What is the difference?
Can anyone tell me the difference? thank you in advance.
because if I pay myself director fee, I don't need to pay EPF, am I right?
I am working director.
Director fee vs Salary
Director fee vs Salary
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Apr 18 2015, 11:10 AM, updated 9y ago
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#1
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Senior Member
767 posts Joined: Sep 2009 From: Puchong |
What is the difference?
Can anyone tell me the difference? thank you in advance. because if I pay myself director fee, I don't need to pay EPF, am I right? I am working director. |
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Apr 18 2015, 11:16 AM
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#2
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28,187 posts Joined: Mar 2007 From: Underworld |
If listed company.. then the director fees need approval from shareholder lor..
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Apr 18 2015, 04:09 PM
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#3
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Senior Member
767 posts Joined: Sep 2009 From: Puchong |
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Apr 18 2015, 09:38 PM
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#4
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Senior Member
1,021 posts Joined: Jun 2008 |
QUOTE(kent_lau7 @ Apr 18 2015, 11:10 AM) What is the difference? yes for director's fee u can opt not to contribute EPF and Socso. Can anyone tell me the difference? thank you in advance. because if I pay myself director fee, I don't need to pay EPF, am I right? I am working director. Income tax wise its still the same. This post has been edited by Hapeng: Apr 18 2015, 09:40 PM |
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Apr 19 2015, 12:22 AM
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#5
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4,391 posts Joined: Sep 2009 |
take all income as salary can put you in high income bracket, apply loan , top end credit card etc easier.
Take all income as director fee, you wanna apply loan, credit card susah next time as director fee is not taken as fixed income even though you control 100% of the Co. Best is to take some as salary and some as director fee, avoid high income status, next time kids wanna apply for scholarship etc you can just put your salary as income. |
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Apr 20 2015, 10:33 AM
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#6
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767 posts Joined: Sep 2009 From: Puchong |
QUOTE(guy3288 @ Apr 19 2015, 12:22 AM) take all income as salary can put you in high income bracket, apply loan , top end credit card etc easier. Thank you very much, guy3288Take all income as director fee, you wanna apply loan, credit card susah next time as director fee is not taken as fixed income even though you control 100% of the Co. Best is to take some as salary and some as director fee, avoid high income status, next time kids wanna apply for scholarship etc you can just put your salary as income. Now I know director fee is not considered fixed income. How do the bank knows that money is director fee and not salary? is it based on if I have contribute to EPF or not? |
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Apr 20 2015, 01:28 PM
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#7
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4,391 posts Joined: Sep 2009 |
QUOTE(kent_lau7 @ Apr 20 2015, 10:33 AM) Thank you very much, guy3288 Yes bank nowadays want to see your EPF contrib as proof of your regular monthly income.Now I know director fee is not considered fixed income. How do the bank knows that money is director fee and not salary? is it based on if I have contribute to EPF or not? If you dont want to contrib EPF, another way is to draw monthly income as allowance. But banks may not want to accept that allowance slips (even though you draw monthly) for application of loan or credit cards. My wife did not want to contrib to EPF, so no choice only paid as monthly allowance. recently tried applied Citibank cc, it insisted must see EPF statement despite we gave them EA, BE and income slips. you must know what is the reason you want to draw income as salary, Dir fee or allowance. |
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Apr 20 2015, 04:53 PM
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#8
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Senior Member
2,950 posts Joined: Sep 2005 From: JB |
Is dividend consider income?
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