Previously, we can get tax rebate from IRB for dividends but no more for this year's dividend as now tier 1. So we don't really save on company tax right.

However, directors remuneration are still tax deductible (reclassify your director monthly salary to yearly remuneration if your auditor really troublesome - or just change auditor). And why would the auditors query, you doing nothing wrong. Even if a director is not "working" he/she is still liable for the company affairs and all will be fined if accounts not submitted in time. As for IRB, make sure each of the sleeping directors submit BE form even if don't need to pay tax. But better pay a little bit lah which is much lower than 25%.

Even if IRB goes and audit your company, as long as your accounts are in order and pay as per your estimate (don't under declare, actually over declare a bit so no need to worry about 65% penalty) and you can justify all expenses plus also you and your family members not using company registered cars for personal usage, nothing to worry about. However, if IRB investigate your company, different story and big hassle.

Putting company funds in FD, interest are taxable yearly; so yes, declaring dividends and then place in FD under personal name is best since it is tax free for life

But now got company mah fan lah, got GST on the way and can go to jail if try to cheat tax.

This post has been edited by Gen-X: Nov 9 2014, 01:34 AM

bbgoat, thanks for the post on RHB promote FD. Just in time for me to move my FD to RHB. Compliment to bbgoat not me.

Oic RHB no CASA requirement.

Banker's cheque or personal cheque is fine though some bank treat banker's cheque as "risk free" and give u FD cert there and then. Banker's cheque comes with fees depending on the bank. Small amt, carry cash or get body guards with u.

Now we know how guys are rich even without working !

You are welcome. Thanks for posting the RHB promo leaflet. It clears any doubt others have on the promo.

This post has been edited by bbgoat: Nov 9 2014, 08:16 AM

Bro, RHB promo minimum FD is RM50k....i not dare to carry such big amt cash running around la...even got body guard also scare la...

So, u mean if use normal cheque, the bank will not give the FD cert on the spot?

My experience with RHB is u can get it with personal cheque on the same day. Other banks like BR, some MBB branch, may not give u on the same day.

On the same day? mean i have to go back few hours later on the same day?

RHB will give you a piece of paper confirming the FD placement on the spot.

Alrite, will proceed to RHB on tomorrow then.

By the way, the merger of RHB, CIMB & MBSB should not be a concern, rite?

Current understanding is their respective promo rate will still run after the merger, until end of FD terms.

Alrite, thanks bro.
RHB here i come...

No,
on a salary of RM10k a month, your company can claim tax deductible employer contribution on you, max RM1900 (19%).

If your company contributes RM5000 a month for your EPF, the additional RM3100 the company must pay tax.

So unless you have a say, the company would prefer to pay you anything above the 19% tax deductible portion, as your income/allowance rather than giving you higher contribution in EPF.

You got nothing to lose getting higher EPF employer portion. u dont pay tax for whatever extra you get there.

i stand corrected if there is qualified tax agent in here.

Beside of higher dividend in recent years, what's the advantages of putting into EPF? The advantage of higher dividend is being offset for less liquidated, i.e. hassle in get the money out before 55 years old...

obviously they are doing it for the higher % and is not worry about not getting the money till retirement.

we are getting 6.xx for past few years? this is more than 50% compared to FD rates.

or a good tool for those reaching 55.

This post has been edited by bearbear: Nov 9 2014, 07:24 PM

Ok...if employee want to put more $ into EPF, is it possible?

Add-on to lionel question, what is the procedure to do that? Anyone mind to share it? Thank you

yes, additional voluntary contribution,Bayaran Caruman pilihan sendiri, on paper is max RM60k per year.
but i was wondering if we just put in more than the capped RM60k for that year, is EPF really going to find out or penalise us?
i doubt it, i think the excess would still draw dividends the same.


Get KWSP 6A(1) form from KWSP or even banks, fill it up and pay. as easy as that. No need any approval from whomsoever.

If your company wants to pay extra EPF for you, then need to fill up KWSP 17(Maj), submit to EPF and get it gazetted as your new rate to be paid at that rate once it is gazetted. To reduce it back company must fill up KWSP 18(maj) and get EPF approval, you cant just simply up or down your contributions.

If you as an employee volunteer to contribute above standard 11% rate, fill up KWSP 17AA(Ahli) and again get EPF approval. To reduce it back get form 18 (Ahli).

Thanks alot guy3288!

Thanks bro for the details!

Any idea what is the maximum rate employee volunteer contribution can go up to?

Bro bbgoat, i just called into RHB...apparently they not aware of the 6m 4% & 9m 4.15% promo....

Do you have any "special" number in RHB to call?