Can my company lend me money?
With care. The Companies Act 2016 restricts loans to directors (Sections 224 and 225) with limited exceptions, and tax rules deem an interest benefit on company funds advanced to a director, adding taxable income. Treating the company account as a personal overdraft also erodes the separation that limited liability rests on.
Statutory figures: Companies Act 2016 s.224–225 Income Tax Act 1967
Also asked as: advance to director tax; company loan to director s224; pinjam duit syarikat sendiri; director current account malaysia.
The clean ways to take money out are salary, directors' fees and dividends — each with known treatment. If you've already drawn funds informally, tell your accountant early; a director's current account can usually be regularised, but only before it becomes a year-end problem.
Key facts
- s.224/225 restrictions on director loans
- Deemed interest benefit is taxable
- Clean routes: salary, fees, dividends
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