How to save tax on employee remuneration? Part 2

01How to save tax on employee remuneration? Part 2

02A simple practical illustration on tax exempted perquisites :

For years… Ah Huat (not director) receive RM10,000 bonus and subject to PCB RMx per month?

After tax planning..

Now Ah Huat receive RM8,000 monthly salary and RM2,000 cash reward on productivity award . Ah Huat monthly PCB is lower that RMx previously.

03Example of tax exempted perquisites :

• Innovation or productivity award - RM2,000 exemption
• Subsidies on interest : Housing, education or car loan - RM300,000
• Gifts and monthly bills for fixed line telephone, mobile phone, pager, personal digital assistant (PDA) and subscription of broadband - Limited to only 1 unit for each category of assets
• Gift of a new personal computer - PU (A) 30 Income Tax (Exemption) Order 2021
  For YA2020 only
• Travelling allowance, Petrol allowance or Toll rate - RM6,000 exemption
• Parking rate or parking allowance - Reasonable
• Meal allowance : Daily or monthly basis
• Child care allowance : - RM2,400 - Age of 12 years

04Source : IRB Public Ruling - Perquisites from Employment

http://lampiran1.hasil.gov.my/pdf/pdfam/PR_05_2019.pdf

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