Scheduler Tax deduction Malaysia

Hi Folks,

This is my first blog had done some research on tax in Malaysia although there might be some defects as am still learning but so far the calculation for scheduler tax deduction is as follows,

It’s divided in to two parts for previous amounts and future amounts,

Assume,

Basic is 6300 for an employee in month of Jan and later in month of Feb the same employee has additional amount of 225, while in month of Mar the additional amount goes upto 2500

Then the calculation for month of April will be as follows

Jan : 6300 – 693(Assume EPF: 693)

Feb: 6300 + 225 – 717.25 (Assume EPF: 717.75)

Mar: 6300 + 2500 – 968 (Assume EPF: 968)

Total Previous Earning is : 19246.25

The basic is assumed to be same by system in future hence its: 6300*9 = 56700

Where 9 is number of months from month of April to Dec

Future Earning: 56700

Total yearly taxable amount is : 56700+19246.25 = 75946.25

Individual Rebate is 9000

Yearly taxable amount after Individual Rebate deduction : 75946.25 – 9000 = 66946.25

P= 66946.25

Refer to table for range of P,

 From P(RM) To P(RM) M(RM) R(%) B Category 1 & 3 (RM) B Category 2 (RM) 5001 20000 5000 0.01 -400 -800 20001 35000 20000 0.05 -250 -650 35001 50000 35000 0.1 900 900 50001 70000 50000 0.16 2400 2400 70001 100000 70000 0.21 5600 5600 100001 250000 100000 0.24 11900 11900 250001 400000 250000 0.245 4790 4790 400001 600000 400000 0.25 84650 84650 600001 1000000 600000 0.26 134650 134650 1000001 999999999 1000000 0.28 238650 238650

PCB= (P-M)*R-(Z+X) / (N+1)

M and R can be referred from table while Z is zakat and X is Previous tax deductions

PCB = (66946.25 – 50,000)*0.16-(0+200.08)/10

=249.122

Regards,

Prashant. j