It is now time to look at the various provision of the Budget 2009 that will have effect from a personal tax perspective. (Refer to earlier post on Budget Summary)
One may also want to look back at YA 2008 filing done recently.
Section D of the Form B/BE provides guidance on the rebates that is available for taxpayer to legally minimise his/her tax bill.
Public Ruling 1/2006, 1/2006 addendum, 1/2006 second addendum (a new addendum is due anytime) will guide employees on ways to minimise their tax by re-structuring the remuneration package (eg converting cash salary to benefit-in-kinds, ie take home less cash but maintain the same living standards and higher disposable income).
Remember. All the necessary action need to be done before 31.12.2009 to qualify for YA2009 filing and it is advisable to seek professional advice.
Wednesday, July 1, 2009
Monday, April 13, 2009
WAGES for SOCSO and EPF
Socso
including overtime, commission, service charge, paid annual leave, sickness, maternity, rest day, public holiday, incentives, subsistence, housing and others. All payments calculated either hourly, daily, weekly, monthly or by task are considered wage.
EPF
Fees/wages meant all support in terms of monetary to be paid to the employee under a service contract or apprenticeship either agreed to be paid monthly, weekly, daily and others including bonus, commission or allowance which an employer has to pay its employees.
Payments that do not require deduction for EPF contribution are:
- Service charge
- Overtime payment
- Gratuity, which refers to, any payment paid by an employer to an employee as termination of service or voluntary separation scheme to acknowledge the services of the employee.
- Director fees
- Retirement benefits, which means, any payment paid by an employer to an employee for compulsory or optional retirement or for health reasons as stated under the employees contract of service
- Retrenchment benefits, temporary or permanent termination of employment
- Any traveling allowance or the value of any traveling concession
- Any other remuneration or payment exempted by the Minister
(Source: FAQ of EPF & SOCSO site)
Thursday, March 12, 2009
HIGHLIGHT OF 2ND ECONOMIC STIMULUS PACKAGE
Highlight below the strategy that affect the general worker/businessman
1. Tax
- Double deduction of remuneration
- Increase tax exempted income of retrenchment benefits
- Accelerated Capital Allowance - plant and machinery and renovation
- Carry back of losses
- Levy on foreign worker
- Housing interest deduction
2. Cash flow
3. Finance
Wednesday, March 11, 2009
Economic Stimulus Package
(Speech of Second Economics Stimulus Package dated 10th March 2009)
Summary of RM60 B (implemented over two year - 2009 and 2010) package are as follow:
This package account for almost 9% of GDP and will result in increased in the Budget deficit from 4.8% to 7.6%.
The Package have four thrust together with the relevant allocation as shown below:
| Thrust | RM B |
| 1. Reducing Unemployment and Increasing Employment Opportunities | 2 |
| 2. Easing the Burden of the Rakyat, in particular, the Vulnerable Groups | 10 |
| 3. Assisting the Private Sector in Facing the Crisis | 29 |
| 4. Building Capacity for the Future | 19 |
The package will be implemented over two year in the following form
| Total RM B | |
| Fiscal injection | 15 |
| Guarantee funds | 25 |
| Equity investments | 10 |
| Private finance initiative and off-budget projects | 7 |
| Tax incentives | 3 |
fiscal injection
RM10 billion is allocated for 2009 and RM5 billion for 2010.
The RM10 billion for 2009 consists of RM5 billion for operating expenditure and RM5 billion for development expenditure.
Summary of various action under the relevant thrust:
FIRST THRUST: REDUCING UNEMPLOYMENT AND INCREASING EMPLOYMENT OPPORTUNITIES
- Unemployment rate expected to increase to 4.5% (3.7% 2008)
- Since Oct 2008,
- 25,000 worker retrenched
- 30,900 temporary laid-off
- 23900 tpaycuts
- 100,000 no overtime work
Strategy
1. Providing Training and Creating Employment Opportunities
2. Welfare of Retrenched Workers
3. Creating Job Opportunities in the Public Sector
4. Opportunities for Post-Graduate Education
6. Efforts to Reduce Foreign Workers
SECOND THRUST: EASING THE BURDEN OF THE RAKYAT, IN PARTICULAR THE VULNERABLE GROUPS
- Eliminate hardcore poverty by 2010
- assist oil palm and rubber smallholders affected by declining commodity prices
- through re-planting, integrated farming and livestock breeding schemes
- in the events income of smallholders falling below poverty line income, assistance under the Social Safety Net Scheme will be extended to them
- ensure prices of necessities and transport cost do not burden the rakyat
- RM674 M for necessities price subsidies (sugar, bread, wheat flour)
- RM480 M to curb increase in toll rates
- total subsidies in 2009 RM27.9 M
Strategy
8. Improving Public Infrastructure
10. Improving School Facilities
11. Basic Amenities in Rural Areas
12. Programmes in Sabah and Sarawak
14. Assisting the Less Fortunate
15. Ensuring Welfare of Retrenched Workers
16. Incentives for Banks to Defer Repayments of Housing Loans
THIRD THRUST: ASSISTING THE PRIVATE SECTOR IN FACING THE CRISIS
17. Working Capital Guarantee Scheme
18. Industry Restructuring Loan Guarantee Scheme
19. Facilitating Access to Capital Market
20. Attracting High-Net-Worth and Skilled Individuals
21. Reducing Cost of Doing Business
22. Promoting the Automotive Sector
24. Accelerated Capital Allowance
FOURTH THRUST: BUILDING CAPACITY FOR THE FUTURE
28. Investments by Khazanah Nasional Berhad
30. Private Finance Initiative (PFI)
31. Liberalisation of Services Sector
32. Role of Foreign Investment Committee (FIC)
33. Development of Creative Arts Industry
34. Effective Management of Government Financial Resources
Further reading
Summary of Economics Stimulus Package dated 4th November 2008 (valued at RM7 B)
ESP34. Effective Management of Government Financial Resources
- government procurements will be through open tenders or restricted tenders, except for specific cases
- enhance transparency in management of procurement through e-Perolehan system
- design and build projects will not be allowed except in cases requiring high technical expertise
- project proposal to obtain approval from Standards and Costs Committee
- agencies to implement projects according to cost, cost limits, project scope and plans, as approved
- changes without approval of the Committee will not be allowed
- increase the numbers of professionals (engineers, architects, quantity surveyors) to strengthen the roll and effectiveness of the Committee
- the Committee to submit periodic reports to Cabinet on standards compliance and related issues
- support development of domestic industries through Government procurement
- mandate the use of local materials, products or services and give priority to local manufacturers
- imported items only if they cannot be sourced locally or cost of local products too high
- encourage private sector to give priority to local products in their procurement.
ESP33. Development of Creative Arts Industry
- RM20M for RTM to implement projects to develop the local music industries
ESP32. Role of Foreign Investment Committee (FIC)
- to formulate new guidelines to reflect its new role of monitoring investments at the makro level
- adopting a more liberal approach to bring positive changes and nurture a more investor-friendly environment to attarct more investment, including FDIs
- at micro level - guidelines focusing only in sectors of national interest
- ports, airports, defence, public transportation, telecommunication
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