lOMoARcPSD|13518504
Topic 3 Format Employment Income
Advanced Taxation (Universiti Utara Malaysia)
Studocu is not sponsored or endorsed by any college or university
Downloaded by vinny guez (vinnyguez12@gmail.com)
lOMoARcPSD|13518504
TOPIC 3: FORMAT COMPUTATION OF EMPLOYMENT INCOME
TAX 267: TAXATION 1
SEMESTER: OCT 2020- JAN 2020
Encik / Puan / Cik ………
Computation of Statutory Employment Income for Year of Assessment 2019
Section 13(1)(a) – Income convertible into money
Gross wages and salary
xx
Director fees
xx
Leave pay
xx
Commission
xx
Bonus (receipt)
xx
Gratuity
-
Exemption RM1,000 for each completed year of service
xx
-
Due to ill health (Exempted)
Nil
-
55 yrs, 10 yrs service with same employer or with companies in same group
(Exempted)
- 50 – 54 yrs, 10 yrs service with same employer or with companies in same group
(Exempted)
Perquisites
Nil
Nil
-
Pecuniary liabilities paid by employer
xx
-
Credit card facilities
-
Interest on loan
-
-
Official duties (Exempted)
Nil
-
Official duties and private purchase
xx
Internal fund (Exempted)
-
Nil
xx
-
External fund – Subsidies up to RM300,000 loan for
housing, passenger motor vehicles and education
Individual recreational club membership (Entrance, monthly, annual)
-
Tuition or school fees of a child paid by employer
xx
-
Insurance premium
xx
-
Reimbursement for gardener, driver, servant and guard salary (actual amount)
xx
-
Scholarship (Exempted)
Nil
-
Waiver of loan or advance
xx
-
xx
-
The difference between the market price and the amount paid by the employees for
assets provided free of charge or sold at discounted price
Employer’s own goods provided free of charge or sold at discounted price –
exemption RM1,000 per year
Employer’s own services provided free or at a discount – provided such
benefits are not transferable (Exempted)
Gift vouchers – recurring characteristics
-
Gift of personal computers (market value)
xx
-
Excellent public service award – exemption RM2,000
xx
-
Long service award – exemption RM2,000 if 10 yrs service with same employer
xx
-
Professional subscription – not relevant to the business
xx
-
Share option [(Market price – offer price) x no of shares exercised]
xx
-
xx
xx
Nil
Nil
Allowance
-
Entertainment
xx
-
Parking allowance (Exempted)
Nil
-
Meal allowance (Exempted)
Nil
-
Travelling allowance or petrol allowance for official duties - exemption RM6,000
per year regardless of month, no apportionment
Child care allowance - exemption RM2,400 per year regardless of month, no
apportionment
xx
-
xx
xx
Section 13(1)(b) – Benefit in kind
Medical, dental or childcare benefit (Exempted) Maternity and traditional medicine
(employees)
Leave passage for travel
- In Malaysia – exemption 3 times in a year for air fares, meal & accommodation
Downloaded by vinny guez (vinnyguez12@gmail.com)
Nil
xx
lOMoARcPSD|13518504
TOPIC 3: FORMAT COMPUTATION OF EMPLOYMENT INCOME
TAX 267: TAXATION 1
SEMESTER: OCT 2020- JAN 2020
-
Outside Malaysia – exemption RM3,000 per family in a year on air fares and
insurance in transit
Free transportation – home to office (Exempted)
Food & drinks provided free of charge (Exempted)
Insurance premium - Obligatory to foreign workers (Exempted)
- To cover workers in the event of accident (Exempted)
Utilities expenses (bills under employer’s name) – actual amount
Corporate recreational club membership
- Entrance fees (Exempted)
- Monthly and annual fees
Telephone and mobile phone, telephone bills, pager, personal data assistant (PDA)
and internet subscription (Exempted)
Gardener (RM300 per mth x no. of mths)
Servant (RM400 per mth x no. of mths)
Driver (RM600 per mth x no. of mths)
Car (Fuel benefit >YA2008, RM6K tax exempt)
- refer to guidelines – prescribed value method
- If car provided for less than a year, annual value apportioned appropriately in
accordance to the period provided
- If car shared with another employee, annual value reduced proportionately
- If car > 5 yrs, annual value divide by 2
Furniture
- Semi-furnished with furniture in the lounge, dining room or bedroom (RM840 p.a.)
- Semi-furnished as above plus one of the following: air-conditioners, curtains, carpets
(RM1,680 p.a.)
- Fully furnished as above plus one or more kitchen equipment, utensils and appliances
(RM3,360 p.a.)
xx
Nil
Nil
Nil
Nil
xx
Nil
xx
Nil
xx
xx
xx
xx
xx
xx
xx
xx
xx
xx
xx
Section 13(1)(c) – Living accomodation
Employee or Service director (Owns less than 5% shares and act in managerial or technical
capacity)
- House
- Defined value of the living accommodation or
30% x (Section 13(1)(a) – share option)
Choose the lower
-
Hotel
-
3% x (Section 13(1)(a) – share option)
Director (own 20% or more share capital in controlled company)
- House
- Defined value of the living accommodation
- Hotel
- Actual room rate per day x no. of days
xx
xx
xx
xx
xx
Section 13(1)(d) – Withdrawal of money from unapproved fund
Contribution by employer
Contribution by employee (Exempted)
Interest earned
xx
Nil
Nil
xx
Section 13(1)(e) – Compensation for loss of employment
Compensation received
Less: Exemptions RM10,000 for each completed years of service
xx
xx
xx
GROSS EMPLOYMENT INCOME
Less: Allowable expenses
- Entertainment expenses ( restricted to allowance received section 13(1)(a)
- Travelling expenses minus exemption
- Rent paid to employer
- Professional subscription
STATUTORY EMPLOYMENT INCOME
** THE EXEMPTIONS DOES NOT APPLY TO DIRECTORS OF CONTROLLED COMPANIES,
SOLE PROPRIETORS AND PARTNERSHIPS
Downloaded by vinny guez (vinnyguez12@gmail.com)
xx
xx
xx
xx
xx
xx
xx