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Tax planning for individual - Coggle Diagram
Tax planning for individual
residence status
be resident
enjoy relief
enjoy scale rate
not resident (<=60days)
exempt under Para 21 sch 6
remuneration package
reduce S13(1)(a)
if necessity to retain more S13(1)(a)
pay in the form that is eligible for exemption s13(1)(b)
rather than cash
e.g parking allowance , meal allowance, etc
provide more S13(1)(b) to employee
e.g maid, gardener, driver
only taxable on the amount prescribed by the public ruling
provide accommodation
as the amount is only on 30% of S13(1)(a)
Gratuity
employee >= 55 years old
not too far from the statutory retirement date or 10 years employment period
Compensation loss for employment
<55 years old
employment period < 10 years
contract of service S13(1)(a)
income taxable when received
cannot claim CA
less deductible expense
Expense > income = permanent loss
loss cannot brought forward
contract for service S13(1)(a)
income taxable on accrual basis
can claim CA
more deductible expenses
expense > income = current year business loss (deduct aganist
aggregate income
)
can b/f and deduct under
aggregate business income
up to 7 years