, interest rate, if any, and board approval.<\/p>\n\n\n\n<p>If the director takes money every month with no repayment pattern, it may look more like salary. The risk increases when the director works in the company and the payment replaces normal remuneration.<\/p>\n\n\n\n<p>The finance team should ask one simple question before recording the amount. Is the director expected to repay it as a debtor, or is the company paying the director for work?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-2-ignoring-section-140b-on-loans-or-advances-to-directors\"><strong>2. Ignoring Section 140B On Loans Or Advances To Directors<\/strong><\/h2>\n\n\n\n<p>Section 140B can apply when a company gives an interest-free or low-interest loan or advance to a director through internal company funds. Internal funds can include retained earnings, reserves or capital.<\/p>\n\n\n\n<p>This does not automatically make the director\u2019s drawing salary. It can create deemed interest income for the company. The company may need to compute interest based on the outstanding loan balance at month-end and the relevant lending rate formula.<\/p>\n\n\n\n<p>This is why \u201cinterest-free\u201d does not always mean \u201ctax-free.\u201d It may still create a tax adjustment for the company.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-3-using-external-funds-without-reviewing-perquisite-treatment\"><strong>3. Using External Funds Without Reviewing Perquisite Treatment<\/strong><\/h2>\n\n\n\n<p>A different issue appears when the company borrows money through a bank or third party and then lends that money to a director who is also an employee.<\/p>\n\n\n\n<p>In such cases, the interest cost borne by the employer may become an <a href=\"https:\/\/phl.hasil.gov.my\/pdf\/pdfam\/LOAN_OR_ADVANCES_TO_DIRECTOR.pdf\">employment perquisite<\/a> for the director. This can move the issue toward the director\u2019s personal tax file instead of only the company\u2019s tax computation.<\/p>\n\n\n\n<p>The company should identify the source of funds before deciding the tax treatment.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-4-paying-personal-expenses-through-the-company\"><strong>4. Paying Personal Expenses Through The Company<\/strong><\/h2>\n\n\n\n<p>Many times, issues begin with the personal expenses of the director. These may include family travel, private rent, personal insurance, school fees, groceries, club membership or home renovation costs.<\/p>\n\n\n\n<p>If the company pays these costs and they are not business expenses, the payment should not stay hidden inside general expenses. It may need to be treated as <a href=\"https:\/\/phl.hasil.gov.my\/pdf\/pdfam\/Act_53.pdf\">employment income<\/a>, benefit, perquisite, director fee or director loan depending on facts.<\/p>\n\n\n\n<p>The safest approach is to separate business costs and personal costs at the approval stage.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-5-letting-the-director-loan-account-grow-for-years\"><strong>5. Letting The Director Loan Account Grow For Years<\/strong><\/h2>\n\n\n\n<p>A long-standing debit balance in the director\u2019s account can create audit pressure. It may suggest that the company is funding the director personally without repayment.<\/p>\n\n\n\n<p>This problem gets worse when the balance keeps increasing each year. LHDN may question why a commercial company keeps allowing unpaid advances.<\/p>\n\n\n\n<p>A simple repayment schedule can reduce confusion. The board should review old balances, agree on repayment and record the decision clearly.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-6-mixing-shareholder-loan-to-company-malaysia-tax-records-with-drawings\"><strong>6. Mixing Shareholder Loan To Company Malaysia Tax Records With Drawings<\/strong><\/h2>\n\n\n\n<p>A shareholder loan to company Malaysia tax file should be kept separate. When a director lends money to the company, the company owes money to that director. When the director takes money out, the director may owe money to the company.<\/p>\n\n\n\n<p>Mixing both sides in one messy ledger creates confusion. The company may wrongly offset repayments, drawings, expense claims, dividends or salary. This can make tax review harder.<\/p>\n\n\n\n<p>Use separate ledgers for money introduced by the director and money withdrawn by the director.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-7-using-drawings-to-avoid-payroll-treatment\"><strong>7. Using Drawings To Avoid Payroll Treatment<\/strong><\/h2>\n\n\n\n<p>This is where the <a href=\"https:\/\/phl.hasil.gov.my\/pdf\/pdfam\/Act_53.pdf\">Section 140 anti-avoidance<\/a> director drawings risk can appear. If a company labels regular pay as \u201cloan\u201d mainly to avoid payroll tax treatment, LHDN may review the arrangement based on substance.<\/p>\n\n\n\n<p>Employment income includes salary, remuneration, fee, commission, bonus, gratuity, perquisite and allowance. A working director who receives regular company-funded payments should not rely only on the loan label.<\/p>\n\n\n\n<p>If the payment is actually in the form of reward for services, payroll and personal tax treatment should be considered early.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-8-missing-monthly-tax-deduction-responsibilities\"><strong>8. Missing Monthly Tax Deduction Responsibilities<\/strong><\/h2>\n\n\n\n<p>If director payments are treated as employment income, the company may need to review <a href=\"https:\/\/www.hasil.gov.my\/en\/employers\/responsibility-of-employer\/\">Monthly Tax Deduction obligations<\/a>. Employers generally need to deduct MTD based on employee remuneration and remit it within the required timeline.<\/p>\n\n\n\n<p>This matters for director salary, director fee and other employment-linked payments. A late correction can create extra work because payroll records, EA forms and personal tax reporting may need changes.<\/p>\n\n\n\n<p>The finance team should review director payments before year-end instead of fixing them after the audit.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-conclusion\"><strong>Conclusion<\/strong><\/h2>\n\n\n\n<p>Director drawings become risky when the company cannot prove what the payment really is. Clean records, board approval, repayment tracking and correct payroll treatment make the tax position easier to defend. <a href=\"https:\/\/arnifi.com\/\">Arnifi\u2019s expert team<\/a> helps businesses review director accounts, clean up loan records and build stronger tax workflows for long-term compliance.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-faqs\"><strong>FAQs<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-are-director-drawings-taxable-in-malaysia\"><strong>Are director drawings taxable in Malaysia?<\/strong><\/h3>\n\n\n\n<p>Director drawings are not automatically taxed in one fixed way. The treatment depends on the facts. A withdrawal may be a loan, salary, director fee, perquisite, benefit or repayment. The company should document the reason before filing.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-can-lhdn-treat-director-drawings-as-salary\"><strong>Can LHDN treat director drawings as salary?<\/strong><\/h3>\n\n\n\n<p>Yes, this can become a risk when the withdrawal looks like a reward for work instead of a genuine loan. Regular monthly payments without repayment terms may be questioned and reviewed as employment-related income.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-is-the-director-loan-account-malaysia-tax-risk\"><strong>What is the director loan account Malaysia tax risk?<\/strong><\/h3>\n\n\n\n<p>The main risk is poor classification. An unpaid director loan may create deemed interest issues for the company, perquisite issues for the director or payroll issues if the payment is really remuneration.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-should-a-shareholder-loan-to-a-company-be-recorded\"><strong>How should a shareholder loan to a company be recorded?<\/strong><\/h3>\n\n\n\n<p>A shareholder loan to the company should be recorded separately as money owed by the company to the shareholder. It should not be mixed with director drawings, salary, expense claims or dividends.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Director\u2019s drawings tax Malaysia LHDN issues often start with a simple habit. A director pays personal expenses through the company or takes regular money out and records it as \u201cadvance,\u201d \u201cloan,\u201d or \u201cdirector account.\u201d This may look harmless inside the bookkeeping file, but it can become a tax issue when the payment has no board [&hellip;]<\/p>\n","protected":false},"author":21,"featured_media":24590,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4504],"tags":[],"acf":{"ai_summary_prompt":"Please summarize the content of this page: [URL]"},"contentshake_article_id":"","yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.2 (Yoast SEO v22.5) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Director\u2019s Drawings Tax Malaysia LHDN Guide<\/title>\n<meta name=\"description\" content=\"Understand the director\u2019s drawings tax Malaysia, LHDN issues, director loan account mistakes, Section 140 risk, and when drawings may be treated as salary.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/arnifi.com\/blog\/directors-drawings-tax-malaysia-lhdn-guide\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Director\u2019s Drawings and Loan Account Pitfalls | When LHDN Recharacterizes as Salary\" \/>\n<meta property=\"og:description\" content=\"Understand the director\u2019s drawings tax Malaysia, LHDN issues, director loan account mistakes, Section 140 risk, and when drawings may be treated as salary.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/arnifi.com\/blog\/directors-drawings-tax-malaysia-lhdn-guide\/\" \/>\n<meta property=\"og:site_name\" content=\"Arnifi Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/arnifiofficial\" \/>\n<meta property=\"article:published_time\" content=\"2026-06-10T09:18:22+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-06-10T09:18:23+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/arnifi.com\/blog\/wp-content\/uploads\/2026\/06\/Thumbnail-15-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"684\" \/>\n\t<meta property=\"og:image:height\" content=\"452\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Ishika Bhandari\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@arnifiofficial\" \/>\n<meta name=\"twitter:site\" content=\"@arnifiofficial\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Ishika Bhandari\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/arnifi.com\/blog\/directors-drawings-tax-malaysia-lhdn-guide\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/arnifi.com\/blog\/directors-drawings-tax-malaysia-lhdn-guide\/\"},\"author\":{\"name\":\"Ishika Bhandari\",\"@id\":\"https:\/\/arnifi.com\/blog\/#\/schema\/person\/9c25f86c27432681c07331196925cafb\"},\"headline\":\"Director\u2019s Drawings and Loan Account Pitfalls | ...\",\"datePublished\":\"2026-06-10T09:18:22+00:00\",\"dateModified\":\"2026-06-10T09:18:23+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/arnifi.com\/blog\/directors-drawings-tax-malaysia-lhdn-guide\/\"},\"wordCount\":1397,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/arnifi.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/arnifi.com\/blog\/directors-drawings-tax-malaysia-lhdn-guide\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/arnifi.com\/blog\/wp-content\/uploads\/2026\/06\/Thumbnail-15-1.jpg\",\"articleSection\":[\"Business in Malaysia\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/arnifi.com\/blog\/directors-drawings-tax-malaysia-lhdn-guide\/#respond\"]}],\"accessibilityFeature\":[\"tableOfContents\"]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/arnifi.com\/blog\/directors-drawings-tax-malaysia-lhdn-guide\/\",\"url\":\"https:\/\/arnifi.com\/blog\/directors-drawings-tax-malaysia-lhdn-guide\/\",\"name\":\"Director\u2019s Drawings Tax Malaysia LHDN Guide\",\"isPartOf\":{\"@id\":\"https:\/\/arnifi.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/arnifi.com\/blog\/directors-drawings-tax-malaysia-lhdn-guide\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/arnifi.com\/blog\/directors-drawings-tax-malaysia-lhdn-guide\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/arnifi.com\/blog\/wp-content\/uploads\/2026\/06\/Thumbnail-15-1.jpg\",\"datePublished\":\"2026-06-10T09:18:22+00:00\",\"dateModified\":\"2026-06-10T09:18:23+00:00\",\"description\":\"Understand the director\u2019s drawings tax Malaysia, LHDN issues, director loan account mistakes, Section 140 risk, and when drawings may be treated as salary.\",\"breadcrumb\":{\"@id\":\"https:\/\/arnifi.com\/blog\/directors-drawings-tax-malaysia-lhdn-guide\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/arnifi.com\/blog\/directors-drawings-tax-malaysia-lhdn-guide\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/arnifi.com\/blog\/directors-drawings-tax-malaysia-lhdn-guide\/#primaryimage\",\"url\":\"https:\/\/arnifi.com\/blog\/wp-content\/uploads\/2026\/06\/Thumbnail-15-1.jpg\",\"contentUrl\":\"https:\/\/arnifi.com\/blog\/wp-content\/uploads\/2026\/06\/Thumbnail-15-1.jpg\",\"width\":684,\"height\":452,\"caption\":\"Blog banner image of Director\u2019s drawings tax Malaysia LHDN.\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/arnifi.com\/blog\/directors-drawings-tax-malaysia-lhdn-guide\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/arnifi.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Director\u2019s Drawings and Loan Account Pitfalls | ...\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/arnifi.com\/blog\/#website\",\"url\":\"https:\/\/arnifi.com\/blog\/\",\"name\":\"Arnifi\",\"description\":\"Arnifi is digital first Corporate service provider helping companies enter the Middle East region, starting with UAE and Saudi Arabia markets\",\"publisher\":{\"@id\":\"https:\/\/arnifi.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/arnifi.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/arnifi.com\/blog\/#organization\",\"name\":\"Arnifi\",\"url\":\"https:\/\/arnifi.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/arnifi.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/arnifi.com\/blog\/wp-content\/uploads\/2026\/01\/cropped-logo-removebg-preview.png\",\"contentUrl\":\"https:\/\/arnifi.com\/blog\/wp-content\/uploads\/2026\/01\/cropped-logo-removebg-preview.png\",\"width\":835,\"height\":208,\"caption\":\"Arnifi\"},\"image\":{\"@id\":\"https:\/\/arnifi.com\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/arnifiofficial\",\"https:\/\/x.com\/arnifiofficial\",\"https:\/\/www.linkedin.com\/company\/arnifiofficial\/\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/arnifi.com\/blog\/#\/schema\/person\/9c25f86c27432681c07331196925cafb\",\"name\":\"Ishika Bhandari\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/arnifi.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/ed4d6f0e205379795d83638e0bdbce94?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/ed4d6f0e205379795d83638e0bdbce94?s=96&d=mm&r=g\",\"caption\":\"Ishika Bhandari\"},\"description\":\"Content Writer\",\"url\":\"https:\/\/arnifi.com\/blog\/author\/ishika\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Director\u2019s Drawings Tax Malaysia LHDN Guide","description":"Understand the director\u2019s drawings tax Malaysia, LHDN issues, director loan account mistakes, Section 140 risk, and when drawings may be treated as salary.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/arnifi.com\/blog\/directors-drawings-tax-malaysia-lhdn-guide\/","og_locale":"en_US","og_type":"article","og_title":"Director\u2019s Drawings and Loan Account Pitfalls | When LHDN Recharacterizes as Salary","og_description":"Understand the director\u2019s drawings tax Malaysia, LHDN issues, director loan account mistakes, Section 140 risk, and when drawings may be treated as salary.","og_url":"https:\/\/arnifi.com\/blog\/directors-drawings-tax-malaysia-lhdn-guide\/","og_site_name":"Arnifi Blog","article_publisher":"https:\/\/www.facebook.com\/arnifiofficial","article_published_time":"2026-06-10T09:18:22+00:00","article_modified_time":"2026-06-10T09:18:23+00:00","og_image":[{"width":684,"height":452,"url":"https:\/\/arnifi.com\/blog\/wp-content\/uploads\/2026\/06\/Thumbnail-15-1.jpg","type":"image\/jpeg"}],"author":"Ishika Bhandari","twitter_card":"summary_large_image","twitter_creator":"@arnifiofficial","twitter_site":"@arnifiofficial","twitter_misc":{"Written by":"Ishika Bhandari","Est. reading time":"7 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/arnifi.com\/blog\/directors-drawings-tax-malaysia-lhdn-guide\/#article","isPartOf":{"@id":"https:\/\/arnifi.com\/blog\/directors-drawings-tax-malaysia-lhdn-guide\/"},"author":{"name":"Ishika Bhandari","@id":"https:\/\/arnifi.com\/blog\/#\/schema\/person\/9c25f86c27432681c07331196925cafb"},"headline":"Director\u2019s Drawings and Loan Account Pitfalls | ...","datePublished":"2026-06-10T09:18:22+00:00","dateModified":"2026-06-10T09:18:23+00:00","mainEntityOfPage":{"@id":"https:\/\/arnifi.com\/blog\/directors-drawings-tax-malaysia-lhdn-guide\/"},"wordCount":1397,"commentCount":0,"publisher":{"@id":"https:\/\/arnifi.com\/blog\/#organization"},"image":{"@id":"https:\/\/arnifi.com\/blog\/directors-drawings-tax-malaysia-lhdn-guide\/#primaryimage"},"thumbnailUrl":"https:\/\/arnifi.com\/blog\/wp-content\/uploads\/2026\/06\/Thumbnail-15-1.jpg","articleSection":["Business in Malaysia"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/arnifi.com\/blog\/directors-drawings-tax-malaysia-lhdn-guide\/#respond"]}],"accessibilityFeature":["tableOfContents"]},{"@type":"WebPage","@id":"https:\/\/arnifi.com\/blog\/directors-drawings-tax-malaysia-lhdn-guide\/","url":"https:\/\/arnifi.com\/blog\/directors-drawings-tax-malaysia-lhdn-guide\/","name":"Director\u2019s Drawings Tax Malaysia LHDN Guide","isPartOf":{"@id":"https:\/\/arnifi.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/arnifi.com\/blog\/directors-drawings-tax-malaysia-lhdn-guide\/#primaryimage"},"image":{"@id":"https:\/\/arnifi.com\/blog\/directors-drawings-tax-malaysia-lhdn-guide\/#primaryimage"},"thumbnailUrl":"https:\/\/arnifi.com\/blog\/wp-content\/uploads\/2026\/06\/Thumbnail-15-1.jpg","datePublished":"2026-06-10T09:18:22+00:00","dateModified":"2026-06-10T09:18:23+00:00","description":"Understand the director\u2019s drawings tax Malaysia, LHDN issues, director loan account mistakes, Section 140 risk, and when drawings may be treated as salary.","breadcrumb":{"@id":"https:\/\/arnifi.com\/blog\/directors-drawings-tax-malaysia-lhdn-guide\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/arnifi.com\/blog\/directors-drawings-tax-malaysia-lhdn-guide\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/arnifi.com\/blog\/directors-drawings-tax-malaysia-lhdn-guide\/#primaryimage","url":"https:\/\/arnifi.com\/blog\/wp-content\/uploads\/2026\/06\/Thumbnail-15-1.jpg","contentUrl":"https:\/\/arnifi.com\/blog\/wp-content\/uploads\/2026\/06\/Thumbnail-15-1.jpg","width":684,"height":452,"caption":"Blog banner image of Director\u2019s drawings tax Malaysia LHDN."},{"@type":"BreadcrumbList","@id":"https:\/\/arnifi.com\/blog\/directors-drawings-tax-malaysia-lhdn-guide\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/arnifi.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Director\u2019s Drawings and Loan Account Pitfalls | ..."}]},{"@type":"WebSite","@id":"https:\/\/arnifi.com\/blog\/#website","url":"https:\/\/arnifi.com\/blog\/","name":"Arnifi","description":"Arnifi is digital first Corporate service provider helping companies enter the Middle East region, starting with UAE and Saudi Arabia markets","publisher":{"@id":"https:\/\/arnifi.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/arnifi.com\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/arnifi.com\/blog\/#organization","name":"Arnifi","url":"https:\/\/arnifi.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/arnifi.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/arnifi.com\/blog\/wp-content\/uploads\/2026\/01\/cropped-logo-removebg-preview.png","contentUrl":"https:\/\/arnifi.com\/blog\/wp-content\/uploads\/2026\/01\/cropped-logo-removebg-preview.png","width":835,"height":208,"caption":"Arnifi"},"image":{"@id":"https:\/\/arnifi.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/arnifiofficial","https:\/\/x.com\/arnifiofficial","https:\/\/www.linkedin.com\/company\/arnifiofficial\/"]},{"@type":"Person","@id":"https:\/\/arnifi.com\/blog\/#\/schema\/person\/9c25f86c27432681c07331196925cafb","name":"Ishika Bhandari","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/arnifi.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/ed4d6f0e205379795d83638e0bdbce94?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/ed4d6f0e205379795d83638e0bdbce94?s=96&d=mm&r=g","caption":"Ishika Bhandari"},"description":"Content Writer","url":"https:\/\/arnifi.com\/blog\/author\/ishika\/"}]}},"all_meta":{"_edit_lock":"1781083104:21","_thumbnail_id":"24590","_edit_last":"21","_yoast_indexnow_last_ping":"1781083104","ai_summary_prompt":"Please summarize the content of this page: [URL]","_ai_summary_prompt":"field_698ddb3fc8299","ao_post_optimize":"a:6:{s:16:\"ao_post_optimize\";s:2:\"on\";s:19:\"ao_post_js_optimize\";s:2:\"on\";s:20:\"ao_post_css_optimize\";s:2:\"on\";s:12:\"ao_post_ccss\";s:2:\"on\";s:16:\"ao_post_lazyload\";s:2:\"on\";s:15:\"ao_post_preload\";s:0:\"\";}","wpr_secondary_image_id":"0","_yoast_wpseo_primary_category":"4504","_yoast_wpseo_focuskw":"Director\u2019s drawings tax Malaysia LHDN","_yoast_wpseo_title":"Director\u2019s Drawings Tax Malaysia LHDN Guide","_yoast_wpseo_metadesc":"Understand the director\u2019s drawings tax Malaysia, LHDN issues, director loan account mistakes, Section 140 risk, and when drawings may be treated as salary.","_yoast_wpseo_linkdex":"71","_yoast_wpseo_content_score":"90","_yoast_wpseo_focuskeywords":"[]","_yoast_wpseo_keywordsynonyms":"[\"\"]","_yoast_wpseo_estimated-reading-time-minutes":"7"},"_links":{"self":[{"href":"https:\/\/arnifi.com\/blog\/wp-json\/wp\/v2\/posts\/24588"}],"collection":[{"href":"https:\/\/arnifi.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/arnifi.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/arnifi.com\/blog\/wp-json\/wp\/v2\/users\/21"}],"replies":[{"embeddable":true,"href":"https:\/\/arnifi.com\/blog\/wp-json\/wp\/v2\/comments?post=24588"}],"version-history":[{"count":1,"href":"https:\/\/arnifi.com\/blog\/wp-json\/wp\/v2\/posts\/24588\/revisions"}],"predecessor-version":[{"id":24591,"href":"https:\/\/arnifi.com\/blog\/wp-json\/wp\/v2\/posts\/24588\/revisions\/24591"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/arnifi.com\/blog\/wp-json\/wp\/v2\/media\/24590"}],"wp:attachment":[{"href":"https:\/\/arnifi.com\/blog\/wp-json\/wp\/v2\/media?parent=24588"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/arnifi.com\/blog\/wp-json\/wp\/v2\/categories?post=24588"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/arnifi.com\/blog\/wp-json\/wp\/v2\/tags?post=24588"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}