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Monday, October 18, 2010

Budget 2011


Tax relief for parent medical expanded to include expenses on parent care if verified by practitioner as necessary.

Thursday, January 28, 2010

PCB 2010

New PCB deduction schedule and Explanatory notes available now at IRB website, click http://bit.ly/PCB2010 for 2010 PCB schedule and http://bit.ly/cUciSN for explanatory notes.

The IRB website has also included e-PCB system to ease employer without payroll software to calculate and check PCB. (At launching phase only avail to selected employer, for futher info can contact IRB customer service centre at 1300-88-3010 to activate the account)

The system will store employee information and facilitate PCB submission and payment online thus saving time and cost for employer in PCB compliance.

Tuesday, September 29, 2009

Bad debt deduction

To qualified for tax deduction one has to do the following at the minimum:

1. The debt is a trade debt

2. Action has been taken to recover the debts, at the minimum send legal letter

3. Appoint a person to evaluate the case, document the date, name and the information used in arriving at the decision

4. When claiming bed debts make sure the Company has stop business dealing with the customer for the simple reason:-

A debt considered as bad upon customer died, bankrupt, missing or no cost effective way to recover.

Hence there will be no valid business or commercial reason for a company to do business with the bad customer.

E-Learning Center on Personal Financial Management

offered by Mastercard worldwide supported by AKPK (Credit Counseling and Management Agency in Malaysia) at

http://www.mastercard.com/sea

Consumer Education tab

offer tips and tools to educate consumers on the following topics

  • Credit Wise

Being credit wise means playing it smart with your plastic; knowing how to build good credit, how to prevent fraud, and how to develop and stick to a budget so that whether you’re starting out or starting over you start on the right foot.

Credit cards are an important tool for achieving independence and financial freedom. When used wisely they can help you build the kind of good credit that makes it easier to reach your short and long-term goals – goals such as renting an apartment, buying a car, or even buying a house.

Being credit wise really just requires a little homework and some common sense. And just like studying any subject, the best place to start is with the basics.

  • Debt Know-How

Debt Know-How was created to help you understand and deal with debt issues that could affect you, your friends, or family. While everyone's situation is unique, the fact remains: getting out of debt is hard work. However, knowing the facts can save you time and money.
In this section we’ve compiled resources to help you analyze your current debt load, identify debt warning signs, and take control of debt.

  • Staying Secure

Find out how to avoiding fraud, protect your assets and identity and learn about the latest security innovations built right into your MasterCard.

 

Financial Management has always been a subject of great interest and is becoming more important especially during this financial crisis.

Hopefully one can learn a tip or two from the above site and achieve the financial goal that one dream of.

Happy exploring!

Entertainment Expense

 

The IRB has issued a revised Public Ruling on the above-mentioned in 22.10.2008.

The new PR give a guide in ascertaining deductibility of Entertainment Expense as follow:

First check is it fall under S18 entertainment expense, if not not allowed but may check if it can be classified to other type of expense.

Secondly test if it satisfied S33(1) wholly and exclusively test, if fail no deduction is allowed.

If pass the S33(1) test, check against S39(1)(i)-(viii) for 100% deduction, otherwise 50% only deductible.

For more comprehensive analysis refer Summary of Entertainment Expense

Leave Passage

Leave passage in 2007 extend to include fare, meal and accommodation.

It is tax exempted on the employee (limited to 3 times local and 1 time oversea (max RM3,000) per year ) otherwise will be part of remuneration that is taxable.

Does not apply to sole-proprietor and partner as no master and servant relationship exist.

From Employer perspective, the fare for a yearly events within Malaysia involving employer, employee and immediate family member of the employee allowed will be allowed a deduction in ascertaining adjusted income for a year of assessment.

Fare for employee leave passage other than above mentioned will not be deductible, but the meal and accommodation is allowed under 39(1)(i)

Wednesday, September 23, 2009

EPF (Amendment in 2008 and 2009)

1) First Schedule

Persons was are not employees

(3) Domestic servants as defined aforesaid (other than those excepted under paragraph (2)) who have not, in respect of any employment in which they are then engaged, given to the Board and their employers one month's notice in the prescribed form of their intention to be members of the Fund.

(6) Any person who is employed and whose country of domicile is outside Malaysia and who enters and remains temporarily under the authority of any pass issued under the provisions of any written law relating to immigration and who has not given to the Board and his employer one month's notice in the prescribed form of his intention to be a member of the Fund.

(13) Any person who has attained the age of seventy-five years

2) Second Schedule

Definition of "Employer"

3) Third Schedule

EPF Rate (Refer EPF site for details)

Applicable if apply for 11% and persons who have attained the age of fifty-five years.

Summary of content Rate w.e.f 1.2.2008 (11%)

Part A - Employer 12% Employee 11%

(1) The rate of monthly contributions specified in this Part shall apply to—
(a) employees who are Malaysian citizens;
(b) employees who are not Malaysian citizens but are permanent residents
of Malaysia; and
(c) employees who are not Malaysian citizens who have elected to contribute before 1 August 1998.

Part B - Employer RM5 EMployee 11%

(1) The rate of monthly contributions specified in this Part shall apply to employees who are not Malaysian citizens
(a) who elect to contribute on or after 1 August 1998;
(b) who elect to contribute under paragraph 3 of the First Schedule on or after 1 August 1998; and
(c) who elect to contribute under paragraph 6 of the First Schedule on or after 1 August 2001.

Part C - Employer 6%, Employee 5.5%

(1) The rate of monthly contributions specified in this Part shall apply to—
(a) employees who are Malaysian citizens;
(b) employees who are not Malaysian citizens but are permanent residents of Malaysia; and
(c) employees who are not Malaysian citizens who have elected to contribute before 1 August 1998,
who have attained the age of fifty-five years.

Part D - Employer RM5, Employee 5.5%

(1) The rate of monthly contributions specified in this Part shall apply to employees who are not Malaysian citizens—
(a) who elect to contribute on or after 1 August 1998;
(b) who elect to contribute under paragraph 3 of the First Schedule on or after 1 August 1998; and
(c) who elect to contribute under paragraph 6 of the First Schedule on or after 1 August 2001,
who have attained the age of fifty-five years.

 

Summary of content New rate for 1.1.2009 to 31.12.2010 (8%)

Applicable to new and existing (have not apply for 11%) employee who has not attained the age of fifty-five years.

EMPLOYEES PROVIDENT FUND (AMENDMENT OF THIRD SCHEDULE)
ORDER 2008

Part A - Employer 12% Employee 8%

(1) The rate of monthly contributions specified in this Part shall apply to:

(a) employees who are Malaysian citizens;

(b) employees who are not Malaysian citizens but are permanent residents of Malaysia; and

(c) employees who are not Malaysian citizens who have elected to contribute before 1 August 1998.

Part B - Employer RM5 Employee 8%

(1) The rate of monthly contributions specified in this Part shall apply to employees who are not Malaysian citizens

(a) who elect to contribute on or after 1 August 1998;

(b) who elect to contribute under paragraph 3 of the First Schedule on or after 1 August 1998; and

(c) who elect to contribute under paragraph 6 of the First Schedule on or after 1 August 2001.