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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

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