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What is the Value of Living Accommodation(VOLA)? (Malaysia)
What is the Value of Living Accommodation(VOLA)? (Malaysia)

What you should know about VOLA in Malaysia

Danial avatar
Written by Danial
Updated over a week ago

The following are some frequently asked questions that we often encounter:

  1. What is the Value of Living Accommodation (VOLA) in the context of Malaysia's taxation system?

  2. Could you explain the categories used to classify the computation of the Value of Living Accommodation (VOLA) in Malaysia?

  3. How does the calculation of the Value of Living Accommodation (VOLA) differ between employer-owned accommodation and accommodation rented by the employer in Malaysia?


The Value of Living Accommodation (VOLA) is a concept that relates to the taxable benefit an employee receives when provided with accommodation by their employer.

The taxable value is determined based on various factors, including the type of accommodation, its location, and its market rental value.

Generally, the computation of the Value of Living Accommodation (VOLA) is categorized into three main groups based on the nature of the accommodation provided by the employer to the employee:

Accommodation Provided by Employer (Owned by Employer):

When an employer provides accommodation that is owned by them, the computation of VOLA falls under this category.

The taxable value is determined as a percentage of the market rental value of the accommodation.

The specific percentage used for this calculation is typically around 30% of the market rental value, although it can vary.

Accommodation Provided by Employer (Rented by Employer):

If an employer rents accommodation on behalf of the employee, the computation of VOLA falls into this category.

In this case, the taxable value is calculated as the actual rental amount paid by the employer for the accommodation.

If the rental amount paid by the employer is less than the market rental value, the difference between the two values might be considered a taxable benefit.

Accommodation Provided by a Third Party (Subsidized by Employer):

In situations where an employee rents accommodation from a third party, and the employer provides a subsidy or allowance to cover part of the rental cost, the computation of VOLA falls under this category.

The taxable value is calculated as the difference between the actual rental amount paid by the employee and the subsidized amount provided by the employer.

It's important to correctly categorize the type of accommodation and apply the appropriate calculation method to determine the taxable VOLA.


Employers are responsible for accurately calculating and deducting the income tax amount from the employee's salary based on the applicable VOLA category.

Some informational links you can refer to from LHDN:

As tax laws can change and interpretations might vary, it's advisable to consult the latest guidelines provided by LHDN or seek advice from a tax professional to ensure accurate and up-to-date information regarding the computation of living accommodation benefits in Malaysia.

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