Please enable JavaScript.
Coggle requires JavaScript to display documents.
08 S4(b) Employment Income, EPF acc Eg. salary 1000 em'er cont(12%):…
08 S4(b) Employment Income
S13(1)(a) Cash/cash convertible (can easily sell to get cash)
TAXABLE
Salary
Allowances
Gratuity
Shares scheme
S13(1)(b) Non-cash convertible/ Benefits-in-kind (BIK)
as per public ruling, amt taxable is limited
TAX EXEMPT UP TO CERTAIN AMT
Car (follow table)
Driver (600 pm)
Maid (400 pm)
Gardener (300 pm)
S13(1)(c)
TAXABLE
Em'ee/ service director (<= 5% sh holding in Co) of controlled Co
Lower
of
Defined Value (rental for unfurnished accommodation)
30% of S13(1)(a) but excluding
shares scheme
exclude share scheme:
not regular income, rarely happen
may distort S13(1)(a),
push up figure, may not be fair/ is a extremely large income
Director of controlled Co
DV
X from S13(1)(a) bc director may manipulate the figure (nature of remuneration)
S13(1)(d) Unapproved provident fund
(ie. pension fund: deduct salary from em'ee)
Em'er cont
TAXABLE
em'er cont 20% of em'ee salary = 200
Em'ee cont
NOT TAXABLE
bc ald tax as salary S13(1)(a)
em'ee cont 10% of own salary = 100
Interest
TAXABLE
em'er cont 20% (200) + em'er cont 10% (100) = 300
Int 10% = 30
Eg,
Salary
EPF(1000*11%)
Unapp provident fund
em'ee (1000*10%)
take home salary
S13(1)(e) Compensation for loss on employment
refer mind map from week 1
EPF acc
Eg. salary 1000
em'er cont(12%): 120
em'ee cont(11%): 110
int : X
to withdraw after retire
EPF is the
biggest approved fund, NOT TAXABLE
1000
790
-110
-100
Amt taxable in the
YA of withdrawal
= 200 +100 + 30
Em'er help em'ee save tax,
pay less S13(1)(a), pay less tax,
increase S13(1)(b)